__"Where to hide from investors"...__ We actually found a good Pinterest board for [exactly that](https://www.pinterest.com/search/pins/?q=places%20to%20hide%20things&rs=typed&term_meta[]=places%7Ctyped&term_meta[]=to%7Ctyped&term_meta[]=hide%7Ctyped&term_meta[]=things%7Ctyped). In its first-ever earnings report since last month's IPO, __[Pinterest](https://robinhood.com/stocks/pins)__ found a theme: slowing growth. Profits, revenues, user growth. All slowed. Then shares of the social-network-for-curating-nice-things dropped 15%. Here are 2 numbers to un-Pin.

- __3X:__ That's how many times larger the $41M loss was than analysts expected.
- __291M:__ That's how many Pinners there are out there showing off very nice/symmetrical pictures of anything.

__Fewer pins, more promos...__ Your Snacks team compared Pinterest's average revenue per user — aka *the number of ads users see as they scroll for the ideal guest bathroom wallpaper* — to Facebook's.

- Pinterest made __$0.73__ of revenue per user last quarter.
- Facebook was almost 10-times that at __$6.42__.
- __The key to profits for Pinterest:__ Add more ads mid-scroll without overly annoying customers (80% of them are American moms between 18-64).

_"I just want to pin it"_

Debut

__This is the nicer social media company...__ It's nice [by not](https://www.nytimes.com/2019/05/16/technology/pinterest-earnings.html) showing users as many ads as other social networks do. And it's nice by not having as much misinformation/hateful news-focused content as Twitter, Facebook, Youtube, and other platforms do. One of those is nice for investors, the other not so much.  

Pinterest's inspiration-less first-ever earnings report

__Mutual hatred...__ is a powerful motivator #WhiteWalkers. Long-time enemies __[Sony](https://robinhood.com/stocks/sne)__ and __[Microsoft](https://robinhood.com/stocks/msft)__ battled admirably in the multi-phase Playstation vs. Xbox video game wars of our youth. Now they're truc-ing: An "[unusual](https://www.wsj.com/articles/microsoft-sony-to-partner-on-cloud-technology-for-gaming-services-11558036863)" partnership on cloud computing, the crucial engine that powers modern, online gaming. 

__It's hairy out there...__ A few major enemies forced this frenemy-ship:
- __"The tool kit":__ Amazon's [Lumberyard](https://aws.amazon.com/lumberyard/) lets anyone make their own games on its very-much-leading Amazon Web Services platform.
- __"The Holy Grail":__ That's what they're [calling](https://gizmodo.com/how-much-would-you-pay-for-a-holy-grail-google-stadia-s-1833413823) Stadia — It lets anyone, anywhere begin playing big games *sans* gaming console.

_Time for old enemies to play together_

Team

__Play anything on any device...__ That's [the future](https://www.wsj.com/articles/microsoft-sony-to-partner-on-cloud-technology-for-gaming-services-11558036863) of gaming, according to Microsoft. So if a surprise partnership with Sony can help it achieve that in the $130B video game market, Microsoft is down to team up.

The new era of video game wars: Sony and Microsoft shake hands

__Congratulations. It's a beautiful healthy...__ platform for securities trading. America just birthed its 14th stock exchange, the uncreatively named __[Long Term Stock Exchange](https://ltse.com/)__. LTSE is just as regulated as siblings New York Stock Exchange and Nasdaq (it was approved by the SEC Friday and expects to open this year), but it's [mission-oriented](https://qz.com/1616791/the-long-term-stock-exchange-gets-sec-approval-for-silicon-valley-friendly-platform/): It wants to fix "short-termism."

__Quarter's over. On to the next quarter...__ Currently, public companies must calculate, prep, and announce their earnings reports every three months. Focusing on short-term results only benefits short-term focused traders — Hedge funds and activist investors. Instead, LTSE introduces 3 rules to encourage long-term thinking:

1. __Seniority-based voting:__ Older shares get more voting power. So the more in it for the long haul you are = the more power you have as a shareholder. 
2. __Tie exec pay to long-term metrics:__ Limit CEOs from floating away on golden parachutes.
3. __No forecasts for quarterly earnings:__ None. Investors should care about 3 years, not 3 months.

_A stock exchange for these guys_

Born

__This is Silicon Valley's farm for unicorns...__ You've seen the volatility of recent tech IPOs Uber, Lyft, and  Pinterest. Long Term Stock Exchange wants to give companies the benefits of public markets (raise $$, trade your stock!), while cutting the negatives (no sacraficing long-term health for short-term profits). It's [crafted](https://www.axios.com/long-term-stock-exchange-ipo-silicon-valley-3eb1a818-ce6d-41f5-a9b1-906bdcaf76b7.html) for Silicon Valley's finest.

Silicon Valley just got a new stock exchange: The Long Term Stock Exchange

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

"_I just want to Pin it_"

The un-Pinnable stock

__Pamplemousse problems...__ Flavored sparkling water __LaCroix__ has become the spirit drink of youthfulness — Millennial-powered anti-soda consumption pushed parent __[National Beverage Corp's](https://robinhood.com/stocks/fizz)__ stock to an all-time high in 2017 (FYI, great stock ticker: “FIZZ”). It has lost half its value since then, summed up by this stat:

*Sales of sparkling water rose 16% in the US from Nov-Jan — but LaCroix’s sales fell 2%.*

__Pour some Pepsi on the wounds...__ Some banks decided to weigh in on issues the icon of calorie-free refreshment is facing. It's mainly competition. Lots more competition:
- __Bank #1:__ [Thinks](https://finance.yahoo.com/news/national-beverage-stock-bear-gap-160451535.html) sales will “significantly decelerate,” so it downgraded the stock.
- __Bank #2:__ [Thinks](https://www.marketwatch.com/story/national-beverage-stock-falls-after-data-shows-lacroix-sales-decline-2019-05-14) LaCroix’s getting bullied by soda — __[Pepsi's](https://robinhood.com/stocks/pep)__ sleek Bubly is [winning](https://www.bloomberg.com/news/articles/2019-04-16/pepsi-s-bubly-seltzer-brand-gains-ground-on-lacroix-perrier) market share, while __[Coke](https://robinhood.com/stocks/KO)__ is pumping out sparkling versions of Dasani and SmartWater.
- __Highlight:__ Texas-based Topo Chico is a fast-growing LaCroix-replacement that's gaining liquid ground.
- __*Side Note:*__ In March, National Beverage's colorful CEO [blamed](https://www.thestreet.com/investing/stocks/fizz-falls-flat-on-analyst-downgrade-14959508) its sales drop on "injustice."

