__New metric, who dis?...__ __[Twitter](https://robinhood.com/stocks/twtr)__ has moved to a [new metric](https://www.cnbc.com/2019/07/26/twitter-q2-2019-earnings.html) it thinks will better reflect its worth as a company. Instead of just counting the number of Twitter users, the focus is on *monetizable* users. If you've logged into Twitter and seen an ad, then congrats — you're a monetized user. More of those helped drive ad revenue 21% higher last quarter and Twitter shares jumped 9%. 

__That 4pm oat milk latte ritual...__ __[Starbucks](https://robinhood.com/stocks/sbux)__ is thoroughly enjoying it. Shares surged on word that sales at each Starbucks rose 7% on average from last year — and driving that was afternoon visits, which grew for the [1st time](https://www.cnn.com/2019/07/25/investing/starbucks-earnings/index.html) in 3 years. "Coffee happy hours" are now a thing.

__"*That'll be extra for guac*"...__ (we know). Rising avocado prices pushed up __[Chipotle's](https://robinhood.com/stocks/cmg)__ costs last quarter (Mexican and Californian farmers can't [keep up](https://www.cnbc.com/2019/07/23/chipotle-earnings-q2-2019.html) with American avo-hunger). But shares of the fast-casual restaurant pioneer still hit a record high. Chipotle's greatest enemy is long lines, so it's been adding drive-through windows affectionately called "Chipotlanes." Plus its app and loyalty program have nearly doubled online orders.

Highs

Who's up...

__The streak is over...__ __[Amazon's](https://robinhood.com/stocks/amzn)__ 4-straight quarters of its [best profits](https://www.cnn.com/2019/07/25/tech/amazon-earnings/index.html) ever is officially done. Blame it on the shipping arms race — Prime delivery was upped from 2-day to 1-day delivery, jacking Amazon's shipping costs north by 36%. Expect similarly huge postage stamp bills from __Target__ and __Walmart__ when they report earnings in the new world of "we-demand-one-day-shipping."

__Delayed — ETA TBD...__ __[Southwest](https://robinhood.com/stocks/luv)__ had to cancel 20K flights last quarter, mostly because of Boeing's flawed 737 Max jets. Turns out Southwest was the biggest 737 Max customer with 34 in its fleet, 41 arriving this year, and hundreds more already ordered. The pain is causing it to [cut](https://www.wsj.com/articles/southwest-airlines-to-cease-operations-at-newark-airport-focus-on-laguardia-11564054566?mod=hp_lista_pos3) all its air service out of Newark airport. 

__Model 3 is eating Model S...__ Technically, __[Tesla](https://robinhood.com/stocks/tsla)__ set a record for cars sold over the last three months (95K). But shares [plummeted](https://markets.businessinsider.com/news/stocks/tesla-stock-q2-earnings-shock-to-wipe-52-billion-off-value-cto-leaves-2019-7-1028383743) 12% for their worst day of the year after we learned that "cannibalization" is eating profits. Tesla's lower cost (and arguably sleeker) Model 3 is snagging sales away from the classic Model S and Model X, which are pricier (and profitable-ier for Tesla).

Lows

...and who's down

__It's been 15 months of lobbying...__ since __[T-Mobile](https://robinhood.com/stocks/TMUS)__ and __[Sprint](https://robinhood.com/stocks/S)__ announced plans to merge. Last week the wireless companies got what they wanted: the Justice Dep't [blessed](https://www.npr.org/2019/07/26/745544033/t-mobile-and-sprint-merger-finally-wins-justice-departments-blessing) the merger. The final hurdle is 13 states + DC that are suing, but magenta-loving CEO John Legere is moving forward like it's a done deal — he says rural America will get more bars and it's a win for American 5G. Here's the new "Big 3+1" in wireless: 

1. __[AT&T](https://robinhood.com/stocks/T)__ = 100M customers 
2. __[Verizon](https://robinhood.com/stocks/VZ)__ = 100M customers
3. __*T-Mobile*__ = 90M customers (the "Sprint" name will be retired) 
4. __[Dish Network](https://robinhood.com/stocks/DISH)__ (including BOOST) — If the wireless industry is The Beatles, then Dish is its Ringo Starr.

__This marriage comes with 1 big condition...__ *There must be a 4th wireless company*. T-Mobile was forced to sell Boost Mobile to __[Dish Networks](https://robinhood.com/stocks/DISH)__ because regulators worried it would be too big after acquiring Sprint. So the new #4 is mostly low-cost prepaid plans. Here are some other mega-mergers that featured competition-salvaging conditions:

- __Big Beer:__ When __AB InBev__ merged with __SAB Miller__ for $104B, they had to sell Miller and Coors beer brands.
- __Big Entertainment:__ When __Disney__ acquired __Fox__, Fox Sports and YES Network had to go.

__3 companies will now handle 95% of American phone plans...__ T-Mobile used to be that pesky 4th that undercut Verizon and AT&T prices (it was great for consumers). Now with just 3 players, it's [much easier](https://www.wsj.com/articles/what-the-t-mobile-takeover-of-sprint-means-for-your-wireless-bill-11564156044) for each to focus on profits by raising prices, and not worry as much about competition. The new reality: 3 is a big difference from 4.

 The wireless "Big 3+1" — T-Mobile & Sprint stocks spike on merger approval

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

_Wall Street's excited for the big wireless merger. Consumers are tbd._

The new "Wireless Big 3" (+1 Ringo Starr)

__Fact...__ Internet growth is slowing. That freaked out Google's parent, __[Alphabet](https://robinhood.com/stocks/GOOG)__, when revenues inched up just 13% last quarter. It was depression-worthy for Google investors, who were used to 25% revenue growth. So the bar was low this time, but Google cleared it (and then some) with a 19% surge in revenues.

- __Fun Fact:__ Google's budget-friendly $400 __Pixel 3A__ helped [double](https://www.theverge.com/2019/7/25/8930755/google-alphabet-q2-2019-earnings-hardware-pixel-sales-cloud-revenue-boost) sales of its smartphones.

__Webster's should strike the word "search" from the internet...__ Google's dominance in online search is [astounding](https://www.businessinsider.com/how-google-retains-more-than-90-of-market-share-2018-4) (93% of worldwide searches) — and so are the ad dollars it harvests year after year. Now it's dishing out some of the $63B in profits it's made the past 3 years by buying-back shares of itself — That can make each remaining share worth more in the near term.

Searched

__This 21-year-old has 2 problems...__ Investors look at Alphabet's ~$800B market value and think: *should this be worth more or less?* Google faces 2 major obstacles to up its growth game:

1. __Shockingly slowing internet growth:__ Mary Meeker's famous Internet Trends Report [showed](https://www.bondcap.com/report/itr19/#view/1) that internet users around the globe are growing at just 6% annually. That's the slowest growth ever, so Google's making up for it by sticking more ads in Google Maps and YouTube.
2. __Major antitrust vibes:__ The federal government started [an investigation](https://www.axios.com/antitrust-vise-tightens-on-tech-doj-google-facebook-amazon-23bd3cf8-2a47-4696-95a3-dcbe31dc2593.html) this week into Google and its gigantic internet friends for allegedly just being way too dominant for society. 

