__Your Uber earnings report has arrived...__ For the first time since IPO-ing last month, __[Uber](https://robinhood.com/stocks/uber)__ issued its quarterly report card to investors. Shares rose despite mostly negative themes (because expectations were low):
1. Uber's __loss [doubled](https://www.nytimes.com/2019/05/30/technology/uber-stock-earnings.html) to $1B__ as it splurges on more promo codes to keep you off Lyft or DoorDash.
2. __Growth is a problem__, with quarterly revenues just 20% higher than last year because competition is fierce.
3. __Uber Eats is the golden child__, growing much faster than Uber rides — It now makes up 17% of all of Uber's revenue.

__The other, other white meat...__ __[Yum Brands](https://robinhood.com/stocks/yum)__ is now in an "[exploration phase](https://www.cnbc.com/2019/05/30/kfc-is-considering-plant-based-fried-chicken-but-has-no-plans-to-test-right-now.html)" for a plant-based chicken alternative for all its  __KFC__ restaurants. Good timing — __[Burger King](https://www.robinhood.com/stocks/QSR)__ just announced that its meat-free Impossible Whoppers [boosted](https://www.cnbc.com/2019/05/28/impossible-whopper-boosted-burger-king-traffic-by-18percent-report-says.html) store traffic by 18%.

__Location. Location. Location...__ "Words With Friends" creator __[Zynga](https://robinhood.com/stocks/znga)__ is now better at real estate than mobile gaming. It just [sold](https://www.sfchronicle.com/business/article/Zynga-to-sell-lease-back-SF-headquarters-for-13901353.php) its SF headquarters building for almost three-times what it paid for it in 2012, earning a $372M profit. Some context: Its core biz (gaming) lost $660M over those 7 years.

Highs

Who's up...

__Lime problems...__ President Trump's new immigration-motivated 5% tariff on everything imported from Mexico starts June 10th. And car companies aren't the only ones who are affected — Beer-glomerate __[Constellation Brands](https://robinhood.com/stocks/stz)__ fell 11% last week. The Corona-maker [brews](https://www.thestreet.com/investing/constellation-brands-beverage-stocks-go-flat-on-proposed-tariffs-on-mexico-14977945) in Mexico, and 73% of its revenues are from Mexican imports to the US (aka exactly what will get taxed by the new tariffs).

__FYI on your mango-infused beach companion...__ New reports revealed that __LaCroix__ sales plummeted 9% over the last quarter as competitive sparkling waters sprout up. And it isn't thrilled about a lawsuit claiming its "all natural" ingredients aren't actually all that natural. Owner __[National Beverage Corp](https://robinhood.com/stocks/fizz)__ fell 8% because an analyst thinks it's "effectively in a [free fall](https://www.businessinsider.com/la-croix-sales-decline-free-fall-2019-5)."

__An extra grand or two...__ That's the increase in price for cars imported from Mexico if the tariffs come into full effect. Shares of __[GM](https://www.robinhood.com/stocks/GM)__, __[Ford](https://www.robinhood.com/stocks/F)__, and all their car-making buddies fell on word that the 2.6M cars imported from Mexico each year could face the political tax — President Trump [won't stop](https://www.cnbc.com/2019/06/01/trumps-mexico-tariffs-risk-pricing-some-americans-out-of-buying-a-car.html) the tariffs "until the Illegal Immigration problem is remedied."

Lows

...And who's down

__Go high or go low...__ The final heat of 1st quarter earnings marathoners crossed the finish line last week. Setting personal records were __[Dollar General](https://www.robinhood.com/stocks/DG)__ and __[Dollar Tree](https://www.robinhood.com/stocks/DLTR)__. But a closet-full of apparel companies __[Gap](https://www.robinhood.com/stocks/GPS)__, __[Abercrombie & Fitch](https://www.robinhood.com/stocks/ANF)__, and __[Calvin Klein](https://www.robinhood.com/stocks/PVH)__ looked like they still had those annoying plastic security tags on. We noticed something: *High-end is winning, low-end is winning, middle-end is not*.

__Sad but true...__ The US economy has experienced [serious](https://www.bloomberg.com/news/articles/2019-05-10/fed-officials-warn-inequality-is-threat-to-what-made-u-s-great) income inequality since the '09 recession. And companies up high and down low have open arms welcoming in those masses. 

- ⬆️ __High-end retail:__ __[LVMH's](https://robinhood.com/stocks/LVMUY)__ mortgageable handbags are still flying off shelves (so is its stock). Tiffany, Lululemon, and other brands catering to well-off customers are doing well too.  
- ⬆️ __Low-end retail:__ Stocks of big dollar store chains are enjoying record results (and stock prices). So is __[Walmart](https://www.robinhood.com/stocks/WMT)__, which has figured out how to tech-ify itself enough to keep budget-conscious customers around.
- 😬 __Everyone else:__ A shocking [8K store closures](https://twitter.com/mitchnolen/status/1131256525614243842) have been announced so far this year, including Payless, Dressbarn, Gap, and GNC.

Shop

__When your spending changes, so does the entire industry...__ Apple crushed camera stores, Netflix crushed movie rental, and Tinder crushed "a drink for the guy at the end of the bar, on me." Now Amazon Prime has ushered in recurring diaper refills. Some companies have adapted to the changes in how you shop (FedEx [introduced](https://www.cnn.com/2019/05/31/business/fedex-seven-day-shipping-sundays/index.html) Sunday ground delivery last week to keep up with your online orders) — But most middle-end retail hasn't.

High-end & low-end retail is winning (everything in between isn't)

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

_When the entire recipe just got tariff'd_

Taco Tuesday is the new trade war victim

__Mo' money, mo' problems...__ In its first earnings report since this month's IPO, __[Uber's](https://www.robinhood.com/stocks/UBER)__ revenues rose 22%, but its loss *doubled* to $1B. The happier highlights: Uber Eats (food delivery), Freight, and NeMo (New Mobility aka bikes and scooters). Despite the epic loss, shares rose after [the report](https://www.cnbc.com/2019/05/30/uber-earnings-q1-2019.html) because investors actually expected it.

__That's a lot of billion$...__ and they're going to new driver promotions. Remember — Lyft, Uber, Doordash, Postmates, and other gig mobility companies are just apps. To grow, they pay drivers and eaters to try them out. A lot. And it's an aggressive arms race to fund all that:

- __[Lyft](https://www.robinhood.com/stocks/lyft)__ just raised $2B in its March IPO.
- __DoorDash__ has raised $1B since February.
- __Rappi__ (the "anything-delivery" of Latin America) also bagged $1B last month.