__LaCroix's gone flat on the big stage...__ Before sparkling water became the avo toast of drinks, National Beverage shares grew 7-times larger from 2014 to 2018. Now LaCroix is struggling to distribute itself. Its Coke/Pepsi competitors are filling up convenience stores where LaCroixs aren't. If you're not on the shelf, you can't be bought.

LaCroix is down because sparkling water is having a moment

__"I'll have the Resy"...__ __[American Express](https://robinhood.com/stocks/axp)__ ordered itself the largest privately-held reservation platform in the US, acquiring __Resy__ (4K restaurants across 200 cities). Backed by Airbnb and Shake Shack co-founder Danny Meyer, Resy serves the dining industry two ways:
- __What you see:__ Restaurant pays Resy a fee to show its open tables. You snag last-minute 9pm for 2 (by the bar). You're a hero, the table gets filled, Resy gets paid. Win-win-win.
- __What you don't see:__ "[Hospitality Software](https://www.eater.com/2019/5/15/18624609/resy-american-express-opentable-online-reservations)" — Its Resy Fly business intelligence tools educate restaurateurs on the average time a table's used or how weather affects the number of fish orders. Valuable intel.


__Experiences > Points...__ That's Amex's strategy here. Instead of points for old school lounge access or TSA Pre✓, Amex wants to make its benefits more intimate, more personal, and (shocker) more Millennial. With Resy's network, it can now [access](https://techcrunch.com/2019/05/15/american-express-is-acquiring-resy/) special tables, restaurant openings, and fancy ticket-based reservations for its top swipers.

Acquired

__Follow the food that follows the money...__ Americans 22-37 years of age (Disclosure: Us) are spending a huge chunk of their paycheck on [dining out](https://www.cnbc.com/2018/08/20/how-much-millennials-spend-at-restaurants-each-month.html). Amex's latest acquisition spree shows it's focused on being everywhere its customers want to be: food. Here's who else in the fintech/foodtech space it recently bought:
- March: __Loungebuddy__ — Airport lounge access because, well, airports.
- January: __Pocket Concierge__ — The Resy of Japan.
- 2018: __Cake__ — Pay the restaurant bill without waiting for the bill.

Amex buys Resy to experienc-ify your reward points

__"I refuse to let you date him"...__ On concern that foreign governments could spy on, manipulate, or crank call Americans, President Trump just banned American phone/internet companies from using foreign-made telecom equipment. The [obvious target](https://www.nytimes.com/2019/05/15/business/huawei-ban-trump.html) is China's __Huawei__, and it's another escalation in the trade war. 

__Scandinavia is into it...__ __[Ericsson](https://www.robinhood.com/stocks/ERIC)__ (🇸🇪Sweden) and __[Nokia](https://www.robinhood.com/stocks/NOK)__ (🇫🇮Finland) are the two other big competitors of Huawei, and their stocks jumped on the US move. The ban only applies to American telecom companies and only to future purchases:

- __The majors:__ AT&T, Verizon, Sprint, and T-Mobile don't use Huawei.
- __The regionals:__ Some smaller internet and wireless providers do. 
- __Abroad:__ Trump's hoping foreign countries resist the temptation of Huawei's lower prices to stand strong with America's blacklisting (and buy Scandinavian instead). 

Blacklist

__Stop China from dominating 5G...__ That's the goal here. China's epic "[Made in China 2025](https://www.pbs.org/wgbh/frontline/article/made-in-china-2025-the-industrial-plan-that-china-doesnt-want-anyone-talking-about/)" plan gives American foreign policy hawks night terrors. So does its ambition to [lead in 5G](https://www.cnbc.com/2019/05/15/steve-bannon-no-chance-trump-is-going-to-back-down-in-the-china-trade-war.html), which will wirelessly connect phones, computers, appliances, and probably robo-pets to the web really, really and fast. But it could be too little, too late:

- __*Huawei is leading already*__ — It's making both phones and the network (think cell towers and satellites), courtesy of the Chinese government's assistance.

 The US bans Chinese wireless equipment (i.e. Huawei)

_Stop bullying the sparkling waterboy_

Amex reserves Resy. All of it.

__Tou-freaking-ché…__ A month after __[Amazon](https://www.robinhood.com/stocks/AMZN)__ announced it’ll cut shipping time in half for Prime members, __[Walmart](https://www.robinhood.com/stocks/WMT)__ countered: Free next-day delivery to anyone in Vegas or Phoenix on 220K items (as long as you spend $35). By next year, 75% of Americans will have access to 1-day shipping. Your move, @JeffBezos.

__Speed kills...__ Walmart's move is expensive (for Walmart), but it could stop Walmart-faithful from defecting to Amazon. Here's the expected bill:

- __Walmart:__ UBS analysts estimate __$215M in incremental costs__ to prep its warehouses for 1-day shipping (plus Walmart's promised that each order will arrive in 1 box).
- __Amazon:__ It's __investing $800M__ to give Primers their goods by “[EOD tomorrow](https://www.cnbc.com/2019/04/25/amazon-spending-800-mln-to-make-free-one-day-shipping-prime-default.html).” 
- *__Fun fact:__ One reason it’ll cost Amazon more to do the same thing is it ships way more packages than Walmart — Walmart's ecommerce biz [is just 7% as big](http://www.marketwatch.com/story/walmart-earnings-trying-to-match-amazons-one-day-shipping-could-cost-215-million-2019-05-13) as Amazon's.*

Overnight

__Thank competition...__ Amazon liberated the world from late-night toilet paper runs, earning it [47%](https://www.emarketer.com/content/digital-investments-pay-off-for-walmart-in-ecommerce-race) of all US online sales today. But Walmart has upped its ecommerce game — buying Jet.com for $3B, renovating its website, launching online grocery pickup, and (now) free 1-day shipping. That keeps Amazon honest. Bezos can't just jack up Prime prices and lie back on 2-day delivery. When Amazon and Walmart compete, lazy online shoppers win.

Walmart one-ups Amazon Prime: Free. One-day. Shipping. (boom)

__Top 10 lists are fun...__ This one isn't. A California jury awarded $2B from __[Bayer](https://www.robinhood.com/stocks/BAYRY)__ to two non-Hodgkin Lymphoma suffers. Blame Bayer's Roundup weedkiller for causing it (according to the verdict). It’s the [8th biggest](http://fortune.com/2019/05/14/bayer-stock-monsanto-verdict/) product-defect award ever, so Bayer’s appealing as its shares fell 2% Tuesday.

