__"The next billion users..."__ What __[Google](https://robinhood.com/stocks/GOOGL)__ counts instead of sheep to fall asleep at night. They'll likely come from India, the world's 2nd most populous country (barely short of China). Roughly [half](https://www.wsj.com/articles/google-to-invest-10-billion-in-india-11594635725) of India's 1.3B people have yet to get online. Google wants in on those ~650M, so it's investing big in the world’s fastest growing internet market: 

- __The Google for India Digitization Fund__ will pour money into India's tech sector over the next 5-7 years. Expect spending on: equity investments, partnerships, and connectivity infrastructure.
- __Google will invest $10B there__ to make the internet "affordable and useful" for all those not-yet-connected. *Longish-term goal:* gain ad-revenue-driving eyes in the #1 untapped digital growth market.

__"*I know I'm not the only one*"...__ As geopolitical issues with China heat up, more companies are looking to India. China already bans American tech giants like Google and Facebook for censorship reasons. Now America's security concerns are intensifying (think: TikTok bans, Huawei bans). Political and trade issues, like China's crackdown on Hong Kong and its new deal with Iran, create a tense situation that companies don't feel safe investing in. 

- __[Facebook](https://robinhood.com/stocks/FB)__ invested almost [$6B](https://techcrunch.com/2020/04/21/facebook-reliance-jio/) for a 10% stake in India’s biggest telecom, __Jio Platforms__, back in April (__[Intel](https://robinhood.com/stocks/INTC)__ and __[Qualcomm](https://robinhood.com/stocks/QCOM)__ are now proud investors, too). 
- __[Amazon](https://robinhood.com/stocks/AMZN)__ invested $1B to take Indian businesses online, and is investing $5B to expand its India operations. __[Walmart](https://robinhood.com/stocks/WMT)__ dropped $16B on Indian ecommerce company __Flipkart__ in 2018.




_In India, the internet comes to you_

Invest

__India brings less spending power, but more numbers power...__ Tech companies like Google value users by their revenue potential. India's gross national income per person was [$2,130](https://data.worldbank.org/indicator/NY.GNP.PCAP.CD?locations=IN) in 2019, compared to almost $66K for the US. But the US has 330M people, over 90% of whom are internet users — India has 1.3B people and only ~55% are internet users. A massive untapped market makes up for spending power differences. 

India has over 600M people without internet, so Google's investing $10B 

__New Season out soon...__ We're talking Earnings Season, baby. __[Netflix](https://robinhood.com/stocks/NFLX)__ is kicking it off on Thursday after the market closes. Investors have some thoughts before the numbers drop (*don't they always*). The stock has soared ahead of earnings, giving Netflix a larger market value than __[Verizon](https://robinhood.com/stocks/VZ)__ and post-Hamilton __[Disney](https://robinhood.com/stocks/DIS)__. 

- __The bulls think 2020 is the year Netflix becomes a utility.__ Home-bingeing has never been more important and Netflix’s obsessive [content-hoarding](https://snacks.robinhood.com/newsletters/3VYgq4XRGydXCiWCpJd3rW/articles/1hRrTGpsrWf1HFMQNZopbk/) gives it a big leg up over rivals: it reportedly has *2 years worth* of fresh movies/shows stashed away.
- __The bears think 2020 is the year Netflix loses to *subscripturation*.__ A slew of new streamers have launched, and growth could slow on the competition/saturation. Netflix already takes up [72%](https://www.theverge.com/2020/4/21/21229587/netflix-earnings-coronavirus-pandemic-streaming-entertainment) of home streaming time. 


__Netflix and no chill...__ What investors really care about is 1 key nail-biter stat:

- __Net new subscriber growth:__ Netflix absolutely crushed it in April, adding 15.8M new paying subscribers in the 1st quarter (more than double the 7.2M expected).
- __Investors are waiting for another hit,__ but that's a tough act to follow. Netflix has forecast [7.5M](https://www.wsj.com/articles/netflix-cant-afford-a-weak-sequel-11594639800) net adds for this June quarter, but some bulls are expecting 10M-12M. 

_Investors waiting for the Netflix earnings like_

Watch

__The thesis, the risk, and the result...__ Earnings expectations drive stock moves, so shares can be particularly volatile pre-earnings. Long or short term, investors formulate a thesis based on data and trends, then take a risk based on their projections. Investors who are bullish on Netflix could see their stock jump if new subscribers exceed expectations — and they'll likely see their stock drop if new subscribers fall short.


Netflix is set to report earnings — investors are waiting for 1 key number

__That feeling when you order Coke...__ And they ask if Pepsi's okay instead. Pepsi might not be everyone's soda of choice, but it's winning on one thing: *snacks*. With restaurants, sports stadiums, and movie theaters closed during the pandemic, __[PepsiCo](https://robinhood.com/stocks/PEP)__'s *beverage* sales [plunged](https://www.cnbc.com/2020/07/13/pepsico-pep-earnings-q2-2020.html) 7%. Good thing the snacks portfolio was there to save the day:

- __Frito-Lay sales rose 7%:__ Pepsi owns the four big Os (Cheetos, Doritos, Tostitos, and Fritos), plus Lays (you really *can't* eat just one). 
-  __Quaker sales rose 23%:__ Pepsi owns your entire breakfast with Quaker Oats, cereal, and those Chewy snack bars that you ate 1,000 of at soccer practice. 
- __Pepsi's overall sales__ fell just 3% for the quarter thanks to the dippy-chewy snacks success. 

__The revival of "forgotten habits"...__ The pandemic has boosted  Big Food brands like Pepsi, __Kraft__, __Unilever__, and __Kellogg__. Consumers have turned to these familiar, affordable names for corona hoarding. And stress snacking has gained new power in the WFH era. *However...*

- __Healthy-*ish* drinks sparkled:__ Pepsi Zero Sugar and Bubly sparkling water saw [double-digit](https://www.cnbc.com/2020/07/13/pepsico-pep-earnings-q2-2020.html) sales growth. Pepsi's juice biz (including Tropicana OJ) got a big immunity boost. 
- __Healthy-ish snacks__ like SmartPop popcorn, Sun Chips, Bare dried fruit chips, and Sabra hummus are also part of the Pepsi fam. Which is why...




"_Welcome to the Pepsi aisle!_"

Snack

__Pepsi needs to change its name (or at least rebrand)...__ When you think of Pepsi, you think of canned soda and Mountain Dew. But Pepsi has a lot more to offer than sugary soda. Its latest earnings reveal that those "didn't-know-it-was-Pepsi" products — like Quaker Oats and Naked juice — are thriving. Perhaps the whole brand could get a boost if Pepsi honed in on that value prop.

PepsiCo’s earnings reveal it should probably rename to SnacksCo

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

🍿 Netflix's pre-earnings

__"How to become YouTube vlogstar"...__ Every __TikTok__ stars' Google search last week after millions of like/view counts suddenly went to zero. TikTokers thought it was the first sign that their precious app had been banned. It was a [glitch](https://www.vulture.com/2020/07/tiktok-glitch-ban.html), but their fears are far from unfounded. The viral video app is owned by China-based __Bytedance__, the [most](https://www.businessinsider.com/tiktok-bytedance-revenue-billions-first-quarter-results-growth-2020-2020-6?IR=T) valuable private startup *in the world* (~$100B). Before we dig into TikTok's possible demise, let's recap the impressive rise: 

- __Within a few months of its 2018 US launch,__ TikTok reached #1 on the App Store, beating giants like Instagram and YouTube. In 2019, TikTok had over [738M](https://www.barrons.com/articles/beware-facebook-tiktok-revenues-are-exploding-51579201752) global downloads.
- __Today,__ TikTok has been downloaded over 2B times and has an estimated 80M users in the US alone. 