Un-profits

__Uber has a dirty little secret...__ To become profitable, it'll need to increase revenue or lower cost — And it can get there in just one of three ways (they're not pretty):

- __Raise prices__.
- __Cut promotions and discounts__.
- __Pay drivers less__ — Or replace them with __self-driving cars__ (which it's investing in).


Uber revealed its 1st public earnings report (and it may not be a growth company)

__"Extremely challenging"...__ Worst one-liner [ever](https://www.barrons.com/articles/gap-stock-is-plunging-as-earnings-and-guidance-were-big-disappointments-51559250559). That's courtesy of __[Gap's](https://www.robinhood.com/stocks/GPS)__ CEO after its sales dropped 4% to $3.7B from February-April. That's a lot worse than expected, so shares slipped 13%. Even show-off golden child __Old Navy__ struggled. Here's the brutal sales breakdown by each Gap brand:

- 😑 __Old Navy:__ $1.8B in sales, down 1%.
- 🙁 __Banana Republic:__ $568M, down 3%.
- 😖 __Gap:__ $1.1B, down 10%.
- 👌The others __(Athleta + Intermix + Hill City):__ $287M, *up 6%*.

__The unacceptable excuse...__ Gap's CEO partially blamed cold/wet late winter weather for keeping you out of Gap stores. Investors wished he followed up with "but don't worry, we captured those missed in-store sales with online shopping. Rain can't ruin this party!" But he didn't. 

Strut

__Gap's a house turned against itself...__ #ItCannotStand. Gap's in the process of separating Old Navy from the rest of the company — That lower-cost brand still has growth momentum while the rest doesn't. Investors prefer a clean break between a healthy company and a shrinking one. 

- __Old Navy__ will be spun-off to trade as a separate stock starting in 2020. 
- __Gap__ will keep thinking of new ideas (hopefully instead of shutting stores).

Gap falls 13% because of its worst 3 months in 3 years

__Honeybadger don't care...__ Neither does __[Dollar General](https://www.robinhood.com/stocks/DG)__ or __[Dollar Tree](https://www.robinhood.com/stocks/DLTR)__. The 1-buck beasts both announced [earnings](https://www.forbes.com/sites/andriacheng/2019/05/30/against-tariffs-uncertainty-dollar-stores-show-they-have-a-sweet-spot-in-retail/#36438ef06037) Thursday, and their stocks jumped over 3% each. The reason: Both said they don't expect new tariffs on China to affect their profits this year. That's a big deal (those $1 thong sandals aren't made in the USA) and a nice surprise to shareholders. 

__Dollar stores = profit machines...__ America's cheapest chains are shockingly huge. Here's what they look like:

- __Dollar General__ has __15K stores__ (all in the US) and is expanding with almost 1K more this year. 
- __Dollar Tree's__ got __15K__, too.
- *For context:* Dollar Menu legend __McDonald's__ has __14K restaurants__ in the US.

Discount

__A sad economic story is good business...__ Inequality in wealth and income is growing in America — and companies on the high and low end both win. Case in point: __LVMH's__ stock (the bougie French luxury fashion icon) is close to a record high. So are Dollar General and Dollar Tree's shares.

*This quote from Dollar General's CEO in 2017 (sadly) nails it: __“The economy is continuing to create more of our core customer.”__*

Dollar stores are living their best life

_When you lose $1 billion_

Uber. No longer a growth company.

__Wardrobe malfunctions happen...__ Last week, we broke down the ecommerce-induced retail-pocalypse facing some department stores. Yesterday, 3 distinctive-ish fashion stocks fell enough to [wipe out](https://finance.yahoo.com/news/2-7-billion-wipeout-ensues-175839101.html) $2.9B in stock market value. Total *faux pas*:

- Throwback, logo-packed __[Abercrombie & Fitch](https://robinhood.com/stocks/anf):__ *__-26%__* — Worst drop since its 1996 IPO.
- Fancy jacket newbie __[Canada Goose](https://robinhood.com/stocks/goos):__ *__-31%__* — Worst loss ever.
- Luxury label conglomerate __[Capri Holdings](https://robinhood.com/stocks/cpri)__ (formerly known as __Michael Kors__)__:__ *__-10%__* — Worst in almost a year.

__Where's the blame?...__ Not all on ecommerce. Each brand revealed it's struggling for completely different reasons:

- Abercrombie is __closing 40 stores__ — including 3 big city [flagships ](https://www.forbes.com/sites/andriacheng/2019/05/29/what-abercrombie--fitchs-25-share-slide-signals-about-the-state-of-retail/#26e30dbd1504)— because its style still hasn't recovered from your middle school days.
- Canada Goose's CEO [claims](https://www.bloomberg.com/news/articles/2019-05-29/a-2-7-billion-wipeout-ensues-when-retailers-lose-the-thread) __spring weather is more "unpredictable"__ than ever, so it's harder to stack its stores with the right $1,000 parkas.
- And Capri's Michael Kors __diluted its brand__ by selling in too many department stores... and doesn't want to make [the same](https://www.marketwatch.com/story/capri-expects-debt-funded-growth-for-versace-while-core-michael-kors-brand-will-slow-2019-05-29) mistake with Versace (which it just bought).

Wear

__2 types of retail stores are thriving...__ "Small" and "Experiential." Abercrombie is shutting extremely expensive flagships, while Mikey Kors pulls out of malls. But Target and Ikea's smaller "urban" stores are expanding — And startups Casper and Allbirds are adding "experiential" stores with nap-zones and human [hamster wheels](http://bobbyredd.squarespace.com/allbirds-soho) to try-on shoes. The new fashion playbook is clear.

Weather, logos, and fancy — Fashion lost $2.9B in value in 1 day

__"New bot, who dis?"...__ The new Roomba s9+ and Braava Jet m6. These frustratingly named hardwares were just launched by __[iRobot](https://robinhood.com/stocks/irbt)__ to clean your home *together*. Vacuuming, mopping, dusting — They "[talk](https://venturebeat.com/2019/05/28/irobot-unveils-roomba-s9-and-braava-jet-m6-robots-that-clean-together/) to each other." Founded by MIT grads in 1990, iRobot is one of the few publicly-traded robotic companies pumping out consumer products you actually use.

__Can we please talk about the “immediate addressable market”?...__ That's not all the customers iRobot *could* target (aka everyone with a home with floors). It's the customers who fit its ideal profile — humans with homes who live tech-forward, clean-always lifestyles. iRobot really wants to talk about its immediate addressable market crew:

- It's already got __14M US households as customers__.
- Its immediate addressable market is __25M more households__.
- If it gets those Americans iRobot-ing, that __could triple sales__. 
- *__One catch:__* Its freakishly self-sufficient $1,300 vacuums are made in China. They're already getting [hit](https://www.cnbc.com/2018/10/24/maker-of-the-roomba-vacuum-gets-hit-by-china-tariffs.html) by tariffs, and China's competing with lower cost knockoffs.

