__As you Musk know...__ __[Tesla](https://robinhood.com/stocks/TSLA)__ shares hit full speed lately — they're up 38% in just the last month. Now Tesla's officially become *the most valuable American car company in history*. Here's how that value got calculated:

- __["Market Capitalization"](https://learn.robinhood.com/articles/GByCbiOluG2kcWs1AF6m5/what-is-market-capitalization/):__ A company's stock price multiplied by the total number of shares. It's the total value of a company based on its stock price.
- Production just started at Tesla's new Chinese Gigafactory — and __China bought nearly 3 times as many electric cars as the US did__ [in 2018](https://www.iea.org/reports/global-ev-outlook-2019).  
- That's why __Tesla's market cap has risen to $85B__ — beating Ford's $81B [record](https://www.wsj.com/articles/tesla-is-now-the-most-valuable-u-s-car-maker-of-all-time-11578427858?tesla=y&mod=article_inline) from '99.
- Today, __[GM](https://robinhood.com/stocks/GM)__ and __[Ford's](https://robinhood.com/stocks/F)__ market cap is __$87B__ — *combined*.  

__Here's the crazy thing...__ Tesla's 2019 profits and car deliveries *pale* in comparison to GM and Ford's:

- __Cars produced per year:__ GM and Ford produced a combined 39x as many cars as Tesla did in 2019 (14.3M vs. 367.5K).
- __Profits over the past year:__ Tesla's profit was -$827M (negative, AKA a big loss). GM and Ford's combined profit was over $10B (AKA actual money-making).


_GM to Ford: "How'd they get that big with such little numbers?!"_

Soar

__Investors care less about today, more about tomorrow...__ Stocks can rise as shareholders believe a company's profits will grow in the years to come. Tesla's cars scream "future" (electric + cyber), while Ford and GM's preach the past (trucks/SUVs + gas). Investors think 17-year-old Tesla has better profit *potential* than 112-year-old GM and its even older Ford brother.

Tesla just became the most valuable US car company. Ever.

__We've got no beef with pork...__ __Impossible Foods__, the privately-held alt-meat startup and __[Beyond Meat](https://robinhood.com/stocks/BYND)__ rival, just launched a new plant-based meat: Impossible Pork. At the risk of not saying pork enough times, Impossible's not porking around here: 

- __Resources:__ Impossible is doubling its Research & Development team so it can whip up more plant-based [*insert animal here*] that tastes like the real thing. 
- __Results__: Impossible [unveiled](https://www.cnet.com/news/impossible-foods-pork-is-here-and-its-scary-similar-to-the-real-thing-meatless-plant-based/) its new pork and sausage products at the Consumer Electronics Show yesterday (Impossible Sausage hits Burger King on Jan. 13).
- __The trade off:__ Since it's focusing on new products over its existing faux beef ones, Impossible officially [stopped competing](https://www.reuters.com/article/us-impossible-foods-mcdonald-s-corp-excl/exclusive-impossible-foods-abandons-pursuit-of-mcdonalds-burger-deal-idUSKBN1Z62GJ) for a huge/exclusive __McDonald's__ plant-based burger partnership.


__"The most significant science project and business endeavor in the world"...__ That's [according](https://www.marketwatch.com/story/ces-2020-impossible-foods-to-add-pork-and-sausage-to-menu-ahead-of-possible-ipo-2020-01-06) to Impossible's CEO, whose environmental concerns back his boasting. Pork is Earth's #1 consumed meat, and Impossible thinks beef is *so* 2019. Plant-based meatopians love to [remind us](https://www.beyondmeat.com/about/): pea/soy burgers require 99% less water, 93% less land, and create 90% less greehouse gas than their real beef brethren.

_Impossible Foods concocting its pork strategy_

Plant

__Impossible chose research over production...__ Resources are limited, and companies need to choose where to invest their time/cash. Impossible chose to focus on a new product (pork) rather than more of its existing product (beef). Now, rival Beyond Meat may snag that lucrative plant-based spot in McDonald's burger buns. That's why Beyond shares jumped 12% even though Impossible revealed a new product and partnership.

Impossible Foods goes ham on plant-based pork

__Classic case of rich company, poor stock…__ Over the last 3 years, __[Goldman Sachs](https://robinhood.com/stocks/GS)__’ shares have barely budged. Meanwhile, its big bank buddies pop bottles — __JPMorgan__ and __Bank of America__ stocks both rose over 50%. So here’s Goldman’s self-diagnosis: *severely un-transparent corporate reporting structure*. Now it’s changing:

- __Symptoms:__ Goldman’s 4 divisions were too obscure. Institutional Client Services, Investment Banking, Investing & Lending, and Investment Management (leaning hard into “Investing”).
- __Prescription:__ The WSJ reports that Goldman will [switch](https://www.wsj.com/articles/goldman-sachs-lifts-the-veil-to-woo-skeptical-shareholders-11578394803) to 4 way-clearer divisions based on customer type: Corporations, Trading Firms, Money Managers, and Individuals (like you and us).

__This is how bad it got…__ Want to know how Goldman’s Apple Card did last quarter? Good luck. Goldman's consumer banking performance was buried in its “Investing & Lending” division, along with a bunch of big loans and venture investments. Like a box of chocolates, investors couldn’t tell what was inside Goldman behind all that corporate structure scar tissue.


Reveal

__Investors reward transparency…__ and that’s why Goldman’s transparent-izing itself. This new corporate structure could reveal to investors critical Goldman insights — like how’s its 3-year-old, millennial-obsessed, digital consumer bank Marcus is actually doing. Investors are more down to reward Goldman stock if they can actually see what’s in it.

Goldman Sachs tries to revive its stock by transparent-izing

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

Tesla = Most Valuable US Car Co. (Ever)

__Prime real estate...__ __[Walmart](https://robinhood.com/stocks/WMT)__ is Earth's biggest retailer — Now __[SmileDirectClub](https://robinhood.com/stocks/SDC)__ will sell its mouth-flattering goods exclusively on Walmart's website and across its 3,800+ US stores. One of the worst IPOs of 2019, SDC shares popped 25% on news of the partnership. The awkward part? *The partnership doesn't even include their core product*.

- __Before:__ SDC is a direct-to-consumer brand, selling its clear braces-replacing aligners from its own website (like DIY Invisalign).
- __After:__ SDC-branded electric toothbrushes, tooth-whitening kits, dental device cleaners — they're all new, and will now be sold at Walmart.
- __MIA:__ Its go-to clear aligners will stay exclusively on SDC's website and its SmileShop locations. 