Google jumps 8%  — despite Earth's internet growth slowdown

__Warning...__ __[Hershey's](https://robinhood.com/stocks/hsy)__ latest earnings report revealed that it's raising candy prices, which will probably hit your office choco-bowl budget soon. It also enjoyed $1.8B in quarterly revenues, which beat expectations. But one detail [stood out](https://hershey.gcs-web.com/static-files/5a8c6dde-0f5e-4ab5-9bad-65cceac88710) to us at Snacks: “Growth was led by our powerful Reese’s franchise.” Please continue, Hershey.

__An 87-calorie triple threat...__ Reese's are 90 years old, but Hershey's has given them a facelift by introducing new versions. They call it "innovation." We call it "repackaging and reshaping." But it's working. Here's what they came up with this year:
- __Reese's [Thins](https://www.hersheys.com/reeses/en_us/thins.html):__ Pretty straightforward — the peanut butter cups are 40% narrower.
- __Reese's [Lovers](https://www.hersheys.com/reeses/en_us/lovers.html):__ Instead of a 50/50 chocolate/PB split, there's more chocolate in some, more peanut butter in others.
- __[Variety Pack](https://www.elitedaily.com/p/this-reeses-candy-bar-30-count-variety-pack-is-like-a-dream-come-true-18194765):__ This one's a straight-up packaging trick — 5 bars of 6 types (and one is just a regular Reese's cup...*filled with Reese's Pieces*).

Packaged

__Hershey has an acquisition craving...__ There's only so much repackaging of nut butter and cocoa a century-old company can pull off. So it's looking to buy new brands. Last fall, the chocolate legend acquired Pirate's Booty to get into non-sugar-laden snacks. And Hershey's president thinks acquisitions of newer, innovativ-er brands now play a "[major role](https://www.fooddive.com/news/hershey-targeting-ma-in-bid-to-boost-presence-in-the-burgeoning-snack-spac/538472/)" in its future.

Creative Reese's just powered Hershey up 2%

__Between NorCal and SoCal...__ lies the Governor of California. Four car companies secretly met up with him to negotiate a compromise on minimum MPG fuel efficiency. You borderline needed to whip out a pocket Constitution to understand this one. 

__Cars cause pollution...__ Econ 101 says that governments tax pollution or put limits on it. President Obama [ordered](https://www.nytimes.com/2019/07/25/climate/automakers-rejecting-trump-pollution-rule-strike-a-deal-with-california.html) that car companies increase their minimum average fuel economy to __54.5 mpg__ by 2025. President Trump doesn't believe that's necessary and prefers __37 mpg__. That's why California planned to exercise its *waiver* from federal fuel economy laws to keep stricter standards, and 13 states want to follow its lead. 

- __The nightmare scenario:__ Car companies might have had to create two lineups of cars — one for the 36 states following Trump's rules, one for the 14 more dedicated to fighting climate change. 
- __Instead they compromised:__ Ford, Honda, VW, and BMW made a pact with California to follow a (very efficient) __51 mpg__ nationwide by 2026. More automakers are expected to follow.

Negotiations

__This is why car companies want trade deals...__ Drastically different fuel standards between "teams" of states would've given carmakers tons to comply with — sometimes 2 assembly lines are needed instead of 1. Trade deals can fix that. Take the proposed Trans-Pacific Partnership (a US/Asia trade deal that fell apart). It would've unified standards between the US and Japan, but politics killed it. Car companies are intervening to unify the US.

4 car companies secretly met with California for an environmental deal

"_What do you mean the internet is slowing down_"

Google harvests 90% of the internet

__Fun fact...__ __[Facebook's](https://robinhood.com/stocks/FB)__ stock price is just 5.5% away from its record high. That's despite Wednesday's big [official settlement](https://www.ftc.gov/news-events/press-releases/2019/07/ftc-imposes-5-billion-penalty-sweeping-new-privacy-restrictions) with US regulators for handing over 87M users' personal details to Cambridge Analytica. 

__Facebook knew this was coming...__ So it guestimated back in April for investors that a $3B-$5B fine was coming. It even put money aside to prep for the government's hammer. A+ for FB's forecasting department.

- __The fine: $5B.__ Even though that's a record fine from the FTC, it's equal to less than 1% of Facebook's net worth (when measured by its $577B value by [market capitalization](https://learn.robinhood.com/articles/GByCbiOluG2kcWs1AF6m5/what-is-market-capitalization/#_Understanding_market_capitalization)).
- __Strings attached: Hardly any__. A huge criticism is that the privacy of 2B humans is controlled by 1 human — Mark Zuckerberg — who owns majority voting power at FB. This settlement installs a new "independent privacy committee" within the board that he'll have to check in with monthly.
- __Personal accountability: A tad__. Zuck must personally certify (with a real-life signature) every quarter that his company is following every privacy order from the settlement. Pinky swear.

Like

__BTW, Facebook also announced profits. Big ones...__ In the Western world, we're obsessed with Facebook-owned Instagram, which doesn't have Zuck brand baggage. In the rest of the world, Facebook's rep is fine and people use WhatsApp and Facebook at a carpal tunnel-inducing pace. Facebook's investigations aren't over, but they've barely slowed it down so far. Here are the Q2 [highlights](https://s21.q4cdn.com/399680738/files/doc_financials/2019/Q2/Q2-2019-Earnings-Presentation-07.24.2019.pdf).   

- __Revenues up 28%__ to $16.9B 
- __Operating profit up 14%__ to $6.6B (if you exclude the big fine)
- __Monthly users up 8%__ to 2.4B


Facebook's living its best life (as it shrugs off the $5B fine)

__How many hogs does it take to make a breakfast sandwich?...__ Trick question. At __[Dunkin'](https://robinhood.com/stocks/dnkn)__, it's none for the newest addition. Through a partnership with plant-based __[Beyond Meat](https://robinhood.com/stocks/bynd)__, the coffee icon is piloting a meat-free sausage sammie. It hits 163 Manhattan locations next Wednesday (yes, there are that many there), [joining](https://www.cnn.com/2019/07/24/business/dunkin-beyond-meat/index.html) fellow chains Hardee's, Carl's Jr., and Tim Hortons by putting Beyond on the menu.

