__Pronounced how it sounds...__ Remdesivir. __[Gilead](https://robinhood.com/stocks/GILD)__'s antiviral drug was tested to treat Ebola patients — now it's the most promising potential COVID-19 treatment. A juicy [report](https://www.statnews.com/2020/04/16/early-peek-at-data-on-gilead-coronavirus-drug-suggests-patients-are-responding-to-treatment/) in STAT details its (apparent) effectiveness. More rigorous studies/trials/science are needed before we can celebrate a victory — but markets soared anyway as investors celebrated the chance this drug could work and help reopen the economy faster. How it went down read like a screenplay:

- __The setting:__ University of Chicago Medicine Hospital, where patients are participating in Gilead-sponsored remdesivir trials. 
- __The plot:__ Out of 125 coronavirus-infected patients who participated, 113 had severe symptoms. *Will remdesivir help them recover?*
- __The result:__ Most patients recovered in less than a week and 2 died. That's a 1.6% death rate compared to the 4.9% overall US rate — even more impressive considering cases in the trial were over 90% severe. But there was no control group to compare with. 

__Opening up America (Again?)...__ Not sure what the [again](https://www.whitehouse.gov/openingamerica/) is about, but there might be one if the economy reopens too soon. Last week, the White House recommended a [3-phase plan](https://www.nbcnews.com/politics/donald-trump/trump-announce-guidelines-reopening-u-s-amid-coronavirus-pandemic-n1185666) for states to reopen (when safe). Approval for a COVID-19 treatment could speed up this reopening, but it's not the only consideration...




_Some at Gilead are calling this new drug "Neo"_

Treat

__There are 3 parts to this medical solution...__ All 3 will be necessary to (completely) end the corona-crisis:

- __Testing:__ We've got tests, but not enough. Widespread testing is crucial to curbing the spread and give non-infected people the green light.
- __Treatment:__ We don't have an approved one yet — if remdesivir gets FDA approval, this would be a game-changer.
- __Vaccine:__ We don't have one yet, but companies are racing for it — __Johnson & Johnson__ has a lead [candidate](https://snacks.robinhood.com/newsletters/5OkPR1QEqQP8p5Av1YLpnB/articles/6arBR8BHx2mhZTzCNHDdK/) for trials and is (very ambitiously) aiming to get 1B doses of a vaccine out by the end of 2021. 

Gilead’s COVID-19 treatment shows early signs of effectiveness — could mean a faster reopening

- __Pass the dongle...__ __[Roku](https://robinhood.com/stocks/ROKU)__ couldn't help but tune us into a [sneak-preview](https://snacks.robinhood.com/newsletters/7AbTHa6Ld095hkHZCRzEaL/articles/3Mm4IvKL4dtN28sLMc8ykm) of its performance: the streamer expects it added 3M new accounts in the last 3 months to hit a total of 40M. Roku's devices streamed 13.2B hours of content over the period — a 49% rise from last year. We're calling it "The People's Dongle" — its low-priced devices power 44% of all streaming hours in the US.

- __Coke ICEEs with Red Vine straws...__ America's largest movie theater chain, __[AMC](https://robinhood.com/stocks/AMC)__, is [struggling](https://www.latimes.com/entertainment-arts/business/story/2020-04-16/amc-raise-500-million-coronavirus-crisis-theaters-reopen) hard since 100% of its global locations are closed. It's making $0, owes $4.8B in debt, and has [furloughed](https://www.reuters.com/article/us-health-coronavirus-theaters/amc-theatres-furloughs-ceo-corporate-employees-due-to-virus-idUSKBN21C3MM) all employees (including the CEO). Now it's raising $500M through a private debt offering to help it survive through Thanksgiving. Doubly lucky: movie theaters are (shockingly) included under "Phase 1" of the new federal [guidelines](https://www.whitehouse.gov/openingamerica/#criteria) for national reopening — AMC stock has jumped 32% since Thursday, after falling nearly 90% in the previous 12 months.

Highs

Who's up...

__Less Bitcoin-y, more Venmo-y...__ __[Facebook](https://robinhood.com/stocks/FB)__ wanted to change the world with its big, sexy crypto project Libra: a single, global cryptocurrency that would empower billions to save, earn, and spend via their phones. But Congress didn't like all that power with 1 company. Facebook announced Friday that Libra's ambitions got a massive [downgrade](https://www.ft.com/content/79376464-72b5-41fa-8f14-9f308acaf83b): instead of a global currency independent of all others, Libra 2.0 will be digital money tied to a local currency in your FB account. Sounds more like Venmo. And TBD when/if it'll actually launch. 

__The defaults are coming...__ With 22M Americans unemployed, big banks are preparing to *not* receive repayment on many of their loans. So they're [setting aside](https://snacks.robinhood.com/newsletters/7AbTHa6Ld095hkHZCRzEaL/articles/6MiIgW9CSp3vQEIYRasNPN/) cash in advance to cover *expected* future loan losses. __[JPMorgan](https://robinhood.com/stocks/JPM)__'s profit fell 70% as it set aside an extra $6.8B for losses (it had only expected to need $1.5B pre-corona). __[Goldman Sachs](https://robinhood.com/stocks/GS)__' profit plunged 49% after it held an extra [$1B](https://finance.yahoo.com/news/goldman-sachs-profit-plummets-49-064950141.html) to cover future loan fails and   __[Wells Fargo](https://robinhood.com/stocks/WFC)__ evaporated $3B of profit on its own loss expectations.

Lows

...and who's down

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

💊  Gilead's drug pop 

__Clear eyes, full carts, can't lose...__ __[Amazon](https://robinhood.com/stocks/AMZN)__ begs to differ. Its stock just hit a record high as it enjoys record online shopping demand, but it's not all rainbows and smiles in Bezosland. Amazon is struggling to manage the insane lockdown order surge, which has led to late shipments, unavailable items, and frustrated Prime members. 

- __Unlike a predictable holiday surge,__ the COVID-19 surge came out of the blue and escalated quickly — Amazon had no time to prep its forces for the flood.
- __Even with the 175K new employees it's hiring__ and the $500M it spent  on extra pay for warehouse workers, Amazon can't handle the heat. It could take over 2 months for Amazon to regain its pre-pandemic reliability. So...

__Don't even think about adding the jade roller...__ Amazon is doing something unheard of: it's re-working its website to make you buy *less*. It *doesn't* want your business so badly, that it even limited advertising on Google.

- __Goodbye Recommendations:__ You went to Amazon to buy one yoga mat, but the "you might also like" algorithm was so powerful that you ended up with a full gym in your cart. Amazon is removing these "others also bought" recommendations.
- __Goodbye Promotions:__ Prime Day is postponed indefinitely, and you can say bye to Mother's and Father's Day deals too. Promotions get you to throw stuff you don't need into your cart — *Amazon's new worst nightmare.*

_Amazon's (new) worst nightmare_

Deliver

__The recommended upsell is Amazon's greatest trick...__ Recommendations have the same effect as the new episode that auto-plays after you promised it was "the last one" — they're key to boosting sales/consumption. [35%](https://www.mckinsey.com/industries/retail/our-insights/how-retailers-can-keep-up-with-consumers) of Amazon sales and 75% of __Netflix__ views come from personalized recommendations. Personal preference data is marketing gold, and it's the secret to Amazon's retail profits. Removing these recs only highlights their effectiveness. 



