__10M...__ That's how many test miles of pavement __Waymo__ has pounded without a driver gripping the wheel. And it just [opened up](https://medium.com/waymo/waymo-open-dataset-6c6ac227ab1a) its memory for all its competitors to see in. The self-driving car division of __[Alphabet](https://robinhood.com/stocks/goog)__, Waymo is making its dataset free for researchers in order to make the self-driving revolution happen ASAP. No charge. It's a big leadership move.

__Why did the schnauzer cross the road?...__ To see if the robocar would stop. Waymo's street smarts lie in [this](http://waymo.com/open) intensely labeled dataset that converts real-life scenarios into code that sensors and processors can understand and react to. Here’s how this public good will be used:

- __The competition:__ The key for autonomous driving is machine learning — teach the car what to do when it encounters as many street scenarios as possible. Waymo's divulging its lifetime of self-driven experiences for Uber, GM, or Ford to play with.
- __Researchers:__ PhD candidates are fist-pumping for “*the impact of level 4 autonomous driving on hopscotch in semi-gentrified neighborhoods*” thesis this dataset just made possible.

_Street smarts, for free, from Google_

Help

__Reveal your secret sauce to save yourself...__ It's a paradox. And it's Waymo's bold new strategy. Waymo's greatest challenge isn't rivals — it's the self-driving dream failing. *GM indefinitely postponed its robot-taxi launch date, and Uber's self-driving tests killed someone*. Waymo thinks cooperating-over-competing is the fastest way for the industry to start making $$$ while you Netflix-and-drive.

*__SnackFact:__ Some investors think Waymo is [worth](https://www.forbes.com/sites/alanohnsman/2018/08/07/why-waymo-is-worth-a-staggering-175-billion-even-before-launching-its-self-driving-cars/#70ffaab8dd3a) over $100B — that's more than Ford and GM's valuations. Combined.* 

Waymo gives away a key advantage — its gigantic dataset — to competitors

__Fetch isn’t going to happen, Gretchen...__ And neither is “Chase-Pay me.” __[JPMorgan](https://robinhood.com/stocks/jpm)__ is shutting down its Chase Pay app next year (small caveat: the online shopping version will survive as an easy checkout option). The simple reason is [not enough](https://www.barrons.com/articles/jpmorgan-chase-will-shut-down-its-payments-app-51566416516) people were using it — 70% of online merchants accept PayPal, but less than 1% accept Chase Pay.

__It's not a tech company...__ JPMorgan doesn't realize that. It's pouring $11B into tech initiatives, but its bets on payments aren't paying off quite like tech companies' are. Let's go back to 2015, the magical time just after Apple launched Apple Pay. Since then, Apple Pay's been adopted by 43% of iPhone users — JPM hasn't. Google Pay and PayPal's Venmo are beating Mr. Morgan, too.

Pivot

__“Failing fast” is a muscle — and JPMorgan is flexing it…__ The nation’s most valuable bank recognized that instead of wasting big time and money on an expensive failing project, it’s best to end things. Quickly. And this isn’t JPMorgan’s only fail fast moment:
- __Finn is out:__ The bank’s emoji-saturated, zero-fee, Millennial-inducing mobile banking app was [killed](https://markets.businessinsider.com/news/stocks/jpmorgan-shut-down-finn-its-milliennial-banking-app-2019-6-1028260540) in June.
- __So are Canadian Credit Cards:__ They weren’t making money, so JPMorgan [ended](https://www.theguardian.com/world/2019/aug/09/chase-bank-cancels-all-credit-card-debt-for-canadian-customers) them (and it's even forgiving all the Canadian debt on the cards to fail *really fast*).

JPMorgan pulls a key tech move with its payment app: #FailFast

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

Google's self-driving charitable donation

__"Hover"...__ That's the non-swipe verb __[Apple](https://robinhood.com/stocks/AAPL)__ envisions you motioning with your new Apple Card, the digital-native payment method it announced in May last year. Welp, it's finally [available](https://www.apple.com/newsroom/2019/08/apple-card-launches-today-for-all-us-customers/) to all (in the US), and you apply through the Wallet app on the iPhone. If you're approved, you get:

- __Hoverability:__ Apple Card's natural habitat is Apple Pay, the contactless payment method built into the Apple Wallet app.
- __Privacy:__ The card doesn't even have a number. It's witness protection program approved, and totally encrypted, generating a new digital number with every transaction.
- __Rando coolness:__ When you first get your card, it exists on your phone in a blank-slate white hue. Then it changes color based on what you buy (restaurants = orange). 

__3 is for me...__ People ❤️ points. So Apple's giving you 3% cash back when you make Apple purchases or pay for an __[Uber](https://robinhood.com/stocks/UBER)__. If you pay through Apple Pay on your iPhone, you get 2% cash back. But there's also a physical brag-worthy titanium card — Apple only gives 1% cash back when you pay non-digitally. It's subtly incentivizing iPhone-dependency via points.

_3% cash back. 3% body fat._

"Hover"

__Apple Card is access to iPhone Nation...__ CEO Tim Cook wants Apple Card to become a status symbol. He knows that, and is offering up membership to what we're calling "the 3% Club": merchants that will offer Apple Carders 3% cash back. Here's why we expect more companies to ask Apple to join the deal and exclusively accept Apple Card:

- __What merchants pay:__ That cash back you get comes from somewhere — the store pays it.
- __What merchants get:__ The loyalty from iPhone Nation — if you get 3% off every Uber ride, are you really gonna take Lyft?


Apple's Goldman Sachs credit card is now available for all (iPhone-owning) Americans

__We found the formula...__ Add alliteration, an ampersand, and two quasi-wellness-sounding phrases together — you've got a food brand desperate for Millennial eaters. __[Target](https://robinhood.com/stocks/tgt)__ proudly [launched](https://corporate.target.com/article/2019/08/good-gather) *Good & Gather* to be its first flagship grocery brand: 650 food items hit shelves next month, with 2,000 more coming next year. It'll democratize the whole organic fridge:

- __Snacks:__ Good & Gather covers the fast-growing food space of bite-sized options with nut bars and organic flax chips.
- __Staples:__ To fit in your everyday routine, it features almond milk and cage-free eggs.
- __Meals:__ With the rise of convenient grab-and-go, it's offering Avocado Toast Salad kits.

__Multi-billion dollars by 2020...__ That's Target's [aggressive](https://www.cnbc.com/2019/08/19/target-is-launching-a-new-grocery-brand-to-boost-its-food-business.html) expectation for Good & Gather's value. The big box store is optimistic because of its own "one-stop-shop" status — 75% of Target customers who just want a non-food thing also end up buying at least one food thing. Now it wants that delightful food item to be a Target brand.