__2 key ingredients...__ highlight why this particular partnership is special for both brands.

1. __Breakfast:__ It's the only meal in fast food that's actually [growing](https://www.npd.com/wps/portal/npd/us/blog/2019/why-the-breakfast-daypart-is-sunny-side-up/) (breakfast sales rose 1% last year, but were flat for all the other meals) — So Dunkin' is giving Beyond Meat prime-time menu real estate. 
2. __Price:__ $4.29. That'll get you one Beyond Sausage sandwich. And it's the same price you'd pay for any other Dunkin' sandwich — Dunkin' isn't charging a premium for fancy non-meat meat (Beyond's CEO nailed it with 👇this👇 quote):

*“It takes a lot of money to buy a Tesla — It takes $4.29 to buy this. And you can basically be making the same statement about who you are, what you care about, where your values are.”*

Chew

__Dunkin’ is America's food *democratizer*...__ The chain takes exclusive trends and brings them mainstream. Case study: espresso. After Starbucks and your local obscure-bean artisan coffee shop dominated unpronounceable espresso options, Dunkin' jumped in last year — [now](https://finance.yahoo.com/news/dunkin-donuts-is-becoming-the-target-of-espresso-194143731.html) it's trained 100K employees on 9K espresso machines to make sub-$4 lattes. It's the same goal for plant-based meats.

Dunkin' launches a sausage partnership with Beyond Meat, revealing its core virtue

__95K brand new Tesla owners are happy...__ Shareholders not so much. __[Tesla](https://robinhood.com/stocks/TSLA)__ stock dropped 13% after Elon announced that all those cars sold in the 2nd quarter cost the company more than they sold for — a loss of $408M last quarter. We're here to explain how a record quarter of sales could be so 😔.

__Tesla is eating itself...__ Cannibalization. It's an aggressive term for when one of your products is so good that it's eating sales of another. For a while, Tesla's only models were the high-end S and X, starting at $72K and $77K. "High-end" translates to "I-don't-care-how-much-it-costs" customers, which translates to profits. Now Tesla's pushing its cheaper Model 3 (starting at $39K) to become the 1st mass-production electric car company — and the 3 is eating S sales.

- __Exhibit A:__ In California, where parents dream of their kids' first self-driving ride, the number of Model S registrations at the DMV [fell 54%](https://www.wsj.com/articles/tesla-faces-eroding-sales-of-higher-end-vehicles-amid-model-3-gains-11563905728) last quarter — and the number of cheaper Model 3 registrations *doubled*.

Cannibalize

__*The Model 3 is too good*...__ That's the problem. Styles, looks, performance — Squint your eyes and the Model 3 looks like a Model S. But it's way cheaper. Companies can avoid cannibalization by clearly differentiating products to make the more expensive one objectively better. Now Tesla needs to learn how to not just sell a ton of cars, but do it profitably.

Tesla's record sales quarter... turned out to be unprofitable

_"Who wants a ride in my Model 3?"_

Tesla is cannibalizing Tesla

__Save me, Spiderman...__ Or send __[Hasbro](https://robinhood.com/stocks/HAS)__. The Rhode Island-based toy legend jumped 10% Tuesday after its 2nd quarter earnings. It announced it's shifting some of its toy production to India and Vietnam to avoid tariffs — it aims to [reduce](https://www.cnbc.com/2019/07/23/hasbro-to-cut-china-production-of-its-toys-looks-to-india-and-vietnam.html) the amount made in China from 67% to 50%. But let's talk about its toy collection.

__Hasbro's, like, a HUGE Marvel fan...__ For over 10 years, it's been the exclusive toymaker of Marvel superheroes. The 23 movies made since '08 have helped fill the piggy bank. Now that *Avengers: Endgame* happened, Marvel has announced "Phase 4" of its superhero content, tailored for Disney+ (which launches in November). Here's a [preview](https://www.cnbc.com/2019/07/20/marvel-announces-movie-slate-heres-when-they-are-coming-to-theaters.html) of what Hasbro will turn into toys:

- *__Black Widow__*, a spy/assassin film with Scarlett Johansson.
- *__The Eternals__*, a movie with Angelina Jolie and Salma Hayek about a (wait for it) alien race that protects Earth from annihilation.
- *__Blade__*, with Oscar-winner Mahershala Ali as a sunglass-loving vampire hunter. 


Play

__Hasbro doesn't just borrow Disney's characters...__ It's expected to extend its Disney deal that includes all Star Wars and Marvel toys (expiring in 2020). But licensing other companies' characters is only 22% of Hasbro's revenue. Its OG characters are actually doing better — *franchise* sales rose 14% last quarter compared to just 3% for licensed. Give some extra allowance to Play-Doh, Transformers, My Little Pony, and Magic The Gathering.

Hasbro surges 10%  (it's not just The Avengers)

__Technically...__ the coffee chain reports earnings tomorrow. But we thought this storyline was more interesting: __[Starbucks](https://robinhood.com/stocks/sbux)__ wants to turn its app brilliance into a monetized revenue stream. It just [invested](https://investor.starbucks.com/press-releases/financial-releases/press-release-details/2019/Starbucks-Backs-Restaurant-Tech-Company-in-Creation-of-End-to-End-Digital-Platform-for-Restaurant-Industry/default.aspx) in tech startup __Brightloom__ with plans to build a software service that covers all the back-end mobile needs of a restaurant.

__"*Waiter, we'll take it all to-go*"...__ That's the idea for Starbucks — mix together all the core elements of a successful mobile app into a [single product](https://www.fastcompany.com/90380135/starbucks-wants-to-create-the-aws-for-restaurants), then serve *that* up to other chains through Brightloom. Here's what the service could include (and who it could replace):

- __Loyalty program:__ LevelUp is the app currently handling your fast-casual loyalty points with some chains, including Just Salad and Pokéworks.
- __Mobile payments:__ Square is the preferred payment enabler of your local fancy-bean coffee shop.
- __Customer relationship management:__ Salesforce is the global giant of CRM software so your go-to spot knows your "the usual" order.

Commit

__Quote the Joker on this one...__ *“If you’re good at something, don’t do it for free."* Starbucks' app has become your best friend's true best friend — 17M Americans are using it, and 40% of Starbucks' US sales happen through it. Starbucks could make money off this venti-sized opportunity — 69% of US restaurants [don't](https://www.wsj.com/articles/starbucks-takes-stake-in-tech-company-brightloom-11563826211) even accept mobile payments currently. An app though is crucial for speeding up the line, incentivizing loyalty, and learning more about customers.

Starbucks may start selling its mobile app knowledge to restaurants

__Some numbers matter more than others...__ Take __[Coca-Cola's](https://robinhood.com/stocks/KO)__ revenues last quarter. They were expected by Wall Street to be $9.99B — They were actually $10.0B. But that's not why the stock flew up 6% Tuesday. The real reason is Coke [upgraded](https://www.cnbc.com/2019/07/23/coca-cola-earnings-q2-2019.html) its sales growth expectations for 2019 from 4% to 5%. For a company as huge as Coke, that extra percentage point is big.