__More like Smile InDirect...__ SDC's strategic move to go off its own website and into another retailer isn't totally fresh — its online-first, direct-to-consumer cousins made similar moves: __Casper__ mattress, __Harry's__ razors, and __Quip__ toothbrush all now sell in __Target__ stores. But SmileDirect's the only one to keep its core product to itself.

- __Side note:__ Walmart will see how SDC's products do with its lower-income customers before possibly setting up full SDC shops within its stores.

_Yum goes ham_

Scaled

__This is SDC's top-of-funnel strategy...__ How do you warm people up for a bigger commitment, more expensive core product? Offer them gateway goods instead. SDC's main teeth-straightener costs nearly $2,000. An SDC electric toothbrush in color "[blurple](https://shop.smiledirectclub.com/products/electric-toothbrush)" costs just $25. 

- __First date:__ SDC earns your trust through its cheaper, low-commitment options at Walmart.
- __Marriage:__ Then, after months of keeping your teeth white with SDC products, maybe you'll feel ready to put a ring (or an aligner) on it. 

SmileDirectClub snags a spot at Walmart — but not with its core product 

__More than late night drunchies...__ __[Yum! Brands](https://robinhood.com/stocks/YUM)__ announced Monday that it's buying California-based __[Habit Restaurants](https://robinhood.com/stocks/HABT)__, causing the burger chain's shares to [surge](https://www.wsj.com/articles/yum-brands-to-buy-habit-grill-11578319265?mod=business_lead_pos4) 33%. You know Yum as the owner of fast food go-tos __KFC__, __Pizza Hut__, and __Taco Bell__ (AKA, Ken-taco-hut) — this is its 1st acquistion of a stand-alone fast-casual chain since going public in '97. We fried up the history:

- __1969:__ The Habit Burger Grill opens in Santa Barbara — the fancy burger chain boasts some healthy-ish options too (fried green beans FTW).
- __1977:__ __PepsiCo__ starts a fast food division by acquiring Pizza Hut (then Taco Bell in '78, then KFC in '86).
- __1997:__ Pepsi decides its done with restaurants. So it wraps up the tacos, chicken, and pizza into a separate company, and sticks on the "Yum Brands" name (and separate YUM stock).
- __2020:__ Yum is now the world's largest restaurant company with 49K stores in 145 countries. Next, it's throwing Habit's 265 locations on the menu, planning to add over 2K more.

Devoured

__The burning question on everyone's lips...__ *Why Burgers? Why Now?* The answer: *Because fast-food needs fast-casual*. When you think fast-casual, you picture harvest grain bowls that you pay for at the counter (after loading up on free toppings). But burgers are part of the fast-growing segment too:

- __Five Guys__ and __Shake Shack__ are also fast-casual (more expensive and higher quality than Mickey D's, but still pretty accessible).
- From 2005 to 2017, __the number of burger outlets [quadrupled](https://www.wsj.com/articles/diners-are-finding-13-burgers-hard-to-swallow-1496241667)__ — Americans are willing to pay for more expensive premium burgers.
- Yum __wants a piece of the growing fast-casual pie__ without straying too far outside its comfort zone. Burgers hit the spot.


Yum Brands acquires fast-casual chain Habit Burger for a casual $375M 

__"Protect Life"...__ That's the bold mission that greets you at __[Axon Enterprises](https://robinhood.com/stocks/aaxn)__. The inventor of the taser also makes body cameras and sells both to police with hopes that fewer uneccesary deaths happen. Now Axon finds itself in court for a different reason — its suing the government for demanding it break itself up.

- Almost 2 years ago, __Axon acquired Vievu__, which also made body cameras for police officers.
- 2 weeks ago (on Christmas Eve *Eve*), the Federal Trade Commission __accused Axon of aggressively jacking up prices__ after it gained all that market power (AKA, acting like a monopoly).
- The FTC's demanding Axon spin-off __a "clone" company to compete against itself__ with body cameras.
- *Plus,* it has to equip that company with __its business secrets__ (this is a company's worst nightmare). 

__You don't like DMV requests...__ (this one's worse). The government's request is so soul-crushing for Axon that it's suing. The taser-creator believes this is government overreach and that there's still plenty of competition in body cameras. The CEO crafted a whole [blog post](https://medium.com/@Rick_Axon/we-all-deserve-a-fair-day-in-court-ef73fe5efae) about it, and the company [outlined](https://www.axon.com/ftc) its side of the story. 

Un-acquire

__The opposite of cuffing season...__ For years, it's been open-season for companies to mega-merge with each other, creating monopoly-ish dominated industries. If a Democrat becomes president, they may call for breakups in the industries below, and these breakups could follow the Axon playbook. 

- __Tech:__ __[Facebook](https://robinhood.com/stocks/FB)__ was allowed to acquire Instagram, the biggest threat to its dominance.
- __Airlines:__ After a jaw-dropping number of mergers, 4 major airlines now handle 75% of the air travel market.
- __TV & Movies:__ __[Disney](https://robinhood.com/stocks/DIS)__ has acquired Marvel, Star Wars, Pixar, and Fox.


Axon, the taser-inventor, is ordered to break up into 2 companies

KenTacoHut drops $375M on burgers

__Cat videos would be better...__ if your face replaced the feline's. That's the earth-shattering revelation behind "Cameos," __[Snapchat's](https://robinhood.com/stocks/snap)__ new feature that superimposes your selfie in a short video. It's the type of viral animation that's core to Snapchat's DNA, so Snap [acquired](https://techcrunch.com/2020/01/03/snapchat-quietly-acquired-ai-factory-the-company-behind-its-new-cameos-feature-for-166m/) the startup behind Cameos, __AI Factory__, for a reported $166M last week.

- __Location:__ Uncreatively-named AI Factory is based in Ukraine, with an office in San Francisco to convince those who judge books by their covers.
- __Not his first exit:__ Its founder is [Victor Shaburov](https://www.linkedin.com/in/victorshaburov/) — who already sold a previous startup to Snap in 2015 (he's the tech artist behind [virtual rainbow vomiting](https://www.bustle.com/articles/110798-how-to-use-snapchat-lenses-so-you-can-puke-rainbows-like-everyone-else-a-step-by-step-tutorial)).
- __Not dangerous (yet):__ Making a video of one person appear as another is the definition of "[Deepfake](https://www.nytimes.com/2019/11/24/technology/tech-companies-deepfakes.html)" (it's a freaky futuristic technology that could potentially cause mahyem on what you think is true). But we tried Snap's Cameos — they're *shallow*fakes at best.