Tastes

__Groceries are how you Amazon-proof yourself...__ Only 4% of grocery buying in America is [done online](https://www.businessinsider.com/the-online-grocery-report-2019-1) — and humans need food daily. Amazon's online grocery experiments with Whole Foods (which it owns) and Amazon Fresh haven't thrived. Meanwhile, Walmart gets half its sales from groceries and is America's biggest grocer. Target hopes Good & Gather can help it hit that 50%-of-sales grocery mark.

Target cooks up a new food brand — then says it'll be worth billions

__Every youngest sibling knows the feeling...__ __[Tesla](https://robinhood.com/stocks/TSLA)__ sells electric cars, batteries, and "finally" (that's how Tesla [puts](https://ir.tesla.com/static-files/0ff834d7-dd3b-4d69-81a1-a4246a7b5736) it) *solar panels*. Elon acquired his cousins' startup __SolarCity__ in 2016, but it's just 7% of Tesla's sales. Now Tesla will offer up SolarCity's rooftop solar panels to rent for only $50/month since sales have fallen for 3-straight years.

__Burn me once, shame on me — Burn me 7 times...__ shame on Tesla. __[Walmart](https://robinhood.com/stocks/WMT)__ sued Tesla on Tuesday ([not](https://electrek.co/2019/08/20/tesla-walmart-remove-solar-systems-fires/) a typo). The megachain installed SolarCity panels to power some stores. The owner's manual didn't say anything about fires that Walmart claims they caused at 7 locations. Apparently Tesla didn't right the wrong, and now its shares are down 2% on the lawsuit.

Charge

__Solar panels complete Tesla...__ Tesla's official mission is to accelerate sustainable energy. Electric cars are only truly clean if the electricity they drink comes from clean sources. Powering a Tesla with coal-powered juice is still dirty driving. Elon wants Tesla drivers to charge up with Tesla battery packs, powered by Tesla rooftop solar panels.

Tesla solar panels continue big week of news (bad and bad-er)

Apple Card. Now available to all*

__2019 looks good on you...__ __[Estée Lauder's](https://robinhood.com/stocks/el)__ CEO was busy [complimenting](https://markets.businessinsider.com/news/stocks/estee-lauder-stock-price-strong-fiscal-q4-earnings-2020-outlook-2019-8-1028455960) himself that it's been an "outstanding year” for the cosmetics legend. *Micro Essence Revitalizing Cream* and *Le Labo* fragrances helped sales pop 9% over the last 12 months. We jumped into the earnings report Snacks style and noticed 1 surprising theme: "travel retail".

- That term was __dropped a cool 8 times__ in [the report](https://media.elcompanies.com/files/e/estee-lauder-companies/universal/investors/earnings-and-financials/quarterly-earnings/2019/q4/q4-fiscal-2019-earnings-release.pdf).
- And it was a key driver of the __double-digit growth__ of plenty of products (you're welcome, Tom Ford Beauty).

__Airport shopping is the most beautiful kind...__ It's where Estée's “global prestige beauty” (that's how it describes itself) is thriving. The next time you walk through a commercially-saturated terminal covered in MAC counters, you'll notice it — Global travel retail (including duty-free) has tripled sales over the last 15 [years](https://www.cnn.com/2019/07/22/business/airport-malls/index.html) to $69B in 2017. And air travelers worldwide are projected to [double](https://www.nationalgeographic.com/environment/urban-expeditions/transportation/air-travel-fuel-emissions-environment/) by 2035.

"_Just bought a nice mascara_"

Blush

__A "captive" audience is a lucrative audience...__ And when you pass TSA for two hours of waiting to board, the airport terminal becomes your impulse-buy/last-minute-gift resource. That's why [up to 90%](https://www.retaildive.com/news/airport-retail-has-a-long-runway-for-the-right-brands/549298/) of airport retail is *after* security — when you're stuck in a terminal that looks more like a mall sponsored by "prestige beauty" and Burberry coats. Your captivity is Estée Lauder's win.

Estée Lauder jumps 13% because of airport splurging

__Your parents mortgaged their house...__ so  you could wear braces. __SmileDirectClub__ tried a new approach to teeth straightening. The $3.2B startup has fixed incisors on 700K mouths since 2014 and just filed Friday to IPO. Its techie approach to orthodontics focuses on 2 things: Time (6 months vs. up to 2 years in braces) and money ($1.8K instead of $5K on braces). Here's [how](https://techcrunch.com/2019/08/16/smiledirectclub-files-to-go-public-amidst-concerns-from-dental-associations/):

- __Direct-to-Consumer:__ They ship you an at-home mold kit, you send it back, they return with clear aligners — no middleman (like Dollar Shave Club shipping out razors).
- __Telemedicine:__ A licensed dentist then checks up on you online every 90 days till your pearly whites are feng-shui'd.


__It's all thanks to Tinder and Instagram...__ When we jumped into SmileDirectClub's IPO paperwork (aka its "S-1"), this [description](https://www.sec.gov/Archives/edgar/data/1775625/000104746919004785/a2239489zs-1.htm) of a core trend hit us hard: *“Higher awareness of aesthetic image among consumers.”*  Social media's pressure on a generation to "present an image of their best selves" is powering the Club — and the company fully embraces that.

Pre-IPO

__The greatest threat to this grinning unicorn is public policy...__ The American Dental Association isn't a fan of SmileDirectClub's "no-doctor-visits" biz model, so orthodontists are suing in 36 states. Any regulation requiring physical appointments would likely hurt its momentum — just like Uber worries about policies that could make it treat drivers like employees, not independent contractors. Policy has impact.

SmileDirectClub files to IPO, is thankful for Instagram

__To love, honor...__ and generate profits at all costs forever. Since economist Milton Friedman first articulated it in the 70s, the purpose of corporations has been to maximize shareholder value — "profits." But now the Business Roundtable (a club of 181 big CEOs) [wants](https://fortune.com/longform/business-roundtable-ceos-corporations-purpose/) to change that. Led by JPMorgan's Jamie Dimon, the group met up, probably ate well, and then recommitted itself.

- __Old vows (Since the 70s/80s):__ Ruthless capitalism
- __New vows (yesterday):__ Sustainable capitalism

__Customers, employees, diversity, ethics, the environment...__ The Business Roundtable wants them all in a corporation's purpose — Apple, Amazon, and Bank of America's CEOs agree. We're already seeing major brands act on it: Think __[Nike's](https://robinhood.com/stocks/nke)__ [sponsorship](https://www.forbes.com/sites/jiawertz/2018/09/30/taking-risks-can-benefit-your-brand-nikes-kaepernick-campaign-is-a-perfect-example/#60dcc01545aa) of Colin Kaepernick through his social justice campaign, or __Patagonia__ [donating](https://www.usatoday.com/story/money/2018/11/28/patagonia-money-saved-trump-tax-cut-environmental-cause/2143733002/) tax cut savings to environmental causes.

