__$5B breaks records — not destinies...__ __[Facebook](https://robinhood.com/stocks/fb)__ is about to be smacked with a $5B fine by the FTC for years of being casual with users' privacy. Even though that would be a record-high fine, investors were (wait for it) happy with the news. Back in April, Facebook warned it [was expecting](https://www.businessinsider.com/facebook-stock-rose-news-5-billion-ftc-settlement-why-critics-2019-7) a penalty close to that amount. Besides, Facebook can pay off that fine with just 30 days of revenue (we did the math).

__Live your best life, Snap...__ Shares have more than tripled since December, thanks to __[Snap](https://robinhood.com/stocks/snap)__ flexing the two biceps of tech: growth and engagement. Its gender-swapping filter in May more than doubled the number of daily app downloads from 600K to over 1.5M, and the new Bitmoji-focused games (including Tennis, launched last week), keep more of those users in the app longer. Investment banks want to [friend it](https://www.barrons.com/articles/buy-snap-stock-app-downloads-goldman-51562947393).

__Namastay right here on the 2nd floor...__ of __[Lululemon's](https://robinhood.com/stocks/lulu)__ new everything-store for sweaty people. The 25K-square-foot flagship in Chicago has 1 boring level of merch, but the rest is an anti-ecommerce [playland](https://www.businessoffashion.com/articles/news-analysis/lululemon-opens-workout-studio-where-visitors-can-borrow-clothes): 3 studios (yoga, HIIT, and meditation), a chef-designed, influencer-influenced restaurant, and WeWork-worthy work space. Lulu wants 10% of its stores to look like this one by 2023.

Highs

Who's up...

__Stick it back in the fridge...__ Freaky fact: Budweiser-owner __[AB InBev](https://robinhood.com/stocks/bud)__ makes 1 of every 4 beers worldwide. It also just canceled the [biggest IPO](https://www.wsj.com/articles/anheuser-busch-inbev-calls-off-ipo-of-asia-unit-11562955994) of 2019. The brew-glomerate was planning to spin off its Asia business into a separate publicly traded company — the IPO for Bud Asia would've raised $10B cash that AB InBev could have used to pay off some debt. But Bud wasn't happy with the amount investors were willing to pay for shares, so it pulled out Friday, dropping Bud's stock 3%.

__There's a work-life imbalance...__ Turns out the email crushing office messenger __[Slack](https://robinhood.com/stocks/work)__ has aggressive competition. For the first time, __[Microsoft](https://robinhood.com/stocks/msft)__ revealed [how many](https://www.theverge.com/2019/7/11/20689143/microsoft-teams-active-daily-users-stats-slack-competition) people are using its work communicating rival "Teams": 13M. And that's just two years after it launched (Slack is at 10M). The next battle between the two is over integrations: Which will connect you to a Zoom conference call most seamlessly?

__The best prescription: not lying...__ __[Johnson & Johnson](https://robinhood.com/stocks/jnj)__ fell 4% Friday on word the Department of Justice is investigating whether it's been truthful about cancer risks in its baby powder. The pharma legend denies it's done anything wrong, but investors are [thinking about](https://www.cnbc.com/2019/07/12/jj-drops-4percent-on-report-doj-investigating-allegations-company-lied-about-talc-cancer-risks.html) the 13K+ lawsuits it's facing over the talcum-based product. Plus, the 124-year-old icon is already losing Millennial moms to drama-free babycare startups with 'gram-worthy brands and packaging.

Lows

...and who's down

__If you can't beat 'em...__ spend an absurd amount of money with them. __[Ford](https://robinhood.com/stocks/f)__ and __[VW](https://robinhood.com/stocks/vwagy)__ just [agreed](https://www.nytimes.com/2019/07/12/business/ford-vw-self-driving-electric-cars.html) to "collaborate" globally on both autonomous vehicles ("AVs") and electric ones ("EVs"). VW is investing a hefty $2.6B  into self-driving  startup __Argo AI__ — the Pittsburgh-based tech company Ford already has a stake in. Now German VW and American Ford will use a bunch of Google translate to work in the Steel City together.

__Ford = VW...__ They go together like Big Gulps and cupholders. The pair of car giants share similar histories, but the present is different for both — and that could make this AV and EV pact work:

- __History: A car for the people.__ Henry Ford created that with the Model T. And it's the literal English translation of "Volkswagen."
- __Present: One's got trucks, the other's got cars.__ Ford makes virtually all its money on trucks and SUVs. VW is busy in sedans, coupes, wagons... *und Audis... und Porsche*. 

Teamwork

__You need 2 drivers to get to 0 drivers...__ Since neither plays on the other's turf, they'll be ok sharing secrets in pursuit of the common goal — racing to self-driving tech.

- __Alphabet__ leads the pack with Waymo, which is developing driving brains for cars and is [believed](https://www.cnbc.com/2018/12/06/ubs-analyst-estimate-on-alphabet-self-driving-car-waymo-revenue.html) to have a value over __$100B__.
- __General Motors__ owns most of Cruise Automation, which is worth __$19B__ and has investments from __Honda__ and __Softbank__.
- __Volvo__ & __Uber__, and __BMW__ & __Daimler__ are the other tag teams.  
- __*Keep in mind:*__ Valuations don't matter as much as results, which nobody's producing as quickly as hoped. 

VW and Ford are the newest self-driving and electric power couple

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

_Ford and VW hashing who has to sit in the middle_

Ford & VW: The new self-driving power couple

__Unfriend...__ The Chairman of America's central bank visited Congress this week. Most focused on his interest rate plans — Jerome Powell strongly hinted that the Fed would lower rates to support the economy during the trade war. But he also opined on Mark Zuckerberg's latest project, __[Facebook's](https://robinhood.com/stocks/FB)__ cryptocurrency "Libra." He's just not that into it.

__Regulators and politicians are anti-ZuckBucks...__ It's not just Powell. We've seen resistance to the idea of Facebook owning an alternative financial system from all over. And it runs deep.

- 🏛 __US Congress:__ The Financial Services Committee wants Facebook to "immediately cease implementation plans." One senator called it "Monopoly Money."
- 👔 __The 27 corporate partners:__ Uber, Mastercard, Spotify, and other companies that paid $10M to oversee the future stablecoin with Facebook are reportedly nervous about the whole thing.
- 🌍 __The world:__ Central bankers from China, Europe, and Singapore are all [concerned](https://www.nytimes.com/2019/06/25/technology/facebook-libra-cryptocurrency.html?module=inline). The Bank of England head won't let Facebook "learn on the job."