Amazon wants you to stop filling your shopping cart — the rare anti-upsell strategy 

__Check your 401(k) or brokerage account...__ There's a high likelihood you've got some money in a __[BlackRock](https://robinhood.com/stocks/BLK)__ fund, since it's the world's largest money manager. 

- __But the investment giant's profits fell__ [23%](https://www.wsj.com/articles/blackrocks-first-quarter-profit-fell-23-11587033254) as its individual and institutional customers panic-sold stocks for liquid cash. Less money to manage = less profit for BlackRock. 
- __Assets under management shrank__ from __$7.4T__ at the end of 2019 to __$6.5T__ at the end of March. Still not too shabby, considering America's GDP was $21T in 2018.

__Not Apple's social media arm...__ iShares is BlackRock's [exchange-traded funds](https://learn.robinhood.com/articles/QkpPOCYYd2fMe76837dvG/what-is-an-exchange-traded-fund/) unit, and also one of its profit puppies. In addition to the $$$ BlackRock makes from investment advising and lending, it also charges tiny management fees for its ETFs.

- __ETFs are like investment smoothies__ which track multiple stocks, a sector, or an index. For example, with just one share of an S&P ETF, you can own a part of all 500 S&P companies. You get to track the index without individually purchasing each stock.
- __BlackRock customers poured *only* [$14B](https://www.wsj.com/articles/blackrocks-first-quarter-profit-fell-23-11587033254)__ into iShares ETFs this quarter (their worst performance since 2018). __Vanguard__, the world's 2nd largest money manager, took in 3X the amount of ETF investments. 

Little + Little to the power of 6T = Big

Invest

__Tiny fees (on a large scale) = billions in profit...__ Big investment firms like Blackrock and Vanguard sell their own ETFs across various brokerages in high volumes. If they charge a 0.03% fee on an ETF, they make only 3 cents off every $100 you invest. But because they operate at such a large scale, those tiny fees can add up to big profits. Blackrock made [$800M](https://www.wsj.com/articles/blackrocks-first-quarter-profit-fell-23-11587033254) in profit last quarter on the $6.4T it managed (annualize that, and it's only 0.05% of $6.4T).

BlackRock's adorably small fees lead to ridiculously big money (even in a downturn)

__Should've called it "Khakis"...__ __BlueJeans__ is a videoconference service like Zoom, except it only services businesses, it has no free version, and it's way less popular than __[Zoom](https://robinhood.com/stocks/ZM)__. But __[Verizon](https://robinhood.com/stocks/VZ)__ noticed BlueJeans from across the room  — now it's [acquiring](https://www.wsj.com/articles/verizon-to-buy-zoom-conferencing-rival-bluejeans-11587041218) it for less than $500M. 

- __ICYMI,__ videoconferencing has been having a moment. Zoom jumped from 10M customers in December to [200M](https://techcrunch.com/2020/04/16/verizon-is-buying-b2b-videoconferencing-firm-bluejeans/) customers in March — an unbelievable boost driven by virus lockdowns and office closures. 
- __BlueJeans is only used by businesses,__ unlike Zoom. It has 15K companies signed up for its service. Forget about the Middle School Reunion happy hour — BlueJeans is strictly 'bout that office life. And Verizon's into it.


__Blue Jeans, White Collar...__ Verizon is obsessed with rolling out its faster 5G network. The biggest adopters of this 5G tech will be Verizon's *corporate* customers — aka, the ones who pay for Verizon WiFi for their offices and Verizon data for employee cell phones. 

- __Verizon can offer its corporate customers__ BlueJeans' video conference tech to build telemedicine, virtual learning, and remote training services. 
- __Verizon also digs__ BlueJeans' encryption, which could shield it from Zoom-style [privacy issues ](https://www.npr.org/2020/04/03/826129520/a-must-for-millions-zoom-has-a-dark-side-and-an-fbi-warning) (never heard of [BlueJeans-bombing](https://fortune.com/2020/04/02/zoom-bombing-what-is-meeting-hacked-how-to-prevent-vulnerability-is-zoom-safe-video-chats/)).

"_Do these jeans make me look khaki?_"

Conference

__BlueJeans will no longer be a "One & Only" company...__ once it's part of Verizon. "One & Only" companies only do one thing — but they do it really well, and are successful because of that. __Zoom__ and __Netflix__ are successful O&O companies. Skype *used* to be an O&O company, until it got acquired by __Microsoft__ in 2011. It went from being super popular to being barely used. "One of Many" companies can get neglected post-acquisition — TBD if BlueJeans is next. 

Verizon snags Zoom's (smaller) video rival BlueJeans — goodbye "One & Only"

🛒 Amazon pulls a 180 

__Don't judge an iPhone by its cover...__ Remember iPhone SE? It's that little rectangle which you could actually operate one-handedly without spraining a finger. __[Apple](https://robinhood.com/stocks/AAPL)__ released it in 2016, then stopped selling it in 2018. Now, it's shockingly resurrecting iPhone SE for 2020, starting at the (relatively) lower price of __$399__. 

- __Looks:__ Pretty much the same as the iPhone 8 —  a 4.7-inch screen with a frame around it and a home button with Touch ID. *The real change lies on the inside...*
- __Specs:__ Better camera equipped with 4K video and portrait mode. Also boasts a more powerful processor with the new A13 Bionic chip (sounds legit). Apple [says](https://www.apple.com/iphone-se/) it put "the brains" of iPhone 11 Pro in the body of SE.


__What interested us most was the *timing* of this launch...__ Given the COVID-19 crisis, this might not seem like the best time to ship a new product. Apple thinks it's a great time:

- __With the economy in shambles,__ it makes sense to introduce a lower-cost phone. The new SE is $200 cheaper than the next "cheapest" iPhone (and many Android models). A low-cost, high-performance phone could thrive right now. 
- __With most Apple stores closed,__ people can't try before they buy. Buying iPhones online becomes more attractive with a lower price and newer product — Apple's trying to drive excitement for online orders with this launch (people get hyped on pre-orders). 


"_Look, I can type with one hand_"

Release

__Is Apple cannibalizing itself?...__ Cannibalization occurs when a new product is so irresistible it steals sales from your other (often higher-priced) products. Tesla's Model 3 stole sales from its Model S. But Apple probably did *a lot* of research on this risk and decided that:

- __More Upgrades:__ iPhone users might be more likely to upgrade from their old phones after the launch of SE, with that volume covering lost sales from pricier models.
- __More Market Share:__ With this lower-priced option, Apple might convert some Androiders — __[Google](https://robinhood.com/stocks/GOOGL)__'s Android still controls [70%](https://gs.statcounter.com/os-market-share/mobile/worldwide) of the world's cell phones.
- __But__ if fancy new iPhone users change to the lower-priced SE instead, that's a problem for Apple.