__Clock's TikToking...__ Security concerns around TikTok's ties to China are heating up. The US already bans employees of many government agencies (like the Army) from having TikTok on work phones. Last week, __[Wells Fargo](https://robinhood.com/stocks/WFC)__ told employees to [remove](https://www.theverge.com/2020/7/11/21320935/wells-fargo-bans-tiktok-devices-amazon-pompeo) it from company devices. Amazon did the same, then weirdly [backtracked](https://www.geekwire.com/2020/ban-wasnt-amazons-tiktok-reversal-leaves-tech-world-wondering-wth/). Also:

- __India full-on banned TikTok__ (and 58 other Chinese apps) on national security concerns. India was TikTok's largest market *by far*, driving [660M](https://edition.cnn.com/2020/06/30/tech/tiktok-india-ban-intl-hnk/index.html) downloads since 2017. This may cost Bytedance [$6B](https://www.forbes.com/sites/zakdoffman/2020/07/04/tiktok-loses-6-billion-as-users-urged-delete-app-immediately/#35d9efb91c98) in lost ad sales. 
- __President Trump said he's considering [banning](https://fortune.com/2020/07/09/tiktok-ban-trump-is-tik-tok-getting-banned-us-why-how-would-it-work-china/)__ TikTok and other Chinese  apps. Leaked moderation guidelines [reveal](https://www.theguardian.com/technology/2019/sep/25/revealed-how-tiktok-censors-videos-that-do-not-please-beijing) TikTok has censored content critical of China. And the administration is worried American user data could be passed to the Chinese gov. Interestingly...
- __China itself bans TikTok__ — Chinese nationals use Bytedance's __Douyin__, the original, non-international version of TikTok: Same branding, same parent, separate content (which is censored by the Chinese gov).

_When the TikTok ban nightmare becomes reality_

Dance

__TikTok has big US market influence...__ despite being a non-public, non-US company. Its explosive growth has major implications for American media. It's the biggest threat for disrupting social giants like __[Facebook](https://robinhood.com/stocks/FB)__, __[Snap](https://robinhood.com/stocks/SNAP)__, and __[Twitter](https://robinhood.com/stocks/TWTR)__. It contributed to __Quibi__'s flop. And recently, it's been trying to appeal to the American gov: it [brought](https://www.theverge.com/2020/5/18/21262872/disney-plus-streaming-kevin-mayer-tiktok-ceo-bytedance-coo) on a former Disney exec as CEO and is considering adding a non-China HQ. But more TikTok bans could be coming — *that would significantly reduce competition for US media companies*. 



TikTok's future is cloudy as the US looks into a security ban (India's already on it)

__Turn me on with your electric wheel...__ Electric vehicle startup __Rivian__ [raised](https://www.theverge.com/2020/7/10/21319899/rivian-2-5-billion-funding-round-amazon-soros-r1t-r1s-truck-suv-ford) an astounding $2.5B in its latest funding round — without ever having released a single product. Rivian wants to be the 1st to bring all-electric pickup trucks to roads *and* it's developing 100K electric delivery vans for __[Amazon](https://robinhood.com/stocks/AMZN)__ (ETA 2021). Producing all these EVs is capital-intensive — so investors have poured in $5.3B since 2019 (about 1/2 the value of Lyft).

__Bezos sweating over $21...__ __[Walmart](https://robinhood.com/stocks/WMT)__ stock jumped 7% on a report that it's [shipping](https://snacks.robinhood.com/newsletters/7npBg6WCh7X1ssgq9cuRtt/articles/5KSLxwetQ3mOFHvXF6Jnl9) a $98/year rival to __[Amazon](https://robinhood.com/stocks/AMZN)__ Prime *this month*. Creatively-named Walmart+ perks include: same-day and 2-hour grocery delivery, product deals, and gas discounts. Walmart is the US grocery leader, but half its top-spending families now have Prime memberships. Walmart doesn't want to lose them to Amazon — it's hoping this perk-filled subscription will secure long-term grocery loyalty. 






Highs

Who's up...

__More turbulence ahead...__ __[United](https://robinhood.com/stocks/UAL)__ shares plunged on news it may have to [furlough](https://www.barrons.com/articles/united-airlines-stock-layoffs-furloughs-travel-coronavirus-newark-51594235139) almost half its US workforce, despite the billions of federal funds it received. Airlines that took $25B in federal payroll support aren't allowed to furlough, lay off, or cut pay until Oct 1 — United's holding off until then. But it's now burning through $40M *a day* on high costs and near-zero sales (__[American](https://robinhood.com/stocks/AAL)__ and __[Delta](https://robinhood.com/stocks/DAL)__ feel the pain, too). October layoffs could be on the horizon. 

__Blame the $2 hand sanitizer...__ __[Walgreens](https://robinhood.com/stocks/WBA)__ lost $1.7B last quarter — bummer, since it *made* $1B during the same quarter last year. The shift to sales of less-profitable items (like TP vs. prescription meds) and higher labor costs (like extra sanitizing) contributed to the huge profit decline. Now Walgreens is cutting 4K jobs. But it's *also* making a [$1B](https://snacks.robinhood.com/newsletters/6hhuCOY10qHk7z0tNQJNYE/articles/5aYSlp1wVeRDxLaMBqz3MY) investment on a big bet: in-store doctors offices. Walgreens is splurging on a 30% stake in a medical startup to get you in for checkups  (even when you're just trying to grab Doritos).




Lows

...and who's down

📲 🎵 TikTok's future (or lack thereof) 

__Beyond Impossible...__ We find the Simple Truth. Grocery giant __[Kroger](https://robinhood.com/stocks/KR)__ stuffs its supermarkets with name brand items, but complements Heinz and Pepsi with its own Kroger-branded (private label) products. It owns a plant-based meat brand called Simple Truth, but also sells non-Kroger brands (like __[Beyond Meat](https://robinhood.com/stocks/BYND)__ and __Impossible__). *Just in-stock*: some tasty alt-meat stats...


- __+75%:__ How much Kroger's plant-based meat sales [jumped](https://www.foodbusinessnews.net/articles/16393-plant-based-meat-placement-matters-says-kroger) last quarter. The number of alt-meat buyers popped 50%. 
- __+23%:__ How much Kroger's plant-based meat sales grew simply by moving the products from the alt-food section to the *meat* department. 


__Location, location, location...__ Retail products want that prime shelf-placement real estate. Nice packaging and quality do little to help a product's sales if it's tucked on the bottom shelf by the Aisle 87 bathroom. 

- __Placement matters extra__ for a non-mainstream product like plant-based meat. By placing it in the meat department, Kroger made it a real consideration for traditional meat shoppers.
- __Meat-eaters are the target:__ Alt-meat companies like Impossible [know](https://snacks.robinhood.com/newsletters/1OakXJF4N8DrV0FqU98KXR/articles/TGtJ9fDfvnbskIgjgPyVo/) they can't grow unless they target meat-eaters. "Flexitarians" that eat both animal meat and plant-based are key to taking plant-based mainstream.