Regulate

__Facebook could actually get stopped...__ Since sophomore year, Zuckerberg's done what he's wanted to do. But now the Fed has set up a working group of regulators with broad political backing to investigate Facebook's financial plans. Here are Powell's concerns:

- __Money laundering:__ FB's non-regulated financial pipes could make it easier for drug deals to go down.
- __Privacy:__ No explanation needed.
- __Consumer protection:__ Fraudulent schemes could run as wild on Facebook as fake news did/does, out of reach of regulatory oversight.
- __Financial stability:__ What if Libra, the global currency, had an outage? That could spread to other markets. Worldwide. Fast.


Facebook's cryptocurrency faces big resistance — like from Fed Chairman Jerome Powell

__Swanky hotel + gym + Lululemon...__ (with a hint of WeWork). Execs at __[Lululemon](https://robinhood.com/stocks/LULU)__ said "yes" to any ideas that could be thrown into its new 25K-square-foot store in Chicago's Lincoln Park. [Opening day](https://www.cnbc.com/2019/07/10/a-look-inside-lululemons-massive-new-store-in-chicago-with-yoga-food.html) was yesterday (we were curious). The 1st floor's your standard retail merch (from her stretchy pants to his joggers). But on the 2nd floor, things get transcendental:

- __Work your body:__ There's a studio for yoga and another for HIITs (high intensity interval training). Plus, Equinox-quality locker rooms to un-sweat yourself. 
- __Work your soul:__ A 3rd studio (surprise) for meditation. 
- __Work your mind:__ Workspace to flip open your laptop when the post-workout endorphins kick in.
- __Fuel yourself:__ Then there's the clean-eating menu at the new chef-designed, influencer-consulted restaurant, called "Fuel". 

__Faux-industrial, succulent-infused, minimalist decor...__ But Lulu means business. There are 50 classes per week at $25 each. They're designed to generate sales — You can try on clothes through an entire yoga flow class, then not buy them. And it's planning to expand: by 2023, Lulu wants 10% of its locations to be this new breed of everything store. 

Sweat

__Offer something Amazon can't...__ That's been the strategy of retail companies thriving despite the retail-pocalypse around them. These physical dream-stores whipped up at Lulu's v2.0 spot are packed with an experience online shopping can't replicate. 

Lululemon opens 25K-square-foot everything store in Chicago for sweaty people

__Living their best lives...__ __[Cigna](https://robinhood.com/stocks/ci)__ popped 9%. __[UnitedHealth](https://robinhood.com/stocks/unh)__ rose 5.5%. __[CVS](https://robinhood.com/stocks/cvs)__ (which owns Aetna) jumped 5%.  Health insurance stocks have enjoyed the week after a couple key policy proposals — *aimed at clarifying drug pricing so you can actually stop paying so much* — were dropped or blocked.

__Bipartisan-supported political issues do exist...__ Cutting prescription drug prices is one of them. One plan proposed by President Trump sought to end the practice of drug-makers giving discounts/rebates to middlemen representing health insurance firms that encouraged buying expensive drugs. That [was dropped](https://www.wsj.com/articles/trump-administration-drops-plan-to-curb-drug-rebates-11562845155) for political reasons. The other involved your TV.

- __The problem:__ Drug companies interrupt your TV bingeing with overwhelming details on what their little pill can do, but are silent on the absurd price.
- __The solution:__ The Trump administration pushed for a rule to require drugmakers to include the $$$ price [next to](https://www.wsj.com/articles/trump-rule-requiring-drug-prices-in-tv-ads-blocked-11562634281?mod=article_inline) that charming Cialis bathtub scene.
- __The outcome:__ A federal judge said no, ruling that forcing a price tag violates the drug companies' rights to free speech.

Vitals

__Pricing is healthcare's secret muscle...__ Obscure, mysterious, unclear pricing. The reality for consumers is not knowing the price of prescription medicine — A doctor prescribes, a health insurer pays. There's bipartisan support to allow the invisible hand of economics to force some competition with visible prices. But healthcare stocks surged because drug prices will remain complex (and very high) for now.

Healthcare stocks jumped after 2 big regulatory reforms failed

Bitcoin 

_Regulators reacting to Facebook's alt-financial system_

ZuckBucks has haters

__Your 2-year-old iPhone is ancient...__ __[Nintendo](https://robinhood.com/stocks/NTDOY)__ measures time differently — the 120-year-old Japanese electronics icon ([founded](https://www.nintendo.co.uk/Corporate/Career/About-Nintendo/About-Nintendo-825979.html) in 1899, originally making playing cards in Kyoto) is convincing customers it's still fresh with the Switch Lite. The stock rose 3% on word of the next version of its best-selling gaming device. 

__Smaller, cheaper, no TV...__ Although it sounds like a downgraded hotel room, we're talking about the [new Switch](https://www.theverge.com/circuitbreaker/2019/7/10/20687801/nintendo-switch-lite-price-release-date-size-battery-life-motion-control-games). The revolutionary design of the original Switch let you play on a handheld screen or on TV. This one's purely for the go (convenient, but limiting) — and $200, instead of $300. The yellow, gray, and turquoise options that this Game Boy descendant comes in are delightfully Pikachu-ish. 

Play

__Nintendo thrives on blockbuster consoles...__ Super Nintendo, Game Boy, N64, and Wii are different chapters of Nintendo's dynasty. But the Switch has sold a shocking 34.7M units in the two years since its launch, generating 85% of Nintendo's revenue over that time. And the stock's up 48% in those two years as it plays along with it.

Nintendo unveils "Switch Lite" — a portable-only version of the legendary gaming device

__Enter your passcode on the touchtone keypad...__ to listen to __[Zoom's](https://robinhood.com/stocks/ZM)__ brutal security flaw. What's given Zoom a cult corporate following is its easy-use video conference calling. On Monday, we learned about [the bug](https://www.vox.com/recode/2019/7/9/20687689/zoom-mac-vulnerability-medium-jonathan-leitschuh-camera): If an attacker sends you a malicious Zoom link, it opens your Mac webcam automatically — exposing your life. The flaw is bad. Zoom's response was worse.