*FYI, the World Health Org. thinks Roundup probably causes cancer. America’s EPA doesn’t.*

__What’s the return policy on Monsanto?…__ Germany’s top chemical company was built through the humble [invention](https://en.wikipedia.org/wiki/Aspirin) of Aspirin in 1899. A century later, Bayer dabbled in high-finance by acquiring US-based __Monsanto__ last year for $66B. Here's what it's received from the St. Louis company:

- __Added profits:__ Bayer snagged Monsanto for the __$2B in annual profits__ it was generating on genetically-modified crop seeds, plant fertilizers, and other blasphemies to organic eating. 
- __Added lawsuits:__ It's lost three lawsuits connected to Monsanto's Roundup so far, with verdicts of __$2B, $289M, and $80M__. There are ~13K [more](https://psmag.com/news/monsanto-ordered-to-pay-2-billion-in-cancer-lawsuit-13000-more-plaintiffs) suing.
- *__The result:__ Bayer stock is down 44% since its Monsanto wedding day in June of ’18.*

__Look out for major baggage…__ The merger and acquisition process involves “due diligence” — pretty much a full corporate checkup to make sure there’s nothing unexpected in the company being acquired. Bayer [missed](https://www.barrons.com/articles/bayers-acquisition-of-monsanto-how-not-to-do-m-a-51553296373) this giant legal liability when it acquired Monsanto. Look out for weeds.

Victims get $2B from Bayer for cancerous weedkiller

__Unpop the collar...__ Ralph Lauren's latest quarterly earnings would [impress](https://investorplace.com/2019/05/ralph-lauren-earnings-drop-rl-stock/) Anna Wintour: Revenues beat analysts' expectations and profits hit $32M. It's even gift-bagging that all for __[Ralph Lauren](https://www.robinhood.com/stocks/RL)__ shareholders by increasing the [dividend](https://learn.robinhood.com/articles/6jGOO5O2YvyoZzlEUtIq0F/what-is-a-dividend/) they receive by 10%. Then shares fell 4% off the catwalk.

__Malloting a croquet ball while riding a purebred steed...__ Doesn't really work for post-Millennial Gen Z. Ralph knows it needs to replace aging customers with young blood. Here's its approach, which its CEO calls the "Next Great Chapter Plan":

- __Extra influencer marketing:__ It just signed 23-year-old model [Taylor Hill](https://www.instagram.com/p/BuZSzOSBI3L/) and her boyfriend to flaunt the polo horses on Insta. #powercouple
- __The "Drop":__ It markets limited edition streetwear stuff that can only be bought on the app. The kids these days love exclusivity and mobile shopping.
- __"Family is who you love":__ That's the name of the new ad campaign — [TV spots](https://www.youtube.com/watch?v=eAjq_y-U7jY) nudging perceptions of the brand to a new direction. Less country club prep, more modern families. 

Wear

__Not all sales are created equal...__ Although investors were impressed by two of the big items (sales and profits), they were bummed to see sales drop in Ralph's home closet. That's a sign that the fundamental changes the company's working on might not be working.

- 📉 Sales in __North America__ (which is 50% of total company sales) fell 7%.
- 📈 Sales in __Europe__ (31% of total) rose 4%.
- 📈 Sales in __Asia__ (19% of total) popped up 6%. 

Ralph Lauren drops 4% (its Gen Z pandering may not be working)

_Not-1-day shipping_

Walmart's free-shipping mic-drop

__Yanked a hammy...__ __Flywheel__, the 40-studio spinning chain launched by a SoulCycle founder, is walking out of the class — it's been taken over by its [biggest](https://www.bloomberg.com/news/articles/2019-05-12/flywheel-sports-taken-over-by-lender-and-is-said-to-explore-sale) investor/lender. And the new boss is looking to make 2 moves pronto:
- __Try selling (again):__ Flywheel stuck a $350M price tag on itself last year, but no one bought.
- __Switch products:__ Instead of studios you schlep to, sweat it out in the living room with their *at-home stationary bike*. 

__Coincidence?...__ Nope. __Peloton__ pioneered the tech-enabled at-home bike in 2012. Since then, it's stolen customer butts from major gym chains through extreme convenience. First, it's [suing](https://www.businessinsider.com/peloton-sues-flywheel-over-home-fitness-bike-2018-9) Flywheel for copying its home spin bike. Second, it's planning to IPO this year at an $8B valuation. Here are the 3 keys to Peloton's soul:

1. __Hardware:__ A $2K bike that's just small enough to fit in a closet, but big enough to humble-brag visitors with. Over 400K have been sold, featuring instructors who yell/guide you via the mounted screen.
2. __Software:__ Thousands of live and on-demand streaming spin videos are available so you can tap it back for a 30-minute hip-hop ride anytime.
3. __Subscription:__ Once you've bought the bike, you're on the hook for $39/month to access those class videos.


Sweat

__Peloton is the Apple of sweating...__ Just as your iPhone generates $$ for Apple via services (think Apple Music), digital content drives the value of Peloton's bikes. Without the virtual class subscription, it's just hardware. So Peloton instructors are "treated like [pro athletes](https://www.wsj.com/articles/peloton-instructor-we-are-treated-like-professional-athletes-11557252001)" to produce better classes, while the new Peloton app offers yoga/lifting/walking videos for $19/month. Content is calorie-crushing king.

Peloton claims first fitness victim: Flywheel

__"No, *you* hang up"...__ (but with geopolitical tension instead of puppy love). One business day after President Trump hiked tariffs on Chinese-made imports from 10% to 25%, China announced higher tariffs on $60B in USA-made goods starting June 1st. That dropped stocks the moment Monday's markets opened.