__Cameo > Lenses > Bitmoji...__ In a [leaked](https://cheddar.com/media/snap-ceo-evan-spiegel-company-memo-on-2019-strategic-goals-and-profitability) 2018 letter to Snappers, CEO Evan Spiegal said 27 times that Snapchat should be "the fastest way to communicate." To accomplish that, text on Snapchat is laughable. Pictures are ok. Videos are better. So Bitmoji (also acquired by Snap), Lenses, and Cameos separate Snap from Instagram, iMessage, and Twitter ('til Insta steals the idea).

_Snapchat: Going for best "Cameo" in a leading role_

Augment

__Snap is the leader in Augmented Reality. Period...__ Tech leaders believe AR will replace smartphones, just like smartphones replaced many PCs. __Facebook__, __Apple__, and __Google__ are all building headsets and glasses so they don't miss it. Before you strap a computer to your face, Snap's way ahead:

- Those tech giants __haven't offered mainstream products yet__ — and Facebook's chief scientist [thinks](https://www.theinformation.com/articles/facebooks-chief-scientist-mass-adoption-of-ar-is-years-away) it'll be 5-10 years before they do.
- __Snap has__. Its filters, lenses, and Spectacles take your real world, then augment it with humanity-improving [dancing hotdogs](https://www.buzzfeed.com/ikrd/this-teen-created-a-music-video-for-the-snapchat-hot-dog).

Snapchat's New Year's Resolution: (A)ugment your (R)eality with fun shenanigans

__Can we please talk about Apple's record high?...__ The stock doubled to become 2019's best performer in the Dow. Now __[Apple's](https://robinhood.com/stocks/aapl)__ got a new 2020 focus: *Make HomeKit happen*. That's the orange house-shaped, pre-downloaded app in your "rando Apple apps" folder — it connects your iPhone with your home (smart lights, smart thermostat, etc). At this week's Consumer Electronics Show, Apple is [sharing](https://www.bloomberg.com/news/articles/2019-10-28/apple-working-on-new-homekit-devices-after-homepod-apple-tv) its plans for HomeKit to make money off iPhone nation.

__*FIFA 2019. Pokemon. Call of Duty*...__ All lost to __Fortnite__. The 3-year-old game hauled in $1.8B last year to keep its crown as Earth's [most lucrative](https://www.cnn.com/2020/01/03/tech/fortnite-sales-2019/index.html) video game (FYI, that's down 25% from 2018). Credit its popularity as a virtual hangout place, and add in some seasonal changes for keeping the game fresh. Fortnite's parent company, __Epic Games__, isn't publicly-traded — but its biggest investor is China's game-glomerate __[Tencent](https://robinhood.com/stocks/TCEHY)__, whose shares trade publicly.

Highs

Who's up...

__Ever wanted to charge *Uber* surge pricing?...__ That's kinda what California is doing. The AB5 "gig law" would treat drivers like actual employees, not independent contractors — that could raise the ride-hailer's costs by 30%. So __[Uber](https://robinhood.com/stocks/uber)__ and __Postmates__ [sued](https://www.sfchronicle.com/business/article/Uber-Postmates-sue-California-over-California-14940425.php) California because they feel singled-out as an industry (their words: AB5 is "irrational and unconstitutional"). The law took effect on January 1st, so Uber's pulling an Uber and [won't comply](https://www.npr.org/2020/01/04/793142903/as-california-tries-to-make-contract-workers-employees-industries-push-back) while it fights.


__Pump anxiety...__ Airlines are feeling it. Fresh after the US killed Iran's top general, oil prices immediately [jumped](https://www.cnn.com/2020/01/02/investing/oil-prices-iran-commander-baghdad/index.html) 4% to $68.60 (Middle East oil trade is a fragile thing). US airline stocks immediately fell, led down by __[American Airlines](https://robinhood.com/stocks/aal)__ — that fuel makes up about [24%](https://www.iata.org/contentassets/25e5377cf53c4e48bbaa49d252f3ab03/fact-sheet-fuel.pdf) of their total costs. Good thing the growing US economy just landed airlines' their 10th-straight profitable year.


Lows

...And who's down

Snapchat dominates AR. Period.

__The name's Ghosn. Carlos Ghosn...__ The disgraced former all-star CEO of __[Nissan](https://robinhood.com/stocks/NSANY)__ and __Renault__ has stealthily escaped house arrest in Tokyo, where he was awaiting trial for fraud and other financial crimes (the *bad kind* of money moves). This news didn't affect those car companies' businesses (or stocks), because Ghosn's the *former* CEO, but here's the scene-by-scene:

- __November 2018:__ The Brazilian-born Frenchman with Lebanese roots is arrested and forced to surrender (all 3 of) his passports.
- __April 2019:__ Ghosn is confined to strict house arrest in Tokyo while he waits to be tried in court (*fun fact:* Japanese prosecutors enjoy a [99%](https://www.wsj.com/articles/days-after-ghosns-escape-japanese-authorities-check-his-house-11577962001?mod=hp_lead_pos2) conviction rate) — his house is under 24/7 police surveillance. 
- __Late December 2019 afternoon:__ Carryon-sized 5'6" Ghosn is [reportedly](https://www.forbes.com/sites/guymartin/2020/12/31/the-ghosn-exfiltration-packed-in-a-musical-instrument-case-ex-nissanrenault-exec-carlos-ghosn-successfully-flees-bail-to-beirut/#b4d49097effb) packed into a musical instrument case owned by "Gregorian musicians" permitted to play at his home.
- __Late December 2019 evening:__ That music case secretly boards a private jet to Lebanon, with a pit stop at Istanbul's Ataturk Airport — that somehow goes completely unnoticed.
- __New Year's Eve:__ Ghosn shows up in Beirut on NYE and [pops champagne](https://www.businessinsider.com/photo-carlos-ghosn-appears-new-years-celebration-photo-lebanon-wife-2020-1) while revealing his escape, annoying/confusing a lot of people.

__"I am dumbfounded"...__ The [words](https://www.bbc.com/news/world-50964040) of Ghosn's lawyer (everyone else is baffled, too). But one thing is clear: it took months of planning, and he couldn't have done it alone. Now that he skipped trial to avoid "injustice" ([his words](https://www.latimes.com/world-nation/story/2019-12-31/ghosn-in-lebanon-says-he-left-japan-because-of-injustice)) and forfeited $14M in bail, he may have to spend the rest of his life in Lebanon (they've got no extradition treaty with Japan).