__Enter Jonathan Leitschuh...__ The software engineer side-hustles as a security flaw hunter. Here are highlights of the awkward series of events he detailed on [his blog post](https://medium.com/bugbountywriteup/zoom-zero-day-4-million-webcams-maybe-an-rce-just-get-them-to-visit-your-website-ac75c83f4ef5) that exposed the Zoom issue.
- __March 8:__ Jon tweets at Zoom he found a problem (gets no response).
- __March 26:__ He emails Zoom, warning he’ll disclose the flaw in 90 days (he even offers a quick fix).
- __March 27:__ Jon is offered a "bug bounty" by Zoom (payment from Zoom for finding the problem), which he refuses to accept.
- __June 21:__ Zoom says the flaw is fixed!
- __July 7:__ The fix stops working!
- __July 8:__ So Jon tells the world.

Error

__Investors vote in real-time via Wall Street...__ Despite the security flaw, the flubbed fix, and a beloved CEO's belated apology, shares *didn't* drop (they've actually risen since Monday). The bug's most likely impact on Zoom would've been customers leaving or lawsuits arriving. The stock's reaction signals Wall Street may not be worried about either.

Zoom made a big mistake. And took 4 months to fess up about it.

__Your parole has been denied...__ __[SunTrust](https://robinhood.com/stocks/STI)__ bank just [announced](https://www.reuters.com/article/us-suntrust-banks-prison/suntrust-to-stop-financing-private-u-s-prison-operators-idUSKCN1U31WV) it will no longer do business with private prisons or migrant detention centers. It's following __JPMorgan__, __Wells Fargo__, and __Bank of America__, which have all boycotted the industry this year as well. The trigger? Reports of inhumane conditions in border prisons that are sheltering unaccompanied children.

*__PS:__ Georgia-based SunTrust is mid-merger with North Carolina-based __[BB&T](https://robinhood.com/stocks/BBT)__. Afterward it will awkwardly be called "Truist."*

__Let's look at the prisons affected...__ __[GEO Group](https://robinhood.com/stocks/GEO)__ and __[CoreCivic](https://robinhood.com/stocks/CXW)__ are the two biggest publicly-traded and for-profit prison companies. They get paid by the federal and state governments to incarcerate prisoners for them (about $24K per year, per prisoner). GEO Group and CoreCivic both think the banks are caving to political pressure. 

Clink

__Reputation and profits — it's a tradeoff...__ The banks are turning down potential profits to protect their reputation among the community and with their employees. Sometimes, it's the other way around, like __[HSBC](https://robinhood.com/stocks/HSBC)__, which became the [top bank](https://www.wsj.com/articles/hsbc-carves-special-role-as-banker-to-the-saudis-11560425106) of Saudi Arabia despite the nation's human rights abuses and recent murder of journalist Jamal Khashoggi.

Private prisons lose another bank: SunTrust

_Pikachu slimming down to game on the go_

Nintendo's smaller, cheaper, handheld Switch

__[Pepsi's](https://robinhood.com/stocks/pep) earnings weren't shocking...__ Revenues inched up 2.2% and soda sales hardly grew. Then something happened in the press conference *after* the report's release — the CEO [couldn't stop talking](https://www.pepsico.com/docs/album/investors/q2-2019/q2-2019-pep_transcript_yj68o1p752vfolbb.pdf) about how much he's into Pepsi's new sparkling water brand, Bubly. Really into it.
- “*Could be one of our next __$1B brands__*”
- “*We're __super happy__, really, with this opportunity*”
- “*Huge opportunity ahead of us in Bubly in creating a __whole new category of beverages__*”

__It's all about the bubbles, baby...__ Over the past year, Bubly has more than [doubled](https://www.bloomberg.com/news/articles/2019-04-16/pepsi-s-bubly-seltzer-brand-gains-ground-on-lacroix-perrier) its share of the sparkling water market, from 2.3% last year to 6.5% now. Here's how Pepsi's drinking into __[LaCroix](https://robinhood.com/stocks/FIZZ)__ and __[Perrier's](https://robinhood.com/stocks/NSRGY)__ market:

- It acquired home-spritzing seltzer system __SodaStream for $3.2B__ last year.
- It launched Millennial-eye-candy-branded __sparkling water Bubly__, recently expanding to 12 flavors.
- It spoiled Bubly with __a Super Bowl [commercial](https://www.youtube.com/watch?v=I-_Uh-vZXgo)__ as a first birthday gift.

Fizz

__This is about Millennial moms...__ Pepsi's CEO described them as Bubly's true target. The [next generation](https://www.pewresearch.org/fact-tank/2019/05/08/facts-about-u-s-mothers/) of moms is more educated, more employed, and expected to spend more money than the last. Pepsi's [ditching](https://www.pepsico.com/news/press-release/pepsico-advances-circular-economy-for-plastics-announces-lifewtr-packaging-with-06272019) plastic bottles and putting Bubly in more environmentally-friendly cans, hoping Mom will buy it for herself *and* the kids. That's how you raise the next *next* generation of customers.

Pepsi's earnings report just showed us it's obsessed with sparkling water

__🚀🚀🚀🚀...__ Sir Richard Branson wants to be your interstellar concierge — his space travel startup __Virgin Galactic__ is going public. Technically it's not an IPO — a public company called __[Social Capital Hedosophia](https://robinhood.com/stocks/IPOA)__ already exists and will merge with VG (the name Virgin Galactic will stay when the deal closes this year). It's the [1st time](https://www.cnbc.com/2019/07/09/buy-virgin-galactic-stock-to-invest-in-the-billionaire-space-race.html) Earth-bound humans will be able to own stock in a space exploration company.

__Three very rich men are racing to space...__ But they're not all the same. The big difference is the cargo.  

- __[SpaceX](https://www.spacex.com/) = "FedEx for space":__ Elon Musk's space company sends rockets skyward, usually carrying satellites and space equipment for NASA and other space agencies. 
- __[Blue Origin](https://www.blueorigin.com/) = "Uber for space":__ Jeff Bezos' company plans to shuttle people out to space, and eventually bring natural resources from other planets back.
- __[Virgin Galactic](https://www.virgingalactic.com/) = "JetBlue for space":__ Unlike Jeff and Elon's rockets, which shoot straight up, Richard's is more airplane-ish, taking off and flying to an altitude of 50 miles. It's had two successful flights and plans to take tourists up soon.