Welcome (back) iPhone SE — but did Apple just cannibalize itself?

__The "B" word has been thrown around a lot...__ But now airlines are finally getting their Big B: *a $25B bailout from the US government*. 10 airlines — including __[Delta](https://robinhood.com/stocks/DAL)__, __[United](https://robinhood.com/stocks/UAL)__, and __[JetBlue](https://robinhood.com/stocks/JBLU)__ — will share the $25B to pay their hundreds of thousands of employees. Here's what this bailout looks like:

- __70% grants (aka, free money):__ The airlines *won't* have to repay this. By taking the money, airlines are agreeing not to layoff workers until at least September, which means the gov doesn't have to spend taxpayer money on unemployment checks for them — instead it gets to continue collecting income tax on those paychecks. 
- __30% loans:__ 30% of the package will have to be repaid  over 10 years. Airlines wanted *only* grants (duh) and the gov wanted loans, so this is a compromise. 
- __The Treasury also gets stock in the airlines,__ so Americans collectively (kind of) own around 1% of those companies. 


__Many (or all) airlines would likely go bankrupt...__ Without this bailout, that is. That's why it was a key part of the [$2.2T stimulus](https://snacks.robinhood.com/newsletters/CLl0evxvaKPwXSPACmU6C/articles/jtOWtkujqwVzIeEa8NYkj) package. With near-zero travel demand and  high fixed expenses, airlines are quickly burning through the small cash cushions they have:

- __[96%](https://www.bloomberg.com/news/articles/2020-03-16/u-s-airlines-spent-96-of-free-cash-flow-on-buybacks-chart?sref=q3KSFp38) of the cash generated from airlines' profits__ over the last decade was returned back to shareholders through dividends and stock-boosting [buybacks](https://snacks.robinhood.com/newsletters/3RZmA5EnTQS6bHZZtNhsuN/articles/6VASbcZT1I1au5mw9OXEl7/) — now airlines won't be allowed to do buybacks until September 2021. 
- __In February, Delta generously dished out [$1.6B](https://snacks.robinhood.com/newsletters/6wRGgx7QknYZXmDyA2zTy9/articles/4mOiuwQwp60nQ7F33CMMXz/)__ (or 33% of its 2019 profit) in bonuses to employees. But now, passenger volume for airlines in the US is down __[95%](https://www.nytimes.com/2020/04/14/business/coronavirus-airlines-bailout-treasury-department.html)__ from a year ago — airlines are expected to lose $314B this year in global sales.

"_Let's get this bailout_"

Bailout

__It's not necessarily *bailout or bust*...__ Even when airlines go bankrupt (no bailout), they can bounce back — [66](https://www.airlines.org/dataset/u-s-bankruptcies-and-services-cessations/) American airlines have gone bankrupt since 2000, including United Airlines in 2002 and Delta in 2005. But bankruptcy is a big hit to investors, since the stocks usually go to zero. If airline employees lost their jobs, the government would have to pay unemployment benefits — so it's shelling out $$$ either way. 

Airlines finally get their $25B bailout — now you (kind of) own 10 airlines 

📱 Return of iPhone SE

__Like that $50 you spotted Tracy for dinner...__ you know you'll never get it back. __[JPMorgan](https://robinhood.com/stocks/JPM)__ is in the same spot — except its loans are in the billions. America's largest bank saw its profit fall a stunning [70%](https://www.wsj.com/articles/jpmorgan-chase-reports-profit-falls-69-amid-u-s-coronavirus-outbreak-11586862723) in the quarter, as it set aside an extra __$6.8B__ to cover looming losses from defaulted loans. __[Wells Fargo](https://robinhood.com/stocks/WFC)__ also evaporated __$3B__ of its profits to cover expected loan fails. 

- __Banks make loans__ to individuals, companies, and government entities, then collect  interest on the loans — think mortgages, credit cards, biz loans, and bonds. That's all fine and dandy when most people are able (and expected) to pay those loans back...
-  __But with [17M](https://www.politico.com/news/2020/04/09/coronavirus-unemployment-claims-numbers-176794) newly unemployed Americans__ and businesses closed across the country, banks are shifting their expectations (big time). Many IOUs will turn into "sorry, I literally cannot pay you back," as sources of income disappear. 

__Enter "Loan Loss Provisions"...__ That's money set aside by companies in advance to cover expected *future* losses. Most earnings reports are backward-looking, but the 1st two big banks to report had more *forward-looking* reports to share:

- __[$1.5B](https://www.wsj.com/articles/jpmorgan-wells-fargo-profits-tumble-as-they-brace-for-a-recession-11586881571):__  How much JPM had set aside for Loan Loss Provisions *before* the corona-crisis — now it's setting aside a total of __$8.3B__, with possibly more to come. 
- __[$800M](https://www.wsj.com/articles/jpmorgan-wells-fargo-profits-tumble-as-they-brace-for-a-recession-11586881571):__ How much Wells Fargo had planned to spend  on loss coverage — now it's losing a total of __$3.8B__, taking an 80% bigger L than expected.



_Loading up on Loan Loss Provisions_

Save

__Planning for losses is crucial (so is hedging them)...__ While the banks' consumer units are being pummeled by the economic crisis, it wasn't all bad news. The volatile stock market boosted JPM's trading revenues by [32%](https://www.wsj.com/articles/jpmorgan-chase-reports-profit-falls-69-amid-u-s-coronavirus-outbreak-11586862723), while interest-earning deposits jumped [23%](https://www.wsj.com/articles/jpmorgan-chase-reports-profit-falls-69-amid-u-s-coronavirus-outbreak-11586862723) as people stashed cash in checking accounts. While these gains offset *some* losses, planning ahead for worst-case default scenarios is crucial to the banks' survival.

JPMorgan and Wells Fargo lose big on expected loan losses — the defaults are coming

__Like that excited friend who can't keep a secret...__ streaming player __[Roku](https://robinhood.com/stocks/ROKU)__ is so giddy with its recent success that it couldn't help but share a little sneak-preview into its earnings ahead of their May 7 release. 

- __[3M](https://ir.roku.com/news-releases/news-release-details/roku-provides-estimated-q1-results):__ The number of new accounts Roku estimates it added in the last 3 months. Its total active accounts are estimated to be around 40M. 
- __[49%](https://ir.roku.com/news-releases/news-release-details/roku-provides-estimated-q1-results):__ How much Roku expects streaming hours have risen over the same period compared to last year — that's __13.2B__ hours of streaming through Roku (or how you feel after finishing all of Netflix). 
- __10%:__ How much Roku's stock popped after the preview victory.


__Roku is kind of like the People's Streaming Device...__ It accounts for [44%](https://www.fool.com/investing/2019/12/19/roku-dominance-connected-tv-advertising-growing.aspx) of all streaming hours in the US. Its dongles start at $29.99/month, compared to Apple TV's $140+ shiny black boxes. It's not as sleek as Apple TV or as Alexa-integrated as Amazon Fire Stick — but it's cheap, it works, and is compatible with most TVs. Most Americans can swing that.