_CEOs will finally start thinking about the Lorax_

Suits

__Capitalism is evolving for wokeness...__ It's created immense wealth, value, and innovation — it probably drove the motivation for whatever device you're reading this on. But a shocking *less than 50%* of Millennials [believe](https://fortune.com/longform/business-roundtable-ceos-corporations-purpose/) capitalism is good. As young consumers reject Big Beer, Big Food, and Big Fashion, corporations are realizing the value in acting with principles. Now the Business Roundtable is building a framework around that.

181 CEOs just renewed their vows with society

__Get some oil on our backs...__ __[Southwest](https://robinhood.com/stocks/luv)__ was a top buyer of those troubled Boeing 737 Max jetliners, and since they're grounded until at least November 2nd, Southwest is getting creative — it's [adding a bunch](https://www.cnbc.com/2019/08/15/southwest-expands-hawaii-flights-with-99-fares-in-assault-on-rivals.html) of California-to-Hawaii flights, some for $99. There's less competition on those islands, growing tourist appreciation, and investor approval, so shares increased 3% Friday.

__Feed us...__ While the rest of retail's bumming on tariff-boosted prices for the Made In China stuff American consumers love, __[Walmart](https://robinhood.com/stocks/wmt)__ is focused on food. The world's largest retailer cherished a better-than-expected $130B in revenues last quarter (FYI - that's almost double the 2nd biggest company in America). But the highlight was groceries: It now [boasts](https://techcrunch.com/2019/08/13/walmart-tops-u-s-online-grocery-market-with-62-more-customers-than-next-nearest-rival/) 62% more online grocery shoppers than its next closest rival.

__Take 3...__ __[Snap's](https://robinhood.com/stocks/SNAP)__ into it. The social network's first 2 attempts at a wearable didn't work — the $150 Spectacles to record your every disappearable moment cost the company $40M in wasted frames. Now [it's trying](https://www.fastcompany.com/90390000/this-is-the-computer-youll-wear-on-your-face-in-ten-years) a 3rd version of its glasses for a cool $380 — it thinks the not-horrible look and 3D focused filters could move the needle.

Highs

Who's up...

__Shade thrown...__ The guy who first reported the lies of Bernie Madoff and Enron? Now he's calling out __[GE](https://robinhood.com/stocks/ge)__. Fraud investigator Harry Markopolos claims the 127-year-old American icon [is hiding](https://www.reuters.com/article/us-ge-accounts/ge-shares-fall-on-report-that-its-finances-are-worse-than-disclosed-idUSKCN1V519M) $38B in losses from the books. GE believes Harry's just trying to manipulate its stock price so he can profit personally, but shares fell 10% on "the next Enron" vibes.

__"Fashion miss"...__ Their words, not ours. __[Macy's](https://robinhood.com/stocks/m)__ dropped 18% after a series of mistakes that made an already brutal situation worse: Its new private-label athletic line got no love, it didn't sell enough warm weather goods this spring, and there aren't as many tourists in America going shopping. That all forced Macy's to put way [too many](https://www.cnn.com/2019/08/14/investing/macys-stock-earnings-department-stores/index.html) clothes on sale, which dropped profits 48% from the same period last year.

__This guy...__ __[Overstock's](https://robinhood.com/stocks/ostk)__ CEO. Turns out he was [dating](https://www.nytimes.com/2019/08/15/business/overstock-paul-byrne-maria-butina-affair.html) a Russian spy for 3 years. Last week he had his company issue a [press release](https://investors.overstock.com/news-releases/news-release-details/overstockcom-ceo-comments-deep-state-withholds-further-comment) about how that got him involved in the 2016 presidential election investigation where he was interviewed by the "Men in Black." The bad look dropped the ecommerce company's stock 29% last week.

Lows

...and who's down

__Nice timing...__ Just as Woodstock festers celebrated their 50th reunion, cannabis stocks enjoyed their busiest week of the summer. Two of the biggest publicly traded pot companies revealed their earnings from the last quarter, both showing that it's hard out there for cannabis companies.

- __[Tilray](https://robinhood.com/stocks/tlry) (-27% last week):__ The Candian cannabis icon sold 5.6K kilos of weed (triple what it did last year), but its loss doubled. It acquired hemp-based food creator Manitoba Harvest and more recently [treated itself](https://www.cnbc.com/2019/07/23/tilray-acquires-smith-sinclair-to-develop-cbd-edible-line-in-us-canada-and-europe.html) to a CBD candy company.
- __[Canopy](https://robinhood.com/stocks/cgc) (-14% last week):__ Earth's biggest pot producer sold a hefty 9K kilos of weed (with revenues almost quadrupling), but it also gets more broke each quarter — losses more than quadrupled. 

__It's actually been a tough weed summer...__ Canopy's media-savvy CEO was just [fired](https://snacks.robinhood.com/newsletters/53D5PZmVR86YJQknpYXKkL/articles/hhYUavVObsQAZQpRrRAZr/) by its big new investor because he wasn't moving fast enough on CBD-infused drinks for the US market. __[CannTrust](https://robinhood.com/stocks/ctst)__ shares hit an all-time low after authorities seized some illegally-grown cannabis. And __[Sundial Growers](https://robinhood.com/stocks/sndl)__ recently IPO'd but was [caught](https://www.marketwatch.com/story/wall-streets-latest-billion-dollar-pot-company-had-a-half-ton-of-bad-weed-returned-as-it-was-going-public-2019-08-16) selling pot with mold.

_Becoming a profitable cannabis biz takes time_

Budding

__Weed profits won't come for years...__ Canopy's CEO admitted that it could be half a decade before it's profitable. So pot companies are shifting their geographic strategy to find some wholesome profits.

- __The US opportunity is huge, but limited__ — Only 11 states + DC have legalized weed, so the market is mostly limited to hemp-derived CBD creams, oils, drinks, and adorable [dog treats](https://www.seattletimes.com/explore/shop-northwest/giving-your-pets-cbd-treats-experts-advise-caution/).
- __And Canada's got an oversupply problem__ — Even though it's legal since last fall, they're producing more up north than the people want.
- __So pot companies are looking to study abroad__ — Tilray is building a new growing facility in Portugal and __[Aurora](https://robinhood.com/stocks/acb)__ just announced [a deal](https://www.reuters.com/article/us-aurora-cannabis-italy/aurora-cannabis-wins-contract-to-supply-medical-cannabis-to-italy-idUSKCN1UD1L3) with the Italian government.