*__"Americans' entire shopping cart will get more expensive"...__* Straight [talk](https://www.nytimes.com/2019/05/13/us/politics/us-china-trade-tariffs.html) from a Walmart/Target lobbyist. Since Friday, half of Chinese imports have a 25% tariff — The other half is full of goodies you're probably wearing/touching/tapping right now (electronics, t-shirts, [Silly Puddy](https://www.marketwatch.com/story/trumps-latest-tariff-hike-on-chinese-goods-will-hit-the-toy-industry-and-electronics-2019-05-10)). Here's what's surprisingly hit on both sides:

- __The next $300B of US tariffs on China:__ Purebred horses, 122 different kinds of footwear, coffee makers. Our highlight from the [super-detailed list](https://ustr.gov/sites/default/files/enforcement/301Investigations/May_2019_Proposed_Modification.pdf): "Footwear w/outer soles & uppers of rubber or plastics, nesoi, n/cov. ankle, nesoi, valued o/$6.50 but n/o $12/pair."
- __The next $60B of Chinese ones on the US:__ Honey, salted beef, "fine and coarse rice," tequila, gin, bricks, watches, chalk, canoes, and 5,000 [more](https://www.cnbc.com/2019/05/13/here-is-a-list-of-us-goods-china-is-targeting-with-a-25percent-tariff.html) things.
- *Fun fact: Both China and the US are tariff-ing shoes made by the other. But it doesn't cancel out.* 


Escalate

__Hold your breath until June 28/29...__ President Trump meets Chinese President Xi Jinping at the G-20 Summit in Japan. Trump said he could decide *not to impose* those new tariffs if they agree to something. But markets are bracing for the full-blown, tit-for-tat, back-and-forth trade war we're in. The impact of each tariff is higher prices and less profit.

China's retaliation tariffs hit tequila and 5,000 more things. Here's where it all stands.

__Lance Armstrong would be impressed...__ According to a [lawsuit](https://www.reuters.com/article/us-usa-drugs-lawsuit/us-states-accuse-teva-other-drugmakers-of-price-fixing-lawsuit-idUSKCN1SH0DP) filed in federal court by 44 state prosecutors, __[Teva Pharmaceuticals](https://www.robinhood.com/stocks/TEVA)__ is a criminal mastermind. The allegation: It corralled 19 other drug firms to keep generic drug prices high — 1,000% higher than they could/should be. That's anti-competitive, illegal, and just wrong. So it dropped Teva stock 15%.

__That's a lot of attorneys general...__ Here are a couple things we noticed from this lawsuit:

- __It's a shore thing:__ More than half of the 20 companies are based in New Jersey.
- __And it's a TV thing:__ President Trump just enacted [new rules](https://www.apnews.com/c58c22765603411781a30fa5ecff18b1) that require drug ads on TV to display the price if the medication costs more than $35/month.  

Gouging

__One thing Americans aren't polarized on...__ Drug prices. Successful lobbying and divisive politics allowed pharma firms to raise prices on life-or-death drugs for years. Now a Republican President, over a dozen Democratic presidential candidates, and 44 state prosecutors want it to stop. Investors have already left the stadium. This game's over. 

44 states sue big pharmaceutical companies

"_Do you know how expensive China just made this helmet?_"

Trade War Episode II: Tariffing tequila and canoes

__Happy conference season...__ __[Google's](https://robinhood.com/stocks/goog)__ Apple-ish I/O event (stands for "input/output") [revealed](https://venturebeat.com/2019/05/08/everything-google-announced-at-i-o-2019/) a voice assistant to screen robo-calls, "Incognito" Google Maps, and (the main event) a $399 Pixel smartphone. Unlike Apple, Google doesn't need an extra-profitable $1,000 smartphone — Its focus is making money off hoards of data from your internet use.

__Some hookups abroad...__ __[Match](https://robinhood.com/stocks/mtch)__ enjoyed a 14% revenue jump last quarter, courtesy of 23% user-growth internationally. Tinder is still its alpha app, totaling 4.7M active dating users. But shares jumped over 10% on one key stat: In places where [Facebook's dating feature](https://www.barrons.com/articles/facebook-dating-is-now-the-clear-underdog-to-tinder-51557533158) is already rolled out, Match hasn't seen any negative impact.

__Cars want all the attention...__ __[GM's](https://robinhood.com/stocks/gm)__ Cruise Automation (a self-driving car startup it bought in '16) [raised](https://www.businessinsider.com/gm-self-driving-cruise-business-worth-19-billion-after-new-funding-2019-5) $1.15B to push forward with robotaxis (planned for later this year). Then __[Tesla](https://robinhood.com/stocks/tsla)__ jumped into the car insurance biz, while __[Ferrari](https://robinhood.com/stocks/race)__ closed in on an all-time high stock price, powered by sales in China. 

Highs

Who's up...

__Angels out...__ __Victoria's Secret__ won't broadcast its aggressively costumed annual fashion show on TV [anymore](https://www.wsj.com/articles/victorias-secret-fashion-show-leaving-network-tv-11557512139) — falling viewers and a realization that the whole thing was outdated led to the decision. But parent company __[L Brands](https://robinhood.com/stocks/lb)__ dipped because the move highlights how out of touch the push-up brand became with our generation. Less catwalk, more bralette.

__Expensive shave...__ Direct-to-consumer razor startup __Harry's__ was acquired by the owner of Schick for a smooth $1.37B. But buyer __[Edgewell Personal Care](https://robinhood.com/stocks/epc)__ fell 20% last week on [word](https://www.nytimes.com/2019/05/09/business/dealbook/harrys-edgewell-acquisition.html) its own sales dropped 10% last quarter. Plus, the $2B cabinet-packing company (it also owns Playtex and Wet Ones) is barely worth more than the deal itself.

__Break up...__ After two years of __[Facebook](https://www.robinhood.com/stocks/FB)__ info scandals, we expected new tech regulation in the US. It hasn't come. But Zuck's co-founder Chris Hughes called out Facebook [to be split](https://www.nytimes.com/2019/05/09/opinion/sunday/chris-hughes-facebook-zuckerberg.html) into separate companies. Shares fell 2% last week as Hughes' words [joined](https://www.axios.com/2020-presidential-election-democrats-economic-fiscal-policy-5c4d16dc-53df-40e2-a810-fa9564ca20af.html) a Nobel Prizer (Joseph Stiglitz) and presidential candidate (Elizabeth Warren). Zuck's [response](https://www.nytimes.com/2019/05/09/business/facebook-response-chris-hughes.html): Breakup won't fix Facebook's problems.

Lows

...And who's down

__Anti-surge-pricing...__ __[Uber](https://robinhood.com/stocks/uber)__ stock [fell](https://www.wsj.com/articles/uber-stumbles-in-trading-debut-11557503554) 8% on Day #1 of trading. We were there for it, watching founder/ex-CEO Travis Kalanick roll up in an UberX. Uber Eats teammates handed out bagels/granola on the floor, while Employee #4 Austin Geidt [rang](https://www.businessinsider.com/austin-geidt-silicon-valley-legend-uber-exec-life-2019-5) the NYSE opening bell. Uber-style, the IPO already broke records:

- __$6 billion of Uber stock value was erased__ during the [worst](https://www.businessinsider.com/uber-had-the-worst-first-day-dollar-loss-of-a-us-ipo-2019-5) opening day loss of any US IPO.
- It was the __least profitable company ever to go public__ — Its loss the past 12 months was twice as big as the 2nd biggest IPO loser (ironically, that's Lyft). 