"_Hello? I think my Roku stick is broken..._"

Stream

__Tailwinds are great for business...__ When economic trends align with your biz model, it's like a strong wind pushing you further in your desired direction. Roku's got 3 at its back:

- __Lockdown Life:__ Quarantine boredom + the launch of exciting  streamers like Disney+ and HBO Max are likely to get people hooked on streaming devices.
- __Live sports is cancelled:__ Just another reason to cut the cord. 
- __Saving Mindset:__ With the economic crisis, people may opt for Roku's low-cost streaming device over pricier ones. But this is also a headwind  — [63%](https://videoadnews.com/2020/02/14/the-wir-rokus-doubles-its-video-ad-impressions-in-2019-the-bbcs-chairman-warns-against-a-subscription-model-for-the-broadcaster-and-igtv-trials-video-ads/) of Roku's revenue comes from ads, which marketers aren't splurging on since your spending is way down. 

Roku surfs the quarantine streaming waves with 3 tailwinds at its back

__Not a heavy metal band or a violent rash...__ __Thrasio__ is an unfortunately-named (yet [profitable](https://news.crunchbase.com/news/meet-thrasio-a-profitable-startup-that-just-raised-110m-at-a-780m-valuation/)) startup that just got a little closer to becoming a unicorn. It raised a fresh $110M, bumping it to a $780M valuation. And its whole business revolves around being __[Amazon](https://robinhood.com/stocks/AMZN)__'s most aggro customer — its [slogan](https://www.thras.io/) is *literally* "We Buy Amazon Businesses:"

- __Scout:__ Thrasio tracks down the best-selling, most highly-reviewed everyday essentials on Amazon — think: *best foam roller*, *excellent cotton socks*, *world's #1 can-opener*. Then...
- __Acquire:__ Thrasio buys the generic brands from the small biz owners who are making bank on Amazon (but who may not have the resources to scale). Thrasio drops over $1M in cash to snag these seven-figure brands from their owners. Then...
- __Integrate:__ Thrasio integrates these fast-growing brands into its platform, and scales them more effectively.


__Fast times at Thrasio High...__ Thrasio has been profitable since Day 1 of its founding in mid-2018,  [according](https://news.crunchbase.com/news/meet-thrasio-a-profitable-startup-that-just-raised-110m-at-a-780m-valuation/) to its founders. Now it's the [fastest-growing](https://www.thras.io/) acquirer of Amazon-trepreneurs, with some impressive stats to boot:

- __In just a year of fundraising,__ Thrasio raised a total of __$250M__ in three investment rounds.
- __Its current valuation is 32X larger__ than its seed valuation a year ago, and this latest investment is $90M bigger than its last.
- __In just a year and a half,__ it has acquired over __43 businesses__ — its sales have grown from 0 to more than $200M.   

Raise

__Sometimes, you really *can* buy success...__ That's exactly what Thrasio is doing: it's buying up already hot, successful businesses that are clearly in demand, adding them in a pile with other successful businesses, and coming out with an even bigger, fatter pile of success. With the investment cash and operational scalability that Thrasio brings to the table, it can do what successful Amazon sellers do on a much larger scale.

Almost-unicorn Thrasio hits a $780M valuation — it's obsessed with your Amazon purchases

 🌊 Roku surfs the wave

__America runs on Dunkin'...__ but __[Dunkin'](https://robinhood.com/stocks/DNKN)__ runs on a 100% franchised biz model — that's coming in pretty sweet during the corona-conomy. Dunkin's 21K stores are 100% owned by independent people. Dunkin' sells the rights to use its brand and open up shop — as long as the Boston Kremes are kremy and the Caramel Iced Coffees are extra-syrupy, no one will care who owns it. Dunkin' cashes in on franchises in 3 way:

-  __Selling rights to operate the brand:__ Dunkin' gets to expand its empire, while the owner gets to cash in on Dunkin's brand fame, recipes and loyal customers (for a "franchise fee"). 
- __Selling stuff to operate the brand:__ The franchise owner is obligated to purchase Dunkies essentials — like ingredients, uniforms, and plastic furniture — straight from corporate. 
- __Share of sales:__ Owners must pay Dunkin a percentage of the franchise's sales and an upfront fee for the privilege.

__Franchising is the democratization of fast-food fortunes...__ By paying regular fees to franchisors like __[Domino's](https://robinhood.com/stocks/DPZ)__ or __[McDonald's](https://robinhood.com/stocks/MCD)__, entrepreneurial *franchisees* get a share of Big Fast Food's profits. You've heard of landlords — Dunkin' is the franchisee's *brand*-lord.

_When you realize that McDowell's is not a McDonald's franchise_

Dunk

__Franchising means lower risk, but also lower potential reward...__ for corporate. The franchise owner (not Dunkin') pays for the building, the employees, and all the biz expenses — so it's this franchisee who loses out most when the biz is closed. Dunkin' has limited investment, so the only thing it's losing when sales are down is a cut of those sales. But franchise owners reap a greater percentage of profits when business booms.

Dunkin' doesn't own a single one of its own locations — and that's good right now

__Where'd that state tax go?...__ The virus economy has plunged spending, caused major layoffs, and stuck a knife in travel. The economic pain felt by individuals and businesses is catching up to states, which are losing their most important sources of revenue:

- __Sales Tax:__ Your cold brew costs $4, but your state slaps on a nice 7% tax on top. Rates vary state by state (some, like New Hampshire, don't charge it). But highly sales [tax-dependent](https://www.axios.com/coronavirus-states-cities-economic-crisis-519d28b2-2126-4749-b94b-a3dcbdcf0feb.html) states like Florida and Nevada are struggling as spending plummets (aka, nothing to tax). 
-  __Income Tax:__ Just when you thought you were done filing taxes, there comes the state section. Income tax revenue is plunging as 17M have been laid off across the country — plus the filing deadline was extended by 3 months to July 15, meaning delayed cash flow.  
- __Tourism Tax:__ That reason your hotel bill is higher than list price (even when you didn't raid the minibar). Can be collected by states or cities/counties. Las Vegas is missing out on 12% resort fees thanks to shuttered hotel/casinos.   


__States use that money for key resources...__ Like public schools, roads, and unemployment benefits. Now, at the same time that revenue is down, states are spending *more* on unemployment and medical expenses — a double-whammy for the piggy bank. Even states with a lot of cash saved up (like Arizona) will likely be running [deficits](https://www.axios.com/coronavirus-states-cities-economic-crisis-519d28b2-2126-4749-b94b-a3dcbdcf0feb.html) by 2021. 

Lose

__States and cities rely on *your* earning/spending...__ Since that's significantly down, we can expect some big budget cuts ahead — and maybe even some bankruptcies. The state's piggy banks will recover *after* its people and businesses do. Just like individuals and businesses, states can: 

- __Get credit ratings__ based on ability to pay back loans. 
- __Take on debt__ by issuing bonds.
- __File for bankruptcy__ when they can't pay back debt. 
- __Get bailed out__ by the federal government in billions of aid.