Cannabis' biggest week of the summer is a major downer for pot investors

Bitcoin 

Pot CEO: Profits not coming for at least 3 years

__Haters gonna hate…__ But Harry Markopolos is more of a “revealer.” The whistleblower analyzes companies and calls out fraud — he did it with Bernie Madoff and Enron. Now he’s focused on __[GE](https://robinhood.com/stocks/ge)__, whipping up a 175-page report that took 7 months to research. Here are the highlights of what he handed to regulators about the 127-year-old, Schenectady-founded American icon:

- __The number:__ $38B — That's how much fraud he's noticed. It's 40% of GE's entire value, and Harry's  calling it just “the tip of the [iceberg](https://www.cnbc.com/2019/08/15/ge-shares-drop-after-madoff-whistleblower-harry-markopolos-raises-red-flags-on-its-accounting.html).”
- __The culprit:__ Accounting problems with its oil and gas unit he thinks go back to 1995.
- __The potential:__ Harry thinks it's enough to make GE "probably file for bankruptcy." Bold claim.
- __*Counter-point:*__ GE 100% disagrees and says Harry's [just trying](https://www.reuters.com/article/us-ge-accounts/ge-shares-fall-on-report-that-its-finances-are-worse-than-disclosed-idUSKCN1V519M) to drop its stock.

__Enron made history...__ The energy giant used to enjoy $63B in assets. Then some "accounting irregularities" showed up. Four months later in 2001, Enron filed for bankruptcy, becoming the biggest company to fall apart in American history — 21 execs were convicted, 4K lost jobs, and an entire accounting firm went down with it. Harry says GE is using the same "accounting tricks."

Burn

__Not all turnarounds survive...__ GE's gone deep into self-care, trying to turn itself around for years — it hired its first non-GE-ish leader (an outsider CEO) and tried to sell off non-critical business lines (like its venture capital arm with hundreds of startup investments). But the stock still lost half its value in the last year and a half as the Eat-Pray-Love turnaround journey suffers. Harry's accusations reveal how deep a true turnaround sometimes has to go.

GE plummets 10% after it's basically called the next Enron

__Can we talk about this?...__ __[Overstock](https://robinhood.com/stocks/ostk)__ has historically been that harmless go-to shopping site where your mom snags a duvet cover for 70% off four years ago and still talks about it. But shares suffered [their worst](https://www.marketwatch.com/story/overstock-stock-suffers-worst-two-day-decline-ever-after-ceos-russia-conspiracy-story-2019-08-14) 2-day drop ever and then bounced back 16% Wednesday. It all goes back to the CEO Patrick Byrne's cryptic relationship with a woman he met at a 2015 conference.

__Turns out she was Russian spy...__ They began a 3-year relationship, and [now](https://www.nytimes.com/2019/08/15/business/overstock-paul-byrne-maria-butina-affair.html) she's in jail serving 18 months. Here's what kicked off the stock drop this week:

- Overstock __shockingly announced__ the romance via press release on Monday.
- Patrick then went on TV, __discussing the "men in black"__ and US agents he worked with regarding the 2016 election Russia investigation.
- He wasn't done on Wednesday. Overstock issued another [press release](http://investors.overstock.com/news-releases/news-release-details/overstockcom-ceo-comments-deep-state-withholds-further-comment) claiming Patrick was __"the notorious missing Chapter 1"__ in the whole investigation. Confusion dropped shares further.


Drama

__Overstock highlights the risks of personality leadership...__ Big leaders can define big strategies. But Overstock's been in this situation before where Patrick's choices shake up shares. When he developed a passion for cryptocurrencies, he decried Overstock no longer a retail company, but a blockchain one. Except it is a retail company. The stock's volatility reflects some of that confusion.

Overstock surges back on strange CEO slash Russian spy situation

__Needed that...__ Trade war drama has been hitting markets. Then __[Walmart](https://robinhood.com/stocks/WMT)__ reported earnings and dropped a mic — it's still the #1 company by sales in America ([by almost 2x](https://fortune.com/fortune500/) as much as #2).

__You can shop for just about anything in this report...__ Investors took it as a signal that the tariff-palooza worries might not be as impactful as feared. 

- __Revenue and profits beat expectations:__ They came in at $130B and $3.6B. 
- __Ecommerce is Walmart's favorite child:__ The chain's epic [1-day shipping promise](https://corporate.walmart.com/newsroom/2019/05/14/free-nextday-delivery-without-a-membership-fee) for 75% of the US population helped boost online sales up 37% (that's pretty good).  
- __Offline shopping's not too shabby, either:__ Every store was cranking out sales numbers about 2.8% bigger than the same time last year. Plus, the white collars at Walmart think the next quarter will have equally strong growth. 

Shop

__Houston, we have no demand problem (yet)...__ We've got a paradox right now: economists and bond investors predict an economic recession, but you're seeing awesome econ stats like 3.7% unemployment and growing GDP. Because Walmart's so engrained nationwide, its numbers are another reading from the economic thermometer that things are healthy-ish in the economy.

Walmart becomes Wall Street's white knight

_Not all heroes wear Walmart smiley face pins_ 

The Russian spy and the ecommerce CEO

__Let's start on page #3...__ of __WeWork's__ [S-1](https://www.sec.gov/Archives/edgar/data/1533523/000119312519220499/d781982ds1.htm). That's the required tell-all document a company must file before an IPO, telling potential investors key details on the biz. And that's where things got awkward, talking about "the energy of __We__" (WeWork's actual holding company name). The 9-year-old, $47B *huge*-icorn with 604K work-stations worldwide wants to [IPO](https://learn.robinhood.com/articles/6UsdUrlnUvxiDpDT4D2bup/what-is-an-initial-public-offering-ipo/?utm_source=snacks&utm_campaign=email_Daily&utm_content=IPO&utm_term=WeWork%20IPO) soon and this unveil makes it feel like a sorority sect. Here's the surprising stuff:

-  __The history:__ *“Our mission is to elevate the world’s consciousness”* — that's how they begin telling it.
-  __The mantra:__ WeWork channeled its inner-yoga and made one for its IPO — "*We dedicate this to the energy of we — greater than any of us, but inside each of us.*" We'll just let that sit.
-  __The pledge word:__ "Community." That term was dropped 150 times.
-  __The Co-Founder inequity:__ There are technically 3 (2 are married to each other), but CEO Adam Neumann [will control](https://www.forbes.com/sites/samanthasharf/2019/08/14/wework-ipo-sec-s1/#258439da4f08) at least 50% of the voting power. And his shares in the company are worth the most: $4.1B.

__There are 2 key numbers to work into your head...__Investors are curious about the __$905M__ WeWork lost in just the first half of this year, 25% more than the same period last year (but it is on pace [to double](https://www.forbes.com/sites/samanthasharf/2019/08/14/wework-ipo-sec-s1/#258439da4f08) revenues). But WeWork wants you to focus on the __2 years__ time it takes individual locations to turn profitable, and WeWork has opened over 100 so far this year.