Orbit

__Virgin Galactic's following Tesla's growth strategy...__ Tesla and VG both started by catering to the ultra wealthy, eventually hoping to lower costs and become mainstream. Virgin Galactic's also shockingly [bullish](https://learn.robinhood.com/articles/3i6hIwhY75uWjZUZiLFTFT/what-are-bull-and-bear-markets/), thinking it'll become profitable by 2021 as it collects $300K/flight from thrill-seeking millionaires who want to mid-orbit for the 'gram.

Virgin Galactic — the space company — is going public 

__"Storytelling" is the star...__ The word was dropped a disproportionate 4 times in the __[AT&T](https://robinhood.com/stocks/T)__ [press release](https://about.att.com/story/2019/hbo_max.html) about HBO Max, the new streaming service launching in the spring of 2020. The storytellers — including Nicole Kidman and Reese Witherspoon — will create original shows for HBO. But the real unspoken highlight is the *unoriginal*.

__Reruns are HBO Max's differentiator...__  AT&T acquired HBO's parent, Time Warner, last year. So it now owns (and will include in HBO Max) a wealth of "the-one-where-she-did-BLANK"-style episodes.
- __Time Warner icons:__ Warner Bros, TNT, TBS, Cartoon Network, Adult Swim, Looney Tunes.
- __HBO legends:__ *Game of Thrones, The Sopranos, The Wire, Sex and the City, Curb Your Enthusiasm*.


Streaming

__Reruns are Netflix's Achilles heel...__ Netflix has poured billions annually into original content, but this stat reveals a dramatic problem: [8 of the top 10](https://www.wsj.com/articles/friends-to-move-to-hbo-max-warnermedias-new-streaming-service-11562691481) shows on Netflix aren't Netflix originals. It's definitely losing its #1 and #2 most-streamed shows — *The Office* to NBC in 2021 and *Friends* to HBO Max in 2020 — just as HBO Max reruns itself.

AT&T releases "HBO Max," flexing Netflix's Achilles heel: reruns

_When Phoebe loses her HBO password_

HBO + Friends = HBO Max

__Disrupt the [1st person plural](https://www.we.co/)...__ The __We Company__ has visionary visions to turn real estate into utopias, starting with its WeWork office spaces. It's already stealthily filed to IPO, but the *WSJ* [just reported](https://www.wsj.com/articles/wework-to-raise-billions-selling-debt-ahead-of-ipo-11562524614) that it's first taking a pit stop with the banks to borrow $4B. Achieve [goal #1](https://learn.robinhood.com/articles/6UsdUrlnUvxiDpDT4D2bup/what-is-an-initial-public-offering-ipo/) of the IPO now so it's better ready for goal #2 later:

- __Goal #1: Raise money.__ With the IPO, We planned to create millions of new shares of itself to sell to the public for cash. 
- __Goal #2: Go public.__ All of We's investors (We founders, We venture capitalists, We employees) have We shares that are just pieces of paper. When it's a public company, it becomes easy to sell those shares for cash. 

__A $47B cash-burning machine...__ WeWork's biz model calls for a ton of spending. Right now, it's hugely unprofitable (it lost $1.9B last year — that's more than the $1.8B it generated in revenue). Here's how WeWork happens:

1. __It signs leases__ for huge office buildings.
2. __It WeWorkifies them__ by optimizing dead workspaces and cutting them into different sized, rentable pieces (small enough for one woman entrepreneurs, big enough for Amazon). Then it tosses in draft lager taps and ironic wallpaper.
3. __It collects rent__ from WeWork tenants.


Wait

__Sometimes it's safe to wait...__ Going public is like going pro. If WeWork raises $4B in cash now by borrowing, it can afford to take another year playing in college to refine its profit skills before facing the judgemental eye of the public market. Look what happened to __[Uber](https://robinhood.com/stocks/UBER)__ and __[Lyft](https://robinhood.com/stocks/LYFT)__ — those money-losing companies both went pro this year, and their stocks are below where they began trading on IPO day.

WeWork is reportedly slow-playing its IPO, borrowing $4B first

__Something happened over Spring Break...__ Snapchat changed. Parent company __[Snap](https://robinhood.com/stocks/snap)__ shares have nearly tripled since February, driven by analysts upgrading their price targets for the stock. And *that's* been driven by Snapchat strengthening — and then flexing — the two biceps of tech apps: growth and engagement.

__Left Bicep = "Growth"...__ The last time Snap updated us in March it had 190M daily active users. To grow beyond that, it's made two key moves:

1. __Viral filters:__ That gender-swapping filter in May [more than doubled](https://onezero.medium.com/snapchats-gender-swap-and-baby-filters-doubled-downloads-of-the-app-40a633c02ff0) the number of daily app downloads from 600K to 1.5M.
2. __New app:__ Finally updating its glitchy Android app increased the number of people snapping by 6%.

__Right Bicep = "Engagement"...__ To enhance the time users spend in the app, Snapchat launched games in April:

- __Bitmoji Party:__ Snapchat's 1st original game was deeply multi-playered so you could spend time with your friends' digitally-better-looking avatar versions of themselves.
- __Bitmoji Tennis:__ Just launched last week, the new game [lets you](https://venturebeat.com/2019/07/01/why-snapchat-is-making-mobile-games-like-bitmoji-tennis/) hit a microphone button to yell at your opponent — without having to leave the app.


Rebound

__Snapchat is covering steps #1 and #2 (growth and engagement)...__ Now it's gotta focus on Step #3: making money. A shocking 90% of all Americans age 13-24 use Snapchat, so the app's trying to monetize them through ads — and its revenues impressively rose 39% in the 1st quarter. But investors eventually want profits, and that means nailing step #3 as it flexes its growth and engagement.

Snap stock has subtly/shockingly almost tripled since February

__A room full of brains and calculators...__ That's the Congressional Budget Office, a non-partisan government agency that takes proposed legislation and calculates the economic impact. Its newest [report](https://www.cbo.gov/publication/55410) dives into the "Raise the Wage Act" — which would increase the minimum wage nationwide to $15/hour by 2025. It'll likely pass in the Democrat-controlled House of Reps, but it’s unlikely to become law right now.