Coronavirus money pain catches up to states, hitting all forms of tax revenue 

🍩 Dunkin's franchise treat

__There's no "we" in iOS...__ But there is an "and" in Android. __[Google](https://robinhood.com/stocks/GOOGL)__ and __[Apple](https://robinhood.com/stocks/AAPL)__ are teaming up to [launch](https://www.theverge.com/2020/4/10/21216484/google-apple-coronavirus-contract-tracing-bluetooth-location-tracking-data-app) a COVID-19 tracking tool. The new system, which will be intro'd in mid-May, allows iOS and Android users (aka 99% of smartphones) to voluntarily share data through Bluetooth transmissions and health org-approved apps. There's [no use](https://techcrunch.com/2020/04/10/apple-and-google-are-launching-a-joint-covid-19-tracing-tool/) of location data — it's based on proximity to other phones (and therefore your close contact with other people):

- __You download an app__ from a public health authority. The app exchanges anonymous identifier data with other participating phones you've come in contact with. If you report that you tested positive for COVID-19...
- __The app then alerts those phones' owners__ that they may have been exposed. Then the testing and contact-tracing cycle (ideally) repeats.
- __Eventually__ Google and Apple will build a functionality where iOS and Android users don't have to download an app, and can just [opt in](https://techcrunch.com/2020/04/10/apple-and-google-are-launching-a-joint-covid-19-tracing-tool/) easily.


__Red Sox vs Yankees, Pepsi vs Coke, Marvel vs DC...__ Apple's iOS and Google's Android are historic smartphone operating system rivals — and fans get very heated on their preference. This unlikely partnership speaks to the importance of the tool:

-  __Tracking is key__ to testing and (if necessary) self-quarantining yourself to avoid infecting others. But we don't have a widely-used tracking tool.
- __Apple and Google are the only ones__ who can launch this on a large-scale in the US (and the world). [South Korea](https://www.technologyreview.com/2020/03/06/905459/coronavirus-south-korea-smartphone-app-quarantine/)  and [Singapore](https://www.businessinsider.com/singapore-coronavirus-app-tracking-testing-no-shutdown-how-it-works-2020-3) have used similar (though way more privacy-invading) COVID-19 tracking apps, which has been key to their success in containing the disease.

_Android and iOS teaming up for a common win_

Join

__Setting a precendent...__ It's rare to see 2 supremely competitive companies unifying brains and biz resources. But Big Tech must come together to fill gaps Big Government can't. To be successful, the system will need to be widely adopted (the whole thing is voluntary). Plus, tests will need to be available for all potentially infected people (but there's still a [shortage](https://www.vox.com/2020/4/10/21214218/trump-coronavirus-testing-social-distancing)). 

Historic rivals Apple and Google join their phone-controlling powers

- __It's a bird, it's a plane, it's...__ toilet paper, Tylenol, and a croissant. __[Alphabet](https://robinhood.com/stocks/GOOGL)__'s __Wing__ is the drone delivery startup created out of __Google__'s  X Lab for "save-the-world" projects. As part of an FAA-approved test project, Wing's drones are flying groceries, medicines, and even pastries to early adopters in Christanburg, VA. Now demand for its drone-delivery service has [surged](https://www.bloomberg.com/news/articles/2020-04-08/alphabet-s-delivery-by-drone-surge-to-stay-at-home-customers) dramatically (delivery via sky is very anti-germy), which could accelerate mainstream-ification of this futuristic service.

- __A light at the end of the breadstick basket...__ Olive Garden's parent __[Darden Restaurants](https://robinhood.com/stocks/DRI)__' sales are down over 60% as 100% of its dining rooms shut. Buuut, Olive Garden's *take-out* sales have [jumped](https://snacks.robinhood.com/newsletters/6jMYrs8xXmNhuDOMY3gXEt/articles/6apqgjOYNC1qcTq8YG3EL6) a saucy 142%, while LongHorn Steakhouse's 3X'd. Darden also served up news that it has $1B in doughy cash on hand, and that it's slashing exec pay in half to help it survive this pasta drought. The stock jumped 45% over the week.

- __No such thing as a free lunch...__ *Especially* not for __Airbnb__, whose untimely pad-rental biz got it exiled to Wall Street's (unpopular) "risky" lunch table. No one's booking travel rentals right now, so Airbnb needs cash — sales could [fall](https://snacks.robinhood.com/newsletters/78so4bt9Fa85LcklanAFSB/articles/4O5kJlEPHTgzTTN70wvPrp) 54% this year. So it's rasing $1B in debt, but will pay that back at a 10% interest rate. That's a hefty risk premium compared to Airbnb's less corona-challenged tech peers — __[Slack](https://robinhood.com/stocks/WORK)__ also raised $$$ via debt, but with a tinier 0.5% interest. 

- __Last  week, on the Real Housewives of OPEC…__ Oil prices have been tanking on near-zero travel demand. A month ago, oil took its [biggest plunge](https://snacks.robinhood.com/newsletters/2yAve6xSRhLRA5umV930FV/articles/58PLs0oCRQ6EX1n9oXxhoN/) since 1991 on a reality-show worthy spat between Saudi Arabia and Russia (they both jacked up production and flooded the market with oil). *Last week*, OPEC (13 countries led by Saudi Arabia) and OPEC+ (not a streaming service — a group of 10 other countries led by Russia) agreed to a big production cut of about 23% to bring prices back up. This all goes to show that companies like __[Exxon](https://robinhood.com/stocks/XOM)__ and __[Chevron](https://robinhood.com/stocks/CVX)__, whose oil profits depend on oil prices, have little control over their performance — the OPEC+ gang is in charge. 

👫 Apple + Google = COVID-19 Tracking Team 

__How many letters in an economic recovery?...__ Apparently, four. We know the economy has tanked since February — the COVID-19 pandemic spelled an abrupt end for the [longest](https://www.cnbc.com/2020/04/08/coronavirus-recession-is-unlike-any-economic-downturn-in-us-history.html) economic expansion in US history. Now economists are sifting through alphabet soup to determine what shape a *recovery* from this looming recession will take. The four main contenders: 

- __V Shape:__ A quick and dramatic decline (check), followed by an equally quick recovery (not check). The economy needs to reopen ASAP if we want this best-case scenario to happen — and we may already be too late.
- __U Shape:__ More gradual than  V shape — the economy finds a bottom and stays there for a while (up to [2 years](https://www.cnbc.com/2020/04/07/jim-cramer-expect-gradual-u-shape-economic-rebound-from-coronavirus.html) before recovering). [Most](https://www.investopedia.com/terms/u/u-shaped-recovery.asp) recessions since 1945 have been U shaped. 
- __W Shape:__ AKA, a "double-dip" recession. This would happen if, after a V recovery, we have another big outbreak and the economy has to shut down again. 
- __L Shape:__ Worst-case scenario — more like a non-recovery. A steep decline followed by a long stay at the bottom (could take up to 10 years to recover). That's the (depressing) letter [Barclays](https://www.cnbc.com/2020/04/08/stock-market-today-live.html) bank just highlighted.