__Coke's the [5th most](https://www.businessinsider.com/these-are-the-17-most-powerful-brands-in-the-world-2018-10#4-microsoft-9272-billion-14) valuable brand on earth...__ But in the US, it needs a brand-aid. Word's gotten out that carbonated water is probably better for you when not mixed with sweet syrup or aspartame. It didn't experience growth in its classic Coca-Cola brand, and the plan to revive it feels desperate: Bring the 80's back with [product placements](https://www.cokestore.com/new-coke-and-stranger-things-1985-limited-edition-collector-s-pack) in *Stranger Things* Season 3. 


__Coke has now discovered "good energy"...__ A key company goal is to "expand energy" (the natural kind). Coke acquired __Costa Coffee__ in the UK for $4.9B, and  Coca-Cola Energy has been launched in 14 countries (no ETA yet for the US) — its caffeine comes from natural sources. Plus, its Diet Coke spin-off, aka Coca-Cola Zero Sugar, has grown double-digit percentage amounts for 7 straight quarters.

Coca-Cola figures out what energy is good energy

"_Don't touch my toys, brah_"

Starbucks wants to sell its app brains

__Hungry and lazy?...__ There's an app for that. __[Uber](https://robinhood.com/stocks/uber)__ is piloting a *membership* service in San Francisco and Chicago. For $24.99 a month, users will [get](https://mashable.com/article/uber-ride-eats-bike-scooter-pass/) a fixed discount on each Uber ride, free delivery on Uber Eats, and 30 minutes of JUMP bike-share and scooter rides per day for free. 

__Variety gets 5 stars...__ Technically, Lyft has a monthly subscription too (an unlimited pass called "[All Access](https://blog.lyft.com/posts/subscribe-and-save-with-the-all-access-plan)"). But Uber's competitive advantage is all the logistics options for a *variety* of daily needs packed into one monthly charge. Lyft doesn't have that. Need to drive far? Uber's membership covers it. Just need to scoot around the corner? It's covered. Want a gyro STAT? All included.

Subscribed

__"Prime-ification" is happening...__ Amazon brought the club concept to a mass audience with $119/year (or $12.99/month) Prime. Uber's  pulling the same move because it knows that once you commit, you're a sticky customer. Already paid the month's Uber membership fee? You won't even open Lyft (unless Uber's surge pricing is crazy). Membership programs thrive on that guilt — and the recurring, consistent revenue they drive may get more business models Prime-ifying.

PS: What will get "Prime-ified" next? Tweet your guess [@RobinhoodSnacks](https://twitter.com/RobinhoodSnacks).

Uber launches a membership service fueled by its core advantage over Lyft

__"*I hate that chip store*...__ *I wish there were another in town.*" That's the thinking behind __[Apple's](https://robinhood.com/stocks/aapl)__ reported [interest](https://www.wsj.com/articles/apple-in-advanced-talks-to-buy-intels-smartphone-modem-chip-business-11563830356) in acquiring the smartphone chip division at __[Intel](https://robinhood.com/stocks/intc)__. Intel is/was really good at making computer chips, but not so good at mobile chips for smartphones. Here's Intel's rocky relationship with Apple for the iPhone:

- __2007 — 2016:__ __[Qualcomm](https://robinhood.com/stocks/qcom)__ was Apple's go-to modem provider.
- __2016 — April 2019:__ Apple put its arm around Intel, hoping it could offer the same chips as Qualcomm for a lower price. 
- __April 16, 2019:__ Apple begrudgingly [settled](https://www.nytimes.com/2019/04/16/technology/apple-qualcomm-settle.html) lawsuits with Qualcomm, and agreed to use its chips again for at least 6 years. 
- __Also April 16, 2019:__ Since Apple broke up with it, Intel announced it was done with smartphone modems.

__We're talking about the "bottleneck"...__ iPhones start as raw materials and end fitting nicely on your palm. In between there's a value chain, including workers, factories, stores... and modems. Qualcomm is the [only](https://www.cnet.com/news/intel-will-exit-5g-modem-business-hours-after-apple-qualcomm-settle/) chip company able to offer the modems for 5G phones, so Apple has no choice but to work with them.

In-source

__This is about busting Qualcomm's bottleneck...__ Qualcomm's stock fell 3% after the [WSJ's report](https://www.wsj.com/articles/apple-in-advanced-talks-to-buy-intels-smartphone-modem-chip-business-11563830356) — if Apple's able to resurrect Intel's patents, research, and engineers into a functioning 5G chip assembly line, Qualcomm will lose the power it has over the iPhone. If not, Qualcomm will keep naming its chip price. 

Apple is reportedly buying Intel's chip business for $1B

__The bureau of credit...__ Sounds like a government agency. It's not. It's __[Equifax](https://robinhood.com/stocks/EFX)__, the for-profit company best known for exposing over 147M Americans' sensitive personal information. Yesterday, it settled a bunch of lawsuits and investigations, offering victims some free stuff:

- __$25/hour:__ If you spent time with credit card customer service or learning how to manage a password manager, you can bill Equifax for it — up to $20K. 
- __10 years:__ Free credit monitoring service for a decade, which is worth ~$10/month.
- __$7B:__ That's the max amount Equifax could end up paying if all 147M victims take action (the company only expects 7M to make claims — FYI, you can learn more at [equifaxbreachsettlement.com](https://www.equifaxbreachsettlement.com/)). 

__Your money history matters...__ [Three companies](https://www.consumerfinance.gov/about-us/blog/know-your-data-our-latest-list-consumer-reporting-companies/) keep track of Americans' money reputation — your credit score. If they make a mistake, you could suffer from high interest rates, a problem that's tough to correct. So far though, the data that Equifax failed to protect hasn't shown up on the black markets where stolen data is typically sold.

Breach

__Equifax has pretty much recovered...__ The Atlanta-based company's stock price dropped from $145 to $93 in the two weeks after reports that its data door was left open. But shares have climbed back to $138 (as of Monday). Equifax was driving irresponsibly with a baby on board (your data), but politicians haven't done much new regulating to make sure it won't happen again. 

Equifax settles for a hefty $650M (or more) with 147M Americans for its data breach

_Mooching off 1 Uber Pass subscription_

Prime, but for Uber

__Tinder is making the first move...__ It's finding a way around the app store “tax”  that Google charges. To get premium features like "Tinder Gold" (Super Likes, read receipts, and other aggressive dating tools), you pay with your credit card on file through the Google Play store — and Google takes a 30% cut (it's similar with Apple apps). *That's a hefty toll*. So Tinder will [encourage](https://www.bloomberg.com/news/articles/2019-07-19/tinder-bypasses-google-play-joining-revolt-against-app-store-fee) users to go around the app store and pay it directly. Shares of Tinder-owner __[Match](https://robinhood.com/stocks/mtch)__ jumped 5% on the plan that sneakily avoids Google's 30% fee.