Bots

__It's a cleaning/grooming company...__ And it may only be that. iRobot started with the Roomba vacuum. Then its Brava mop/duster came second. Product line #3 is "Terra," the lawn mowing robot coming soon. But iRobot doesn't seem interested in roboticizing other human activities we don't like to do:

- __Military robots:__ Until 2016, iRobot made rovers with robotic arms that could do dangerous things (they were built to be used on [Mars](https://techcrunch.com/2017/03/08/colin-angle-interview/)). But it sold that line.
- __Delivery robots:__ Postmates created a robot named "[Serve](https://serve.postmates.com/)" for restaurant delivery, but iRobot hasn't shown interest in the fast-growing delivery industry.

iRobot launches 2 (eerily) coordinated house-bots

__The titanium credit card...__ is one way to innovate plastic.  __Brex__ is going in a different direction — it's offering venture capital darlings credit cards. And for becoming the payment choice for tech startups, it's about to reach a [$2B valuation](https://www.bloomberg.com/news/articles/2019-05-29/startup-brex-is-raising-money-at-a-valuation-above-2-billion) with its latest fundraise. Everything Brex does is fast:

- __Growth:__ It joined the rarefied club of unicorns under 2-years-old thanks to plenty of funding from PayPal co-founder Peter Thiel and other big-time investors.  
- __Marketing:__ If your hometown is full of tech startups, its taxis, bus stops, and billboards are probably wallpapered with Brex ads. 
- __School:__ The Brazilian co-founders are in their early 20s and exited college fast (by dropping out of Stanford).

__Future > Past...__ That's the premise of Brex in 3 words or less. Most credit card companies want to see a robust and consistent credit *history* when a customer applies. But Brex looks at a startup's credit *future* instead. That tweak of an evaluation strategy lets Brex offer business cards for well-funded startups and their employees.

Swipe

__Fintech is about asking "why?"...__ The credit card industry's focus on credit histories to approve cards is a catch-22: Startups couldn't get credit cards without credit histories, but they couldn't get a credit history without a credit card. If a VC is willing to invest $10M in a startup, then Brex realizes the business can handle a 10K credit card line.

Brex hits $2B valuation by giving credit cards to startups

_Abercrombie needs Blue Steel_

Swiffer is losing to robots

__Your mid-bathroom procrasti-habit...__ __[Zynga](https://robinhood.com/stocks/znga)__ owns it. The *Farmville* creator is still focused on "casual" mobile games like *Words With Friends* (it even dropped $100M for a digital card game company). But the eGaming pioneer just put on its Mr. Monopoly Man hat and [sold](https://venturebeat.com/2019/05/28/zynga-sells-its-sf-headquarters-for-600-million/) its San Francisco HQ for almost triple what it originally paid.

- __2012:__ Bought "650 Townsend St." for $228M.
- __Yesterday:__ Sold it for ~$600M.
- *__Bonus:__ Zynga can stay in the space... but rent is $833K/month.*

__Zynga is better at real estate than gaming...__ The location is near CalTrain for commuters, adjacent to Airbnb's HQ, and close enough to fast casual spots to keep employees happy/vegan. *Location. Location. Location.* Here's how Zynga's gaming game compares to its real estate game since buying the property in '12:

- Zynga's core gaming business __lost $660M__ over 7 years.
- Zynga's real estate investment __turned a $372M profit__ over the same period.
- Zynga's stock has lost half its value (but is on a tear lately).
- *FYI: The sale proceeds are going to straight to HR — It's hiring more engineers and game creators to make Farmville2 happen.*

Land

__Companies invest just like you do...__ And sometimes those investments strike gold, making the company's core business *not* core anymore. We're thinking of these two:

1. __Yahoo__ was going nowhere in 2005 when it bought 40% of a small Chinese ecommerce company — That $1B investment in __[Alibaba](https://www.robinhood.com/stocks/BABA)__ was worth $26B in 2014 when 'Baba IPO'd.
2. __[eBay](https://www.robinhood.com/stocks/EBAY)__ dropped $1.5B for a payment-processor in 2002 — That investment grew so fast it was spun-off into its own company, and now __[PayPal](https://www.robinhood.com/stocks/PYPL)__ is worth 4-times as much as its old parent.

Zynga sells its headquarters (and wins a $372M profit)

__Time zones are annoying...__ So __[Alibaba's](https://robinhood.com/stocks/baba)__ conquering them all. The closest thing to Amazon in China, the ecommerce icon chose the New York Stock Exchange for its record-setting $25B IPO in 2014 (still [the biggest](http://fortune.com/2019/04/26/biggest-ipos-history-uber/) IPO ever). And according to [*Bloomberg*](https://www.bloomberg.com/news/articles/2019-05-27/alibaba-is-said-to-weigh-raising-20-billion-via-second-listing), it might issue shares for the first time — *again* — in Hong Kong.

__The more, the merrier...__ Here's what Alibaba can gain through *another* public offering

- __A fundraise:__ Alibaba would create new shares to sell to Hong Kong investors in return for $20B in fresh cash. That'll be invested in expanding to become the Amazon of everywhere-outside-the-US.
- __More potential investors:__ Asian investors can buy Alibaba's American-listed shares, but it can expect more local demand if they were listed in Hong Kong, too.
- __A trade war insurance policy:__ If US-China trade tension worsens, Alibaba would be vulnerable if all its stock were linked only to New York. 

Re-IPO

__It's an all-eggs-in-one-basket situation...__ Alibaba is already the largest ecommerce company (it gets about 2/3 of online retail in China) in the largest consumer market (the 1.5B people there is about 6x the US). This homeward-bound Hong Kong move gives protection from the politics Alibaba can't control.

Alibaba going for its 2nd IPO

__Let's go Dutch...__ on a station wagon. __[Fiat Chrysler](https://robinhood.com/stocks/FCAU)__ just proposed a 50-50 merger with __Renault__ that would create the #3 car company behind Toyota and VW. If Renault accepts, 9M cars would roll off this car-glomerate's assembly lines annually, looking like this: 

- __Fiat-Chrysler:__ The Italian-American combo-company invested big in its Jeep and Dodge trucks/SUVs.
- __Renault:__ The affordable/adorable French cars don't get bought in 4x4-loving America, but they've got fans across Europe, Russia, and the Middle East.
- __Mitsubishi & Nissan:__ The Japanese carmakers already allied up with Renault, so this merger would expand the open-relationship to include 15M total cars — That's more than any other.