_Kroger's competitor-crushing secret_

Plant

__Kroger has the same power that Apple has...__ *To give its products special treatment*. __[Apple](https://robinhood.com/stocks/AAPL)__ owns and controls the App Store — and it's being sued/investigated in Europe for allegedly [playing favorites](https://snacks.robinhood.com/newsletters/1dxqpvdRnz5eITeoT8vbeN/articles/2WdP7dj2TMzaTUWzOkSACV/) with its own apps in App Store search results (e.g. Apple Music #1, Spotify #5). Kroger owns its markets, but also competes in them with others' brands. It has the power to give its products special shelf placement. With the best shelf space and a lower price point, it's probably eating into Beyond and Impossible's growth. 

Kroger's alt-meat sales soar on real-meat shelf placement (but is it pulling an Apple?)

__Kleenex, Aisle 6...__ __[Walgreens](https://robinhood.com/stocks/WBA)__ lost $1.7B last quarter — for reference: it made a $1B profit during the same quarter *last* year. Foot traffic fell because of stay-at-home orders and those who came in were buying less-profitable items (like TP instead of beauty products). So to save cash, Walgreens is cutting 4K jobs in the UK and the stock still fell 8%.

__Skipping 10 years of med school...__ Despite the loss, Walgreens will [invest](https://www.wsj.com/articles/walgreens-to-open-doctors-offices-at-its-u-s-stores-11594209601?mod=business_lead_pos3) a whopping $1B over 3 years to open up 700 doctors' offices. It's invested in primary-care provider __VillageMD__ to bring sleek, zen-themed clinics *into* your Walgreens locations (half in medically underserved areas). Walgreens is splurging for the "short-term pain, long-term gain" strategy:

- __Sales of prescription drugs__ account for most of Walgreens' sales, but they've dropped off in the corona-conomy. 
- __60% of Americans live with at least one chronic condition__ that requires multiple daily medications.
- __By adding easy-access clinics__, Walgreens can drive sales for its profit-puppy prescriptions (and sell you toothpaste, while you're at it).


Medicate

__Healthcare is big retailers' Big Bet...__ for big profits. __[CVS](https://robinhood.com/stocks/CVS)__ acquired Aetna insurance in 2018 and is planning 1.5K "HealthHUB" clinics by 2021 (no doctors though). __[Walmart](https://robinhood.com/stocks/WMT)__ is doing something similar with its flat-fee primary care clinics (and it just [launched](https://www.cnbc.com/2020/07/08/walmart-quietly-registers-insurance-business-in-its-latest-move-into-health-care.html) a health insurance biz this week). All these retailers already have big physical footprints, and they figure adding healthcare into one-stop-shopping could drive growth.

Walgreens drops $1B to open hundreds of doctors offices — healthcare is its Big Bet

__How to make mortgages sexy...__ *Thinking, thinking*.... Include some space-travel imagery. __Rocket Companies__ (formerly less-sexy Quicken Loans) is the largest mortgage lender in the US. Back in 2010, Cleveland Cavs owner Dan Gilbert chose downtown Detroit for Quicken's HQ. That kinda catalyzed a renaissance for the Motor City because Quicken brought some fast-paced business growth with it. Now:

- __Rocket Cos just [filed](https://www.marketwatch.com/story/rocket-mortgage-parent-files-for-ipo-2020-07-07) to go public:__ The target valuation hasn't been announced, but it's likely in the tens of billions of dollars, [according](https://www.cnbc.com/2020/06/11/quicken-loans-the-largest-us-mortgage-lender-is-planning-an-ipo-sources-say.html) to #PFWTM (people familiar with the matter). 
- __Rocket Mortgage,__ the flagship biz, has doled out over $1 Trillion in home loans. Last quarter, sales more than doubled from a year ago — Now it controls 9% of the mortgage market.  

__How to make mortgages sexy (part 2)...__ There's an app for that. The Rocket Mortgage app was so popular, that Quicken decided to rebrand itself to Rocket. Kind of like the TurboTax of mortgages, Rocket's calculators hand-hold your way into seeing what home ownership means for your wallet. You can see how the digital-first focus is working with its target:

- __75%__ of Rocket users are 1st-time homebuyers, encouraged by low interest rates right now.
- __But the risk__ facing Rocket (and the whole mortgage industry) is how home sales could change dramatically in a longer recession.





Lend

__Local mortgage providers have big competition...__ Historically, getting a mortgage required meeting a guy/gal at a local bank in town. But in-person transactions have declined with the rise of financial software — and this decline is accelerating quickly in the corona-conomy. Rocket's app-based approach helps it lower costs and scale quickly, which is why it processed 3X as many mortgages monthly as a typical lender.

Rocket Companies files to IPO on the wings of its mortgage app

👩‍⚕️ Dr. Walgreens will see you now

__Darth Bezos sweating in his Prime Lair...__ Recode just [reported](https://www.vox.com/recode/2020/7/7/21314767/walmart-plus-grocery-delivery-amazon-prime-membership-loyalty-program-walmart?scrolla=5eb6d68b7fedc32c19ef33b4) that __[Walmart](https://robinhood.com/stocks/WMT)__'s own Amazon Prime-like subscription will launch *this month.* "Walmart+" (creative) is coming in hot at $98/year (Prime goes for $119). Here's how the reported perks stack up: 

- __Delivery:__ Unlimited same-day grocery/merch delivery, plus limited Express 2-hour delivery. Prime has free: 2-day shipping, same-day delivery in some ZIPs, and grocery delivery (in eligible regions).
- __Discounts:__ Fuel discounts at Walmart gas stations, early access to product deals, and an available Walmart+ credit card. Prime has: Whole Foods discounts and some cash-back cards. 
- __Entertainment:__ Walmart's new entertainment platform ([CAMP](https://corporate.walmart.com/newsroom/2020/07/01/walmart-launches-virtual-summer-camp-and-drive-in-movie-theater-to-help-families-make-the-most-of-summer)) features videos starring celebs (including LeBron). Walmart could gate it off for free to subscribers. Prime has: Prime Video and Music. 

__This is about securing the (grocery) bag...__ Walmart is the US market leader in groceries, which account for over 56% of its sales. Its *online* grocery biz drove a [41%](https://www.businessinsider.com/walmart-ecommerce-growth-driven-by-online-grocery-2019-11?IR=T) jump in ecommerce sales last year. But gig and online competitors are creeping into Walmart's sacred shopping cart territory... 

- __Instacart:__ In August 2019, Walmart eclipsed Instacart with close to a 50% share of the egrocery market. But it slipped to 25% this March and Instacart soared to 57% share by April.
- __[Amazon](https://robinhood.com/stocks/AMZN)__: Over half of Walmart’s top-spending families now have Prime memberships. Walmart fears losing grocery customers to Amazon's egrocery. 

_When the Walmart+ delivery arrives in less than 2 hours_

Membership

__Subscriptions are loyalty-builders...__ Attractive perks = subscription = customer "stickiness." Amazon's 15-year head start with Prime is a major reason why it's now worth over 4X Walmart. But Walmart is a grocery whiz — it can use that to suck people in with habit-building perks. Your weekly grocery splurge gets you buying bananas and pizza... and jeans and Madden '20 while you're at it. 