__Hakuna matata...__ __[Disney](https://robinhood.com/stocks/dis)__ entertained itself with two fresh records over the weekend: *The Lion King's* $185M haul in North America was the best opening weekend for a Disney remake — and then *Avengers: Endgame* finally passed *Avatar* as top grossing hit ever — $2.789B worth of movie tickets sold. With another *Star Wars* coming (shocker), Disney's on pace to earn $9B at the box office this year (which would also be a record).

__Big banks are the window to your wallet's soul...__ Spending on __[Citi](https://robinhood.com/stocks/c)__ credit cards [jumped](https://www.wsj.com/articles/citigroup-reports-profit-revenue-boost-11563192294) 8% last quarter while splurging on __[JP Morgan](https://robinhood.com/stocks/jpm)__ cards popped 11%. __[Goldman Sachs](https://robinhood.com/stocks/GS)__ wants in on that consumer spending so badly that it has [invested](https://www.cnbc.com/2019/07/16/goldman-main-street-transformation-costs.html) $1.3B on its retail banking project "Marcus" (and a new credit card partnership with __Apple__ hits this summer). In a world of volatile markets, interest rate uncertainty, and a trade war, your savings, checking, and credit accounts are banks' warm and fuzzy blanket.

__*Narcos* Season 3 was bad...__ This was even more painful. __[Netflix](https://robinhood.com/stocks/nflx)__ suffered its [worst](https://arstechnica.com/gadgets/2019/07/netflix-lost-us-subscribers-in-q2-over-price-hikes-how-can-it-win-them-back/) earnings miss ever after US Netflix subscribers actually decreased by 126K in the past year. Netflix simply didn't pump out enough headline original content over the last three months to entice new sign-ups. Plus, the monthly price rose by 2 bucks over the quarter. And now it's about to lose *Friends* and *The Office*, its 2 most popular shows.

__Can't blame gluten...__ Blame delivery. __[Domino's](https://robinhood.com/stocks/dpz)__ plummeted 9% on word that sales only rose 3% last quarter. The CEO [blamed](https://www.barrons.com/articles/dominos-stock-food-delivery-apps-arket-share-grub-hub-uber-doordash-51563375097) the slowdown on competition from "3rd party delivery aggregators," aka __DoorDash__, __[Uber Eats](https://robinhood.com/stocks/UBER)__, __Postmates__, and __[Grubhub](https://robinhood.com/stocks/GRUB)__. He mentioned them 19 times in the earnings call as the apps open up your delivery palette to non-pizza options.

__To quote LL Cool J...__ *Don't call it a comeback.* __[iHeartMedia](https://robinhood.com/stocks/ihrt)__ had $20B of debt and its last playlist ended in bankruptcy. Now it's been given a 2nd chance by a judge, and its shares just [started](https://variety.com/2019/music/news/iheartmedia-stock-drops-nasdaq-debut-1203271620/) trading again on the Nasdaq exchange. Its new mission is obsessed with "companionship," aka the daily devotion listeners have to talk radio and podcasts. In addition to concert hosting and sticking ads into the audio you hear, iHeartMedia wants to dethrone NPR as America's top podcast publisher (it's currently #2).

__Not a fun number to tally...__ In addition to scrutiny and lost trust, the safety issues that contributed to two downed planes full of passengers have cost __[Boeing](https://robinhood.com/stocks/ba)__ a lot of money already:

- __For customer reimbursements:__ The airlines that bought 737 Max planes *were planning to fly them*. Since they haven't since March, Boeing said last week it [put aside](https://investors.boeing.com/investors/investor-news/press-release-details/2019/Boeing-to-Recognize-Charge-and-Increased-Costs-in-Second-Quarter-Due-to-737-MAX-Grounding/default.aspx) $5.6B to reimburse them.
- __For lost sales:__ Since March 13th, not a single 737 Max has been delivered. Instead of turning into $2.7B of revenue for Boeing, the planes are filling up company parking lots ([literally](https://www.businessinsider.com/boeing-737-max-employee-parking-lot-packed-2019-6)).
- __For the victims:__ The Ethiopian Airlines crash killed 157 people. The Lion Air crash killed 189 more. Boeing is paying their families through a $100M fund.  
- *__Grand total: $8.4B__*

__How does that giant number compare?...__ We took a stroll down the hall of corporate shame to find out.

- __Volkswagen__ [paid](https://money.cnn.com/2017/09/29/investing/volkswagen-diesel-cost-30-billion/index.html) __$30B__ for cheating regulators and customers about "clean" diesel cars. 
- __Facebook__ was just [fined](https://www.nytimes.com/2019/07/12/technology/facebook-ftc-fine.html) __$5B__ for letting Cambridge Analytica manipulate 87M users' votes in the 2016 election.
- __Wells Fargo__ was [punished](https://www.usatoday.com/story/money/business/2018/12/28/wells-fargo-fake-accounts-settlement/2432088002/) __$575M__ for opening fake accounts for millions of unknowing customers.
- __Bank of America__, __JP Morgan__, and __Citi__ (among other huge banks) paid __$16.5B__, __$13B__, and __$7B__ for setting up the perfect kindling — subprime mortgage loans — for a 2008 financial system fiasco. 

Pricetag

__Boeing's future looks fine...__ Stock prices reflect future profits, and Wall Street clearly thinks Boeing can dust this one off. The reason is competition (the lack of it) — Comparing Boeing's stock drop to Volkswagen's makes it clear.

- 🚗 __[Volkswagen's](https://robinhood.com/stocks/VWAGY) shares fell 60%__ in the months after Diesel-gate. That's because there are dozens of car companies that customers could switch to.
- ✈️ __[Boeing's](https://robinhood.com/stocks/BA) stock is down *only 11%*__ since the 2nd plane crash in March. That's because there's only 1 planemaker customers could switch to – __Airbus__ — and its orders are booked out for almost 8 years. 



Boeing's 737 Max crisis has cost it $8.4B. Here's how that compares.

_Boeing trying to keep everyone happy_

Boeing-gate cost $8.4B. We compare that to other "gates."

__Amazon <> Microsoft...__ They're cross-lake tech rivals in Seattle. Amazon set sales records earlier with Prime Day — Now it's Bill Gates' baby's turn: __[Microsoft](https://robinhood.com/stocks/MSFT)__ profits spiked 49% to a [record](https://www.cnbc.com/2019/07/18/microsoft-earnings-q4-2019.html) high last quarter. And it remains the world's only $1T (trillion with a "T") publicly-traded company as the stock rose 3% after the report. 

__It's thanks to the "profit triangle"...__ You probably notice Microsoft products at work. But it's so much more than that. Here's how its $33.7B of revenue last quarter was almost perfectly divided 33/33/33:

- 👔 __Productivity & business processing:__ This includes Office (Word, Excel, PowerPoint), messaging (Outlook and Teams), and LinkedIn (acquired in 2016).
- ☁️ __Intelligent Cloud:__ Companies that have apps or websites (that's most of 'em) need processing power. These days they rent it via servers from tech companies like Microsoft, Amazon, or Google. 
- 🎮 __Personal computing:__ Regular folk don't rent processing power as much as companies do. We buy computers, tablets, and an Xbox or two.