__The car industry is hard...__ Margins (aka the amount of profit companies can squeeze out of each dollar of revenue they earn) are already skinny in the car industry since there's so much competition. And car parts aren't cheap. Now the old guard carmakers are bracing for new tech change:

- Car-sharing and ride-hailing __help you not own a car__.
- Climate change policies __require century-old engines to go electric__.
- Self-driving tech could __help a 2-car family easily survive on just 1__. 

Join

__This is *Westeros*-style houses uniting...__ At its most basic level, the merger would let the companies [pool resources](https://www.axios.com/fiat-chrysler-renault-partnership-e21b8273-383f-422d-9373-fde79ad46f1e.html) so they're stronger together (picture Daenerys + Jon Snow). Here are hookups already happening:

- __[BMW](https://www.robinhood.com/stocks/BMWYY)__ and Mercedes-owner __[Daimler](https://www.robinhood.com/stocks/DMLRY)__ are building a Europe-wide charging network together for their e-cars.
- __[Ford](https://www.robinhood.com/stocks/F)__ and __[Volkswagen](https://www.robinhood.com/stocks/VWAGY)__ are trans-Atlantic-ing the race to self-driving car tech.


Fiat Chrysler proposes to Renault — It's about survival 

S&P 500 

_Zynga after its first big land-grab_

Zynga wins at real estate (loses at Farmville)

__"I'll have the usual"...__ __[Uber](https://robinhood.com/stocks/uber)__ stock nudged higher in its 2nd week of trading as a public company. And it's up to something with its Uber Eats — sifting through the app's code, a “reverse-engineering specialist” [noticed](https://techcrunch.com/2019/05/21/uber-eats-pass-subscription/) the food deliverer is stealthily working on a $9.99 monthly subscription, called "Uber Eats Pass". Rival __DoorDash__ already has the feature, so Uber's fighting for your monthly taco commitment.

__Gee thanks, just bought it...__ Brazil's __Natura__ is buying 133-year-old __[Avon](https://robinhood.com/stocks/avp)__, popping its shares 23% last week — Combined, they'll be Earth's 4th biggest beauty brand, expected to bring in $10B in annual sales. Both sell goods door-to-door with an army of "consultants," and that "direct sales" business model may be [safe](https://www.cnbc.com/2019/05/23/natura-agrees-to-buy-avon-creating-cosmetics-powerhouse.html) from ecommerce disruption.

__Spoiler alert...__ Online shopping hurt __JCPenney__, __Kohl's__, and __Nordstrom__ last quarter. But __[Target](https://robinhood.com/stocks/tgt)__ is thriving through the retail-pocalypse. We noticed its 3-part strategy is working:

1. __Aggressive app downloads:__ Want the 24-pack of double-roll TP brought out to your car? That privilege is reserved for people ordering curbside pickup *through Target's app*.
2. __$99 same-day shipping club:__ Join it. Last year Target bought delivery startup Shipt. Now its $99/year club drops off your packages at home same-day.
3. __Embrace the disruptors:__ Direct-to-consumer brands like __Casper__ (mattresses), __Harry's__ (razors), and __Quip__ (toothbrushes) pioneered business models that cut out the middleman (aka "retailers") by selling via their own websites. Now they sell via Target, too.

__New look...__ __[Urban Outfitters](https://robinhood.com/stocks/urbn)__ dipped after its earnings report showed a slowdown in shoppers. But all the [attention](https://www.vox.com/the-goods/2019/5/22/18635736/urban-outfitters-nuuly-clothes-rental-subscription-anthropologie) should've been on __Nuuly__. That's Urban's new clothing rental brand letting you try 6 pieces for $88/month. And, yes, Urban is copying startup Rent The Runway, minus the glam.

__Whatever you're reading this on...__ is powered by microchips. And odds are __[Qualcomm](https://robinhood.com/stocks/QCOM)__ made some of them (or its patents were involved). The San Diego chipmaker's shares have dropped 15% since a judge ruled that it cheated — Qualcomm's been acting like a monopoly by charging "excessive licensing fees." The punishment: Play nice and [make](https://www.nytimes.com/2019/05/22/business/qualcomm-antitrust-ruling.html) more reasonable deals with smartphone-builders.

__Cleanup on every aisle...__ First, ecommerce ruined everything. Now it's international politics. Department stores warned that new tariffs will force them to jack up prices on everything Made In China. Three big chains reported earnings (on the same day) and this is [how bad](https://www.wsj.com/articles/terrible-tuesday-for-department-stores-11558456351) it got for their stocks:

- __[Nordstrom](https://www.robinhood.com/stocks/JWN):__ Lowest point since 2010.
- __[Kohl's](https://www.robinhood.com/stocks/KSS):__ A 17-month low.
- __[JCPenney](https://www.robinhood.com/stocks/JCP):__ All-time record low stock price.


__PokeCoin...__ Or ZuckCoin? According to the BBC, __[Facebook's](https://robinhood.com/stocks/fb)__ calling its cryptocurrency "GlobalCoin" and plans to [launch](https://www.bbc.com/news/business-48383460) in 12 countries by next March. GlobalCoin would be a "[stablecoin](https://www.wsj.com/articles/facebook-building-cryptocurrency-based-payments-system-11556837547)," meaning its value is tied to a sturdy government currency like the US dollar. Plus, Facebook's ex-(kinda)-founders, the Winklevoss twins, are [involved](https://www.cnbc.com/2019/05/24/zuckerberg-reportedly-held-talks-with-winklevoss-twins-about-facebooks-cryptocurrency-plans.html):

- __The Codename:__ "Project Libra" is what Facebookers are calling this project, with over 50 engineers working on it. 
- __The Ambition:__ CEO Mark Zuckerberg made it clear at Facebook's annual conference: "*It should be as easy to send money to someone as it is to send a photo.*"
- __The Homework:__ Facebookers are meeting with credit card companies, brick and mortar stores, and central bankers to figure it all out. 

__Kill fees...__ Any way you pay, you're probably paying them – 2% on a credit card swipe (the restaurant pays) or $25 on an international wire (you pay). ZuckCoin's goal is fee freedom. Drop part of your paycheck in a Whatsapp message to send back home, or pay Timmy the cost of your Avo Toast + tax + tip in a FB Message.

Crypto-ing

__“Network effects” are Facebook's advantage...__ That's when a product's value grows as more people use it. Payment rivals like __[PayPal's](https://www.robinhood.com/stocks/PYPL)__ Venmo or __[Square's](https://www.robinhood.com/stocks/SQ)__ Cash App need you to download the app for it to grow their user base. With 2.4B users already installed, Facebook just needs to convince you to give it a try (and ignore its [*major privacy issues*](https://www.nytimes.com/2019/04/30/technology/facebook-private-communication-groups.html)).

Facebook will launch "GlobalCoin" in 2020 — And testing starts this year

Bitcoin 

_= 1 Facebook GlobalCoin_

This Week: Debit, Credit, or Zuck-Coin?