__"Bad IPO day" support groups...__ Wall Street needs one. Tech stocks tend to jump on IPO day — Over the last 24 years, they've [popped](https://www.nytimes.com/2019/05/10/technology/uber-stock-price-ipo.html) 41% on average. But Uber's not the only exception:

- __Facebook:__ Spent its first 15 months below its IPO price. Now it's Earth's #4 [most valuable](https://www.axios.com/ubers-ipo-perfect-storm-2a75a55a-adec-496b-bc23-02d99d02920f.html) company.
- __Snap and Lyft:__ Both lost a third of their stock value within a month.
- __Alibaba:__ Fell nearly 50% over its 1st year. Now it's nearly double its IPO price.
- __FYI, keep in mind:__ None of these past stock moves are signs of future ones — IPO stocks can be especially volatile. Always dive into a company's [S-1](https://www.sec.gov/Archives/edgar/data/1543151/000119312519103850/d647752ds1.htm) before jumping into its freshly-issued stock.

Fresh

__Venture capitalists were cool with Uber's losses...__ Maybe *public investors* aren't. Uber's epic '08 [pitch deck](https://techcrunch.com/gallery/here-is-ubers-first-pitch-deck/) convinced *private investors* to invest over $20B in Uber. After Friday's IPO, it's worth $76.5B — The same valuation as three years ago. New tariffs last week and a driver strike didn't help, but unprofitability is the fundamental worry for Uber (and Lyft). Robo-drivers could solve that (ETA is TBD). Will investors wait?

Uber's "tough timing" 8% drop on IPO day

Dow Jones 

__"These Uber shares are all we have, Mr. Frodo"__

This Week: Uber, where to?

__ETA ASAP...__ 10 years ago, someone watched a car approach via a smartphone map app. Now it's time for __Uber's__ IPO. The OG ride-hailer set a price of $45 for shares to open for trading today (that's a bit on the lower end of the range they expected, which was up to $50 a share). Total company value = $82B.

__The "S-1": do it...__ This [tell-all document](https://www.sec.gov/Archives/edgar/data/1543151/000119312519103850/d647752ds1.htm) is required of all companies going public (and should be required reading for anyone thinking of investing). It's like a dating profile for pre-IPO companies. Unlike Tinder, it's not just your top pics with puppies — it's required to be honest and balanced: 

- __The good:__ Uber wants to own food and freight delivery, too – Its Uber Eats app has more 5-star ratings on the App Store than Uber (1.4M vs. 888K). And all those tractor-trailer big rigs might get an Uber sticker and start offering you water.
- __The bad:__ Competition. From lots of places. In "personal mobility" alone (ride-hailing, bikes, and scooters), Uber lists 20 competitors, including planned robo-taxi fleets from __GM__, __Tesla__, and Google's __Waymo__. #NotJustLyft 

IPOing

__This is 1-star timing...__ IPOs give us wedding-like vibes — you plan it in advance, and hope anything "beyond your control" won't ruin it. Instead of rain, Uber had to worry about a trade war. New tariffs on China hit last night. And Lyft's poor stock performance (down 37% since its high) doesn't help. There's no "IPO timing" insurance.

Uber IPOs today: Here's what you need to know

__Two brewmasters walk into a bar...__ and they merge operations. Sam Adams-owner __[Boston Beer Co.](https://robinhood.com/stocks/sam)__ is the nation's 2nd biggest craft brewer. IPA-legend Dogfish Head is #13 (the pride o' Delaware). Now they're merging in a $300M deal: The Dogfish husband and wife co-founders earn $127M in Boston Beer stock, while other Dogfish investors get $173M in cash.

__Let's just mix them...__ The brew-mance actually began in February when the two CEOs [met](https://www.boston.com/food/beer/2019/05/09/boston-beer-company-dogfish-head-300-million-merger) at a beer fest in Boston (we approve: one of your Snacks Managing Editors met his fiancée at a VT brew fest). Then they realized how "beautifully complementary" their portfolios are. Adorable. Now they've got two goals:

1. __"High-end" anything:__ The duo will keep things artisan, but not necessarily beer — Boston Beer's Angry Orchard cider is a top-performer.
2. __But stay "legally craft":__ They'll keep their status as craft, even after they're merged — As long as no more than 25% of either label is owned by a non-craft company.

__This is how you take on Big Beer...__ __[AB InBev](https://www.robinhood.com/stocks/BUD)__, __[Diageo](https://www.robinhood.com/stocks/DEO)__, __[Molson Coors](https://www.robinhood.com/stocks/TAP)__, and other brew-glomerates have bought up craft beers for years ([here's where](https://vinepair.com/booze-news/craft-brewery-ownership-chart/)). Corona's __[Constellation Brands](https://www.robinhood.com/stocks/STZ)__ dropped $1B for Ballast Point microbrew in 2015. Two-packed craft beer can fight for shelf space. And it's why Boston Beer's CEO [expects](https://www.cnn.com/2019/05/09/business/boston-beer-company-dogfish-head-merger/index.html) "more consolidation in the craft beer industry."

A couple craft beer legends merge in $300M deal

__This is awkward...__ __[Edgewell Personal Care](https://www.robinhood.com/stocks/EPC)__ just [paid](https://ir.edgewell.com/news-and-events/press-releases/2019/05-09-2019-110141903?sc_lang=en) $1.37B for __Harry's__, the direct-to-consumer guy-and-gal shave company. Investors hated it. Shares of Edgewell fell 16% Monday for a couple other reasons, too:

- Edgewell also reported earnings, and __sales fell 10% in the 1st quarter__. Edgewell owns your parents' bathroom cabinet: Schick razors, Playtex, Banana Boat, and Wet Ones, among other brands.
- Edgewell's value by market capitalization is just $2.1B. So its acquisition of Harry's was __wildly huge__ considering its size. It'll take on debt and issue new shares to pay for the "combination."