Walmart is launching a $98/year Amazon Prime rival (but it's really a grocery war)

__Cat's outta the virtual bag...__ Tweet this: __[Twitter](https://robinhood.com/stocks/TWTR)__ stock jumped 7% thanks to a few words in a job description. Some Wall Street Sherlocks found this buried in a Software Engineer [job description](https://careers.twitter.com/en/work-for-twitter/202006/senior-full-stack-software-engineer0.html): “we are building a subscription platform.” 

- __Codename "Gryphon":__ That's the new subscription team Twitter inadvertently revealed. The now-viral new hire would work closely with the Payments team to lead "Subscription client work."
- __Ad revenue makes up more than [80%](https://www.forbes.com/sites/siladityaray/2020/07/08/twitter-job-listing-hints-at-subscription-service-stock-jumps-nearly-8/#13b343532974) of Twitter’s sales,__ and it's likely to take a hit from the corona ad-pocalypse — Subscription could be a key new revenue stream. 

__We have a few questions...__ Will everyone have to pay to use Twitter? Is Twitter spinning off a brand new premium Twitter (if so, please consider: "Twitter Titanium"). Twitter's past might shed light on how this could play out:

- __In 2017,__ Twitter ran a survey to gauge interest in a paid subscription service for power users (like companies and news orgs). 
- __The "power user" premium:__ These paying users could get beefier analytics, breaking news alerts, and info on target demographic activity. 
- __Alternatively,__ Twitter could offer a Patreon-style product where you can subscribe to certain tweeters' exclusive tweet content. 

Subscribe

__Less dependence on ads could make Twitter a more civil place...__ Social media platforms are known and loved/hated for being free places to post and share. But their ad-dependent biz models mean algorithms that amplify the reach of posts generating the most engagement — that's often the most intense and [divisive](https://www.wsj.com/articles/facebook-knows-it-encourages-division-top-executives-nixed-solutions-11590507499) ones. A subscription model could liberate algorithms to focus less on the provocative posts since money is coming from somewhere besides engagement-driven ads.

Twitter might launch a paid subscription service (we know from a Twitter job post)

🥕 Walmart+ takes on Prime

__Ditching styrofoam cups wasn't enough...__ __[Dunkin'](https://robinhood.com/stocks/DNKN)__ (dropped the 'Donuts') just hit a new extreme in its [fancy-fication](https://snacks.robinhood.com/newsletters/6kMejLjAW3nUadbqAQTFJW/articles/3KkqacNKCIdEx6muV6D7Cy) quest. Dunkin' will [close](https://www.delish.com/food-news/a33234430/dunkin-speedway-locations-closures/) 450 locations in Speedway gas stations by the end of the year. These smaller in-station spots offer a limited menu — you hit 'em up mid-tank fill and order just "coffee."

- __Not fancy enough:__ Dunkin' doesn't think they fit in with its *fanceh* chic vision (less gas pumps, more Louboutin pumps).
- __From a Dunkin spokesperson:__ "By exiting, we will be better positioned to serve these areas with Dunkin’s newest Next Generation restaurant design." 

__Stirring the (coffee) pot...__ Over the past few years, Dunkin' has inched toward this "Next Gen" vision — but it risks alienating OG fans as it fancy-fies. Dunkin' wants:

- __More Quality:__ It's investing $120M in fancy new brewing systems. It also gave the espresso recipe a glow up, and trained employees to be 'espresso certified.'
- __More Options:__ Beyond Coolattas and crullers. Dunkin now offers cold brew, oat-milk lattes, and Beyond Meat breakfast sandwiches. The Speedway locations don't offer these. 
- __More Future:__ Think mobile ordering and sleek interiors. Dunkin's doing this all because...


_Dunkin's fancy new attitude_

Caffeinate

__Dunkin' wants to change its brand perception...__ That's because it makes more $$$ from premium drinks and alt-meat sandwiches than $2 cups of joe and glazed donuts — Espresso now makes up [10%](https://www.restaurantbusinessonline.com/financing/dunkin-close-450-speedway-locations) of Dunkin's sales mix. The Speedway locations account for a small fraction of Dunkin's sales (less than 1%), but they have a big impact on its brand perception. Dunkin' is crushing the lowest part of its brand identity: Speedway Dunkin-ettes. 

Dunkin’ ditches gas station locations — the fancy-fication hits a bold new level

__Calculating calories in a "medium" avocado...__ Acquisitions get a lot of buzz, but today we've got an *un*-acquisition on our hands. __[Under Armour](https://robinhood.com/stocks/ua)__ bought MyFitnessPal back in 2015 for a caloric $475M. Now it's trying to sell the diet tracking app, according to [The Information](https://www.theinformation.com/articles/under-armour-seeks-buyer-for-myfitnesspal-app). Let's rewind to a time when UA was trying to expand beyond apparel: 

- __2013-2015:__ UA snatches up health trackers MapMyRide for $150M, MyFitnessPal for $475M, and Endomondo for $85M. All so you can log that 153-calorie bag of Cheetos (+ an almond) and burn it off in a cal-tracking workout. 
- __2019:__ These apps made up less than 3% of UA’s sales. Besides monetizing with subscriptions and ads, UA didn't use them to create a holistic fitness brand. It didn't merge them into a UA app, or leverage them to drive apparel sales through recommendations. 

__Protect This Clearing House...__ As consumer tastes shifted, Under Armour focused too much on the "ath," not enough on the "leisure." Its 2019 sales grew just 1.4% (compared to __Lululemon__'s 24% growth). Now the corona-conomy is messing with its financial struggles: 

- __UA expects sales could fall 50%-60%__ this quarter — it took a $590M loss last quarter on corona-closed stores.
- __It's planning to cut $325M in costs for 2020__, and just [canceled](https://snacks.robinhood.com/newsletters/53ExK4qFnO6TgaRpz8Ssnl/articles/2vKAn4kfat6cm2agJgzPg8/) its $280M UCLA apparel deal. The MyFitnessPal sale could be another sacrifice in this cost-slashing plan.


Sweat

__Big acquisitions have big opportunity costs...__ UA spent $710M on three fitness apps that seemingly haven't done much to help its brand. What could Under Armour have spent that money on instead — *aka what was the opportunity cost?* UA could have acquired or built its own athleisure line to slow Lululemon's threat. It even could have tried to buy a company like Peloton which was worth way less than $710M when Under Armour splurged $710M on these apps.

Under Armour tries to sell MyFitnessPal, its $475M (likely wasted) acquisition 

__Soaking up that summer sun...__ Residential solar energy company __[Sunrun](https://robinhood.com/stocks/RUN)__ is acquiring __[Vivint Solar](https://robinhood.com/stocks/VSLR)__ in an all-stock deal valued at [$3.2B](https://www.cnbc.com/2020/07/07/solar-energy-company-sunrun-to-buy-peer-vivint-solar-for-about-1point46-billion.html). Vivint stock soared almost 40% on the news, and SunRun shares jumped 23%. 

- __The combined companies__ are expected to save around $90M per year thanks to the merger by cutting redundant activities (book 1 TV ad instead of 2, pay 5 solar lawyers instead of 10).
- __Together,__ they'll have almost 500K customers and will join their solar sales forces for more growth on your roof. The marriage gives investors renewed hope after...

__Corona-conomy rained on solar...__ On one hand, the pandemic made cost saving and self-sufficiency sexier. Home solar allows you to ditch the $100/month electricity bill and harness free energy (aka sunlight) from panels on your roof. But you still have to pay to get them installed, even with $0 down monthly financing. 