__Paying people more is a trend...__ Although the federal minimum wage ($7.25/hour) can't even buy a Chipotle burrito (*pre*-guac) after not being increased since 2009, [29 states](https://www.npr.org/2019/07/08/739607964/-15-minimum-wage-would-boost-17-million-workers-cut-1-3-million-jobs-cbo-says) plus DC have increased theirs during that period. Here's who'd win and lose with a nationwide livable wage.

- __Winners:__ 17M people would get their pay upped to $15. And 10M more would likely get raises because a rising tide lifts bigger boats, too. Plus, 1.3M working-poor would escape poverty.
- __Losers:__ The CBO predicts 1.3M Americans would lose their jobs, as managers don't think they're worth $15/hour, or decide to use machines instead of costlier humans. 
- __*One caveat*:__ These are just predictions based on economic theory and math. The CBO isn't Professor Dumbledore.

This is a test - do we see this image?

__Companies would lose, at first, for sure...__ Higher wages = higher costs = smaller profits. __McDonald's__ has been lobbying against an increased minimum wage for that reason (but actually [ended](https://www.washingtonpost.com/business/2019/03/27/mcdonalds-says-its-done-lobbying-against-raising-minimum-wage/?utm_term=.b5da0c20ad8b) its fight recently because wage hikes seemed inevitable). But longer term, the CBO tells us that 27M Americans will have more money... which they will spend... which could increase companies' profits. We'll know for sure when the theoretical becomes real. 

$15/hour minimum wage is getting debated: 27M winners, 1.3M jobless

_Snapchat’s got a scar for every day since Facebook copied it_

What if the minimum wage were $15/hour?

__By a really, really big margin...__ __[Roku](https://robinhood.com/stocks/roku)__ (little Roku) is America's most popular video streaming platform. A research report [revealed](https://news.strategyanalytics.com/press-release/intelligent-home/roku-stretches-lead-1-streaming-tv-platform-us-after-record-q1) that the binge-empowering dongle makes up 30% of all streaming devices sold in the US — that's double the share of #2 (Amazon Fire TV). Roku's edge: It sells its own dongle hardware device *and* it is pre-installed on many smart TVs. Dangerous combo.

__Like Gump's shrimping [boat](https://youtu.be/TjcK-LGgtLA?t=262)...__ It turns out __[Delta](https://robinhood.com/stocks/dal)__ is the only major US airline that [doesn't have](https://www.cnn.com/2019/07/02/business/delta-earnings/index.html) a single Boeing 737 MAX in its fleet. That means it's been gaining market share since March, when its rivals had to ground the troubled planes and cancel scheduled flights. It told investors last week that its revenues gained a more-than-expected 8% last quarter as a result.

__You may climb out from your Tesla bunkers...__ Electric car icon __[Tesla](https://robinhood.com/stocks/TSLA)__ doesn't report its 2nd quarter earnings for a couple more weeks. But it served up its quarterly "Vehicle Production & Deliveries" report. Good news for shareholders: Tesla is back to setting personal record numbers of cars sold, [like it's supposed to](https://snacks.robinhood.com/newsletters/I8ABCDal2o99W3TesGSBI/articles/1Ci0gzILhvqQaPCIuWhuMD) be doing. That pushed shares up 7% Wednesday.

__Liquor before weed...__ On Independence Day Eve, __[Canopy Growth](https://robinhood.com/stocks/cgc)__ (Earth's biggest cannabis company) announced the co-CEO was "stepping down," but the man himself clarified that he'd been "[terminated](https://www.cnbc.com/2019/07/03/canopy-growth-co-ceo-to-step-down.html)." The reason for the firing: Corona-owning liquor legend __[Constellation Brands](https://robinhood.com/stocks/stz)__ owns 37% of Canopy's shares and controls 4 of the 6 seats on Canopy's board. And Constellation wants Canopy to focus more on CBD-infused drinks, less on medical marijuana, so it [canned](https://snacks.robinhood.com/newsletters/53D5PZmVR86YJQknpYXKkL/articles/hhYUavVObsQAZQpRrRAZr) the Co-CEO to send a message.

__Technically, the stock rose last week...__ But we're listing __[Deutsche Bank](https://robinhood.com/stocks/DB)__ as a clear debbie downer. It [announced](https://www.bbc.com/news/business-48901565)  yesterday that its turnaround plan is to lay off about 20% of its workers. The pain (18K jobs total) hits the London and New York investment banking divisions, but Wall Street is relieved that it's going back to its German roots.

__Stick it up on the fridge...__ Friday we [learned](https://www.npr.org/2019/07/05/738624184/rebound-in-job-growth-expected-in-june) that the US economy added 224K new jobs in June. We'll get to why stocks *fell* on the good news in a sec, but here are two interesting developments we noticed:

1. __Manufacturing is doing its thing:__ Even though it's the sector most-affected by the US/China trade war, 17K jobs got created in the biz of putting things together (the most since January).
2. __The ironic hiring issue:__ Since so many Americans are getting paychecks, there's a huge demand for *more* workers to serve them burrito bowls, teach them to shavasana, fit them into Allbirds, etc. But with the unemployment rate close to a record low at 3.7%, finding the right available talent is tough.

__Toss in a little context...__ and it helps understand each monthly jobs report a bit better.
- __Compare it to expectations ⬆️:__ Economists expected 162K new jobs. We got 40% more than that in June.
- __Compare it to last month ⬆️:__ Jobs growth plummeted in May to just 72K new jobs. We rebounded hard in June.
- __Compare it to last year ⬇️:__ The average number of jobs added monthly over the past 3 months was 171K — that's down from the 223K we were adding during the same 3-month stretch last year. It's a sign that expansion is [slowing](https://www.nytimes.com/2019/07/05/business/economy/june-jobs-report.html).


Hired

__It's all about the Fed's July get-together...__ America's central bank decides at next month's meeting what to do about interest rates — lower them to encourage borrowing and growth, or keep things put because the economy doesn't need any help (it could also increase rates, but that's not in the cards right now). Mid-trade war, investors have been expecting/hoping for the Fed to lower rates, which would be great for profits and stocks. But this strong jobs report may keep things in cruise control instead. *Good news for the economy was bad-ish news for the stock market*. 

The June jobs report dominated (but stocks fell) — Here's why

_“Does anyone know who’s setting record highs?”_

Jobs surged. But stocks fell. We look at why.