_The only guests invited on Ghosn's private escape jet_

Escape

__Car execs earn 007-style respect...__ Successful ones can achieve heroic personas because cars are fundamental parts of the global economy (everyone uses them, they create millions of jobs, and can even influence national pride). Ghosn was idolized for rescuing a failing Nissan from bankruptcy with cost-killing powers — So Japan featured him in [comic books](https://www.bloomberg.com/news/articles/2018-11-21/carlos-ghosn-was-a-superhero-in-japan-before-his-fall) and Lebanon still thinks he's a hero (see: "[We Are All Carlos Ghosn"](https://www.nytimes.com/2019/12/31/business/carlos-ghosn-lebanon.html)). He became a villain in Japan, and now this escape deserves an Oscar.

Ghosn with the Wind: How the ex-CEO of Nissan escaped trial in Japan

__For "Best Leading Man in an Executive Role"...__ __[Apple](https://robinhood.com/stocks/AAPL)__ selects ex-HBO CEO [Richard Plepler](https://www.nytimes.com/2020/01/02/business/media/richard-plepler-apple.html). Now that the tech company launched its Apple TV+ paid streaming service last November, it's hoping the media legends will come. To start, Apple just cast Plepler to train it for the Streaming Wars:

- __Before:__ Plepler led HBO over 27 years to __160+ Emmys__, from *Game of Thrones* to *Big Little Lies*.
- __After:__ Now his new production company has signed a __5-year exclusive deal__ to only make shows, documentaries, and films for Apple TV+.

__This says more about HBO than Apple...__ The media icon that brought us *The Sopranos* and "winter is coming" is now owned by __[AT&T](https://robinhood.com/stocks/t)__. Plepler wanted a "Chinese wall" between HBO's creatives and their new telecom-ish parent company (he's got a “*Don’t let anyone monkey with your swing*” [sign](https://www.nytimes.com/2020/01/02/business/media/richard-plepler-apple.html) on his desk) — but AT&T disagreed. So Plepler [quit](https://twitter.com/brianstelter/status/1101254479104622594) last March.

_The Streaming Wars saga gets even more interesting_

Snagged

__The media industry probably never started a year this confused...__ Take streaming:

- __HBO's__ (still) trying to replace *Game of Thrones*.
- __Netflix__ had to splurge $13B on original content last year to stay ahead — but it's losing *The Office* and *Friends.*
- __NBC's__ jumping in (late) with its new streamer Peacock in April 2020.
- __Disney+__ may hit [25M subscribers](https://www.barrons.com/articles/disney-streaming-wars-subscriber-growth-51577988196) just 2 months after launching.
- And __Apple TV+'s__ *The Morning Show* already snagged 3 Golden Globe noms — but [the rest](https://www.theverge.com/2020/1/2/21046974/richard-plepler-hbo-apple-tv-plus-game-of-thrones-warnermedia-streaming-wars) of its original programming is facing critic hate.



Apple TV+ steals the guy who made HBO become HBO

Carlos Ghosn: From hero, to villain, to fugitive

__Turn me on with your electric wheel...__ Mother Earth isn't a fan of burning gas — So is 2020 the year we switch to something else? The verdict is: a (strong) *maybe*. Carmakers spent the final week of 2019 humblebragging their future-focused electrification accomplishments.

- __[Ford](https://robinhood.com/stocks/F)__ announced it's [sold out](https://edition.cnn.com/2019/12/30/tech/ford-mustang-mach-e-reservations-full/index.html) of pre-orders for the first electric car it's actually serious about: Mustang Mach-E (this ain't no "[compliance car](https://snacks.robinhood.com/newsletters/1s3v4FtXkyov7nynn6SpnW/articles/5Wiz0IfzoZW91D8ertWwvF/)").
- __[Tesla](https://robinhood.com/stocks/tsla)__ just [delivered](https://www.theverge.com/2019/12/30/21042493/tesla-chinese-model-3-cars-gigafactory-3-shanghai) its first 15 models produced in China, capping an insane under 1 year start-to-finish construction of its car-pumping Shanghai Gigafactory. 
- __[VW](https://robinhood.com/stocks/VWAGY)__ can't contain its e-citement, so it's [accelerated](https://www.motorauthority.com/news/1126538_vw-expects-to-hit-1m-electric-car-milestone-two-years-early) its goal to produce 1M fully electric cars by 2023 instead of 2025. 

__Honda isn't convinced...__ The Boston Red Sox to Toyota's Yankees, Honda's experience with electric goes back to '99 (remember that salamander-looking [Insight](https://www.thedrive.com/sheetmetal/9386/first-generation-honda-insight-the-fine-print)?). So its CEO is qualified to say he's "[not sure](https://jalopnik.com/ghostly-specter-of-honda-s-ceo-still-not-convinced-elec-1840661629)" the world wants full-electric cars yet. Instead, Honda's focused on improving fuel efficiency with ybrid tech and won't go full electric "anytime soon."

"_Anyone got an extra car cord I can borrow?_"

__Electric's 2 biggest issues = Price + Battery...__ If you haven't bought an electric car, it's probably because they're too expensive or you're nervous about running out of juice mid-ride (aka "range anxiety"). Carmakers know that — here are some ways they're trying to fix it:

- __Price problem:__ Analysts think e-cars won't be price-competitive until [2024-ish](https://www.marketplace.org/2019/12/03/battery-prices-falling-good-for-evs/) when battery prices fall more. Meantime, Tesla's China plant can produce cheaper, and tariff-free, for Chinese buyers.
- __Battery problem:__ Ford's Mach-E boasts a 300-mile option that [80%](https://www.engadget.com/2019/12/31/mustang-mach-e/) of pre-orders include. And VW is building a nationwide charging network so you can plug in mid-bathroom pitstop.

Is 2020 the Year of the Electric Car? Tesla, VW, and Ford say yes (Honda disagrees)

__*New* New Year's Resolution...__ *Stop using a sketchy international scheme with a charming name to sneak out of US taxes*. Instead of going to the gym more, Google's parent company __[Alphabet](https://robinhood.com/stocks/goog)__ will [end](https://www.reuters.com/article/us-google-taxes-netherlands/google-to-end-double-irish-dutch-tax-scheme-filing-idUSKBN1YZ10Z) its "Double Irish, Dutch Sandwich" tax minimization strategy in 2020 — they saved billions and only paid a single-digit tax rate on money earned outside the US through this ~~structure~~ loophole.