- __No door-to-door salespeople:__ The solar industry had one of its worst quarters in years, as companies were hard-pressed to *not* make in-person sales.
- __Delayed installations:__ The lockdown caused delays in permits and installations, which slowed sales significantly. 
- __Double whammy:__ Sunny states with expensive electricity are perfect for solar adoption (like CA, FL, and AZ), but they've been seeing some of the biggest COVID surges. Not good for the solar biz. 


Energize

__Solar has a customer acquisition problem...__ Even for those who aren't motivated by renewables/the environment,  solar can save $$ on monthly electric bills. But only around [2%](https://finance.yahoo.com/news/u-solar-giant-sunrun-become-112630801.html) of US homes are using solar power. That's partly because the market is absurdly fragmented: there are 10K solar companies and no clear industry go-to. Consolidation could help a national brand emerge to bring solar mainstream.

 America's two largest rooftop solar companies merge after a rainy COVID season

🍩 Dunkin's chic ambitions

__Can I get an e-sample of that orange slice?...__ The Sunday Farmers Market has an online cousin. Guac legend __[Chipotle](https://robinhood.com/stocks/CMG)__ launched a digital farmers market for its food suppliers (the same ones that grow the organic rice for your bowl):

- __Direct-to-consumer farm:__ Chipotle is starting with four farmers that it's been working with for over a decade. It'll pay for their new __[Shopify](https://robinhood.com/stocks/SHOP)__-powered digital storefronts for two years. It's also helping them develop the four websites. 
- __DIY Chipotle bowl:__ The Farmers Market [homepage](https://farmersmarket.chipotle.com/) tells you which Chipotle product each farmer supplies (e.g. Petaluma Creamery makes the shredded Monterey cheese for your burrito, Niman Ranch grows the pork for your Carnitas bowl). 

__No such thing as a free (Chipotle) lunch...__ Chipotle is shelling out guac to cover its suppliers' Shopify fees. The benefit to farmers is clear — the benefit to Chipotle is  more nuanced:

- __Farmers get:__ A free way to sell food online while the pandemic decimates in-person sales at the restaurants they normally supply. American farmers have had to destroy [millions](https://www.prnewswire.com/news-releases/chipotle-announces-virtual-farmers-market-powered-by-shopify-301085587.html) of pounds of fresh food on fallen demand from restaurants, hotels, etc.
- __Chipotle gets:__ Good PR. Chipotle's whole thing is "Food with Integrity.” With these online shops, Chipotle is tackling the problem of food waste while propping up sustainable farms. But that's not all...

_Trying to gauge avocado-squishiness on the eFarmers Market_

Guac

__Chipotle wants supply chain insurance...__ Chipotle’s competitive advantage is its ability to scale with sustainable ingredients at fast-casual prices. Without a reliable supply, Chipotle suffers — During its last food-born illness outbreak, Chipotle had to completely change its pork supplies (carnitas bowls were literally canceled temporarily). Now, it's helping suppliers survive corona-conomy by bankrolling websites.

Chipotle launches a Virtual Farmers Market for its sustainable food suppliers

__Big splurge after months of holding out...__  Warren Buffett's __[Berkshire Hathaway](https://robinhood.com/stocks/BRK.B)__ just made its 1st big investment since the pandemic started (over a decade ago, in corona years). Buffett's legendary holding company hoarded up a record $137B in cash and held off on money moves...until now: 

- __Berkshire is acquiring__ __[Dominion Energy](https://robinhood.com/stocks/D)__'s natural gas assets (gassets?) in a deal worth nearly [$10B](https://www.cnbc.com/2020/07/05/warren-buffetts-berkshire-buys-dominion-energy-natural-gas-assets-in-10-billion-deal.html) — Berkshire's biggest deal since 2016. Dominion's gassets: 7.7K miles of natural gas pipelines and massive storage facilities. 
- __With this gassy splurge,__ Berkshire  will control 18% of all US interstate natural gas transmission (up from 8%). With its gassets sold, Dominion gets to shift its focus from gas to clean utilities (like renewable energy). 


__Fossil fuels aren't hot right now...__ While natural gas pollutes less than crude oil (which is refined to make gasoline), it's still a fossil fuel. Natural gas generates electricity and heats our homes, but pollutes in the process. Now that corona-conomy is [accelerating](https://snacks.robinhood.com/newsletters/q4J6y6mMs3jtkXwdTmJlG/articles/3pb5xvD9cTzNncWIfkFE8a/) the transition to clean energy, fossil fuels are facing more uncertainty than ever:

- __On Sunday,__ Dominion said it's scrapping its Atlantic Coast pipeline project due to regulatory scrutiny. 
- __On Monday,__ a Federal Court ordered the Dakota Access Pipeline to close pending an environmental review. *So why is Buffett dropping $10B on  pipelines?*

_Buffett: the Albus Dumbledore of American capitalism_

__Buffett's all about the "value investment"...__ like that $98 Gucci bag from Marshalls. Warren buys companies that he believes are undervalued. His MO: "*Be fearful when others are greedy and greedy when others are fearful*.” With so much negative buzz around pipelines, he sees Dominion as a good deal — The increased scrutiny around building new pipelines could actually be a boon to Dominion's existing ones. 

Warren Buffett drops $10B on gas pipelines while fossil fuels' future is extra-uncertain

🥑 Chipotle's eFarmers Market

__And I think it's gonna be Elon, lon, time...__ __SpaceX__ Rocket Man and __[Tesla](https://robinhood.com/stocks/TSLA)__ EV pioneer Elon Musk is having a winning 2020 (unlike the rest of us). In addition to a historic [rocket launch](https://snacks.robinhood.com/newsletters/4rNe8qoYgGWH3zr9vhM8LM/articles/4srz4ZoIYDbhUzLXlyokri/) and a baby named X Æ A-Xii, Elon has now notched the title: "CEO of world's most valuable car company."

- __On Wednesday,__ Tesla became the most valuable car company *in the world*. Its [market cap](https://learn.robinhood.com/articles/GByCbiOluG2kcWs1AF6m5/what-is-market-capitalization/) is now around $224B, well past long-time #1 __[Toyota](https://robinhood.com/stocks/TM)__'s $205B.  
- __On Thursday,__ Tesla backed up that milestone with expectations-beating [numbers](https://ir.tesla.com/news-releases/news-release-details/tesla-q2-2020-vehicle-production-deliveries): It produced 82K cars and delivered 91K last quarter.


__Still seeing more Priuses...__ Tesla's deliveries fell only 4.8% compared to the same quarter last year — impressive, since the April through June quarter was peak corona-conomy shutdown. For reference: __[GM](https://robinhood.com/stocks/GM)__, __[Ford](https://robinhood.com/stocks/F)__ and Toyota saw quarterly sales [plunge](https://www.cnbc.com/2020/07/02/tesla-tsla-q2-2020-vehicle-delivery-and-production-numbers.html) by over 30%. But Tesla's *total* numbers still pale in comparison to Toyota's: 

- __368K:__ The number of cars Tesla delivered last year, compared to Toyota's __11M__ (30X more than Tesla).
- __Annual profit:__ What Toyota has delivered for years — Tesla has yet to swing one. 