__Which one will it be?...__ It depends on how long the economy is shut down for. And that largely depends on how quickly we can get the virus under control. Each day the economy is closed means more unemployment and more business losses — so recovery time increases daily.





"_I found an L, Woody... Oh, that's the bad one?_"

Recover

__The Multiplier Effect is a powerful thing...__  Your spending (or lack thereof) = someone else's income (or lack thereof):

- You spend $50 on a jean jacket at a local store. The store owners makes $50. 
- They pay their salesperson, then order more jackets from __Levi's__, which in turn pays its own employees and the fabric suppliers. 
- The Levi's employees and the supplier's employees spend that money for their own purchases, and the cycle continues. 
- __Right now the multiplier effect is working against us__ — the longer that's true, the longer a recovery will take. 

Which (alphabetic) shape will an economic recovery take? Depends on how long we're shut for

__The risky table is at the back...__ __Airbnb__ and __[Slack](https://robinhood.com/stocks/WORK)__ just sealed 2 nearly identical deals, with two *very different* deal terms. Slack's office messaging, email-crushing biz model is thriving in the corona-conomy. Airbnb's travel-centric pad rental biz? Not so much. Despite these differences, they both decided it was time to borrow some cash. 

- __Slack offered__ [$750M](https://www.cnbc.com/2020/04/07/stocks-making-the-biggest-moves-in-the-premarket-kraft-heinz-3m-slack-and-more.html) in debt, which it'll have to pay back in 2025 (either in cash, shares, or a combo). Slack will only have to pay __0.5% interest__ on the loan. 
- __Airbnb offered__ [$1B](https://therealdeal.com/2020/04/08/airbnbs-1b-fundraise-comes-with-a-hefty-valuation-cut/) for similar debt, but it'll have to pay investors back at a whopping more than __10% interest__ rate.

__What's your risk premium?...__ Not a Hinge-appropriate question. Slack is borrowing cash because it's growing (to thrive) — Airbnb is borrowing because it's sinking (to survive). That makes it way more risky. Investors can smell desperation:

- __As bookings plunge and cancellations soar__, Airbnb is refunding guests  and shelling out [$250M](https://www.theverge.com/2020/3/30/21200430/airbnb-cancellation-policy-coronavirus-covid-may-31-pay-hosts) to cover hosts' losses. It projects __sales could fall by [54%](https://www.theinformation.com/articles/airbnb-projects-revenue-could-fall-by-half-this-year)__ this year.
- __So investors demand a 10% premium__ for putting their money at risk with Airbnb, while Slack gets to borrow for way less cost.

"_You're too risky to sit with now_"

__The virus premium is unavoidable...__ for Airbnb, __WeWork__, and any travel/rental company unable to operate right now. Most are affected by this risk premium, because we're living in risky times. And companies that are faring well in the corona-conomy — like Slack, __Zoom__, and __Netflix__ — can't pat themselves on the back either. They're just lucky that their businesses weren't as affected as others by unforeseeable circumstances. 

Slack's spot at the Wall Street lunch table — Airbnb's not invited (unless it pays for everyone)

🏥 The shape of recovery

__*When you're here, you're family*...__ Olive Garden should probably update its slogan, since all of its dining rooms are closed: *When you're here, you shouldn't be* — or *When you're not here, you're home* (aka, no unlimited breadsticks). Olive Garden parent __[Darden Restaurants](https://robinhood.com/stocks/DRI)__ has seen its same-store sales [plunge](https://www.cnbc.com/2020/04/07/darden-stock-jumps-as-olive-garden-parent-cuts-executive-pay-to-go-sales-skyrocket.html) 39% so far this quarter (and the quarter's not over). Why the long breadstick?

- __100% of its 1.5K eating spaces have been closed__ since mid-March — that includes Olive Gardens, Capital Grilles, and LongHorn Steakhouses. 
- __Olive Garden sales progressively plummeted__ 60%, 65%, and 71% for the last three weeks in March. Darden stock is now worth half its January value.  

__A light at the end of the basket...__ 99% of Olive Gardens *are open* for takeout — and its takeout sales have jumped [142%](https://www.cnbc.com/2020/04/07/darden-stock-jumps-as-olive-garden-parent-cuts-executive-pay-to-go-sales-skyrocket.html). LongHorn Steakhouse's have more than 3X'd. Couple that with news that Darden slashed executives' pay in half *and* that it has $1B in cash on hand — the stock jumped 12% Tuesday.  

_When unlimited breadsticks were possible_

Pick-Up

__We're living in an omnichannel world...__ And Darden is an omnichannel girl. The ability to nimbly service customers both on and offline is critical in the corona-conomy and beyond. If diners can get a satisfactory Olive Garden experience at home, they'll keep shelling out the $$$ even if all the dining rooms are closed. Flexibility to seamlessly jump from in-person to takeout to online-delivery is key — and retailers like Target and J. Crew already do it.

Olive Garden finds a light at the end of an empty breadstick basket

__If the economy is like a car stuck in the garage...__ __[Lear](https://robinhood.com/stocks/LEA)__ is the leather seat in that car — as in $20B/year in car seat sales (or as Lear likes to call them, "your personal docking station"). But car companies aren't making cars right now, so Lear's not making seats. Now it wants to start the engine before the economic car battery dies: 

- __Enter Lear's [Safe Work Playbook](https://playbook.lear.com/Safe%20Work%20Playbook.pdf)__: a 51-page "interactive" PDF that guides companies on how to resume operations when it's safe to open up shop again. It includes recommendations based on CDC guidelines combined with  Lear's global operations experience. 
- __The TLDR:__  Topics include social distance strategies like staggered shifts and lunch breaks, on-site health screenings for employees, disinfection procedures, and factory opening guidelines (like disinfecting it 100% before it opens). 

__How to slowly (and safely) get people back to work...__  Lear thinks we needed to start planning this yesterday, and it wants to be the influencer leading this shift. Not only would it get to start making car seats again, but also it would be responsible for influencing operations in an economic recovery. That "first-mover" title might not be too hard to snag — most companies have refrained from speaking publicly about a need to return to work.



_Trying to turn the economic engine back on_

Return

__Planning for a return to normalcy is key...__ In private conversations, top CEOs [reportedly](https://www.axios.com/coronavirus-shutdown-top-ceos-economic-warning-5e2ea882-1883-4a1f-855c-0c74b281d4f3.html) pleaded with  President Trump to start planning a phased return to work (as soon as May). They fear a catastrophic amount of large and small businesses will fail if we don't slowly re-open (aka, point of no recovery). But critical health concerns and a rise in cases make people reluctant to think that far ahead. Still, planning now is crucial as outbreaks begin to [peak](https://covid19.healthdata.org/united-states-of-america) across the US and the [world](https://www.theguardian.com/world/2020/apr/06/europes-coronavirus-numbers-offer-hope-as-us-enters-peak-of-terrible-pandemic). 