_IPO bankers going through WeWork's mandatory culture training_

IPO'ing

__Forget co-working...__ WeWork is now "space-as-a-service." WeWork says it pioneered the term — The play on "*software*-as-a-service" is WeWork's attempt to appear like a tech company so investors will judge it like a tech company and be cool with the huge losses it's making now. It does though reflect all the things We is now doing outside of coworking:

- __WeLive:__ "Community"-inspired hotel-like full-time living spaces that host 12K "Meetups" daily worldwide.
-  __WeGrow:__ Schools, because WeWork wants to grow kids' "souls" (their words).
- __Ark:__ A global real estate platform to acquire real estate.


WeWork reveals its IPO paperwork — and things got weird

__Dun dun [duuuuuun](https://www.youtube.com/watch?v=cphNpqKpKc4)...__ The ringtone reserved for crisis situations was buzzing on Wall Street for a strange reason: The yield curve inverted. *Translation*: The interest rate the US government borrows at was higher for a 2-year loan than a 10-year one. *Translation^2*: The last 7 economic recessions were warned by this unusual solar eclipse-meets-blood-moon situation.  

__Everyone thinks the global economic party is going to be less fun...__ *Which increases the chance that'll be the case*. Central banks are lowering their country's interest rates on concerns that their economy could slow down. Here's why that's bad for markets:

- __[Germany](https://www.cnn.com/2019/08/14/business/germany-economy-gdp/index.html) and [China](https://www.reuters.com/article/us-china-economy-activity/chinas-economy-worsens-in-july-industrial-growth-at-17-year-low-as-trade-war-escalates-idUSKCN1V404X) are already sick:__ Those two heavyweights announced serious economic declines this week.
- __If everyone thinks rates will keep falling, then they will:__ Expectations are important in finance. When the US Central Bank (aka "The Fed") announced the first interest rate cut in 10 years last month, it made the trend official. 
- __Banks are bumming:__ __[Citigroup](https://robinhood.com/stocks/C)__ fell 5% Wednesday. One of banks' core businesses is taking in money through your checking account and lending it out on the other side. Higher interest rates make that more profitable. 

Econ

__A lot's changed since December...__ Back then, the Fed was planning to increase interest rates in 2019 at least twice because the economy was doing so well. Since, the US vs. China trade war has spooked everyone. 

- __December 2018:__ 10-year lending rates were benchmarked by the US government's 2.911% borrowing rate.
- __Today:__ That's down to 1.581%. 
- *__PS:__ That's a huge difference, and today's rate is almost an all-time low.*


Bizarre Wall Street alarm goes off, signaling recession coming soon

__But first, coffee (earnings)...__ The "Starbucks of China" is already on track to pass __[Starbucks](https://robinhood.com/stocks/SBUX)__ as the top espresso chain in tea-thirsty China this year. But just 3 months after its IPO in the US, __[Luckin Coffee](https://robinhood.com/stocks/lk)__ shares dropped 17% after its first-ever earnings report. Before we get into why, get to know Luckin and its Bambi-ish [logo](http://investor.luckincoffee.com/static-files/399afeb2-3d54-4cc4-8030-d3672d865a71):

- __Gen Z lattés:__ Luckin was born mobile-first — In its three years of existence, its focus is small stores where you order ahead or order delivery with the app.
- __Growth mode:__ Fast. Sales jumped 648% last quarter as it opened 593 new spots in just the last three months to hit 2,963 total (vs. Starbucks' 3,922 in China).
- __It's a homebody:__ Luckin hasn't applied for a passport yet (but did just sign a deal for Middle East expansion). Its [market value](https://learn.robinhood.com/articles/GByCbiOluG2kcWs1AF6m5/what-is-market-capitalization/) is 1/20th of globally-minded Starbucks.

__How does Luckin take its coffee?...__ With other things now. The biggest update in Luckin's earnings was its moves outside the bean. It's now letting customers order food via app and it's dabbling in vending machines to save on real estate costs. Plus, to poetically "capture different consumption moments," it's now doing Luckin Tea.

__Is Luckin' a tech company or a coffee company?...__ Yes. Both. But investors think it's behaving too Silicon Valley, so they dropped the stock. Luckin has aggressively cut prices of a cup of coffee to compete with Starbucks, which could be [unsustainable](https://www.cnbc.com/2019/08/14/luckin-coffee-q2-2019-earnings.html). But that's kinda a tech move — no different than Uber or Lyft dishing out discount codes for rides to get you on their apps.

The Starbucks of China plummets because it's actually a tech company

BItcoin

_IPO bankers going through mandatory WeWork culture training_

Markets are predicting an economic recession 

__Forward to your 1 friend who will actually get these...__ For a cool $380, they too can strut around in a pair of __[Snap's](https://robinhood.com/stocks/snap)__ Spectacles 3. A limited number go on sale [here](https://www.spectacles.com/) in November, featuring a new HD camera to create depth perception as you semi-creepily record everyone around you. We consider the [design](https://www.theverge.com/2019/8/13/20802239/snapchat-spectacles-3-pricing-release-date-snap) pseudo-Coachella-geek-hipster chic.

__If at first you don't succeed...__ spend a lot of company resources to try 2 more times. Here's the social network's timeline/quest to add hardware to its app success:

- __Spectacles 1 (2017):__ A $130-per-pair costly mistake — Snap sold them via pop-up vending machine, but made [way more](https://www.theverge.com/2018/4/26/17279434/snapchat-spectacles-pricing-availability-snap-wearable-camera) glasses than the 150K that were actually sold, costing it $40M.
- __Spectacles 2 (2018):__ A $150 thinner mistake — Snap made the glasses narrower and waterproof, but they didn't catch on, either.
- __Spectacles 3 (Now):__ A *$380* potential mistake [obsessed](https://www.engadget.com/2019/08/13/snap-spectacles-3/) with augmented reality — It definitely prices out most of Snap's teen userbase, but 3D filters make your walk to work look actually interesting.

Appear

__Friction is the problem...__ There's nothing wrong with a tech company testing out a wearable device like Spectacles — but Snapchat still hasn't fixed problems that make them hard to use. Example: Footage taken on Spectacles doesn't automatically transfer to your Snapchat account. *(Friction)*. That's why [over half](https://www.businessinsider.com/snap-writes-off-nearly-40-million-spectacles-charges-after-product-flops-2017-11) of Spectacles 1 & 2 users quit after a month.

Snap tries (again) with hardware: Spectacles 3

__[iTariffs](https://snacks.robinhood.com/newsletters/4I2g1BvqYXxHUuLoQhwXlQ/articles/1TiNJgUt9g8BeSm3lygZXl/?utm_source=snacks&utm_campaign=email_Weekly&utm_content=iTariffs&utm_term=the%20trade%20war%20just%20hit%20a%20fresh%20new%20level%20iTariffs)...__ President Trump announced them just 2 weeks ago. With everything else already tariff'd, the US planned to tax the remaining $300B worth of consumer products made in China starting September 1st — including the iPhone. Yesterday, he said nevermind: *waiting until December 15th for most new tariffs so American shoppers can have a Merry Christmas*. 