__It sounds like a bar order, and reads like a Spring Break itinerary...__ but it's actually a perfectly legal travel route for money that won't trigger US income taxes or Europe's witholding taxes — and those happen to be most of Google's profits abroad. Here's how the cash moves:

- The $$$ earned abroad is funneled to an __Irish subsidiary__ ➡️ then moved to a __Dutch holding company__ ➡️ then sent to an __Irish shell company *in Bermuda*__
- __That Bermuda part is key__ because the island has [no corporate income tax](https://www.theverge.com/2019/12/31/21044662/google-end-tax-loophole-double-irish-dutch-sandwich-2020) — So that's where Google reports the income earned internationally.
- __$25B of Google's money__ made this voyage last year, up from $23B in 2017.

_"No more Dutch Sandwich, and drop the double Baileys"_

Taxed

__Tax policy can move economies...__ It isn't just that the corporate tax rate for US companies has been cut from 35% to 21%. The Tax Cuts and Jobs Act of 2017 now lets American companies bring back cash they made/hoarded abroad without paying additional US taxes. Now Google can bring back its billions in overseas cash to potentially invest in the US — or return to shareholders as dividends.

Google is ending the ol' "Double Irish, Dutch Sandwich" tax elimination strategy

2020 = Year of the Electric Car (*maybe)

__While the peanuts get staler and seats get smaller...__ the profits are growing. US airlines are about to post their 10th straight year of [profits](https://www.cnbc.com/2019/12/26/airline-labor-unions-for-pilots-flight-attendants-want-raises-in-2020.html) — that's their longest streak in over 40 years. Here's why it's shocking:

- __80%:__ The [percentage](https://www.theatlantic.com/business/archive/2013/02/how-airline-ticket-prices-fell-50-in-30-years-and-why-nobody-noticed/273506/) of Americans who'd never flown on a plane in 1965 (air travel used to be a mega-luxury — now it's sweatpants).
- __1978:__ The year the Airline Deregulation Act passed. Before it, the government basically *guaranteed* airline profitability by limiting competition and keeping ticket prices high.
- __50%:__ The amount flight prices have fallen since Uncle Sam unleashed competition in the skies. Air travel is way cheaper now as low-priced carriers took off. 
- __$59B:__ The massive [losses](https://www.nber.org/digest/jul11/w16744.html) of the US airline industry from 1979-2009.

__Experiencing turbulence...__  In 1974, an airline couldn't charge *less* than  [$1,442](https://www.theatlantic.com/business/archive/2013/02/how-airline-ticket-prices-fell-50-in-30-years-and-why-nobody-noticed/273506/) for a NYC-LA flight. After deregulation, airlines struggled as cheaper *absolutely-no-meal-included* flights went mainstream. Then this happened:

- __The Mega-bankruptcies:__ The jumbo OGs (__[American](https://robinhood.com/stocks/AAL)__, __[United](https://robinhood.com/stocks/ual)__ and __[Delta](https://robinhood.com/stocks/DAL)__) went bankrupt.
- __The Mega-mergers:__ When they emerged from bankruptcy, they started merging (remember Delta + Northwest?) — that left 4 airlines in control of a whopping [77%](https://www.bts.dot.gov/newsroom/2018-traffic-data-us-airlines-and-foreign-airlines-us-flights) of today's flying market.

_When they tell you you're not getting a raise despite 10 straight years of profit_

__Maintaining cruising altitude will be hard...__ It's not just less competition and a rising economy — airlines profited the last 10 years by cramping seats, charging your luggage, and barely paying crews more. But flight attendants read this Snacks too and want a piece of airline profits. Next year, airlines are set to negotiate with over 120K unionized airline employees (and their salaries are already airlines' biggest expense).

US airlines have a surprise for you: A decade-long profitability streak

__Here's what $15B gets you...__ *A trophy you give to yourself*. __[Netflix](https://robinhood.com/stocks/nflx)__ splurged all those billions of investors' cash on 2019's original content — movies/shows produced by Netflix, sprinkled with Jennifer Aniston and *Stranger Things*. Now Netflix is [boasting](https://www.wsj.com/articles/netflix-says-its-own-content-topped-all-2019-releases-on-its-service-11577721600?mod=hp_lista_pos2) that its releases this year were more watched than any other studio on the platform.

- __#1:__ Adam Sandler and Jen's *Murder Mystery* won the charts.
- __American Top 10:__ All of the 10 most popular new content were Netflix creations, except one: Disney's *Incredibles 2*.
- __International flavors:__ Netflix's  *The Naked Director* led Japan's ranking, while its police drama *Sacred Games* dominated India's.

__Cue the asterisks...__ (we noticed plenty of them).

1. __Those rankings don't include older content__, like reruns of *The Office* and *Friends* that dominate your binging habits.
2. Neflix __didn't provide actual viewer numbers__ to go along with those rankings.
3. You didn't have to watch the whole thing — __just 2 minutes of streaming__ qualified you as a "viewer." Because, you know, short attention sp-

"_Look at all this Netflix stuff_"

Stream

__Netflix's next decade *depends on original content*...__ Disney is yanking its magical content from Netflix to sprinkle on Disney+. And top-streamed shows *Friends* and *The Office* leave Netflix in 2020 and 2021 for __HBO Max__ and NBC's __Peacock__ (it's rerun-pocalypse). But of all the new releases hitting Netflix chillers' eyeballs, Netflix's homegrown talent is getting the most clicks.

Netflix's 2019 original content brag (*asterisks included)

Surprise profit master of the decade: Airlines

__Tesla's New Year's Resolution...__ is fit for a black belt, Jedi Master, and Head Boy/Girl at Hogwarts. Elon Musk's electric car company always sets insane goals, but 2020 looks particularly crazy for __[Tesla](https://robinhood.com/stocks/TSLA)__: 

1. [Scale](https://www.engadget.com/2019/12/27/tesla-deliver-chinese-model-3-dec-30/) production at the new Shanghai Gigafactory.
2. [Deliver](https://www.caranddriver.com/news/a29601183/tesla-model-y-release-date/) the first Model Y crossover SUVs (it's been on pre-order since March). 
3. [Succeed](https://www.iea.org/reports/global-ev-outlook-2019) in China (Earth's biggest electric car market), despite America's ongoing trade war.
4. [Build](https://techcrunch.com/2019/12/21/tesla-nears-land-deal-for-german-gigafactory-outside-of-berlin/) a 4th Gigafactory near Berlin.