_Tesla soars on that young revolutionary energy_

Electrify

__Tesla is a young avocado tree...__ and Toyota is a mature, profitable orange tree. Investors like Tesla's *potential* — and stock prices are all about *future* growth. After years of quarterly losses, Tesla has delivered 3 profitable quarters in a row. Plus, it was able to maintain that momentum during an economic crisis/global pandemic. Investors like what they see, so they're buying the stock hoping for future profit growth. 

Tesla becomes the most valuable car company on Earth, passing Toyota

__Vax off, vax on...__ __[Pfizer](https://robinhood.com/stocks/PFE)__ and __[BioNTech](https://robinhood.com/stocks/BNTX)__ shares soared on [positive](https://www.barrons.com/articles/pfizer-stock-coronavirus-vaccine-51593613205) data from their COVID-19 vaccine trial. The big pharma companies unveiled an aggressive timeline: Pfizer expects to manufacture up to 100M doses by the end of 2020, and over 1B by end of 2021. Like smaller biotech company __[Moderna](https://robinhood.com/stocks/MRNA)__, Pfizer is testing an [mRNA](https://snacks.robinhood.com/newsletters/79biJunQ8AVseCaSA7jDwV/articles/3Kiqd7olgKIOuHwvy3lMeJ/) vaccine (these have never been approved for human use). Others like __[Johnson & Johnson](https://robinhood.com/stocks/JNJ)__ are testing more OG traditional candidates. And both types of vaccines are receiving billions in US gov funding.


__Double Kardashian makeover...__ __[Coty](https://robinhood.com/stocks/COTY)__ stock jumped after its latest Kardashian investment: the cosmetics giant is [dishing](https://snacks.robinhood.com/newsletters/53ExK4qFnO6TgaRpz8Ssnl/articles/6iVUy7VWbpoyyhVphbUGt1/) out $200M for a 20% stake in Kim Kardashian's makeup brand __KKW Beauty__. Sales of Coty's own and licensed products (picture CoverGirl makeup and Burberry perfume) have been falling. Now investors hope Insta-famous, direct-to-consumer brands like KKW and __Kylie Cosmetics__ can give 116-year-old Coty a fresh glow.

__Details, please...__ Shares of freshly IPO'd __[Nikola](https://robinhood.com/stocks/NKLA)__ plunged 21% last week. The hydrogen-fueled electric truck startup *plans* to sell electric and hydrogen-powered trucks (products delivered so far = 0). Last week, Nikola started taking preorders for its $60K-$90K Badger pickup to be delivered starting in 2022. But [vague](https://www.fool.com/investing/2020/07/02/why-nikola-stock-is-down-today.aspx) tweets from Nikola's founder left investors feeling uneasy. He then [said](https://twitter.com/nikolatrevor/status/1278837741262864385) the $5K Badger reservations "sold out" at 1K preorders. 

__Pull out the blotting papers...__ The world doesn't want all that oil. Oil prices went negative for the 1st time ever in April. Now they're back around $40 per barrel, but oil giants are losing hope. Fracking pioneer __[Chesapeake Energy](https://robinhood.com/stocks/CHK)__ just filed for bankruptcy. __[Shell](https://robinhood.com/stocks/RDS.A)__ wrote down the value of its oil assets by [billions](https://snacks.robinhood.com/newsletters/q4J6y6mMs3jtkXwdTmJlG/articles/3pb5xvD9cTzNncWIfkFE8a), expecting prices to stay low. __[BP](https://robinhood.com/stocks/BP)__ says its oil assets are $17.5B less valuable — not because it thinks the economy won't bounce back, but because it thinks *oil* won't. Corona-conomy accelerates the energy transition.

🚗 Tesla's big delivery

__What do you call boozy ecommerce?...__ Let's go with bcommerce. If there's one thing you want showing up at your door mid-pandemic, it's wine. Bcommerce sales soared almost [400%](https://www.cnbc.com/2020/07/01/constellation-brands-acquires-gary-vaynerchuks-empathy-wines.html) in mid-April when lockdowns were on and bars were shut. Then we had a brief reopening stint, but now bars are getting [re-shut](https://www.forbes.com/sites/bradjaphe/2020/06/28/restaurants-and-bars-across-the-us-are-re-closing-due-to-coronavirus-surge/#5beb830863ca) in some of America's largest cities. 

- __Booze giant [Constellation Brands](https://robinhood.com/stocks/STZ)__ thinks it's the perfect time to invest in bcommerce. Constellation owns alcohol classics like Robert Mondavi wine, Svedka vodka, and Ballast Point beer. Now it wants some direct-to-consumer action...
- __Empathy Wines:__ The D2C wine company  Constellation just acquired. The 1-year-old startup was launched by Gary Vaynerchuk, who founded __Resy__ (later sold to Amex). Its 2K subscribers have bought 15K cases of "vineyard-to-table" CA wine. Sounds empathetic.

__Constellation isn't just buying a startup...__ It's buying the whole bcommerce biz model. 

- __Over [90%](https://www.forbes.com/sites/chrisfurnari/2020/07/01/constellation-brands-buys-gary-vaynerchuks-direct-to-consumer-empathy-wines-brand/#6df9934e4cea)__ of Constellation's wine sales happen through wholesalers and bars/restaurants (not pandemic-friendly). 
- __Yet 46 states__ allow alcohol to be delivered right to your door, which could cut out the restaurant and liquor store middle men for Constellation. 
- __Empathy does exactly this.__ And tricks Constellation learns through Empathy could be applied to its other alcohol brands. 

_Proud toddler wine startup parent: "They sell off so fast"_

Booze

__In a fragmented industry, brand matters *extra*...__ Many young drinkers can’t name/pronounce a wine label besides whatever sits next to Two-Buck Chuck at Trader Joe's. But brands like White Girl Rosé by Josh Ostrovsky (@TheFatJewish) stand out because of the personality they're built on (so __[AB InBev](https://robinhood.com/stocks/BUD)__ acquired it). Constellation is hoping Empathy Wines' brand can bring some of that personal touch to its liquor portfolio.


Constellation snaps up 1-year-old online wine delivery company for bcommerce gains

__Beyond borders...__ __[Alibaba](https://robinhood.com/stocks/BABA)__ is "the Amazon of China," with one key difference: Alibaba.com is a marketplace that connects over 1B buyers and sellers — it doesn't actually *own* any of the merch (no "Baba Basics"). While Alibaba trails __[Amazon](https://robinhood.com/stocks/amzn)__ in many respects, it has it beat on grocery stores. Before we get into the meat of that, let's talk  alt-meat:

- __[Beyond Meat](https://robinhood.com/stocks/BYND)__ will start selling its meatless patties in Alibaba's Freshippo grocery stores.
- __Back to Freshippo.__ Think of them as those human-free, cashier-less Amazon Go stores, but kicked up a dozen notches.


__More like "the Amazon of the Future"...__ Alibaba launched Freshippo in 2016 to pioneer the "New Retail" concept. Think: mobile-order products, unmanned checkouts, and hot food lockers. Now it has over 200 Freshippos, all aimed at creating a world where: "the boundary between online and offline disappears" (would watch that movie). 