__Teachers hate procrastination...__ Markets don't. The tariffs were essentially a 10% tax that would hurt profits for companies manufacturing in China, while raising prices by 10% for everybody. Here's who wins with Tuesday's sudden flip:

- __[Apple](https://robinhood.com/stocks/AAPL):__ Shares popped 4% because iPhones and MacBooks won't get 10% more expensive until after most holiday shopping is done. Made in China AirPods, the Watch, and HomePod still get hit on September 1st, though.
- __[Mattel](https://robinhood.com/stocks/MAT)__ & __[Best Buy](https://robinhood.com/stocks/BBY):__ The stocks rose 5% and 6% as Made in China action figures and speakers will remain tariff-free through the holidays.
- __[Nike](https://robinhood.com/stocks/NKE):__ Sneakers were also on the exemption list, so the swoosh jumped up 2%.

_Markets weren't expecting this, but kind of love it_

Un-tariff

__This sends a message to China...__ If the trade war has political or stock market costs, America might cave. Credibility is important in negotiations, and Trump's credibility takes a hit with this one. 

1. __Political cost:__ Since American buyers pay US tariffs, not Chinese exporters, this latest round would have grinched Christmas for American households.
2. __Stock market cost:__ If tariffs caused poor holiday sales, stock markets likely would've suffered.

New US tariffs on China get delayed... because of holiday shopping

__Distance makes the heart grow fonder...__ Or something like that. Take __[CBS](https://robinhood.com/stocks/cbs)__ and MTV/Nickelodeon-owner __[Viacom](https://robinhood.com/stocks/viab)__. The two media legends split 13 years ago — and then, like Ross and Rachel, they spent the past 3 years (slowly) flirting over whether to get back together. Now the deal has officially been reached, and these are the primetime [numbers](https://www.cbscorporation.com/wp-content/uploads/2019/08/ViacomCBS-Press-Release-FINAL.pdf):

- __$28B:__ The combined revenue of the Brangelina-esque new "ViacomCBS."
- __140K & 3.6K:__ The combined number of TV episodes and movies the new company will own.
- __4.3B:__ The incredibly massive global reach of TV subscribers ViacomCBS claims to have.
- __61% vs. 39%:__ When the deal likely closes at the end of the year, CBS shareholders get 61% of the new company, Viacom shareholders get 39%.

__Family Matters...__ The Redstone family ran Viacom until 2006, when it made sense to split off CBS as a separate company. But now that YouTube, Netflix, and social networks are [eating into](https://www.nytimes.com/2019/08/13/business/cbs-viacom-merger.html) both companies' profits, a re-merger seems prudent. Media heiress Shari Redstone wanted to reunite, but former CBS CEO Les Moonves was against it — now that he's been pushed out for alleged sexual assault, Shari gets her family reunion.

Mergin'

__This all comes down to one word: streaming...__ CBS All Access was actually one of the 1st streaming networks, but never really took off. Consolidating Viacom and CBS' original content from Spongebob to Star Trek is respectable enough to entice cord-cutters — but Netflix and Amazon are already way bigger, and Disney just acquired Fox. Content remains king, and ViacomCBS is a smaller kingdom.

Viacom & CBS finally agree to a huge re-merger

Christmas shopping just delayed iTariffs

__Not Big Oil. *Biggest Oil*...__ __Saudi Arabian Oil Co__ — aka "Aramco" — just stuck its financial statements up on the web for the first time ever. It didn't have to (it's not publicly traded), but it's trying to pique some investor intrigue. Here's what Earth's most profitable company looks like:

- __Private:__ Saudi Aramco has 1 shareholder — the Kingdom of Saudi Arabia — since 1976, when the government took full control of what was then an American company. __It's still 100% private today__.
- __Public-curious:__ In April it __interacted with public markets for the first time__, offering $15B in bonds to raise some money for itself.
- __Public:__ The Saudi government __is thinking about IPO-ing Aramco__ to sell some shares to the markets in exchange for cash — that's why it wants to show what some of its numbers look like.

__The home run record was 16. Then Babe Ruth hit 29. Then he hit 54...__ Aramco is the Bambino of profits. Behold, its elusive [financial stats](https://www.saudiaramco.com/-/media/publications/corporate-reports/saudi-aramco-h1-2019-half-yearly-report-english.pdf?la=en&hash=1C305066A4A712137399DC1B2A395E71D14FB807) from the 1st half of 2019:

- __Profits:__ $47B. That's double what Apple made. *Double*. (And almost 8x Amazon).
- __Dividends:__ It delivered almost 100% of that profit to its 1 single shareholder as a [dividend](https://learn.robinhood.com/articles/6jGOO5O2YvyoZzlEUtIq0F/what-is-a-dividend/) so government services for 33M people could be paid for.
- __Oil:__ It pumps out 10M barrels of crude oil *per day*. [Only](https://www.eia.gov/energyexplained/index.php?page=oil_where) Russia and the US (two countries) produce more oil than this *company*.
- *__Fun Fact:__* And it's still got half-a-century's worth of reserves to tap from the ground.

Private

__Operation: Modernize...__ The next Saudi King (Crown Prince Mohammed Bin Salman) was all the rage trying to modernize his intensely conservative country (women [just got](https://www.nytimes.com/2019/06/24/world/middleeast/saudi-driving-ban-anniversary.html) the right to drive). That plan was put on ice after the murder of journalist Jamal Khashoggi (believed to be at the Crown Prince's order). Now he's venturing out of the moral doghouse and the finance world doesn't seem to mind. The biggest IPO ever could be coming.

For the 1st time ever, mysterious Saudi Aramco reveals its financial details

__Can I borrow your car charger?...__ __[GM](https://robinhood.com/stocks/GM)__ and __[Volkswagen](https://robinhood.com/stocks/VWAGY)__ are ditching the hybrid technology that Toyota made famous with the Prius back in the 90s. Here's a cheat sheet on conventional vs. hybrid vs. electric as they go long on plug-ins.

- __Conventional:__ An engine burns gasoline, which pumps pistons up and down, which spins your wheels (we skipped over some physics and engineering).
- __Electric:__ A battery powers a motor which vrooms you forward. The downside — pricey batteries make e-cars $6K-10K more expensive than conventional ones on average (but tax incentives and gas savings make up for some/all of that). 
- __Hybrid:__ A little bit of both. Drivers want to help Mother Earth, but crave the warm-fuzzy feeling of an engine. Hybrid tech costs about $2K extra compared to a conventional car. 

__Hybrid upped America's MPG...__ but barely. According to the [WSJ](https://www.wsj.com/articles/gm-volkswagen-say-goodbye-to-hybrid-vehicles-11565602200?mod=hp_lead_pos9), the carmakers are realizing hybrid isn't cutting greenhouse gases enough for the future, especially with Europe and China's aggressive environmental plans. __[Ford](https://robinhood.com/stocks/F)__, Volvo, and __[Toyota](https://robinhood.com/stocks/TM)__ though are sticking to hybrid because some customers aren't ready to go cold turkey with regular unleaded.