__The "Sam Walton College of Business"...__ That's where __[Walmart](https://robinhood.com/stocks/WMT)__ CEO Doug McMillon got his BA. It's named after Walmart's founder, and the dress code is *business pleated*, not *Silicon Valley untucked*. And deep reporting by [Recode](https://www.vox.com/recode/2019/7/3/18716431/walmart-jet-marc-lore-modcloth-amazon-ecommerce-losses-online-sales) has revealed that profit-focused retail types at Walmart are annoyed with its new ecommerce darlings.

__Jet.com got acquired in 2016 for $3.3B...__ and it's appeared to put up big results. But it turns out many at Walmart resent Jet.com and the new techies on the block.

- __The positive PR spin:__ Walmart's got its mojo back. It's putting up __a legit fight against Amazon__ and is even beating Bezos in some spots (it was first to offer free 1-day shipping). 
- __The stone cold sober truth:__ Walmart's ecommerce efforts __lose $1B per year__. And Walmart only owns 5% of total online shopping in the US, behind Amazon's 38% (according to Recode).
- __The latest:__ CEO McMillan is telling Jet.com's Marc Lore to __cut costs__. But Jet.com founder-turned-Walmart-ecommerce-guru says they must actually __increase spending__ if Walmart's serious about beating Amazon. 

Squabble

__Growth vs. Profit...__ With tech changing so many industries, you find situations where companies have old-and-profitable divisions squabbling with new-and-growing ones. Managers need the profits now to fuel growth for tomorrow. But the clash of culture can kill morale (and make the old guard feel un-loved). That tension is playing out in plenty of places:

- __Walmart:__ Its physical stores made nearly $7B in profit last year, but we all know the future is online and omni-channel commerce (a combo of online and in-store).
- __Automotive:__ Gas-guzzling trucks/SUVs are making all the money, but management loves to talk about self-driving tech and electric cars.
- __News:__ Fox News and CNN are making bank on TV (political ads are their profit puppies), but the growth is in digital and mobile.

Walmart vs. Jet.com: The old guard is now clashing with its ecommerce newbies

__Good thing he's Canadian, or this holiday would be sad...__ Bruce Linton, co-CEO of the world's largest cannabis company, __[Canopy Growth](https://robinhood.com/stocks/cgc)__, told the world Wednesday that he got fired. Correction: The Company said he “[stepped down](https://www.canopygrowth.com/investors/news-releases/canopy-growth-announces-leadership-transition/).” But he was fired. And it looks like liquor legend and Corona-owner __[Constellation Brands](https://robinhood.com/stocks/stz)__ was behind the big move.

__Modelo lager. High West whiskey. Robert Mondavi merlot...__ Now pot. Constellation has already got the bar covered, so in 2018 it expanded beyond alcohol by spending $4B to acquire 37% of Canopy. This was the strategic vision: CBD-infused drinks. Canopy brings the marijuana-know-how, Constellation brings the beverage creation/distribution expertise. Then strategies stopped aligning:

- __Linton:__ The co-CEO was busy forging A-list partnerships with Martha Stewart and Snoop.
- __Canopy:__ The cannabis company is focusing on medical marijuana, with plans in 30 countries since the legal situation is easier than recreational.
- __Constellation:__ The alcohol company wants CBD-infused and profit-making drinks ASAP — *but under Linton's leadership of Canopy, that wasn't priority #1*.

__It's all about the Board...__ The CEO may be boss, but he or she has to answer to the Board of Directors. Canopy has 6 seats on its Board, and 3 are execs at Constellation while a 4th is on Constellation's board, too (the alcohol empire managed to get board control with its $4B investment). Only 2 of Canopy's board members are independent from Constellation. Last week, Constellation's CEO was "not pleased with Canopy’s recent reported year-end results,” and it seems he and his board buddies did something about it.

Canopy Growth fires its Co-CEO — and it’s got Corona fingerprints all over it

_That record high / mid-week vacay confidence_

A cannabis CEO gets fired by a beer CEO

__Joltin' Joe is impressed...__ In June of 2009, America's economy hit the low-point of the financial crisis. For the 120 months since, it's been growing. And starting this week, it's officially America's [longest](https://www.nbcnews.com/business/economy/we-re-longest-economic-expansion-ever-it-s-rich-who-n1025611) stretch of economic growth without a recession since World War II. 

__In honor of Independence Day...__ we're jumping into this streak, Snacks style. Here's how the economy has changed since the depths of the Great Recession, which was triggered by the financial crisis, which was triggered by the subprime real estate bubble:

- 🔧 __21M jobs have been created:__ And unemployment is at a modern record low of 3.8%.
- 📈 __Stocks have more than tripled:__ The S&P 500's 230% gain in the past 10 years was powered by low interest rates and ballooning profits. 
- 😬 __We're in a trade war now:__ It's concerning. But at least the economy's in a good enough position to endure the pain.
- 🎭 __The number of billionaires has almost tripled:__ But a divided American recovery has left behind those outside of major jobs hubs.

Expand

__Does an economic expansion die of old age?...__ Every recession in history — except this one — has been followed at some point by another. Many analysts are looking for signs of another economic downturn... which can have the effect of hurting confidence... and actually contributing to the economic downturn (it's a freaky self-fulfilling prophecy). We'll learn more as 2nd quarter earnings reports hit this month.

America's economic expansion is 10-years-old 

__95,200...__ That's the number of __[Tesla](https://robinhood.com/stocks/TSLA)__ cars that were delivered to affluent, environmentally-conscious, and/or tech-obsessed new owners from April-June. That's more than double the number of deliveries in 2018's 2nd quarter, and the positive result popped shares up 7% Tuesday.

__This isn't some earnings report...__ It's the "[Vehicle Production & Deliveries](https://www.globenewswire.com/news-release/2019/07/02/1877581/0/en/Tesla-Q2-2019-Vehicle-Production-Deliveries.html)" report — car companies preview their financial results with this crude, raw, meaty, production count. But Tesla's had worries about "weak demand" from the beginning of the year. That's when deliveries fell 31% from the quarter before, and flocks of Tesla doubters started chirping that customers just weren't that into Elon's cars. 

Produce

__If Tesla's *not* setting records, then something's wrong...__ Tesla produces a tiny fraction of the number of cars __[General Motors](https://robinhood.com/stocks/GM)__ makes, but its stock by [market value](https://learn.robinhood.com/articles/GByCbiOluG2kcWs1AF6m5/what-is-market-capitalization/) is about 80% of GM. It's like a kid measuring her height with a marker against the wall — Tesla better be setting records each quarter. This report signal's Tesla's master plan is more on track.