__*Honesty's the best policy...*__ So after regretfully letting Russia influence the US presidential election, Facebook took steps to be more open about threats it faces and how Zuck's army deals with them. In its 3rd [Transparency Report](https://transparency.facebook.com/community-standards-enforcement#fake-accounts) (they're published every 6 months) __[Facebook](https://www.robinhood.com/stocks/FB)__ revealed it deleted 2.2B fake accounts — just in the past 3 months. 

__Whoever wrote that code...__ deserves a real-life medal. Facebook's artificial intelligence is trained by humans to automatically detect and destroy fake, porn-y, hateful, and other bad content from Facebook. Here are some disturbing but also impressive stats from the report:

- __2.2B:__ That's the shocking number of fake accounts that were attempted by bad people in Q1 (99.8% of those were caught by AI very quickly).
- __4M:__ The number of hate-posts (65% were detected by AI).
- __670K:__ the number of posts about gun sales (70% were taken down by AI, before any users had to complain). 
- *__~20K:__ That's how many human moderators Zuck's hired to review and obliterate the bad content that AI misses.*

Friend

__Verifying users' IDs would help...__ Beer, TSA, opening a bank account. All require proving who you are. But not Facebook (or most social media). Its number of fake account attempts quadrupled from last year — The problem is getting worse. If accounts were linked to real people's names and reputations, lameness could be held accountable.

Facebook had to delete 2.2 billion fake accounts. *Billion*

__Party in the castle penthouse...__ We get it — Disney+ is going to be a big deal and Marvel is a money-making movie machine. The stock is up 14% since __[Disney's](https://robinhood.com/stocks/dis)__ big streaming announcement. But now [a report](https://www.themeparkinsider.com/flume/201905/6792/) on its world-leading theme parks deserves your attention:

- Disney owns the __top 4__ theme parks worldwide: Orlando's Disney World, California's Disneyland, and 2 in Tokyo.
- The Magic Kingdom led with __20,859,000 visitors__ last year.
- And __8 of the top 10__ properties are Mickey's.

__Magical timing...__ On May 31st, Disney unleashes its new “Star Wars: Galaxy’s Edge” park in Anaheim, CA — the biggest expansion of a Disney park ever. Drop a cool [$200](https://www.travelandleisure.com/trip-ideas/disney-vacations/disneyland-star-wars-land-lightsabers-droids-prices) on a lightsaber after you've crushed some galactic Tandorian chicken. Or go for the $99 custom drone that interacts with the Planet Batuu scenery around you. It's an aggressively immersive park.

Ride

__It all goes back to a 62-year-old diagram...__ In 1957 (29 years after he drew Mickey), Walt Disney sketched out [this](https://hbr.org/resources/images/article_assets/2013/05/disney-2.jpeg) biz plan, with Disney characters at the center. Connected to them were 5 "areas": Film, TV, music, merchandise licensing, and theme parks. Today's theme parks tie directly back to that diagram — A never-ending profit ecosystem.

Disney dominates theme parks — And is about to unleash The Force

__But seriously. Show me the money...__ __Endeavor__ (aka William Morris Endeavor) has “represented the world’s greatest talent since 1898” (picture thousands of Jerry Maguires). Now the talent agency that entertained itself with $3.6B in revenues last year has filed to IPO.

*Fun SnackFact: CEO Ari Emanuel is the brother of former Chicago mayor Rahm — And the inspiration for [Ari Gold](https://giphy.com/explore/ari-gold) from HBO's show "Entourage".*

__Content is king...__ and Endeavor wants to *Game of Thrones* the whole thing. Ari made it [clear](https://www.hollywoodreporter.com/news/endeavor-files-go-public-1213239) in the IPO paperwork: “Wherever you are in the world and whatever way you define content, Endeavor is likely playing a role.” Here's how Endeavor's jumped beyond just repping A-listers:

- It acquired Ultimate Fighting Championship (UFC) for $4B in 2016.
- Also bought Professional Bull Riding, Miss Universe, the Frieze Art Fair, and a marketing agency. Plus, it's got a WWE streaming partnership.
- Endeavor boasts that its talent now infiltrates __300 TV shows__, __60% of musical festival headliners__, and __7 of the 10 highest-paid models__ on Earth.

IPO'ing

__This looks like a media company to us...__ If you think it's strange for a "professional services" company to IPO, you're right. Uncommon. But as Americans now spend half [their day](https://www.nielsen.com/us/en/insights/news/2018/time-flies-us-adults-now-spend-nearly-half-a-day-interacting-with-media.html) interacting with media, Endeavor's snuck itself into the scene — From cord-cutting to streaming, it's become the *enabler* of content critical to media.

The talent agency that inspired "Entourage" is IPO'ing

"_Show me the IPO_"

Ari Gold prepares for IPO

__Sauce on the side...__ forever. Turns out __[Uber's](https://robinhood.com/stocks/uber)__ food delivery app wants a seat at the subscription table — Uber Eats is working on unlimited food delivery for $9.99 a month. “Uber Eats *Pass*” will waive the typically 15% delivery fee on your evening enchilada ritual, but still require that order minimum. And Uber Eats already cooks up [good numbers](https://news.crunchbase.com/news/inside-the-uber-s-1-revenue-growth-and-losses/):

- It makes up __13% of Uber's total revenues__ (according to the IPO paperwork).
- And while ride-hailing revenue grew 33% for Uber last year, __Eats surged 149%__.
-  Now Uber Eats is __the [biggest](https://www.eater.com/2019/5/1/18524180/uber-eats-ipo-sec-filing-restaurant-food-delivery-app-profits) food deliverer on Earth__ outside of China.

__One thing tastes better than this story...__ It's how it went down. Jane Manchun Wong is a “reverse-engineering specialist”: She looks through code hidden in apps, puts two-and-two together, then [tips off](https://techcrunch.com/2019/05/21/uber-eats-pass-subscription/) TechCrunch with a juicy story. She discovered not-yet-announced images for "free delivery" and the other deets that make up this story. 

Order

__Subscriptions are all about “guilt” loyalty...__ Competitors __DoorDash__ and __Postmates__ already have the same monthly commitment passes. But if you're an Uber Eats Pass-er, you'd hate yourself wasting money on delivery fees with other apps. Loyalty leads to habits — And once Uber Eats enables your Monday maki roll routine, Uber could raise prices in the future.

A leak just revealed "Uber Eats Pass" (aka unlimited free delivery)

__When you're here, you're family...__ Public companies invite shareholders — *all of them* — once a year for a shareholder meeting. CEO Jeff Bezos may regret this corporate democracy in action — Fiery investors at __[Amazon](https://www.robinhood.com/stocks/AMZN)__ got 12 petitions on the ballot for a vote on Wednesday. 