__Microsoft owned chapter 1 and chapter 3 of computers...__ but completely missed chapter 2.

1. __Personal Computers.__ Paul Allen and Bill Gates founded Microsoft and quickly dominated computers (with Windows) and TPS reports (with Word/Excel/PowerPoint). 
2. __Mobile.__ Bill Gates [confessed](https://www.inc.com/chris-matyszczyk/bill-gates-just-confessed-his-greatest-ever-mistake-he-still-hasnt-got-over-it.html) his biggest business mistake: letting __[Google](https://robinhood.com/stocks/GOOG)__ become the default operating system for smartphones with Android. 
3. __Cloud.__ Under new CEO Satya Nadella, Microsoft is #1 again thanks to growth in cloud services and subscription products, like Office 365.

Microsoft sets a profit record ($13B), so we'll update you on what it actually does

__It's the comeback tour...__ For nearly a decade, America's biggest radio broadcaster was drowning in corporate debt. Then bankruptcy. Now __[iHeartMedia](https://robinhood.com/stocks/ihrt)__ re-debuted on the [Nasdaq stock exchange](https://learn.robinhood.com/articles/1GXPrecRfkSNp0aBblBSsL/what-is-the-nasdaq/) yesterday (the stock slipped 3.5% on day 1). The return was kindly made possible by a bankruptcy judge who [expunged](https://www.wsj.com/articles/iheartmedia-returns-to-public-markets-11563447601) (great word) $10B of those debts. Prior to that, it was paying almost $2B per year (1/3 of revenue) in interest payments alone. 

__iHeartMedia is Jackson Maine (from A Star Is Born) — and podcasts are Ally...__ iHeart's radio reaches 275M users monthly in the US — that's almost all Americans over the age of 6, which iHeart boldly claims is a vaster reach than Google. But a driver of its comeback is podcasts:

- Users who pod __spend more time listening overall__ than just-music listeners do.
- And iHeartMedia is the __[#2](http://analytics.podtrac.com/podcast-publisher-rankings) pod publisher behind only NPR__, with shows like "Stuff You Should Know" and "The Ron Burgundy Show".

Sounds

__"Companionship" is now the real star...__ Talk radio shows and podcasts (which the CEO calls "radio on demand") foster relationships with listeners. IHeartMedia [even dropped](https://www.sec.gov/Archives/edgar/data/1400891/000119312519096030/d694706ds1.htm) the term "companionship" 21 times in its S-1, the critical filing document for companies that want to trade on stock exchanges like Nasdaq or the NYSE. Engaged listeners are more valuable for the company that's already reaching nearly the entire country.

iHeartMedia falls on 1st day of trading (and rebound from bankruptcy)

__Dress for the earnings report you want...__ not the one you have. __[Skechers](https://robinhood.com/stocks/skx)__ is channeling it. Your go-to middle school shoe option's overall sales jumped 11% last quarter. But it's basically become a foreign company — nearly 60% of those sales [were overseas](https://www.benzinga.com/news/earnings/19/07/14099050/skechers-sharply-higher-after-q2-earnings-beat), where sales surged about 20%.

__Influencers not wanted...__ Skechers' US growth strategy may be less extensive as it expands abroad, but it's got one theme: C-list celebs who can side hustle as shoe ambassadors.

- Ex-QB __Tony Romo__ is the new face of Skechers' feet (his wife is in on the deal too), headlining the brand's 2-year turnaround.
- He's flanked by retired childhood sports icons like __Joe Montana__ and __David Ortiz__ who still try to feel active.
- Golfers are playing too — __Brooke Henderson__ and __Russell Knox__ are repping Skechers golf spikes.


Looks

__Avoiding trends is Skechers' trend...__ With more than 3,000 style options, the company is focused on giving a little something to everyone — not the next "it" thing that one friend of yours always has first. That mass-market strategy is captured by this single quote from the CFO: “Our core demographic isn’t the teenage fashionista.” You do you.

Skechers ignored fashion trends, and its stock still popped 12%

_Microsoft's perfect triangle of (record) profits_

Microsoft's love triangle

__Even Siri knows it...__ Sales on __[Amazon's](https://robinhood.com/stocks/amzn)__ Prime Day surpassed both its Black Friday and Cyber Monday. Combined. A record 175M items were snagged — up 75% from last year. Some of that's thanks to T-Swift's kick-off [concert](https://www.cnet.com/how-to/taylor-swift-prime-day-concert-how-to-watch-replay-dua-lipa-sza-becky-g/), most is from the 18 countries now taking part. Here are your worldwide best-selling items (straight from Amazon's [brag sheet](https://press.aboutamazon.com/news-releases/news-release-details/alexa-how-was-prime-day-prime-day-2019-surpassed-black-friday)):

- __US:__ Personal water filter straw, 23andMe ancestry kits.
- __UK:__ Sony PlayStation (FYI, Mexico loved Nintendo Switch, while Australia's top-seller was Mario Kart 8 Deluxe).
- __China:__ Dove exfoliating scrub.
- __Italy:__ Nescafé espresso (classic).
- __Germany:__ Some very, very practical stainless steel pans.

__Add "Halo Effect" to the shopping cart...__ That's the impact Amazon's mid-summer splurge-fest had on the rest of retail as everyone launched their own mini-sales.

- __The positive:__ Sales [surged](https://www.cnn.com/2019/07/17/business/amazon-prime-day-sales/index.html) 68% at big non-Amazon retailers and 28% at small ones.
- __The negative:__ *Discounts* drove those sales — retailers desperately race to the bottom on prices on Prime Day. Great for us, not really great for the companies.

Vcommerce

__"Flywheel effect" is bigger than "halo effect"...__ The flywheel is what Amazon biographer Brad Stone called the company's "[secret sauce](https://www.forbes.com/sites/jonbird1/2018/07/22/feeding-the-flywheel-why-amazon-prime-day-is-so-much-more-than-a-sale/#3614b81842db)" — the self-reinforcing wheel that Prime Day is now a spoke in. Here's the cycle: Prime members shop big on Prime Day (to justify the $119/yr membership) and they bought Alexa products for their homes — Echo Dot and other voice assistant products were the top sellers this week. Now those primers will do even more with Amazon, thanks to Alexa's help.

Amazon's (record) Prime Day highlights its defining strategy: the "flywheel"

__The matchmaking master is IAC...__ The internet beast that already owns most of __Match Group__ (Tinder, Hinge, and more than 25 other dating apps) just invested $250M in __Turo__, Earth's leading car-sharing marketplace. In the [announcement](https://www.iac.com/media-room/press-releases/iac-invest-250-million-turo), InterActiveCorp (__[IAC](https://robinhood.com/stocks/IAC)__) opened with "We like marketplaces." Concise. Here's the marketplace Turo has created:

- __10M people need short-term wheels:__ And they've downloaded Turo's app, which lets them rent somebody else's car for 1 day or several.
- __400K people have a car that's available:__ So they're putting their car (which on average sits idle 95% of the time) to work by renting it out.
- __It has 1 big rival:__ __Getaround__, which has tech heavyweight SoftBank as an investor.