- __Freshippo locations__ serve as both store and warehouse — 30-minute delivery is available for online orders (if you're within a 2 mile radius). Conveyor belts on the ceiling carry your bagged goods out for delivery. 
- __Online orders make up over [60%](https://www.alizila.com/wp-content/uploads/2019/01/Hema-Factsheet_2019-011219-FINAL-ONLINE.pdf)__ of Freshippo's total sales — you can order a sandwich from your phone in a subway car, and pick it up in a hot locker at the next stop.
- __The offline experience is wild too:__ Robots deliver food in some of Freshippo's restaurant spots. Customers can pick live lobster out of fish tanks. There's also the option to pay with your face (maybe stick with the app). 

__It's all about the daily touch points...__ The more touch points you have with a company's products each day, the more intimate that customer-company relationship is. Companies like __Apple__ and __Amazon__ have high daily touch points. But operations like Freshippo bring that daily interaction to another level. That intense interconnectedness is what Amazon is trying to achieve with its Go stores (and everything else it does), but Alibaba is far ahead.



Alibaba brings Beyond Meat to its futuristic, Amazon-beating grocery stores

🛒  Alibaba goes Beyond 

__You can't hurry love...__ No, you just have to wait (until another  acquisition target takes the bait). Back in June, __[Uber](https://robinhood.com/stocks/uber)__ had its sights set on a marriage with __[Grubhub](https://robinhood.com/stocks/grub)__ — until European stud __Just Eat__ [swooped](https://snacks.robinhood.com/newsletters/1Nve3vhlByq10W74UeVgUP/articles/4pdmA56EqHRt47CYsEk4tx) in with $7.3B. Now, Uber may be learning to love again with much-smaller food delivery rival Postmates...

- __Rebound acquisition:__ Uber has made an offer to buy __Postmates__ for $2.6B, according to #PFWTM (people familiar with the matter).
- __Intimate wedding:__ In the mafia-style territory split of the food delivery world, Postmates controls just 8% of the US market. 
- __Limited options:__ There are only 4 big players in the US food delivery market. Don __DoorDash__ leads (and just hit a $16B valuation), while Uber Eats is #3 with 22%.

__Better than going solo...__ Uber wants consolidation because it needs to reduce the aggressive price competition it faces every day. "[Promiscuous customers](https://snacks.robinhood.com/newsletters/3o0KQAYYbRpqhqULwfOWaD/articles/7m8VoFteAIgGsRXEzlIssk/)" have turned delivery into a profit-killing promo code battle. But Uber is not the only suitor courting Postmates' hand...

- __An unnamed acquisition company__ made an undisclosed offer (doesn't sound too sexy).
- __Public investors__ are potential suitors. Postmates has been busy prepping its IPO (which it filed for last Feb). 
- __Now,__ Postmates has to decide whether to accept the proposal of a bigger corporate suitor, or go it alone on the public market.









_Uber rebounding from its European/Grubhub heartbreak_

Marry

__In a commoditized market, merging is the best shot at profits...__ Customers aren't loyal to food delivery brands, so profit-burning promos have been critical for one app to stand out from another. But Postmates is barely competing, while Uber is struggling to keep up with DoorDash. Combining operations could allow Uber+Postmates to raise delivery fees *and* cut costs. We're having __Sprint__ + __T-Mobile__ [marriage](https://snacks.robinhood.com/newsletters/PmRtD9krW8T3WMf5elaP3/articles/61rPuJhCjslevX0uRucLKO/) flashbacks. 

Uber could rebound from that Grubhub heartbreak with a $2.6B Postmates marriage

__Call it flexible hardwear...__ Or the protagonist of a *Black Mirror* episode. __[Lululemon](https://robinhood.com/stocks/LULU)__ has made the leap from fitness wear to fitness hardware. In its first [acquisition](https://www.theverge.com/2020/6/29/21307484/lululemon-mirror-startup-acquire-purchase) ever, Lulu has snatched up home exercise startup __Mirror__ for $500M. Mirror calls itself "The Nearly Invisible Interactive Home Gym." Here's why...

- __For $1.5K,__ you get a sleek  vertical TV that's also reflective (hence, "mirror"). It's kind of like a __[Peloton](https://robinhood.com/stocks/PTON)__ for your wall (but without the bike... just the screen). 
- __For $39/month__ (which you have to pay, if not it's literally just a mirror) you get access to live classes with trainers and on-demand workouts. Also: one-on-one live personal training via camera (you pay per class). 
- __During lockdowns,__ home fitness soared. Peloton sales jumped 66% last quarter, and its stock more than doubled in the past 3 months. Lulu wants in on the hype because...

__Retail isn't dead...__ bad retail is. As its stores reopen, Lulu can lure customers back with cool Mirror experiences. *Imagine:* Mirrors installed in Lulu's 25K sq ft Chicago store offer personalized workouts while you try on new leggings. Or: your Mirror at home lets you purchase your yoga instructor's Lulu top directly from the screen. 





"_Mirror, Mirror on the wall, who's the most flexible of them all?_"

Reflect

__The most powerful use case could be LULU+...__ In addition to providing a more diversified biz model, the Mirror acquisition could be key to strengthening the Lulu "community." 

- __Lulu has [tested](https://www.fool.com/investing/2019/08/12/how-lululemons-new-loyalty-program-can-drive-incre.aspx) a loyalty program__ where members (who pay $100+ fee) get special benefits. Think: limited edition products and free expedited shipping. 
- __Mirror could be incorporated__ to create a more attractive premium membership offering. Think: discounted Mirrors and free member-only live workout classes. 
- __A Soul Cycle-style community__ could emerge for Lululemon fans thanks to a Mirror integration (along with recurring monthly revenues for Lulu). 

Lululemon drops $500M for futuristic home fitness Mirror — LULU+ could be next

__Speed up, gas pedal, gas pedal...__ What the corona-conomy is doing to the fall of the oil industry. At the beginning of the year, oil was trading above [$60](https://www.wsj.com/articles/coronavirus-sends-oil-prices-on-wild-six-month-ride-11593463541) a barrel. Then, coronavirus hit and oil demand plunged on a worldwide economic shutdown. Prices went [negative](https://snacks.robinhood.com/newsletters/3Q7KEWCIGgm4NA6zYBCUa0/articles/581oe4aDAiPbPtcdsz1vzh/) for the first time ever in April. Yesterday it was back around $40. But oil giants are losing hope: 


- __[Shell](https://robinhood.com/stocks/RDS.A)__ is writing down the value of its oil assets by $22B. In April, it [cut](https://www.barrons.com/articles/royal-dutch-shell-expects-up-to-22-billion-hit-but-the-stock-could-bounce-back-51593527600) its dividend for the 1st time since WWII.
- __[BP](https://robinhood.com/stocks/BP)__ wrote down $17.5B of its assets, expecting oil prices to stay low, and __[Occidental Petroleum](https://robinhood.com/stocks/OXY)__ is writing down $9B.
- __[Exxon](https://robinhood.com/stocks/XOM)__ is resisting a write-down — but it's getting heat from US authorities who say it's deceiving investors with false value. 
- __[Chesapeake Energy](https://robinhood.com/stocks/CHK)__, the fracking giant, just filed for bankruptcy due to collapsed oil & gas prices (and a fancy hidden [wine cave](https://www.cnbc.com/2020/06/29/behind-chesapeake-bankruptcy-hidden-wine-cave-110-million-parking-bill.html)).