__Jeff should've hit up his stunt double...__ Amazon became a symbol of tough worker conditions, extreme wealth (of Bezos), and a force for gentrification in Seattle. Unshockingly, it attracted some pretty aggressive shareholder [proposals](https://www.cnn.com/2019/05/22/economy/amazon-shareholder-meeting/index.html). Here are our highlights:

- A [resolution](https://gizmodo.com/jeff-bezos-wouldn-t-even-come-on-stage-to-listen-to-his-1834957220) to make a company plan to __fight  climate change__.
- A __ban on selling facial recognition tech__ to governments (because they can be used for discrimination or creepily controlling, you know, society). 
- A __gender pay equity__ requirement.
- Disclosure from the executives on __where they stand politically__ (*Washington Post*-owning Bezos has been accused of bias). 

Vote

__Losing votes can make a difference...__ The resolutions all failed, but there's still symbolic importance to a "no" — the issue gets raised in the news and execs have to talk about it publicly. Pressure like that can lead to future change. Now here's your election night vote coverage: 

- __16%:__ That's Bezos' voting power based on his shares. We're guessing he voted "no" to all 12 proposals. 
- __6.2%, 5.2%:__ The next biggest shareholders are Vanguard and BlackRock, brokerages that hold shares for regular investors. They tend to follow the recommendation of the board. That was "no."

Amazon shareholders vote NO on 12 activist policies

__Did it hurt...__ when your revenues fell from heaven? __Victoria's Secret's__ quarterly sales dropped (another) 5%, 35 stores were shut down, and only 1 was opened. But shares of Vicky's owner, __[L Brands](https://robinhood.com/stocks/lb)__, jumped 14% after the report because it happens to own another brand doing the opposite: __Bath & Body Works__ sales surged 13% and it opened 11 new stores.

__Gisele's been meditating on it...__ Victoria's Secret still pushes push-up bras in the bralette era, creepily dims the lights in its stores, and remains rooted in malls — That's all on the [wrong](https://www.forbes.com/sites/andriacheng/2019/02/28/theres-no-sign-of-reprieve-for-victorias-secret-yet/#224e88243775) side of Millennial retail. So Team Vicky has done some serious reflecting lately, and made moves to turn things around:

- __Bring back bathing suits:__ The company lost $500M in sales after ending its swimsuit line in 2016. Now they're coming back.
- __Turn off the TV:__ After its annual fashion show suffered its lowest ratings in 20 years, Victoria is "rethinking" the annual event of aggressive lingerie costumes.

Worn

__To split or not to split?...__ One L Brands investor is [pushing](https://www.wsj.com/articles/victorias-secret-owner-lifts-outlook-on-strength-of-bath-body-works-11558563059) the company to separate struggling Vicky from the successful Bath & Body chain. That move helps a successful brand keep its mojo, while letting the pained one regroup. It's a style we're trend-spotting across the fashion industry:

- __Gap__ is letting its star __Old Navy__ go free this spring.
- Vans-owner __VF Brands__ is spinning off its strained jeans brands __Wrangler__ and __Lee's__ this week.
- And __J. Crew__ [now wants](https://digiday.com/retail/bloated-brands-looking-spin-offs-save/) to do the same with __Madewell__.


Victoria's Secret owner jumps 14% because of not-Victoria's

_When you're counting votes at Amazon's big shareholder day_

The "Uber Eats Pass" just leaked

__That buddy who needs to borrow your car...__ for "just a little bit." She's mourning __[General Motors'](https://www.robinhood.com/stocks/GM)__ decision to cut Maven's footprint from 24 cities to 16. __Maven__ is GM's version of Zipcar, expanding for three years since it launched in Ann Arbor, MI. GM's [blaming](https://www.freep.com/story/money/cars/general-motors/2019/05/20/gms-ride-sharing-service-maven-start-exiting-certain-cities/3745289002/) this rollback on a lack of demand (but says it could still expand elsewhere). 

__The future = fewer cars...__ So GM's thinking about how it can still make money from people who don't buy pickup trucks. The solution is a whole flock of Maven car options:

- __Maven Share:__ GM's car-share to get around. Your app unlocks the doors thanks to Bluetooth. Then for $9/hour you get a GM car + insurance + gas.
- __Maven Gig:__ Use your car to make money driving Uber/Lyft but don't actually have a car? Gig with Maven.
- __Maven Home:__ A shared car or two for big apartment buildings. Reserve your Trader Joe's self-delivery on Tuesday mornings, when the car's probably available.
- __The competition:__ In 2016, __[Ford](https://www.robinhood.com/stocks/F)__ acquired __Chariot__, a van that fills in gaps from buses and subways. But it shut down in January.

Share

__This is GM's training wheels...__ Once its cars are fully self-driving (thanks to Cruise Automation, the startup it bought), GM will launch a fleet of self-driving robo-cabs that could compete with Uber. In the meantime, GM's letting non-car-owning Millennials guinea pig the whole thing while it collects ride data through the Maven app. It's a good deal.

General Motors shrinks its "Maven" car-sharing 

__Commitment issues over v-neck tees?...__ Perfect. __[Urban Outfitters](https://robinhood.com/stocks/urbn)__ is launching a clothing rental business: __Nuuly__. For $88, you get 6 pieces ($14.67 per item) + reusable bag + prepaid return envelope so you can send it all back in a month (or decide you love one/all of them and pay full price). The founder's son is running Nuuly, and he [expects](https://www.wsj.com/articles/urban-outfitters-to-start-renting-its-clothes-11558436401) to hit 50K subscribers and $50M in revenues by this time next year.

__Rent The Runway without the fancy...__ Urban's copying the model of clothing rental pioneer RTR, whose core biz is making glam gowns you can't afford (nice [$650 Solani](https://www.renttherunway.com/shop/designers/saloni/bella_dress)) yours for the weekend. Urban's focused on the un-ironed options stuffed in your drawer, starting this summer.

- __Anthropologie & Free People:__ Urban owns both boho-chic brands, so they're included in the rental wardrobe.
- __Random new partners:__ Reebok, Gal Meets Glam, and Levi's are also involved.
- __Flea markets:__ Yep. The Urban team is hitting stands to curate pre-worn classics. Which you can rent. And then Urban dry-cleans and re-rents.

__But will it cannibilize sales?...__ Unlike Rent The Runway, which *only* rents, Urban has to sell you clothing too... hopefully after you've rented. And the CEO thinks renting is just "trying before you're buying." With Urban stock down 19% this year, it's trying the clothing-sharing/closet-renting industry that's *growing* 20% annually. 