Charging

__Companies can only make so many bets...__ A car CEO has a ridiculous menu of expensive things she could invest in — autonomous driving, car sharing, pickup trucks, hybrids, and electric. Each buck spent on hybrid tech is a buck not spent on those other things. More car bosses believe hybrid's era is coming to a close soon.

The car industry begins going all-in on electric, phasing out hybrids

__If baby Jordan went back-to-school...__ he'd subscribe. A stealthy sneaker club startup called Easy Kicks has been delivering shoes to 10K member families. Turns out it was __[Nike](https://robinhood.com/stocks/NKE)__ all along. Easy Kicks just got rebranded as "[Nike Adventure Club](https://www.easykicks.com/)" for kids 2-10, and it's Nike's 1st-ever subscription service:

- __The tiers:__ 3 options — Get 4 pairs of sneakers per year for $20/month, 6 pairs for $30/month, or 12 pairs for $50/month.
- __The feel-good:__ Send back the kicks and Nike donates or recycles them.
- __The asterisk:__ Pediatricians say that's way too many shoes for even fast-growing kids.

__Subscriptions — so hot right now...__ From Dollar Shave Club razors to Lola tampons, subscriptions guarantee recurring revenues for the biz and build brand loyalty (plus, customers don't have to shop/think anymore). Now, Kid-scriptions are gaining traction because they grow so fast (😭) they constantly need new stuff. Here's who else has boxes for size "24 months" up to "16 husky":

- __[Walmart](https://robinhood.com/stocks/WMT)__ partnered up with kids' clothing startup Kidbox.
- __[Foot Locker](https://robinhood.com/stocks/FL)__ invested in Kidbox rival Rockets of Awesome.
- Algorithm-powered fashion subscription __[Stitch Fix](https://robinhood.com/stocks/SFIX)__ launched a kids version last year.

Subscribe

__It's all about the upgrade...__ The biggest surprise for Nike was how offering different price tiers let users test it — and then commit. Intensely. Most began at the cheap $20/month option,  craving more adorably small kicks. And then they paid up for the fancier tier ("just $10 more for 2 more pairs!"). Nike's pricing strategy was the real winner.

Nike unveils its 1st kids kicks subscription box: "4 pairs/year for $20/month"

_The first ever kombucha-powered car_

Death of a hybrid salesman

__Makeover...__ __[Weight Watchers](https://robinhood.com/stocks/ww)__ officially changed its name (hello, "WW") and rebranded itself from a weight loss to a wellness company late last year. And it's working. Shares surged nearly 50% last week after it announced the [highest number](https://www.marketwatch.com/story/weight-watchers-upgraded-at-bank-of-america-as-2020-innovation-sparks-optimism-2019-08-07) of members ever for a 2nd quarter: 4.6M. Now it's got board member (and shareholder) Oprah pushing its new "wellness" look.

__It's a keeper...__ __[Match](https://robinhood.com/stocks/mtch)__ stock jumped 20% last week, but that's all thanks to its better half, __Tinder__. The number of users on the dating app last quarter [surged](https://www.cnbc.com/2019/08/06/match-group-earnings-2019-tinder-subscribers.html) 40% from the year before. Powering the Tinder love are its aggressive new premium features you pay up for: Tinder Gold lets you see if your match read your message, and Super Boost lets you algorithmically/intensely promote yourself.

__Shack burgers on your couch...__ can become part of your new weekday routine. __[Shake Shack](https://robinhood.com/stocks/shak)__ jumped nearly 20% after its earnings revealed global expansion plans are on track ("fries with that, Singapore?"). But the highlight was a [new partnership](https://www.engadget.com/2019/08/05/grubhub-seamless-shake-shack-delivery/) — after years of being a delivery holdout (soggy burger buns and cold beef scare the CEO), Shake Shack's finally partnering with __[GrubHub](https://robinhood.com/stocks/grub)__ for nationwide delivery.

__What would Tinkerbell do?...__ __[Disney](https://robinhood.com/stocks/dis)__ just announced record high quarterly revenues of $20B. That's mainly thanks to *Avengers: Endgame* crushing box office records. But profits plunged 51% because Disney treated itself to 2 [major acquisitions](https://www.nytimes.com/2019/08/06/business/media/disney-earnings-disappoint-in-first-full-quarter-after-fox-deal.html): Mickey bought Fox and most of Hulu as it preps its own streaming service, Disney+, for a November launch.

__Four-letter verb for "drop"...__ Shares of The __[New York Times](https://robinhood.com/stocks/nyt)__ fell as the number of new paying subscribers missed analysts' expectations. The paper's got 4.7M paying for its news, crosswords, and cooking apps, but wants 10M by 2025. So it's hired *more* journalists to up its content —  1,750 total are on staff, the [most](https://www.nytimes.com/2019/08/07/business/media/new-york-times-earnings.html) it's ever had.

__Despite aggressive ketchup usage...__ __[Kraft Heinz](https://robinhood.com/stocks/khc)__ has a problem. Last February, it had to write-down the value of its processed food brands by $15B because they clearly aren't as valuable as they used to be. Then last week, it [devalued](https://www.wsj.com/articles/kraft-heinz-books-1-22-billion-in-impairment-charges-11565267075) your diner's go-to labels by another $1.2B. Velveeta, A-1 steak sauce, and mac-n-cheese sales are all lowering sales projections in an organic chia world.

__Uber and Lyft should start side-hustle Ubering and Lyfting...__ The ride-hail pioneers announced earnings with 1 main theme: they're making huge losses. __[Uber](https://robinhood.com/stocks/UBER)__ lost a shocking $5.2B (but that's mostly caused by one-time IPO costs). __[Lyft's](https://robinhood.com/stocks/LYFT)__ loss was a lot smaller at $644M, which makes sense because it's a much smaller company. 

__"Shareholders, how was your ride?"...__ Rough. Both stocks dropped by at least 5% Friday after experiencing both reports. Here are the Q2 scorecards for the 2 gig rivals:

- __Revenue (Point Uber 🖤):__ Uber brought in $3.2B of cash from April - June (even after drivers get paid) compared to Lyft's cute $868M.  
- __Revenue growth (Point Lyft 💖):__ Lyft owns this. Uber is post-puberty, with revenues growing an all-time slow 14% last quarter. Lyft's voice is still changing, as revenues busted 72% higher.
- __Who takes a bigger cut of each fare (depends if you're a user or a shareholder):__ Both companies make this percentage hard to find. A recent [report](https://mashable.com/article/uber-lyft-driver-earnings-jalopnik-fares/) shows Uber takes 22% of each fare (leaving drivers with 78% of your post-Trader Joe's haul back home), and Lyft takes more at 26.8%.  
- __Panic button (Point Uber 🖤):__ A *Washington Post* [report](https://www.washingtonpost.com/technology/2019/08/02/how-lyft-lost-trust-deleteuber-women-who-thought-it-was-woke/) last week highlighted several women who felt Lyft didn't handle their allegations of driver harassment well — and it requires several "clicks" in the app to report an emergency. Uber takes just [1 click](https://www.uber.com/us/en/ride/safety/). 