__Tesla stock is at an all-time high...__ thanks to a surprise [profit](https://snacks.robinhood.com/newsletters/SJDB7f3KgYx0kks23Wmgl/articles/7BjUxnugG5FdZV7D9gReun/) last quarter (despite broken [window-gate](https://www.cnbc.com/2019/11/22/tesla-smashes-bulletproof-pickup-trucks-windows-with-a-metal-ball.html)). But Tesla is polarizing, and the stock could quickly turn south if Tesla's win streak goes on the fritz. If shares fall 50% (that's happened before), then Tesla would be worth $39B. That's where __[Apple](https://robinhood.com/stocks/AAPL)__ comes in. Hear us out:

- __Apple has $206B in cash__ as of its last quarter.
- Creation of an Apple car __was rumored for decades__, but hasn't happened.
- With iPhone sales declining, __there's a perfect parking spot for the iCar__ on Apple's income statement.
- Plus, the 2 companies' __HQs are just 9 miles apart__ (ETA to conference room is 9 minutes).

_Apple's CEO Tim Cook is looking for an apprentice_

__What about Elon?...__ If Tesla got acquired by Apple, Elon Musk would probably need to let Apple's CEO take the wheel. But Elon's leadership has been critical — he published the [Secret Master Plan](https://www.tesla.com/blog/secret-tesla-motors-master-plan-just-between-you-and-me) in 2006 and [Part Deux](https://www.tesla.com/blog/master-plan-part-deux) in 2016. Apple would bring financial stability to Tesla, but possibly downshift Elon's revved up ambitions.

We wish Apple would acquire Tesla (if Tesla stumbles), bringing us the iCar

__You'll never have to hear *'Guac is extra'* again...__ __[Chipotle](https://robinhood.com/stocks/cmg)__ should become the 1st major US restaurant chain to eliminate tables and make every store offer pre-order pickup/delivery only. We could stuff a burrito and rip the tinfoil with reasons why:

- __Digital saved Chipotle:__ Its online sales for pickup and delivery nearly [doubled](https://www.wsj.com/articles/chipotles-sees-online-sales-boost-11571779136) last quarter.
- __Space costs $$$:__ Physical Chipotle restaurants are mostly empty during the mornings and 2pm-5pm when you're not barbacoa-hangry.
- __New guy:__ The new CEO came from Taco Bell with a taste for fresh ideas (carne asada was all him). We're betting things can get wilder.

__Convenience is taking over retail...__ In department stores, __Target's__ stock is at a record high largely thanks to curbside pickup. Walmart is [committed](https://www.businessinsider.com/retailers-grocery-delivery-around-the-world-2019-12#the-service-enables-shoppers-to-arrange-for-deliveries-to-arrive-within-a-specific-time-slot-according-to-a-press-release-from-bringg-2) to "delivery unlimited" subscriptions at 1,400 locations (and grocery curbisde pickup, too). Now we're noticing retail convenience spill onto food:

- Over __half of your 2020 restaurant spending__ is projected to be [*outside*](https://www.theatlantic.com/ideas/archive/2019/08/all-food-will-be-delivered/595222/) the restaurant (aka delivery/pickup).
- Last year's $10.2B consumer [splurge](https://www.cnbc.com/2019/10/07/ubers-travis-kalanicks-bet-on-ghost-kitchens-ushers-in-venture-capital-interest.html) on 3rd party delivery apps __led to ghost kitchens__: *delivery-only restaurants — customers can't even see the place*.
- Starbucks is [testing](https://www.businessinsider.com/starbucks-pickup-only-store-review-2019-11) its __1st ever pickup-only store__.


"_You're telling me I don't need to wait tables anymore?"_

__Eliminating tables will be Chipotle’s differentiator...__ It's facing fresh fast-casual competition from __Sweetgreen__, __Cava__, and __Shake Shack__. Plus, fast food is upgrading (__McD's__ is dropping $6B to renovate its stores). Going table-free isn't just a profit move or PR stunt — it's how Chipotle can stand out in a saturated world of quick quality food options.

We wish Chipotle would eliminate restaurants and go pick-up/delivery only in 2020

__It's getting hot in here...__ So take off all your packaging. Billions of packages shipped each year means billions of tree-made cardboard boxes. Since __[Amazon](https://robinhood.com/stocks/AMZN)__ launched "[The Climate Pledge](https://press.aboutamazon.com/news-releases/news-release-details/amazon-co-founds-climate-pledge-setting-goal-meet-paris)," a goal to meet the Paris Climate Agreement 10 years early, we wish it would offer naked shipping.

__Think outside the box...__ To get net zero carbon by 2040, Amazon needs to spend money. It's ordered 100K electric delivery vans and is investing $100M in planting trees. Amazon already offers Prime shipping, "Now" 2-hour shipping, and "No-rush" shipping. Time to add "naked" shipping to the mix:

- __No box within a box:__ Reduce the number of boxes by letting certain packages get shipped in their native packaging (just slap on a label).
- __Incentivize it:__ Give customers $1 off to "go naked." That's because it saves Amazon money (the boxes) and helps achieve its Climate Pledge. 
- __Set an example:__ Naked isn't always appropriate — A Rolex needs the anonymity of a brown box. But with customers craving "naked-eligible" $1-off items, producers may make their native packaging naked-friendly, ([like Tide](https://blog.aboutamazon.com/sustainability/reinventing-an-american-icon) already has).


__Carbon neutrality isn't profit neutrality...__ Most economists agree that greenhouse gases pollute, but most governments don't tax/limit them like they do other pollutants. That means Amazon is voluntarily taking care of Mother Earth with its Climate Pledge. Here's how it could affect profits:

- __Negatively:__ Amazon already pays [85](https://www.cnn.com/2019/07/16/business/amazon-cardboard-box-prime-day/index.html) workers to optimize packaging. Now it's got to pay for the $1 naked incentive and for a potential increase in stolen/damaged items.
- __Positively:__ Sustainability commitments can create brand love (we see you, Patagonia). Preventing trees from getting sawed down to box toilet paper can build customer loyalty.