*PS: Urban also [announced](https://markets.businessinsider.com/news/stocks/urban-outfitters-stock-price-earnings-q1-results-2019-5-1028219463) quarterly earnings after markets closed yesterday, and the results sent shares down 6%.*

Urban Outfitters launches a clothing rental biz

__The mall is closed...__ Your go-to childhood "run errands with mom" shopping options all released earnings Tuesday. And the combo of __[JCPenney](https://robinhood.com/stocks/jcp)__ and __[Kohl's](https://robinhood.com/stocks/kss)__ dragged down the rest of their department store siblings:

- __JCPenney (-7%):__ The stock dropped to $1 as sales fell 5.5% and its quarterly loss doubled. Plus, it's got a problem with "shrinkage" (aka shoplifting).
- __Kohl's (-12%):__ Sales dropped 3.4%.
- __Nordstrom (-9%):__ Bad timing. It reports earnings later this week, so it fell along with the rest of the crew because investors are dreading it.

__Which aisle for "turnaround plans?"...__ None. JCPenney doesn't have one. And it says its turnaround strategy will arrive "in the coming months." Meanwhile, Kohl's is making creative moves: 

- __Embrace the space:__ It's [subleasing](https://www.chicagotribune.com/business/ct-biz-kohls-stores-planet-fitness-gym-20190305-story.html) its unused space for gyms and grocery stores. 
- __Embrace the Amazon:__ It's [becoming](https://www.bloomberg.com/news/articles/2019-05-21/department-store-woes-worsen-as-kohl-s-j-c-penney-sales-miss) Amazon's doormat partner, taking Amazon return items and installing Amazon lockers in 200 stores.


Retail-pocalypse

__One OG retailer got the retail-pocalypse right...__ __[Walmart](https://robinhood.com/stocks/wmt)__. Earth's biggest retail chain invested big in ecommerce, acquiring Amazon competitor Jet.com and online-savvy Bonobos. Then it kicked things up last week with Prime-killing 1-day delivery just before we [learned](https://www.wsj.com/articles/terrible-tuesday-for-department-stores-11558456351) sales rose 3.4% last quarter. JCPenney simply never made those investments.

Almost every department store just had a horrible day

_Regina George doesn't rent dresses_

Urban Outfitters tries on Rent The Runway

__Smile...__ You're being filmed by the smartglasses on the early-adopting human staring at you. __[Google](https://robinhood.com/stocks/goog)__ is graduating its Google Glass from experiment to [official](https://www.blog.google/products/hardware/glass-enterprise-edition-2/) Google product as the $999 Glass Enterprise Edition 2. They're like smartwatches. But for your eyes. And they're packed with buzzwords:

- __Fancy optics:__ The lenses are by Smith, the brand behind your ski goggles.
- __Augmented & virtual reality:__ They're designed with new chips to handle both.
- __Easy apping:__ Using Google's Android operating system makes it easier for developers to pop out new glass apps (picture potential "blink to pay" features).

__Universally hated...__ The [original](https://www.pcmag.com/review/322649/google-glass-explorer-edition-version-2-0) Google Glass arrived in 2013. It was swiftly panned for violating the privacy of everyone in eyesight. But this new version isn't for you. It's for business:

- Google [retargeted](https://www.theverge.com/2015/3/27/8299529/robot-surgery-google-johnson-johnson-ethicon-platform) the specs to be worn by __factory workers and surgeons__. Support and data on the job = higher productivity and fewer mistakes.
- The value prop, in one sentence: This [gives](https://www.fastcompany.com/90352249/google-says-the-new-google-glass-gives-workers-superpowers) workers "__superpowers__"


Unveil

__Pivot — Don't kill it...__ Glass originated in Google's [X-department](https://x.company/), aka "The Moonshot Factory" where they "create radical new technologies to solve some of the world's hardest problems." And instead of shelving version 1.0 of Google Glass, the team found a new customer segment to target.

Google whips out $999 "superpower" smartglasses

__Huawei drama: part deux...__ Last week we told you about the executive order blacklisting Chinese telecom company __Huawei__ — we focused on companies *that buy from Huawei* (aka wireless phone icons like Verizon). On Monday, stocks of companies *that sell to Huawei* dropped because orders from Huawei are over.

__Chip and dip...__ "Semiconductor" is the technical term for smartphone engines. __NVIDIA__, __Advanced Micro Devices__, __Qualcomm__, __Intel__, and other American tech leaders power Apple, Samsung, and Huawei smartphones.

- __Going global:__ As developing countries started adopting smartphones, chip sales surged. __[Nvidia](https://www.robinhood.com/stocks/NVDA)__ and __[AMD](https://www.robinhood.com/stocks/AMD)__ shares increased by 10 times from 2016 to 2018.
- __The trade war:__ Orders from China's 1.5B swipe-hungry consumers are frozen thanks to this cold-ish trade war. 
- __Insult to injury:__ China expected this, so it [stockpiled](https://gizmodo.com/major-hardware-companies-to-stop-supplying-huawei-after-1834886298) at least 3-months-worth of chips. So China's lack of orders will be particularly noticeable since previous orders were packed with extras. 

Banned

__Customer #2 is gone...__ Samsung's been the world-[leading](https://www.theverge.com/circuitbreaker/2019/5/1/18525034/huawei-apple-samsung-smartphone-market-share-idc-2019) smartphone company (Apple is usually runner-up). But Huawei's cheaper-but-still-iPhone-ish phones now make up 19% of all smartphones sold. This executive order hurts China, but semiconductor stocks take it personally, too.

*Breaking: Trump is planning a [90-day pause](https://techcrunch.com/2019/05/20/u-s-mitigates-huawei-ban-by-offering-temporary-reprieve/) on the banning on worries it could hurt US jobs.*

US chip companies just lost their #2 customer

__Black tie or boho chic. DJ or Band. Vows or no vows...__ __[Sprint](https://www.robinhood.com/stocks/S)__ and __[T-Mobile](https://www.robinhood.com/stocks/TMUS)__ aren't having typical pre-wedding pillow talk. They're still trying to convince the government to bless the nuptials. Then two surprise developments Monday messed with both stocks in the $26B merger:

- First, __the chairman of the Federal Communications Commission said he was on board__ for the deal, popping T-Mobile up 6% and Sprint up 27%.
- Then Bloomberg reported that __the Dep't of Justice still isn't feeling it__, cutting both stocks' gains in half on the uncertainty (Sprint trading had to be halted).
- __*Quick clarification:*__ The Justice Dep't gets final say since its role is to protect consumers from a lack of competition.

__T-Mobile knows this looks bad...__ The #3 and #4 biggest companies in an industry aren't typically allowed to merge. So here's what T-Mobile/Sprint [promised](https://venturebeat.com/2019/05/20/fcc-chair-backs-merger-after-t-mobile-and-sprint-pledge-97-u-s-5g-coverage-in-3-years/) the FCC if it's approved.