__The business model is so simple...__ Turo acts as the middleman, connecting a supply of cars with demand, then taking a cut of the transaction (exactly how Airbnb works). One detail is crucial: Turo offers insurance so that the "#LastCallForMoll" backseat bachelorette road trip shenanigans don't leave the car owner with a mess. 

Share

__Economics drive it, tech enables it...__ Our generation has student debt and jobs that aren't as secure as our parents'. We also need to set a high glamour bar on social media. Those are the conditions that let Airbnb unleash short-term apartment rentals, so we can travel cheaper than a hotel, and make money on our own place back home while we're at it. 

- [Airbnb](https://www.airbnb.com/)__:__ Homes are sharable.
- [Outdoorsy](https://www.outdoorsy.com/)__:__ RVs, campers, and trailers are sharable.
- [Turo](https://turo.com/en-us)__:__ Cars are sharable.
- *What's next?*


Turo, the new $1B unicorn, lets you Airbnb your car

__The MoviePass for living rooms...__ __[Netflix](https://robinhood.com/stocks/NFLX)__ announced it only added 2.7M new subscribers last quarter, way below the 5M it expected — That's its biggest miss ever, by far. But this stat was the most shocking: In the US, Netflix actually *lost* 300K subscribers (it was hoping to gain 200K). America is post-peak Netflix.

__2 key problems drove the disappointment...__ And neither was *Friends* or *The Office*, the two most popular Netflix shows that'll get pulled in 2020 and 2021, respectively.

- __The price increase:__ Last quarter, the price of a standard account rose from $11 to $13.
- __The un-inspiring content:__ Netflix execs said the "content slate" didn't drive as many users to sign up. Meanwhile, *Big Little Lies*, *GoT*, and *Chernobyl* won eyeballs at HBO. But don't worry — CEO Reed Hastings predicts that *Stranger Things 3*, *The Crown*, and *Orange Is the New Black's* final season __will drive 7M new subscribers in the 3rd quarter.__ 

Shrink

__It's harder to win new customers than keep existing ones...__ Netflix will have to spend [$22B annually by 2024](https://www.jpmorgan.com/global/research/streaming-wars?source=cib_os_tw_Streaming0619) on original, new content, according to JP Morgan, to keep winning new users. It spent big last quarter, but money doesn't always buy great content. 

Netflix loses subscribers in the US (we've never seen that before)

_Ignoring Prime Day like a boss_

Netflix actually *shrank* in the US

__Emphasis on the "no's"...__ Shares of Michigan-based __[Domino's](https://robinhood.com/stocks/DPZ)__ (mozzarella is stretchier in the Midwest) fell 9% on word that sales growth slowed to just 3% for restaurants in the US (it was even worse internationally). Domino's tech-savviness helped it get pizza to people faster and shot the stock up over 3,300% in just 10 years. But now new technology is attacking it.

__"Aggressive activity from 3rd-party delivery aggregators"...__ The Domino's CEO gave __DoorDash__, __Postmates__, __[Uber Eats](https://robinhood.com/stocks/UBER)__, and __[GrubHub](https://robinhood.com/stocks/GRUB)__ the Voldemort treatment — He dropped "3rd-party aggregators" 19 times in the earnings call with analysts yesterday. Instead of even mentioning the Big Four food delivery apps, he [bemoaned](https://www.cnbc.com/2019/07/16/dominos-ceo-delivery-apps-like-grubhub-are-subsidized-by-investors.html) the promotions they're all giving away to entice orders.

- The Big Four have __democratized access to delivery__ from McDonald's to Chipotle to Sweetgreen to Shake Shack to a bodega.
- Domino's is trying to be __more like the Silicon Valley darlings__ — it just added "[track my pizza](https://www.engadget.com/2019/07/16/dominos-pizza-gps-delivery-tracking/)" with GPS.


Deliver

__Domino's isn't a pizza company — it's a delivery company...__ And the delivery competition is on its A-game. In the past, we were typically limited to pizza or Chinese when it came to staying in and ordering delivery. Now, the Big Four delivery apps have deconstructed that, and Domino's faces delivery competition from any place with a stove and plastic to-go containers.

Domino's earnings reveal cracks in its delivery dominance

__Pause...__ __[Apple](https://robinhood.com/stocks/aapl)__ is actually getting serious about podcasting after years of complacency. *Bloomberg* [reported](https://www.bloomberg.com/news/articles/2019-07-16/apple-plans-to-bankroll-original-podcasts-to-fend-off-rivals) that the original home of the podcast is switching its strategy from reactive to proactive — it's contacting podcast producers, asking them to go exclusive with Apple: *Shows only for Apple Music subscribers*.

__50%-70%...__ That's the share of podcast listens that happens in Apple's podcast app. The rest are divvied up between platforms (Stitcher, Google Music), so Apple got complacent. It didn't give creators much data about their listeners, and it didn't give listeners a great interface for audio enjoyment. Then __[Spotify](https://robinhood.com/stocks/spot)__ started to catch up. Fast. Here's how:

- __Big goals:__ CEO/Founder Daniel Ek announced he wanted 20% of listening on the streaming platform to be non-music content.
- __Big acquisitions:__ So Spotify bought podcast producer Gimlet and its 29 original podcasts in February, followed by 2 other [pod-cquisitions](https://venturebeat.com/2019/04/29/spotify-confirms-it-paid-56-million-for-parcast-taking-its-total-podcast-acquisition-value-to-400-million/). It's committed $500M to the initiative.
- __Big results:__ Spotify is now 2nd to Apple, jumping from near nothing to 10%-20% of listens.
- *Spotify shares fell 2% Tuesday on word of Apple's moves.*

__Apple used to create, now it follows...__ With iPod, iPhone, iPad, and Siri, Apple built entirely new product categories. Now it's playing catch-up. Here are its recent 2nd-mover moves:
- Music streaming ➡️ Copied Spotify
- Apple TV+ streaming ➡️ Copied Netflix 
- Beats & HomePod speaker ➡️ Copied Bose *twice*
- Original podcasts ➡️ It might just be copying Spotify *again*

Apple may be deep-diving into podcasts — because Spotify caught up (fast)

__1 four-pack of shade...__ coming right up for Silicon Valley. The main event yesterday was David Marcus, __[Facebook's](https://robinhood.com/stocks/FB)__ head of cryptocurrency, who suffered a grilling by the Senate (he hits the House tomorrow). But all 4 of America's tech-powered giants sent lambs to get questioned and criticized by elected officials.   