We wish Amazon would unveil "naked" shipping to crush cardboard waste

"_Look right here for our crazy 2020 predictions_"

Our 3 bold biz wishes for 2020

__If two Carnival ships collide in a Mexican port...__ the stock still jumps 9% because __[Carnival](https://robinhood.com/stocks/CCL)__ reported strong earnings literally as that accident was unfolding. It's been a [rough](https://www.marketwatch.com/story/carnival-is-coming-off-cancellations-and-an-accident-but-analysts-are-still-upbeat-2019-12-23?mod=home-page) year for the cruiseliner — Case(s) in point:

- __Natural Disaster:__ Hurricane Dorian, one of the most powerful hurricanes ever recorded, made many cruises not happen. 
- __Geopolitics:__ President Trump reinstated the Cuba travel ban, while unstable politics in the Arabian Gulf limited Carnival's sailing latitude.
- __Reputation Sinkers:__ That memed-about [collision](https://www.today.com/video/what-caused-2-carnival-cruise-ships-to-collide-in-mexico-75572805573) between a pair of Carnival ships last week looks bad. So is having to [cancel](https://www.marketwatch.com/story/carnival-cancels-8-sailings-of-the-mardi-gras-cruise-ship-after-delivery-delay-2019-12-20) 8 cruise sailings after new ships were delayed.
- __Euro Downturn:__ As the European economy limps along with low growth rates, Carnival sales struggle — Europeans make up a hefty __30% of Carnival's business__, and they don't splurge on cruises when their "[European carryall](https://www.youtube.com/watch?v=YgQDAKsOh-M)" purses are hurting.

__Does this mean the buffet is still open?...__ While Carnival didn't have 2019 under (cruise) control, the stock inched up 3% this year. Plus, just this week in time for the holidays, analysts optimistically raised their price targets for 2020, thinking Carnival shares can cruise higher.

_When you crash 2 of your own ships into each other, and the stock is still up_

Cruise

__Show me the money...__ At the end of the day, a company's present and future profitability matter most. Carnival didn't have much control over the issues it faced this year (except for that fender bender). While Carnival's global sales have lagged, its critical North American revenues have risen consistently without life vests (and the numbers below make up about over 50% of Carnival's sales): 
- __$8B__ in 2016
- __$9B__ in 2017
- __$10B__ in 2018 


Carnival stock jumps despite a stormy 2019 (numbers can change the tides)

__Congrats on the arbitrary milestone...__ One of America's 3 big stock indexes, the __Nasdaq__, just hit the round number of [9,000](https://www.marketwatch.com/story/the-nasdaq-just-hit-9000-for-the-first-time-but-indexs-biggest-winners-arent-the-usual-tech-suspects-2019-12-26) points. The __[Dow Jones Industrial Average](https://robinhood.com/stocks/DIA)__ and __[S&P 500](https://robinhood.com/stocks/SPY)__ both aim to represent a broad industry range of US stocks — but Nasdaq is more of a tech index. And it's unique:

-  Nasdaq is __both an index *and* a stock exchange__, rivalling the New York Stock Exchange).
-  It reflects the performance of 3,000 mostly tech, growth-focused stocks.
-  __So we wrote a whole article for you defining Nasdaq__ [here](https://learn.robinhood.com/articles/1GXPrecRfkSNp0aBblBSsL/what-is-the-nasdaq/).

__The times, they are a-changing...__ The NYSE was founded way back in 1792, when brokers got together under a tree on Wall Street. The Nasdaq exchange was founded in 1971, claiming to be more efficient than NYSE because it used computers to trade, not huge dudes who had retired from college football/lacrosse. 

- __The Nasdaq OGs:__ __Microsoft__, __Apple__, __Amazon__, and even __Starbucks__ chose Nasdaq to prove that computers at Nasdaq's human-less trading floor can execute stock transactions.  
- __The NYSE Blue Chips:__ __Exxon Mobil__, __General Electric__, __Ford__, and __JP Morgan Chase__ proudly visit their home trading floor on Wall Street where pieces of paper (representing stock orders) used to be exchanged by hand.

Milestone

__There's hardly any difference between NYSE & Nasdaq anymore...__ Both exchanges give the same key benefits: *Companies can sell stock to public investors, then public investors can buy that stock*. That's why some tech companies list on the NYSE (like __Uber__) and some non-tech companies go Nasdaq (__Lululemon__ surged 91% on Nasdaq this year). Here are today's main differences: 

- __Nasdaq__ charges companies lower fees to list their stock.
- __NYSE__ brings the nostalgia of old (picture ringing that iconic ringing bell).
- NYSE is an __auction market__, like eBay for stocks: you do business directly with the person who's selling to you, and the highest bidder wins.
- Nasdaq is a __dealer's market__, like an Expedia for stocks: middlemen facilitate your transaction through an electronic network with millions of prices posted.

Nasdaq hits 9,000 for 1st time ever — Let us re-introduce what the "Nasdaq" is today

Carnival's sea-sick stock

__Travis don't want a lot for Christmas...__ There is just one thing Travis needs: *100% separating himself from his old company*. Former __[Uber](https://robinhood.com/stocks/uber)__ CEO Travis Kalanick just made 2 major holiday moves:

- __The money:__ Ever since the "lockup period" ended on Nov 6th, allowing pre-IPO Uber shareholders to sell their stock, Travis has gradually [sold](https://www.cbsnews.com/news/uber-co-founder-former-ceo-travis-kalanick-to-leave-board-after-selling-2-5-billion-in-company-shares/) his $2.7B worth. He's now a 0% owner of the company he once defined.
- __The power:__ Although he hasn't been CEO since getting ousted in 2017 (more on that below), he has remained a board member — He's [stepping down](https://www.axios.com/travis-kalanick-is-leaving-ubers-board-e9e28662-9122-4c68-9ed7-8b63d9b5364d.html) from that corporate jedi council on Dec 31st.

__Less super pumped...__ Travis founded Uber in 2009, leading it to become the most valuable private tech startup in the US (its peak value was $68B). But he lost his CEO-ship in 2017 and wasn't even invited to ring the bell on IPO day this May. Three issues caused his CEO-ousting:

1. __Scandal:__ That secret "[Greyball](https://www.nytimes.com/2017/03/03/technology/uber-greyball-program-evade-authorities.html)" software it used to evade government regulators who were trying to study (and potentially stop) Uber.
2. __Culture:__ A bro-tastic workplace environment that was reported to ignore sexual harrassment complaints.
3. __#DeleteUber:__ Those first 2 (along with a seemlingly constant flow of negative PR) allowed rival __Lyft__ to snag some of Uber's share of the ride-hail market.