1. No price hikes for 3 years (pinky swear).
2. It'll build out 5G coverage for 97% of the US population, into areas telecom companies usually ignore.
3. It can sell off Boost Mobile, its prepaid wireless service, so there's still a 4th competitor.

Decide

__With fewer competitors, consumers tend to lose...__ Competition among providers is key so that you don't get ripped off. That's why the Justice Dep't blocked AT&T's attempt to buy T-Mobile in 2011. And while T-Mobile promised to not take advantage of its increased power for three years... what about years 4? And 5? And forever?

Sprint shares halted on merger mixed messages

"_I see through walls and set my alarm with these things_"

Google's "Superhero" Glass 2.0

__Thanks for nothing...__ __[Snap](https://www.robinhood.com/stocks/SNAP)__ shares rose 14% last week even though the company made zero announcements. __[Facebook](https://www.robinhood.com/stocks/FB)__ already copied Snapchat's Stories feature, making the app's user growth almost disappear. But Zuck *also* [cloned](https://ca.finance.yahoo.com/news/snap-rallies-as-instagram-kills-off-snapchat-competitor-182733467.html) Snapchat entirely, calling it "Instagram Direct." Fortunately for Snap, that was shut down last week since Direct never caught on.

__Mandarin for "Venti"?...__ In just 2 years, upstart Chinese  chain __[Luckin Coffee](https://www.robinhood.com/stocks/LK)__ built 2,400 stores. It's still behind __[Starbucks](https://www.robinhood.com/stocks/SBUX)__ in China, but cravings for its tech-savvy, app-driven, pick-up-style grab-and-go stores [emboldened](https://techcrunch.com/2019/05/17/chinas-luckin-coffee-raises-up-to-651m-in-upsized-us-ipo/) it to IPO — aka list shares publicly so they're accessible to regular investors like you and us. On Day #1 of trading, the stock popped 18%.

__Because you need Tide to Go ASAP...__ __[Walmart](https://www.robinhood.com/stocks/WMT)__ became the 1st to [offer](https://www.cnbc.com/2019/05/13/walmart-announces-next-day-delivery-firing-back-at-amazon.html) free 1-day shipping on orders $35 or more (beginning in Vegas and Phoenix). Now Walmart's shares are creeping up to a record high after announcing quarterly ecommerce sales surged 37% from last year.  

__"That Beyonce record is tight"...__ Old school prep retailer __[Ralph Lauren](https://www.robinhood.com/stocks/RL)__ is urgently trying to convince Gen Z it gets them (the reliably polo-covered Baby Boomer crowd is slowing). But Ralph's stock dropped 7% on evidence its Instagram-friendly and "Family Is Who You Love" marketing campaigns [aren't connecting](https://finance.yahoo.com/news/ralph-lauren-rl-q4-earnings-150903668.html) in its home market of North America. 

__We take our sparkling water with a side of seltzer...__ That helped boost __[National Beverage Corp's](https://www.robinhood.com/stocks/FIZZ)__ stock seven times higher from 2014 to 2018, as its LaCroix was the only real option for soda-defiant Millennials. Now it's been downgraded by two analysts because LaCroix's mango-essence lifestyle faces [serious](https://www.thestreet.com/investing/stocks/fizz-falls-flat-on-analyst-downgrade-14959508) competition from Pepsi (Bubly) and Coca-Cola (sparkling Dasani and Smartwater).

__Trade, trade, go away...__ President Trump delayed tariffs on cars from allies in Europe and Japan and ended steel tariffs against allies Mexico and Canada. But one thing's clear: The trade war with China is here to stay. Here's who that hurts:

- __[John Deere](https://www.robinhood.com/stocks/DE)__ stock fell 10% because China's not buying as many American soybeans. Plus, the Chinese steel that makes the tractors run like a deer now costs more.
- __[Caterpillar](https://www.robinhood.com/stocks/CAT)__ dropped 4% because China is the biggest construction nation in the world (and Caterpillar's backhoes need a home).
- __[Tesla](https://www.robinhood.com/stocks/TSLA)__ dipped 10% to its lowest point in a year because China is its 2nd biggest market.

__A *Burn Book* hall of famer...__ Shares of __[Beyond Meat](https://www.robinhood.com/stocks/BYND)__ fell 4% Friday after getting the attention of famous hater __Citron Research__. The hedge fund's core business strategy is betting against a company's stock and making money if the price falls. Its latest [target](https://www.cnbc.com/2019/05/17/citrons-andrew-left-beyond-meat-hype-is-beyond-stupid.html) is the plant-based "meat" company that just IPO'd. The shade was summed up in Citron's [tweet](https://twitter.com/CitronResearch/status/1129444098589376513?ref_src=twsrc%5Etfw%7Ctwcamp%5Eembeddedtimeline%7Ctwterm%5Eprofile%3Acitronresearch%7Ctwcon%5Etimelinechrome&ref_url=https%3A%2F%2Fcitronresearch.com%2Fcitron-research-exposes-exact-sciences-proves-beyond-doubt-stock-will-soon-cut-half%2F):

"*Beyond Meat has become Beyond Stupid*" — @CitronResearch

__Fake meat, real blood...__ Citron thinks Beyond Meat is over-valued. So it borrowed stock of the company in order to sell it at today's high price. Then it hopes to buy it back cheaper when the price falls. The difference between those two prices = profit (that's called "*shorting* a stock"). Here's what Beyond Meat's stock has done so far:
- The IPO price on May 2 was __$25__.
- The pea-protein food-maker's stock surged 163% on Day #1 to __$65__.
- By Friday, shares had climbed all the way to __$87__.
- *Citron thinks they'll fall back to __$65__* after Beyond's first earnings report, as hype from meat-minimizing *reducetarian* Millennial investors dies off. 

Bitten

__It depends on how you define "competition"...__ By one measure, Beyond Meat has a monopoly. By others, it has thousands of competitors. The big question is if "fake meat" is a fad or the long-lasting future-Big-Mac it wants to be.

- 🏦 __Publicly traded meat alternatives:__ *No competition (yet).* Earth's 2nd biggest animal meat producer, __[Tyson Foods](https://www.robinhood.com/stocks/TSN)__, is working on plant-based foods to rival Beyond.
- 🚀 __Not-yet-public meat alternatives:__ __Impossible Foods__ (which just raised $300M last week and makes the Impossible Whopper), along with some other startups.
- 💯 __Non-meat proteins:__ Avocados, tofu, eggs, milk, beans, nuts, chickpeas, tempeh, seafood, yogurt, cauliflower, quinoa, peanut butter, chia seed, potatoes...