Ride

__Good news for shareholders — 2019 is "peak loss"...__ The Lyft CEO said that, but Uber investors hope it's true for them too. The idea is that this year Uber/Lyft must spend more than they ever have to grow  — but they hope losses will begin to shrink and eventually flip to profits. The revenues vs. costs see-saw could start tipping in the right direction. *And guess what* — both companies are [raising](https://www.marketwatch.com/story/lyft-and-uber-are-giving-investors-what-they-want-which-is-bad-for-the-rest-of-us-2019-08-08) prices.

Lyft and Uber both reported earnings — both losing a lot of money

_Two ride-share apps figuring out how to make money_

Our Uber vs. Lyft Q2 scorecard

__This has rom-com written all over it...__ We're at the last 30 minutes when __[Facebook](https://robinhood.com/stocks/FB)__ tries to rekindle its fraught relationship with the news industry. According to the [WSJ](https://www.wsj.com/articles/facebook-offers-news-outlets-millions-of-dollars-a-year-to-license-content-11565294575?emailToken=2fb7dd9340744d942b7f643ec04ced4e46VFJoAA0C+opwfYOyjxIspA4BAz9lBRXiTrf4h1P2IThnv+ZziMYG6kSmiJTg5f8sBjNfLz1JER+bAS8W1x2L3W6dcoX8nZh7cwyqkHFN1KipapXb/QVwYObzbTUERfteIkCikG8dqLXYNb6li2Tg%3D%3D&reflink=article_copyURL_share), Facebook is offering news publishers up to $3M per year to license entire articles and stick them in your newsfeed. 

__The last time Facebook dated news, it didn't go well...__ Promises were broken, and the breakup was bad.

- __How the relationship worked:__ Just as news publishers were getting disrupted by the internet, Zuck welcomed them to post articles on Facebook, which it would promote in newsfeeds.
- __The promise to news:__ *People will click on your articles! And you can make money through that web traffic (with ads) or by getting them to subscribe!*
- __What actually happened:__ FB traffic didn't lead to much money for news publishers, who struggled. Then Facebook tweaked its algorithm to demote news, and promote baby pics instead.
- __The really bad part:__ Fake news replaced real news, and the troll-authored content got loads of likes, shares, and comments.

Inform

__Facebook knows news got burned last time...__ so it's offering money this time. News agencies aren't buying the "traffic will convert to subscriptions" story. Facebook's eager to prove it can now help news agencies by paying them $$$ for their product. As soon as this fall, we could get a new tab on the FB app for news, with real, paid news in there.

Facebook is reportedly planning a new initiative to fix the news it helped break

__*Rudy*...*Rudy*...*Rudy*...__ The streaming company that turns dumb TVs into smart TVs with its HDMI dongle and software just announced 2nd quarter earnings. And __[Roku's](https://robinhood.com/stocks/roku)__ stock surged 21% on a made-for-TV trifecta of [growth](https://ir.roku.com/static-files/df3d060c-0975-4903-83d3-0e1f2e482d79) stories:

- __+39%:__ The # of active Roku accounts is up from last year.
- __+72%:__ The increase in time users spent Roku-ing with their dongle or Roku-equipped smart TV compared to the same time in 2018.
- __+59%:__ The amount of money Roku made last quarter, compared to the year before.

__It was already varsity. Now it's the QB...__ Roku just hit some big milestones that show how the tech company controls cord-cutters' binging time. All that netflixing America loves — it happens via Roku [more](https://www.wsj.com/articles/tech-giants-leave-room-for-roku-in-streaming-video-11565280696?mod=hp_lead_pos11) than anything else.
1. __Roku's the #1 streaming stick__ with a 39% share of the market. Amazon, Apple, and Google are 2-3-4.
2. __Roku's the #1 smart-TV software__ with a 33% share of the market. Samsung, Vizio, and LG are 2-3-4.

Rise

__Its tininess was its advantage...__ Put all of Roku's stock in a sack and it's worth just under $14B (that's also called its [market cap](https://learn.robinhood.com/articles/GByCbiOluG2kcWs1AF6m5/what-is-market-capitalization/)). That's like 2% as big as the tech giants it competes against. Its size helped it avoid the rumbling of its bigger tech rivals:

- YouTube was blocked from Amazon's Fire Stick. Amazon Prime Video wasn't available on Apple TV or Google Chromecast.
- Walmart refuses to sell Amazon devices (for obvious reasons).
- Meanwhile, __Roku's stock has quadrupled in the past 9 months.__

How Roku quietly became the #1 king for cord-cutters

__Self-driving, AI, Internet-of-Things, VR...__ Fertility. The ability to have babies is a market that VC money is finally flowing into. Polina Marinova's [*Term Sheet*](https://fortune.com/2019/08/08/why-venture-capitalists-are-pouring-money-into-male-fertility-startups-term-sheet/) captured its momentum with just 3 numbers:

- __475:__ That's the total number of women in the US who froze their eggs in 2009. Out of the entire country. *Four hundred and seventy five*.
- __7,300:__ That's how many did in 2016. Big jump.
- __$102M:__ And that's how much venture capitalists have invested in fertility startups so far in 2019.


__Just add guys...__ The fertility-tech industry is now expanding to target men, too. __Legacy__ recently raised $1.5M and mail-order sperm-testing startup __Dadi__ [just](https://techcrunch.com/2019/08/08/dadi-raises-5m/amp/) added $5M. Here's how Dadi's going full "23&Me" on the male fertility market:

- __The issue:__ Dadi's [website](https://www.dadikit.com/) says 1/2 of all fertility challenges are on the man's side. 
- __The value prop:__ Order the $99 kit and send back a sample. They'll evaluate your fertility percentile and suggest lifestyle changes to up the likelihood you'll be able to conceive.
- __The revenues:__ One-time sales are nice, but how do they get recurring money out of this? Subscriptions — $9.99/month keeps the sperm frozen as you age, so it's ready when you are.


Procreate

__"Brand-icorns" are emerging in health-tech...__ Not unicorns. Brand-icorns. __Casper__, __Allbirds__, or __Away__ = digital-first startups that focus on branding, cut out middlemen, and hit $1B valuations. Now health-tech could lead the next wave of direct-to-consumer Brand-icorns. Balding and erectile dysfunction startup __Roman__ is worth half-a-billion and rival __Hims__ just passed the billion mark. Fertility could be up next.