__Why you gotta be so crude?...__ The massive write-downs suggest a lot of oil  could be left in the ground as a result of the demand slump. They also suggest that its long-term value is in a  questionable spot as cleaner energy gains ground. Shell and BP have set targets to transition to net-zero emissions. BP just [sold](https://www.cnbc.com/2020/06/29/bp-meets-asset-sale-target-through-5-billion-divestment-of-petrochemical-unit.html) its petrochemicals biz for $5B, meeting its $15B divestment target a year ahead of schedule. 

Drop

__This could be a big turning point for oil...__ BP says its oil assets are $17.5B *less* valuable — not because it thinks the economy won't bounce back for a long time, but because it thinks *oil* won't.

- __The pandemic is accelerating the transition__ to less carbon-emitting energy alternatives (like electric vehicles).
- __The EU is prepping a $2.5B stimulus package__ for buyers of eco-friendly vehicles, and Germany is [spending](https://www.cnn.com/2020/06/04/business/germany-stimulus-electric-cars/index.html) billions on subsidies for electric cars. 
- __If oil giants start to invest__ in the energy transition, they could secure a spot in the future of mobility. 

Oil giants could be facing a big turning point as the energy transition accelerates 

🧘‍♀️ Lululemon's $500M Mirror

__No one keeps up with the Kardashians...__ as well as cosmetics giant __[Coty](https://robinhood.com/stocks/COTY)__. In January, the beauty company bought 51% of __Kylie Cosmetics__ for $600M. Now, [*almost*](https://snacks.robinhood.com/newsletters/77CjvjXKfHHJXB1B9kNx6x/articles/70xmHpiibqdd4s8NPtEEF4/)-billionaire Kylie Jenner has an almost-billionaire sister to contend with: 

- __Unicorn Glow:__ Coty will dish out [$200M](https://www.ft.com/content/ee526fad-d70d-40c6-a848-f883e1b1d380) for a 20% stake in Kim Kardashian's makeup brand __KKW Beauty__. The deal values KKW at a fresh-faced $1B.
- __Instagram Glow:__ Coty shares soared 14% on the Insta-famous partnership — but they're still down a cakey 57% for the year. 

__Extreme Makeover: Kardashian Edition...__ Coty is a 116-year-old company that wants to appeal to the new generation (see: entire [website](https://www.coty.com/) in lowercase). But its biz is a little outdated:

- __License model:__ Coty buys exclusive licenses to develop cosmetics for big beauty brands (like Hugo Boss perfumes and Gucci lipsticks), then gives them a wider market distribution. 
- __Acquisition model:__ Coty acquired __[Procter & Gamble](https://robinhood.com/stocks/PG)__'s beauty business for $12.5B in 2016, gaining brands like Cover Girl and perfume licenses for brands like Burberry. But now... 




_When the newly-minted billionaire sisters arrive at Thanksgiving_

Beautify

__Coty wants the "Instagram Model"...__ Sales of Coty's owned and licensed products have been [declining](https://www.wsj.com/articles/kim-kardashian-wests-beauty-brand-valued-at-1-billion-in-deal-with-coty-11593440006). Meanwhile, it has to shell out big bucks for their marketing/distribution. Coty's Kardashian investments reduce some of that expensive grunt work, while tapping into a younger market: 

- __Influencer marketing:__ Kim K's 177M Insta followers are an instant audience for her brand. That's less marketing spend for Coty. 
- __Direct-to-consumer model:__ Most of KKW's sales are online, unlike Coty's 70+ other brands. This Direct-To-Consumer biz model cuts out the retail store middle man for more beautiful profits.

Coty doubles down on Kardashian, investing $200M in Kim at a $1B valuation

__Good thing there's no "dislike" button...__ __[Facebook](https://robinhood.com/stocks/FB)__ is getting hit by a wave of corporate thumbs downs, as part of a boycott called "Stop Hate for Profit." The goal is stronger policies on Facebook to combat misinformation and hate speech from spreading on online:

- __Participants will pause advertising on FB/Instagram__ until at least July — BTW: ad sales make up almost 100% of FB's revenue.
- __93 companies have joined__ the boycott so far, including blue-chip big shots like __[Verizon](https://robinhood.com/stocks/VZ)__ and __[Colgate-Palmolive](https://robinhood.com/stocks/CL)__.  __[Unilever](https://robinhood.com/stocks/UL)__ is boycotting both FB *and* __[Twitter](https://robinhood.com/stocks/TWTR)__ for the year. __[Starbucks](https://robinhood.com/stocks/SBUX)__ and __[Coke](https://robinhood.com/stocks/KO)__ are pausing social media ads as a whole.


__Heating up...__  While boycotters like __Patagonia__ have a history of activism, investors were concerned to see less outspoken (and bigger) corporations involved. Case in point: FB stock plunged 8% after Unilever joined the chat. That's when FB said it'll start [labeling](https://www.wsj.com/articles/unilever-to-halt-u-s-ads-on-facebook-and-twitter-for-rest-of-2020-11593187230) political speech that violates its rules and banning hate speech on ads. That's a shift from the [laissez faire](https://snacks.robinhood.com/newsletters/2gsJLXsNrmdB5gooWaPQZU/articles/7EZIKIcF4qWvz5vhOUUPFB/) approach it took on controversial Trump posts. Boycotters say it's not enough. 

Boycott

__Facebook might be too big to cancel...__ thanks to its 3B users across Facebook, Instagram, WhatsApp, and Messenger. FB platforms are so deeply ingrained in the world's social psyche that the 2018 #deleteFacebook movement barely made a blip on numbers. Since the world's population isn't dropping FB, most companies probably can't either:

- __It's a prime marketplace__ thanks to its hyper-targeted ads — FB has so much info on its users that it can guarantee a steakhouse ad won't be wasted on a vegan. Also...
- __The world's top 100 brands__ only account for [6%](https://edition.cnn.com/2020/06/26/tech/facebook-boycott/) of FB's ad sales — for millions of smaller businesses, FB is the only effective way to reach new customers. 



Facebook ad boycott gains corporate strength — but is it Too Big To Cancel?

__The old college try...__ Four years after signing the biggest apparel deal in the history of college sports, __[Under Armour](https://robinhood.com/stocks/UAA)__ wants out. The $280M, 15-year deal gave UA the exclusive right to design all uniforms for UCLA's Varsity teams. But UA isn't feeling the team spirit anymore:

- __UA says it's allowed to back out__ of the contract because: “We have been paying for marketing benefits that we have not received for an extended time period." 
- __UCLA doesn't buy it__ and says it'll do everything it can to fight UA's decision (we spy a lawsuit). 

__Protect this Balance Sheet...__ This move is more about cost-slashing than UCLA marketing. In May, UA said it was planning to cut $325M in costs for 2020. UA got hit hard in the corona-conomy:

- __Sales fell 23%__ and it posted a $590M loss thanks to corona-closed stores.
- __UA expects__ sales could fall 50%-60% this quarter — now it's trying to build an emergency fund to weather the storm. 



Cancel

__Under Armour is too much ‘ath’, not enough ‘leisure’...__ Consumer preference is shifting toward versatility — especially in the corona-conomy, where 1 pant can triple as a workout, Netflix, and grocery shopping outfit. UA has been highly focused on technical performance, not as much on leisure. That's why UA's stock is down 55% this year, while leisure-friendly __[Nike](https://robinhood.com/stocks/NKE)__ is down only 6% and leisure-obsessed __[Lululemon](https://robinhood.com/stocks/LULU)__ is *up* 25%. 