__The disrupted just ate the disrupters...__ Gillette and Schick owned a comfortable, high-profit razor duopoly. Now they kind of do again after acquiring up the companies that disrupted their coziness:
1. __[Procter & Gamble](https://www.robinhood.com/stocks/PG)__ owns Gillette, and then bought __Walker & Company's__ razors for people of color.
2. __[Unilever](https://www.robinhood.com/stocks/UL)__ snatched up __Dollar Shave Club__ last year.
3. __Edgewell__ has Schick and __Wilkinson Sword__ (razors with British accents), and now Harry's.


Shave

__Time to subscript-ify. Everything...__ The Harry's co-founders impressively convinced a generation to buy a razor *and* sign up for regular blade/cream refills. It makes sense (most facial hair grows kinda consistently). Edgewell has other products ready for subscript-ify: Body wash, tampons, napkins. Time to Harry-ify them all. 

Harry's Shave acquired by Schick owner for $1.4B

_When Snacks gets to cover the hair removal industry_

Tariffs upstreamed Uber

__Above the fold news: Profits for the Times...__ The __[New York Times'](https://www.robinhood.com/stocks/NYT)__ quarterly earnings were politely reported in a totally fair way by crosstown [WSJ](https://www.wsj.com/articles/new-york-times-posts-higher-profit-adds-223-000-digital-subscribers-11557335720). Profits rose 38% to $30M, driven by higher subscription revenue and... *rental income from its giant headquarters building*. When people are getting news from Facebook, you make money where you can. 

__User metrics matter...__ 500K people pay NYT for just its crossword puzzles and cooking recipes. But NYT is a news institution, so let's look at how many humans get all the news that's fit to print:

- 💻 __3.6M__ pay for the Times digital. 
- 🗞 __0.9M__ still go old fashioned newspaper.
- 🏆 __10M__ total subscribers is the goal by 2025 (ambitious).
- 🎧 __Bonus episode:__ __2M__ people listen to the Times' podcast, "The Daily," daily.

Read

__What's black and white and dead all over...__ The Times' news*paper*. Emphasis on "paper." Revenues for digital advertising rose 19%, while ads on huge fold-out pages fell 12%. And it's spending a lot to continue printing those for a declining userbase. Maybe it's for symbolic/historic value — our grandkids should experience a lovely morning stroll through the Sunday Times in its original, unpleasant newsprint paper form.

The New York Times is almost halfway to its 2025 10M subscriber goal

__Wasn't meant to be...__ __[Stamps.com](https://robinhood.com/stocks/stmp)__ dropped 45% after cutting its profit forecasts for the rest of the year by nearly half. Blame it on the big breakup between Stamps and the US Postal Service. News of the two moving on from each other was revealed in February, but now we know the financial [fallout](https://finance.yahoo.com/news/stamps-com-shares-collapse-2019-212723776.html). It's big.

__Wasn't meant to be...__ Stamps committed to an exclusive relationship with USPS back in 1996 to let you print postage at home with its software. It was good while it was good. But Amazon's 2-day shipping makes USPS 3-7 days look bad. Stamps apparently asked USPS to be more competitive, but USPS wasn't up for it. So Stamps wants to see other [people](https://www.cnn.com/2019/02/22/investing/stamps-com-postal-service-deal/index.html). Here's how it will rebound:

- __The good:__ It can finally print postage for customers shipping through FedEx, UPS, or DHL, who already deliver your ecommerce [everything](https://www.digitalcommerce360.com/article/us-ecommerce-sales/).
- __The bad:__ Stamps said yesterday its post-breakup pains are real — it expects sales to fall 8% this year. Analysts thought ending exclusivity with USPS would boost sales, *not shrink them.*

Partner

__The real victims here are FedEx/UPS/DHL...__ Stamps ended things with USPS because Amazon is making moves to become the future of delivery. Jeff Bezos' monster ecommerce platform is [leasing](https://techcrunch.com/2018/12/21/amazon-air-expands-with-10-more-cargo-aircraft-bringing-fleet-to-50-planes/) 50 cargo jets right now (expected to hit 100) and has capacity for 10,000 branded tractor-trailers. Stamps' affection reveals Amazon's ambitions.

Stamps.com plummets 45% because of a breakup

__Roku embraces the little guy mentality...__ It literally [subleases](https://www.businessinsider.com/netflix-is-the-leading-streaming-service-on-roku-tv-boxes-2017-9) office space from Netflix. But it tossed up big numbers Wednesday, with revenues up 51% and the number of active __[Roku](https://robinhood.com/stocks/roku)__ customers jumping 40% from last year to 29M. The best part — The CFO [welcomed](https://www.marketwatch.com/story/roku-stock-rises-after-revenue-outlook-top-expectations-2019-05-08) Disney and others to video streaming: "When they win, we win."

__Cord-cutters print money...__ Roku's direct competitors are Apple TV, Amazon Fire Stick, and Google Chromecast. Those all make TVs smart and streamable. Here's how Roku makes bank:

1. __Ads:__ Its Roku Channel streams movies and shows free, with ads.
2. __Subscription:__ The Roku dongle and its Smart TVs watch Netflix more than anything else. When you subscribe to Netflix (or HBO) through your Roku, the dongle takes a cut.
3. __Hardware:__ The infamous purple dongle and the software it licenses to TV companies.

Stream

__Roku owns top real estate: Your TV...__ Americans spend a shocking [4 hours](https://www.nielsen.com/us/en/insights/news/2018/time-flies-us-adults-now-spend-nearly-half-a-day-interacting-with-media.print.html) a day watching live TV. Anything that gets more people cord-cutting helps Roku shift that time from live TV to Roku TV that it can monetize. When Disney+ rolls out this fall with classics, Star Wars, Fox, and Marvel for $6.99/month, it could crank cord-cutting up a notch.

Roku reveals Disney+ is its cord-cutting buddy 

_Hogwarts professors appreciate the Times print edition_

Roku owns your living room

__We're decidedly pro-carpooling...__ and pro-Snacks story-pooling. Yesterday, one old school company, one new-ish school company, and one brand new company updated investors and customers on auto industry-changing moves:

- __[Lyft](https://www.robinhood.com/stocks/LYFT):__ The first gig-economy cab company to go public bragged that revenues almost doubled in the 1st quarter to $776M. But its loss [ballooned](https://www.cnn.com/2019/05/07/tech/lyft-first-earnings-report/index.html) to $1.1B. That loss was __mostly driven by new stock issued to employees because of the IPO__, so investors were impressed overall despite the loss.  
- __[Tesla](https://www.robinhood.com/stocks/TSLA):__ The e-car company [announced](https://jalopnik.com/tesla-plans-to-offer-owners-potentially-cheaper-insuran-1834554733) it is __offering its own car insurance__. It claims its cars are safer (thanks to self-driving car features) and it has more data on drivers (thanks to its techiness) so it can insure cars for less. 
- __[General Motors](https://www.robinhood.com/stocks/GM):__ Its acquisition of Cruise Automation for $1B in '16 was transformational. Cruise alone is now worth $19B after it received $1.15B of [new investment](https://news.crunchbase.com/news/cruise-drives-away-with-1-15b-in-funding-at-19b-valuation/) from Softbank, Honda, and T. Rowe Price. GM's tech division is testing self-driving cars so it can eventually __unveil its own Uber-like ride-hailing app of GM cars__ with no drivers.