Lear plans for how to (safely) turn the economic car back on — it's one of the firsts

__Like LinkedIn, but for gigs...__ The largest segment of __[Uber](https://robinhood.com/stocks/UBER)__'s business — rides — has grinded to a near-total halt. Riders and drivers fear catching germs (plus there's not many places to Uber to anyway). Drivers have lost as much as [80%](https://www.reuters.com/article/us-health-coronavirus-usa-uber/uber-connects-out-of-work-u-s-ride-hail-drivers-to-delivery-production-jobs-idUSKBN21O1LV) of their income, and many have stopped working entirely. But Uber found a way to work what it's got:

- __People:__ Uber’s got an army of millions of workers who already have the app downloaded on their phones. They're just not using it right now. 
- __Tech:__ Over the years, Uber has slowly worked toward a 1-stop app where users can access all its services on one platform. 
- __Opportunity:__ Enter __[Work Hub](https://www.uber.com/blog/work-hub/)__. Uber is listing gig opportunities that aren't just for itself — __Domino's__, __FedEx__, __Target__, and __Walgreens__ opportunities right in Uber's app. It's also offering easy access and visibility for gigs on Uber Eats, Uber Works, and Uber Freight (all in one hub).

__Getting a job has never seemed harder...__ Uber's dream is to be the ultimate connector of the gig economy. In October it launched Uber Works, which connects people to shift jobs and helps companies fill staffing gaps. Now, with a massive unemployment rate and surging delivery demand, Uber's odds of success in this space have increased.


_Found this gig on Uber WorkHub_

Hire

__It's a win-win-win situation...__ Cash-strapped drivers get easy access to jobs, worker-needy companies get access to workers, and Uber gets a major adoption boost for its gig-connecting platform. Uber *will not* receive payment from companies for posting jobs — but it can monetize in the future after users get hooked. For now, it'll retain drivers while rides are down, and potentially attract *new workers* on a diversity of gigs. One day, WorkHub might even be Uber's profit puppy.

Uber becomes the unofficial job board for the whole gig economy

🍝 Olive Garden's light at the end of the breadstick

__Got that "finfluencer" clout...__ That's *financial influencer* (not to be confused with the much more prevalent *fake influencer*). And Warren Buffett's got a fat blue check mark as one of the biggest finfluencers on earth — investors closely stalk Warren's money moves. Now, his famous [holding company](https://learn.robinhood.com/articles/682uX0w1nPHFh1ckCvPwD3/what-is-a-conglomerate/) __[Berkshire Hathaway](https://robinhood.com/stocks/BRK.B)__ just sold:

- __13M__ shares of __[Delta](https://robinhood.com/stocks/DAL)__ for $314M, or 18% of Berkshire's Delta investment. Delta stock [plunged](https://markets.businessinsider.com/news/stocks/delta-stock-plunges-warren-buffett-berkshire-hathaway-slash-stake-airlines-2020-4-1029068065) 7% on the news. 
- __2.3M__ shares of __[Southwest](https://robinhood.com/stocks/LUV)__ for $74M, or 4% of Berkshire's total Southwest investment. The stock fell [5%](https://www.foxbusiness.com/markets/coronavirus-warren-buffett-sells-delta-southwest-airlines).

__Buffett's style is eyeglasses, khakis...__ and a long-term investment approach that involves "buying the dip." But fundamental facts around airlines have changed with the corona-conomy. Even though the government stands ready to bail them out (with strings attached), airlines are footing massive expenses while earning near 0 sales. Get these stats:

- __TSA reported a [95% drop](https://www.tsa.gov/coronavirus/passenger-throughput)__ in travelers on Sunday compared to a year ago (122K vs 2.5M). 
- __Delta projects a [90% sales drop](https://www.barrons.com/news/delta-sees-90-drop-in-q2-revenues-due-to-virus-01585949408?tesla=y)__ for the quarter — CEO Ed Bastian said the airline is losing over __$60M__ in cash every day and "we still haven't seen the bottom." 
-  __Airlines could lose up to [$115B](https://www.forbes.com/sites/marisagarcia/2020/04/06/airlines-could-lose-up-to-115b-in-international-passenger-revenue-icao/#6fa5bfc64839)__ in revenue for the first half of 2020, as [93%](https://www.pewresearch.org/fact-tank/2020/04/01/more-than-nine-in-ten-people-worldwide-live-in-countries-with-travel-restrictions-amid-covid-19/) of people worldwide are living in countries with travel restrictions.

"_On Wednesdays, we make market moves_"

Influence

__This is a "hedge your losses" move...__ Not a "lost cause" move (for now). Berkshire still owns 82% of its pre-sale Delta holding and 95% of its Southwest one — but now it believes returns on these investments will be underwhelming (or non-existent) for a while. In the short term, Warren can use the proceeds of the sale to make higher-return investments. In the long-term, he's keeping a big old foot in the door hoping airlines will inevitably bounce back. 

Berkshire Hathaway sells a bunch of airline shares — "Smart Money" cuts its losses

__To quote Elton John...__ "I'm still standing." Works well for __[JPMorgan Chase](https://robinhood.com/stocks/JPM)__ CEO Jamie Dimon. He's the last remaining big bank CEO still on the job after the '08 financial crisis. He saw the Lehman Bros bankruptcy in '08, the economic tank in '09, and was there for the 10-year recovery. Now, Dimon is sharing a few [thoughts](https://reports.jpmorganchase.com/investor-relations/2019/ar-ceo-letters.htm) about our current crisis:

- __"A bad recession":__ He [expects](https://www.wsj.com/articles/jpmorgan-ceo-writes-in-shareholder-letter-expecting-a-bad-recession-11586176451) it's coming. Back in January, we learned that JPMorgan had the [most profitable](https://snacks.robinhood.com/newsletters/70SavazX1qdJQfiXf95GQk/articles/1NkipApHwlGIYAtPuVA1Ij) year of any American bank *ever*. Back then the unemployment rate was at a record low — things have deteriorated [dramatically](https://www.washingtonpost.com/business/2020/04/02/jobless-march-coronavirus/). Still, JPM is ready to face the thunder...
- __"A port in a storm":__ What JPM has spent years preparing to be. Based on internal stress tests, the bank would be able to increase lending even if America's [GDP](https://learn.robinhood.com/articles/29d9WQgPq119raQYS1Wm6H/what-is-gross-domestic-product-gdp/) dropped a whopping [35%](https://www.wsj.com/articles/jpmorgan-ceo-writes-in-shareholder-letter-expecting-a-bad-recession-11586176451) for the rest of the year. It won't even consider cutting the dividends it pays to shareholders until a drop greater than that. Other major banks are also [defending](https://www.reuters.com/article/us-usa-banks-stress-tests/u-s-banks-to-defend-dividend-payments-in-stress-tests-ft-idUSKBN21N0QS) dividends.