- __Facebook:__ Defending Zuck's new cryptocurrency, Marcus promised Libra wouldn't launch until it "fully addressed regulatory concerns." Politicians from both sides [didn't like](https://www.bbc.com/news/business-49008298) Facebook's crypto-moves given its marred privacy record. PS: Bitcoin dropped 10% on DC's overall [anti-crypto](https://www.forbes.com/sites/billybambrough/2019/07/16/bitcoin-and-crypto-suddenly-branded-a-national-security-issue/#420f18c21a59) tone.
- __Google:__ President Trump said he would [investigate](https://www.forbes.com/sites/kennethcorbin/2019/07/16/trump-vows-google-probe-over-china-ties/#2e346dad45a9) whether __[Google](https://robinhood.com/stocks/GOOG)__ has been infiltrated by the Chinese military. That's based on a claim from Peter Thiel (Facebook board member) that Google is an unpatriotic company engaged in treason. 
- __FB, Google, Apple, and Amazon:__ Execs from all four faced a different set of lawmakers who accused them of breaking rules set up to protect consumers from monopolies as well as for having a [bias](https://www.npr.org/2019/07/16/742308833/googles-search-bias-on-trial-in-washington) against conservatives in search results. 

Shout

__Despite the politi-hate, record highs...__ The stocks of all these companies are close to their record highs. They've scaled their business models across the world and kept growing as people in developing countries adopt smartphones and the internet. And 2+ years of tech as a political punching bag hasn't resulted in laws or policies to rein in profits. 

3 Congressional hearings. 4 scrutinized tech giants

_Domino's thinks we've got delivery overload_

Delivery democratizes, Domino's loses

__*Excuse me, good sir, what's this "resort fee?"*...__ You were enjoying that early summer trip until an ambiguous fee at checkout rips a $100 hole in your soul. Now the Attorney General of Washington, DC has sued __[Marriott](https://robinhood.com/stocks/MAR)__ over it, accusing the chain of deceiving consumers on prices. The AG is [demanding](https://docs.google.com/viewerng/viewer?url=https://skift.com/wp-content/uploads/2019/07/DC-lawsuit.pdf&hl=en_US) two forms of justice:

- __Transparency:__ Marriott must add "resort fees," "destination fees," or "amenity fees" to the nightly price of the room *like an honest multi-national corporation should*. 
- __Restitution:__ Marriott should refund all the customers whose trips got buzzkilled by the surprise fee.

__These are pure profit puppies for hotels...__ At first, resort fees were only at resorts, paying for things like your afternoon at the rock climbing wall. But the fees [spiked 400%](https://skift.com/2019/07/15/marriott-resort-fee-lawsuit-puts-new-target-on-longheld-hotel-industry-practice/) last year as hotels realized they could sneak them into almost any bill. Here's how: 

- __Hidden costs:__ Marriott highlights the __$219/night__, but obscures the "$30 daily destination fee added to room rate."
- __Ambiguous labels:__ Bundling the resort fee into the "Taxes & Fees" line gives the impression it's a government tax (it's not — it's for the hotel).
- __Make it mandatory:__ The CEO of Marriott [defended](https://www.linkedin.com/feed/update/urn%3Ali%3Aactivity%3A6555561330697359360/?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosmarkets&stream=business) the resort fee, comparing it to an airline baggage fee. But baggage fees can be avoided — resort fees cannot.

Complain

__This could hurt sales or profits...__ Resort fees are being used to cover should-be essentials like a bottle of water and access to wifi. If Marriott loses this case it will have to fess up about the actual price of a room by including the fee, or just erase it. Either outcome is bad for the big hotel business.

Marriott gets sued for hiding "resort fees" until the last second

__The OG of Millennial lactose tolerance...__ Turkish entrepreneur Hamdi Ulukaya fed America's Greek yogurt cravings when he created __Chobani__ in '05. Now the strained yogurt pioneer is launching a new line featuring nut butters (almond, cashew, hazelnut) in 5 flavors nationwide this month. But when we looked [deeper](https://www.foodnavigator-usa.com/Article/2019/07/15/Chobani-unveils-new-nut-butter-line-as-US-yogurt-category-edges-back-into-growth) into Greek yogurt, we noticed it's having a problem.

- __All yogurt:__ Sales fell 2% last year (their 3rd straight annual decline).
- __Greek yogurt:__ Sales dropped 7% in 2018.
- __Chobani Greek yogurt:__ Sales rose 4% — It's the only major yogurt-churner with positive sales growth right now.

__If cows could talk...__ they'd tell you that Chobani products' successes and failures [reveal](https://www.cnn.com/2019/07/15/business/chobani-new-product-launch/index.html) its strategy — the Greek yogurt-based ones are thriving while its non-Greeks suffer:

- __What’s working at Chobani:__ Its "Less Sugar" version, Chobani "yogurt drink" (picture a yogurt milkshake), and the kids' version, "Gimmies," with cartoons on the box, launched last year.
- __What’s not working:__ Chobani Smooth — its *non*-Greek yogurt. After 2 years, it's getting shut down.

Spoon

__Chobani is pulling a Coca-Cola...__ It's using product spinoffs to save slowing growth. With soda sales shrinking, Coke's using Coke Zero, Coke Vanilla, and Cherry Coke to find growth with the same brand. It tweaked the product just enough to attract new customers without hurting the identity. Chobani is digging into the same playbook: Change the packaging and purpose, don't change the core ingredients or brand.

Chobani whips up a new spinoff as Greek Yogurt loses its mojo

__Do bankers still get company Blackberrys?...__ Asking for a recovering analyst. __[Citigroup](https://robinhood.com/stocks/C)__ kicked off a slew of earnings reports from big banks Monday — profits rose 7% to $4.8B, but revenues inched up by just 2%. At home, surprisingly stable financial markets hurt Citi's chances to make trading revenue. That trend is expected to affect __[JP Morgan](https://robinhood.com/stocks/JPM)__ and __[Goldman Sachs](https://robinhood.com/stocks/GS)__ when they report their April-June results today.

__Big corporations aren't playing in China anymore...__ For huge companies that do business all over the world, it's important to have a worldwide network of bankers — Citi's got that. Citi's huge corporate clients though aren't borrowing from Citi as much, especially in China. 

- __Related:__ [China's economic growth](https://www.npr.org/2019/07/15/741735791/chinas-economy-falters-slowest-growth-in-nearly-3-decades) __slowed to the lowest rate in 30 years__, hitting a 6.2% growth rate. The trade war between the #1 and #2 countries in the world has put a damper on foreign investment over there.

Lend

__Interest rates aren't helping, either...__ Most stocks ripped their tops off to bask in low interest rate rays expected to hit this summer. But banks actually benefit from high interest rates because they can make more money off customers' deposits and through lending. And the Fed's policy shift to cut interest rates (to boost the economy mid-trade-war) has pushed stocks of major banks down 12% over the past year (according to a big bank ETF). 