Drive

__Uber's IPO is Friday...__ That adds another publicly traded company to the fight over your transit dollars. With the taxi and car industries nudged aside by West Coast tech, Uber/Lyft drivers in at least 10 US cities are [protesting](https://www.businessinsider.com/uber-lyft-strike-locations-where-drivers-are-protesting-new-york-los-angeles-london-2019-5) today. LA's Uberers will turn off their apps for 24 hours, while NYC's are skipping the 7am-9am rush hour.

Lyft, Tesla, and GM have big things to say

__Love has no boundaries...__ Neither does __[Match](https://robinhood.com/stocks/mtch)__, the dating company that powers dating apps — Tinder, OKCupid, OurTime, and any other warm-blooded potential connection. It enjoyed a 14% revenue jump last quarter driven by 23% growth outside the US. Dating biz abroad will likely surpass North America next quarter thanks to international [love trends](https://www.bloomberg.com/news/articles/2019-05-07/match-group-beats-estimates-as-tinder-popularity-grows-abroad). Here's what it highlighted:

- A decline in arranged marriages in __India__
- Online dating "stigma" is crumbling in __Japan__
- 1st-time smartphone adoption in __SE Asia__ 

__Tinder gets all the love...__ The swipe-right legend now has 4.7M users, with growth fueled by this fall's TinderU launch for college kids, and a few other changes.

- __384K:__ That's how many new Tinderers joined the platform — Its 3rd best quarterly jump ever.
- __Algorithm tweaks:__ The more accurately it matches you early on, the more likely you are to pay-up for the premium option.
- __Big new bets:__ Tinder now lets you start flirting pre-Bonnaroo with fellow music festival singles three weeks before the event. That feature was [inspired by](https://www.theverge.com/2019/5/2/18525993/tinder-music-festival-mode-swipe) the Spring Break one it launched months earlier.

Swipe

__"Hasn't seen any impact"...__ Match's CEO [boldly](https://www.marketwatch.com/story/match-group-earnings-top-estimates-as-tinder-membership-growth-picks-up-2019-05-07) said that about __[Facebook's](https://robinhood.com/stocks/FB)__ dating feature, which had rolled out in some of Tinder's markets already. Zuck's "Secret Crush" is brand new, and dating hits 14 more countries this year. Match is confident.

Match pops 8% in Facebook's face (powered by Tinder)

__Koi fish-painted clogs...__ That's the gem of a shoe [featured](https://s22.q4cdn.com/133460125/files/doc_financials/quarterly_results/2019/Q1/IR-Presentation-5-19.pdf) on page #1 of __Crocs'__ earnings report. The polarizing fashion icon's stock is up 75% over the last year. And even though quarterly sales only rose 4% (which dropped shares Tuesday), the CEO is still enthused about a "great start to 2019." He's into its "norm-core" marketing moves...

__Millennials are out...__ Gen-Z is in. Crocs used strategic marketing to boost its brand rep among Americans under 24. It [became](https://www.businessinsider.com/crocs-teen-popularity-surges-2018-10) the #13 most popular footwear brand for the post-Millennial crowd, up from #38 two years ago. Here's how:

- Absurdly viral products, like high-heeled Crocs last summer and the __new [fanny pack](https://www.cbsnews.com/news/fanny-pack-crocs-new-slip-on-shoes-beams-and-crocs-classic-clog-style-crocs-with-mini-backpacks/) Crocs__.
- __“Come as you are” ad campaign__ to get buyers comfortable with the inevitable public judgment of wearing Crocs.
- __A-minus list celebrity ambassadors__, like John Cena, Zoey Deschanel, and Drew Barrymore (Drew did an online [musical](https://www.youtube.com/watch?v=Pdev35HqCbE) for Crocs).
- __Local foreign ambassadors__ in China, Japan, and South Korea kept that celeb vibe going (now 30% of sales are in Asia Pacific).

__Crocs' comeback strategy: Do less...__ The brand was close to bankruptcy in ‘09, so it [streamlined](https://money.cnn.com/2018/08/09/news/companies/crocs-clogs-sandals/index.html) everything. It shut down locations, ended non-core product lines, and outsourced shoe production to 3rd parties. Going back to “Crocs' DNA” — Clogs and sandals — started its recovery. Now it's comfortable enough for fanny Crocs. 

*FYI, shaving cream in Crocs is [now a thing](https://www.kfdi.com/2019/05/07/the-new-viral-trend-is-putting-shaving-cream-in-your-crocs-but-in-a-fun-way/).*

Crocs' earnings show how far foam clogs have come

_"Car news. It's everywhere, baby"_

GM's own Uber app (but self-driving)

__nbd...__ In a weekend CNBC interview, __[Apple](https://robinhood.com/stocks/aapl)__ CEO Tim Cook casually [dropped](https://www.cnbc.com/2019/05/06/apple-ceo-tim-cook-interview-from-berkshire-hathaway-meeting.html) this: "*So we acquire a company on average, every two to three weeks.*" He went ahead and connected the mathematical dots for us — Apple has bought 20-25 companies since November by Cook's estimation. And only about 6 of them have been reported on.

__With great cheddar comes great responsibility ...__ Apple is only required to announce acquisitions that have a material impact on its business. None of these smaller ones apparently have. But investors aren't worried about the price, since Apple boasts $225B in cash as of last quarter's finish — There's pressure to spend it on things that will grow the business, or return it to investors as dividends.