Tesla's 2nd quarter record deliveries quiet the skeptics

__Turn up the chill...__ Meditation app  __Calm__ evolved into a unicorn in February, raising $80M to hit a $1B valuation — now $27M has been tossed in from another venture capital firm. The leader of that firm [made clear](https://medium.com/lightspeed-venture-partners/calm-is-creating-quite-a-storm-5917185e8920) that she's a power-user — Calm helped her falling-asleep time drop from 30 minutes on average to less than 5 (that's 150 hours more zzzzs per year).

__The moment of zen...__ occurred last year. Calm charges $60/year (or $400 for "[Calm for Life](https://www.calm.com/freetrial/plans)") to access its meditative relaxation content. But with competition flowing into mindful apps (think Headspace, Aura, and [others](https://thewirecutter.com/reviews/best-meditation-apps/)), it had to transition from a weekly resolution to a daily habit. So it launched "Sleep Stories" to help you get to your dreams. That's when engagement and retention surged.

- __Celeb strategy:__ Sleep Stories [features](https://techcrunch.com/2019/07/01/calm-sleep-stories/) Matthew McConaughey coaxing you into slumber ("*How often do we ponder depth of the present moment*") or John McEnroe reading tennis rules to your pillow.
- __It became a ritual:__ The feature led to 150M listens from 2M paid subscribers since the feature launched last year.
- __Revenues popped:__ They're on pace to double this year to $150M.

Raised

__You selling a vitamin or aspirin?...__ It's the key question some VCs ask before they invest. A "vitamin" is nice to have, but not critical. An "aspirin" is something customers need. Now. Both have benefits, but the daily need-to-have option drives engagement and growth. Calm's sleep pivot may have turned it into aspirin, and that's why Lightspeed Ventures says it invested.

Meditation app Calm raises another $27M as a mindful McConaughey  unicorn

_Sailing into the 4th at record highs_

Happy 10-year growth-versary, America

__Technically...__ __[Nike](https://robinhood.com/stocks/nke)__ reported its earnings last week. Technically it missed analysts' expectations for the 1st time in 7 years. But we're more focused on CEO Mark Parker's call with investors *after* the earnings report. Just in time for today's USA vs. England World Cup match, he thinks 2019 is a "true [tipping point](https://www.businessoffashion.com/articles/news-analysis/nike-misses-earnings-estimates-for-first-time-in-seven-years)" for women's sports.

__Women are winning Nike...__ 14 of the 24 Women’s World Cup teams enjoy a Nike swoosh across the chest. And the combo of Nike spending big on [this ad](https://www.youtube.com/watch?time_continue=4&v=hOVkEHADCg4), covering almost 2/3 of the jerseys, and [record](https://www.hollywoodreporter.com/news/womens-2019-soccer-world-cup-smashes-global-ratings-records-1221957) TV ratings are doing it. These Nike stats just arrived:
- The US Women's National Team jersey is  __the #1 selling soccer jersey__ — *men's or women's* — ever sold on Nike.com.
- And enthusiasm for women's apparel has extended to bras — Parker [announced](https://www.highsnobiety.com/p/nike-team-usa-womens-world-cup/) Nike's now __the biggest seller of bras__ across North America.

Kicks

__Nike vs. Lululemon...__ That's the biggest matchup worth watching right now. Both are focusing on the opposite genders in the same (non-US) places. It's a fight worth watching.
- __Lulu’s 5-year plan:__ Double men’s sales and quadruple international sales (especially in China) since the majority are sold to North American women.
- __Nike’s focus:__ Sell more to women and to China — 75% of its apparel sold is to men, and China is its fastest-growing market with nearly 20% of all sales.


The Women's World Cup is handing Nike (multiple) records

__Don't sing along with the peasants...__ If you have a 5-digit budget for T-Swift or GNR concerts, then you're qualified for StubHub Beyond, the new loyalty club for event go-ers who spend $10K/year on the ticket platform. __StubHub__ is owned by __[eBay](https://robinhood.com/stocks/EBAY)__, and its parent company wants high-rollers to feel special with "[Beyond](https://www.stubhub.com/beyond)."

__We want to be on this list...__ To get frequent and big-spending customers even more frequent and liberal with their wallets, StubHub's [hooking them up](https://www.sportsbusinessdaily.com/Journal/Issues/2019/06/24/Marketing-and-Sponsorship/StubHub.aspx) three ways:

- __Exclusive events:__ Think private tour and batting cage experience at Yankee Stadium (it's event #1, starting Thursday). Or VIP tailgate at the Masters golf tournament.
- __Cancellation forgiveness:__ If you can't make the 3rd day of Lollapalooza, you'll get 1 full refund per year, no questions asked. None.
- __Exclusive support line:__ Because, of course.
- __*The Key is exclusive loyalty*:__ With so many secondary market ticket sellers, Beyond could incentivize loyalty to StubHub.

Elite

__This is a classic 80/20 situation...__ Surprised StubHub's doing so much for such a tiny fraction of customers? Don't be. It's not uncommon in business for 80% of profits to come from 20% of users. That's why companies spend an outsize amount of resources keeping high-spenders happy. So expect the VIP-ification (TSA "Clear" > TSA "Pre-check" > TSA "please remove your shoes and prepare for pat down") of corporate America to continue.

StubHub creates VIP status for your buddy who drops $10K/year on tickets

__Aiming for that 9-to-1 job?...__ According to Bloomberg, __[Deutsche Bank's](https://robinhood.com/stocks/DB)__ NYC-based workers are [leaving](https://www.bloomberg.com/news/articles/2019-07-01/empty-desks-and-early-beers-life-at-deutsche-bank-in-new-york) the office post-lunch for beers nearby. According to other sources, the big German bank expects the CEO to announce [layoffs](https://www.americanbanker.com/articles/deutsche-bank-plans-to-cut-as-many-as-20-000-jobs-in-revamp) of up to 20K of its 91.5K workers. Now that Deutsche's savior mega-merger with Commerzbank [is off](https://www.cnn.com/2019/04/25/business/deutsche-bank-commerzbank-merger/index.html), it's taking out the axe.