_Please leave me a 5 star Uber Board member rating_

__"*...To focus on his new business...*"__ Those are the [critical words](https://investor.uber.com/news-events/news/press-release-details/2019/Travis-Kalanick-to-Depart-Uber-Board-of-Directors/default.aspx) we noticed in Travis' press release. His new startup, __CloudKitchens__, is a spinoff idea from Uber Eats: *Renting out fully-equiped kitchen space for restaurants that only deliver*. He's pouring his own $$$ (and [$400M](https://www.wsj.com/articles/uber-co-founder-travis-kalanick-to-depart-companys-board-11577196747) from Saudi Arabia) into the idea. This holiday breakup with Uber isn't just personal — it's also his bet on the future of food logistics.

Uber's co-founder and ex-CEO has sold all his Uber stock (and quit the board)

__Packages that magically appear at your door...__ are actually the result of a million scrambling parts. While it only takes a few clicks to order something online, America's shipping infrastructure can only handle so many packages — and one element of the ecommerce supply chain is getting stretched extra hard: *Warehouses*.

__Your tiny pack of toilet paper takes up prime real estate...__ Warehouses store the TP on the way to you, but there's [hardly](https://www.cnbc.com/2019/12/24/delivery-dilemma-americans-are-ordering-more-but-the-us-can-only-handle-so-much.html) enough space for that. We've added 1B-square-feet of warehouses in America since 2013, but vacancy at the "hotel" where your packages chill before coming to you has hit an all-time low. And the price for warehouse space keeps rising.



_"The limit for online orders does not exist"_

Order

__Ecommerce is starting to change how cities are built...__ And you know we need a better urban design strategy when __Old Navy__ has to [partner](https://postmates.com/brand/old-navy) with __Postmates__ to deliver last-minute Christmas gifts. Here's what we're already seeing:

- __"The Airbnb for warehousing":__ Startups CubeWork, Flexe, and Flowspace offer up short-term space for retailers that need to deliver.
- __Delivery districts:__ DC is experimenting with entire package drop-off zones (nothing builds traffic like double-parked delivery trucks).
- __Vertical warehouses:__ The first 3-story warehouse in Seattle is now transforming deliveries from days to hours (a 4-story one is heading to Brooklyn).
- __*Extra*-vertical warehouses:__ Asia already has [20-story](http://cn.goodman.com/en/properties-for-lease/goodman-interlink) warehouses.


To adapt to never-ending ecommerce demand, warehouses are evolving

Travis ubers into the sunset

__“Cute Tesla”...__ (new bumper sticker for __Rivian__ drivers). The electric pickup truck startup snagged $1.3B in [fresh money](https://www.reuters.com/article/us-autos-rivian/electric-vehicle-startup-rivian-scores-1-3-billion-investment-from-t-rowe-price-others-idUSKBN1YR1KF) from T. Rowe Price and existing investors like __[Ford](https://robinhood.com/stocks/F)__ and __[Amazon](https://robinhood.com/stocks/AMZN)__. That cash will facelift an old Mitsubishi plant in Normal, Illinois (great name) to start mass-ish producing e-pickups in 2021. Here's America's *State of the Car* (and their value by [market capitalization](https://learn.robinhood.com/articles/GByCbiOluG2kcWs1AF6m5/what-is-market-capitalization/)):

- __Detroit's Big 3:__ __[GM](https://robinhood.com/stocks/GM)__ ($53B), __[Ford](https://robinhood.com/stocks/F)__ ($37B), __[Fiat-Chrysler](https://robinhood.com/stocks/FCAU)__ ($29B — FYI, Chrysler merged with Fiat in 2009... and is mega-merging with __Peugeot__ right now).
- __Electric's Big 2:__ __[Tesla](https://robinhood.com/stocks/TSLA)__ ($72B) and __Rivian__ (somewhere between $5B-$7B — it's still private, so we don't know its valuation for sure). 

__Cars cost more than coders...__ App-based tech startups raise *tens or hundreds of millions* of dollars to hire programers and install kombucha taps. But Rivian raises money in the *billions* to build factories, fill them with high-tech robots, *and* hire engineers. All those costs are why fundraising for hardware cars is bigger than for software tech.

_Serious electric "trucktion"_

Electrify

__You want traction? I’ll show you *truction*...__ Venture capitalists, Ford, and Amazon had invested a huge $2.2B in Rivian already. To get this extra $1.3B, Rivian probably had to show them some traction — evidence that it's worth investing more into. How about this truction:

- __[Amazon](https://robinhood.com/stocks/AMZN)__ announced an [order](https://snacks.robinhood.com/newsletters/7xNotKPNHfdT89QWnYSHli/articles/6cdefIfhVSMzHEWj6JooCt/) in September for 100K Rivian electric delivery vans — Bezos needs them to achieve Amazon’s “Climate Pledge.” 
- Those will be delivered from 2021-2030 — they'll become both steady revenues and rolling billboards for Rivian as Amazon delivers packages nationwide.

Rivian's massive 4th fundraise of 2019 could make electric trucks mainstream (with help from Amazon)

__Who ya got?...__ Sports betting phenom __DraftKings__ [announced](https://www.draftkings.com/about/latest-press-release) it's dropping out of college to join a publicly-traded company that will be worth $3.3B total. The daily fantasy sports app lets you bet real money — and claims it dominates 60% of the fantasy market.

__*The Flying V, the Hail Mary*...__ Now add __*Triple Reverse Merger*__ to the list of all-time great plays. Instead of IPO'ing like most private companies do to bring their stocks to public markets, DraftKings will take a different route to the pros: *Merge with an already-public company.* Here's the new team:

- __DraftKings is the QB:__ Provides the core product — an app for new-school fantasy (bet $$$ on individual players) and old-school sports betting (wager that teams will win or beat-the-spread).
- __SBTech is the lineman:__ Provides the fundamental technology for bookmakers to set the bets.
- __[Diamond Eagle](https://robinhood.com/stocks/DEACU) is the coach:__ This is the already publicly-traded big shot with plenty of cash to spend on merging all 3 companies for (what it hopes will be) a game-winning lineup.

_Ducks bet together_

__2 critical moments shaped DraftKings into the player it is today...__ and both were focused on American consumers:
- __2016:__ DraftKings *tried* to merge with rival __FanDuel__ to dominate the fantasy sports market — but US regulators blocked the plan that would've created a sports betting monopoly as powerful as the '98 Yankees.
- __2018:__ The Supreme Court ends a federal ban on sports betting — since then, 13 states have legalized the industry and 6 more have legislation to join them.
- __The future:__ The sports betting industry is [expected](https://www.cnbc.com/2019/12/23/draftkings-to-become-public-company-forgoing-traditional-ipo.html) to hit $13B in annual revenue by 2023.