__Banks have changed since '08...__ They were fundamentally broken during the financial crisis — this time they're not. Intense regulation post-crisis helped banks emerge stronger than ever. They have to keep more cash on hand (to withstand a bad downturn) and abide by stricter lending rules (to avoid risky loans). That means more swagger for Dimon as his bank faces this crisis.

_We'll weather this storm together_

__Banks are like the heart of the economy...__ They pump blood through the entire system and provide us with the cash money we need to perform life's functions. Banks are also crucial for withstanding economic crises: they're the ones doling out the lifeline loans for businesses to survive — and when the crisis is over, they'll be the ones offering the capital for businesses and consumers to rebuild. The fact that JPMorgan — the America's biggest bank — appears strong and healthy is a silver lining. 

JPMorgan's double-crisis CEO finally speaks out

✈️ Buffett's "influencer" moves   

__Fan of the [Maurader's Map](https://www.wizardingworld.com/writing-by-jk-rowling/the-marauders-map) (aka the Snape-Spotter)...__ __[Alphabet](https://robinhood.com/stocks/GOOG)__ has one for the world. The Google parent just released a treasure trove of public health data: Google's [COVID-19 Mobility Report](https://www.google.com/covid19/mobility/) tells us how we're all responding to social distancing orders. Here's (semi-creepily) how:

- __Smartphone, laptop, tablet, smartwatch:__ If you've got bars or a Wifi signal, Google knows where you are. Its apps (Gmail, Maps, YouTube, etc), Search, and Android operating system are all geo-tagging machines.
- __Anonymized, aggregated data:__ If you've turned "Location History" on, then you're in this aggregated dataset. But your name and personal deets are not.

__We're staying home more - but not all of us...__ We told our Snackers on Friday in our 1st live video Zoom conference that the pandemic has blown a giant hole in the US economy ([slides here](http://rbnhd.co/takeaways-apr1)). The data shows why:

- __We're leaving the house less__, especially for non-essential activities — shopping and entertainment visits are down 47% in America. Essential spots like grocery stores/pharmacies are seeing 22% fewer visits while the outdoors (a socially-distant safe space) is also down 19%.
- __Work from home is a luxury__. Work commuting fell by 38%, meaning 62% of us are still making the trek as of March 29th. Work-from-home's not possible for many low-income jobs, and many are still [taking public transit](https://www.nytimes.com/interactive/2020/04/03/us/coronavirus-stay-home-rich-poor.html) (germ hotspot) to get to essential gigs. 

_Should've used Google Maps..._

Collect

__Big Data *can* be good data...__ Personal data is usually monetized by tech companies to target you with ads for a product or politician (and it sometimes gets hacked/stolen). Hence... Big Data gives Big Tech its controversial reputation. But this Mobility Report is Google using its data-collection powers to show officials how to improve their COVID-19 response. Big Data ➡️ insights ➡️ better policies ➡️ better lives. *Using private data for the public good*. This crisis could help tech rebrand.

Big Bad Data rebranding to Big Good Data

- __Quarantinis on (and in) the house...__ Booze is [booming](https://snacks.robinhood.com/newsletters/CWAjzsU7bb4GBjKal0nQE/articles/59wILTe2GxPD0T1euZYm5B/) as Americans stock up for their corona-induced worries. Alcohol sales popped [55%](https://apnews.com/c407ecb931c6c528b4cceb0ecc216f0c) for the week ending March 21. Tequila, gin, and pre-made cocktails were most popular, with sales up 75%. Beer, which has lost shelf-space in fridges for years, jumped 42% — sales of hoardable 24 and 30-packs were up [90%](https://www.cnn.com/2020/04/01/business/alcohol-sales-coronavirus-trnd/index.html). And virtual booze-choosing is thriving: online sales surged [243%](https://apnews.com/c407ecb931c6c528b4cceb0ecc216f0c). Still, keg kings like Bud-maker __[ABInbev](https://robinhood.com/stocks/BUD)__ are [losing out](https://finance.yahoo.com/news/ab-inbev-withdraws-2020-guidance-142202901.html) on massive lost sales from closed restaurants and bars. 

- __Trust me, I'm a (tele) doctor...__ The virtual healthcare trend is accelerating as socially-distanced patients avoid potentially germ-infested offices — adoption of telemedicine has sped up dramatically: March telehealth visits soared [50%](https://www.cnbc.com/2020/04/03/telehealth-visits-could-top-1-billion-in-2020-amid-the-coronavirus-crisis.html), with virtual health-care interactions expected to top [1B](https://www.cnbc.com/2020/04/03/telehealth-visits-could-top-1-billion-in-2020-amid-the-coronavirus-crisis.html) by the end of the year. __[Teladoc](https://robinhood.com/stocks/TDOC)__ reported a [50%](https://www.nasdaq.com/articles/teladoc-health-reports-50-spike-in-daily-patient-visits-2020-03-16) jump in daily visits, with 15K video requests per day. TBD whether the telehealth trend will hold once the crisis is over. 



- __Pour one out...__ for __[Luckin Coffee](https://robinhood.com/stocks/LK)__ — the "Starbucks of China" announced one very un-Starbucks-like difference: its 2019 sales numbers were totally [made up](https://snacks.robinhood.com/newsletters/1cblBuDtgtokNEYEzCvie4/articles/1krUG6u9IaHRyq4K1dx9Fo). Luckin had reported its sales for the first 9 months of 2019 to be $413M — but an internal investigation revealed that $310M of those *never happened* (aka, #fakebrews). Luckin stock plunged nearly 80% the day the news broke. Luckin apologized "[sincerely](https://www.reuters.com/article/us-luckin-investigation/chinas-luckin-coffee-says-business-will-continue-amid-financial-fraud-probe-idUSKBN21N08T)" for the scandal, and said its caffeinated biz will continue as usual during the fraud investigation. 

- __WeWork (from home)...__ After a failed IPO and a scandalous CEO-exit, __WeWork__ has new troubles in its [beer-on-tap-less](https://www.theguardian.com/business/2020/jan/30/wework-ends-free-beer-wine-north-american-sites) offices: its largest investor, __[SoftBank](https://robinhood.com/stocks/SFTBY)__, just [backed out](https://www.cnbc.com/2020/04/02/softbank-terminates-3-billion-wework-tender-offer.html) of an offer to buy $3B in additional shares. We's co-founder, Adam Neumann, would've snatched almost [$1B](https://techcrunch.com/2020/04/02/softbank-terminates-3bn-tender-offer-for-wework-shares/) from the deal — but other [employees](https://finance.yahoo.com/news/wework-staff-planned-lives-around-235311101.html) would also have benefitted (they can take some solace that Neumann's not walking away a billionaire anymore). Now WeWork won't get [$1.1B](https://www.cnbc.com/2020/04/02/softbank-terminates-3-billion-wework-tender-offer.html) in extra debt financing that's needed right now. After all, its whole biz is renting office space, but so many of its clients are WFH...

💊 Gilead's drug pop