__1 number says it all...__ The stock has fallen 80% in the past 4 years, and is down almost 95% from its pre-financial crisis highs. One crucial financial metric shows just how little confidence investors have in management to make money: 

- __Book Value = *value of a company on paper*:__ Deutsche Bank's balance sheet says it's got $71B of net worth.
- __Market Value = *value of a company according to its stock price*:__ Wall Street investors think Deutsche is worth just $16B based on where the shares are trading.
- __Price/Book ratio:__ Divide those two. The resulting Price/Book ratio helps us realize that investors are only giving the bank 22 cents of credit for each dollar of paper value. *Investors think Deutsche Bank is worth less than the bank does.*

Downsize

__It's a vicious cycle...__ After the financial crisis almost destroyed European economies, the continent responded with tough banking regulations. Sadly, the banks responded by making fewer loans, which slowed economic growth, which hurt corporate profits, which hurt the banks. That cycle has just been on repeat over the past decade — Now Deutsche's a shadow of its pre-'08 self.

Deutsche Bank is reportedly planning to lay off over 20% of its workers

_"How do you sell so many jerseys?"_

Nike's Year of the Woman

__Pre-used Gucci has found its home...__ __[The RealReal](https://robinhood.com/stocks/real)__ is your verified 2nd-hand luxury online mall — it's got 100 real-life human experts checking that the Chanel bag is 100% Chanel, giving Millennials guilt-free, lower-cost, and high-end all in one place. The fashion *re*seller's shares [jumped](https://www.cnn.com/2019/06/28/business/the-realreal-ipo-luxury-resale/index.html) 45% on its IPO as investors hope a fancy e-thrift-store concept can scale. 

__Friends ➡️ frenemies ➡️ enemies...__ A report about __[Amazon](https://robinhood.com/stocks/AMZN)__ shipping blew our minds — the percentage of packages it ships itself has grown from 17% just 2.5 years ago to [48% today](https://www.axios.com/amazon-shipping-chart-fedex-ups-usps-0dc6bab1-2169-42a8-9e56-0e85c590eb89.html). And it will continue taking more business away from __[UPS](https://robinhood.com/stocks/UPS)__, __[FedEx](https://robinhood.com/stocks/FDX)__, and the US Postal Service since it ships faster: Thanks to its superior data, Amazon-delivered packages arrive in 3.2 days vs. the competition's 6 days.

__Bitcoin rally part II...__ Attention's been on the cryptocurrency's price jump to nearly $14K last week before settling closer to $11K. And chip-maker __[AMD](https://robinhood.com/stocks/amd)__ has been along for the ride. Late last year, AMD [unveiled](https://www.amd.com/en/technologies/blockchain) fresh new products and services for Bitcoin miners and blockchain-thusiasts. If the latest Bitcoin jump feels like a gold rush, then AMD is selling shovels — making money whether the miners find gold or not.

__iProblems...__ __[Apple](https://robinhood.com/stocks/aapl)__ shares dipped 2% on word that Chief Design Officer Jony Ive (the man behind the look/feel of the iPhone, iPad, iPod, OG MacBook, and new Apple HQ) is leaving to start his own company. Then we [learned](https://www.engadget.com/2019/06/29/apple-to-improve-news-plus/) that the new Apple News+ subscription service isn't delivering for the participating magazines and news sites — one publisher said it's getting "one-twentieth" the revenue they expected.

__Driving off into the sunset...__ __[Tesla's](https://robinhood.com/stocks/TSLA)__ head of production reportedly [left](https://electrek.co/2019/06/26/tesla-loses-head-of-production/) the company, with brutal timing — this week Tesla announces its production and delivery numbers for the 2nd quarter. It needs to quiet skeptics who wonder if demand for the Model 3 is slowing. PS: There was another [report](https://www.cnbc.com/2019/06/26/tesla-secret-lab-building-battery-cells-to-reduce-panasonic-dependency.html) that Musk's building a secret battery lab.

__Pets > People...__ Lucky Charms pioneer __[General Mills](https://robinhood.com/stocks/gis)__ revealed that its snacks biz is suffering, with sales falling 2% last quarter (the CFO admitted that Fiber One bars "fell out of step" with diet trends). Good thing humans are [spending](https://www.cnn.com/2019/06/26/investing/general-mills-earnings/index.html) more on their pets than on themselves — GMills' pet food sales surged 38% because it acquired __Blue Buffalo__ last year, along with its fancy meal options for Fido (bison, rabbit, halibut, and alligator are go-to ingredients).

...And who's down

__Omg...__ Budweiser-owner __[AB InBev](https://robinhood.com/stocks/BUD)__ just made its biggest wine [acquisition](https://www.brewbound.com/news/anheuser-busch-buys-wine-company-co-founded-by-the-fat-jew) ever: Babe Wine. Josh Ostrovsky — aka comedian [The Fat Jewish](https://www.instagram.com/thefatjewish/?hl=en) — launched White Girl Rosé in 2015 during the infamous Hamptons rosé shortage of 2015. His goal was to become "the Bud Light of wine." Now it's official.

__Bud's been around forever. Keep it that way...__ ZX Ventures is Bud's in-house venture capital arm that buys stakes in innovative alcohol ventures since that's cheaper than having to innovate itself. It already had a stake in Babe, and just slurped up the very last of it to become the 100% owner. Here's why it made sense:

- __Sales of rosé in America rose 8%__ last year while beer sales have been slowly declining. *White Girl Rosé* has that trend covered. 
- __Sales of canned wine jumped 69%__ — *Babe* brand's convenient 12 oz cans of wine "with bubbles" are a big reason for that growth. 
- __*Babe* aggressively targets the bachelorette crowd__ (hello "[Party Box](https://www.drinkbabe.net/)") with social media marketing that Bud wants to hang with — model Emily Ratajkowski (23M Insta followers) is Babe's Chief Taste Officer.

Cork

__Bud needs a better summer drink...__ Your local 7/11 is likely out of non-beer options labeled "spiked," "hard," and "bubbly." The same trend that's got us hooked on LaCroix over soda has consumers wanting lighter, fruitier summer drinks over beer. Bud rival __[Constellation Brands](https://robinhood.com/stocks/stz)__ was [showing off](https://www.cnbc.com/2019/06/28/constellation-brands-q1-2020.html) its new non-beer Corona sparkling spin-offs in its earnings report Friday. Now Bud needs some bubbles.   