Splurge

__Apple's using acquisitions to play catch up...__ Its iPod and iTunes changed music, but Apple fell behind in streaming — So it bought Beats in 2014 ($3B) and Shazam in 2018 ($400M) to catch up. The latest buying spree of tiny companies looks like subtle moves to beef up Siri (she trails Alexa and Google Home in some digital assistant rankings). These 3 specific [recent acquisitions](https://www.businessinsider.com/apple-14-or-more-mystery-acquisitions-6-months-2019-5) sound like Siri-enhancers:

1. __Laserlike__: Machine learning — *Teach Siri to understand humans better*
2. __Silk Labs__: AI software — *Improve Siri's brain*
3. __PullString__ Voice applications — *Improve Siri's hearing*

Apple bought over 20 companies in the last 6 months

__*You guys want some cookies?*...__ __[Google](https://www.robinhood.com/stocks/GOOG)__ is [expected](https://www.wsj.com/articles/googles-new-privacy-tools-to-make-cookies-crumble-competitors-stumble-11557151913?mod=hp_lead_pos6) to use today's developers conference to reveal its latest move: Strengthen its online ad dominance. That involves Chrome (its dominant web-browser) and a new button that lets users super-easily block tracking cookies.

- __Cookies (noun):__ Little bits of code that track what web pages you view and things you click/tap.

__They're why that sweater you clicked once follows you everywhere...__ Digital ad firms use cookie-delivered data to convince companies to buy online ads. Without cookies, these Google rivals could die...making Google's ad sales biz even stronger. Google is expected to frame the move as a user privacy thing, but it could also earn it more of the market.

__Beware the algorithm tweak...__ Like those little fish sucking on a shark's belly, some businesses depend completely on a bigger one. Google, Facebook, and Amazon have corporate habitats built around them. The big risk for minnows is that a flick of a switch cuts off their access to customers. 

- __Facebook__ did it with games and for online publishers.
- __Amazon__ could do it with __[Sonos](https://www.robinhood.com/stocks/SONO)__' Alexa-powered speakers.
- __Google__ just might do it with cookies and the ad companies that live off them.

Google might kill "tracking cookies," which could kill its competition

__It's a rare oil love triangle...__ Lust, greed, love, and drama included. The oil industry is watching the drawn-out romantic fight between Chevron and Occidental over Anadarko to acquire its "strategic real estate" (more on that to come). Here's the quick play-by-play of the bids and counter-bids to acquire __[Anadarko Petroleum](https://www.robinhood.com/stocks/APC)__ ("APC") so far:

- __April 12:__ __[Chevron](https://www.robinhood.com/stocks/CVX)__ offered $65/share ($33B total) to buy Anadarko. __APC shares jumped from $46 to $64__.
- __April 24:__ A new suitor, __[Occidental Petroleum](https://www.robinhood.com/stocks/OXY)__, offered $76/share ($38B) to win APC's on-shore drilling assets, __so APC stock popped from $64 to $72__ on the sweeter deal.
- __Yesterday:__ To seal the thing, Occidental upped its offer to include more cash and fewer Occidental shares (same price though overall). __APC shares rose to $75__ on expectations this one's happening.

__It looks like Chevron will lose...__ But its thirst for more oil still isn't satiated. Investors speculate that one of the other, smaller Texas oil companies could get snatched as the consolation prize, so shares of __[Pioneer](https://www.robinhood.com/stocks/PXD)__, __[Concho](https://www.robinhood.com/stocks/CXO)__, and __[Diamondback](https://www.robinhood.com/stocks/FANG)__ [have all risen](https://www.wsj.com/articles/rivals-vie-for-mastery-over-americas-hottest-oil-field-11557135001).

Auction

__The prize is a bunch of West Texas land...__ that's fortunately got an ocean of oil beneath it. Natural resource extraction is a fascinating industry — *Who has the sharpest ax, deepest drills, or pumpiest pumps?* Anadarko has drilling rights to land in the 75K square mile "Permian Basin" where it's easiest/cheapest to produce oil. And Anadarko's oil straws can suck out millions of barrels of oil worth billions of dollars.

The $38B bidding war for Anadarko's West Texas oil jackpot

_When you have a 12-digit bank account balance_

Apple (casually) just bought 20+ startups

__Influencers + Thrones = Champion...__  __[Adidas](https://www.robinhood.com/stocks/ADDYY)__ stock hit an all-time high courtesy of a 1-2 punch of numbers: China sales jumped 16% and online sales popped 40%. Now Nike's German rival is [adding](http://fortune.com/2019/05/03/adidas-stock-q1/) to its influencer partnerships to kick up shoe sales — a "Game of Thrones" [collaboration](https://www.aiobot.com/adidas-game-of-thrones-collection/) is here, while the new Adidas athleisure partnership with Beyoncé gets launched this year.

__Zuck-Fest 2019...__ __[Facebook](https://robinhood.com/stocks/fb)__ announced that "[the future is private](https://techcrunch.com/2019/05/05/facebook-is-pivoting/)" at the social network's 2-day F8 developers conference. So he focused on FB5 — The new, less-public, blue-free Facebook redesign. It's pushing your posts to Groups and private DMs instead of the public newsfeed. Plus the dating feature "[Secret Crush](https://www.theverge.com/2019/4/30/18522924/facebook-f8-secret-crushes-dating-app-hinge-feature)" hits the US this year. 

__Will work for meat-less...__ Plant protein pioneer __[Beyond Meat](https://www.robinhood.com/stocks/BYND)__ became  first of its breed to hit public markets with the biggest IPO day performance of any company since 2000. Shares soared 167% in its first two trading days on hopes its pea-based recipe will become [menu standard](https://www.cnbc.com/2019/05/02/beyond-meat-is-being-valued-like-a-tech-company-but-it-makes-food.html) (Burger King already features Beyond rival "Impossible Burger" nationwide). But first it faces beef industry lawsuits that claim it's technically not a "meat."

__Blame the sun...__ __[Shake Shack's](https://robinhood.com/stocks/shak)__ sales jumped 3.6% in the first quarter and it popped out its first Shacks in China (and Rhode Island). But the CEO showed gratitude for the unusually "warm weather conditions" [responsible](https://www.wsj.com/articles/shake-shack-results-were-too-sunny-11556978400) for getting diners into Shacks. Investors weren't happy to hear a good quarter required Mother Nature's blessing.

__Sobering...__ The amount of beer sold by __[Molson Coors](https://robinhood.com/stocks/tap)__ fell nearly 5% last quarter. Amid shrinking beer sales (consumption fell 1% nationwide last year), the solo cup icon is trying to mature: It bought a kombucha company, invested in tea, and just [confirmed](https://www.cbc.ca/news/business/molson-coors-reports-weaker-1st-quarter-but-not-because-of-cannabis-legalization-1.5118712) its joint venture cannabis drinks will hit Canada by this fall (aka, when edibles are expected to be legalized).

__Front row view...__ to concert-booking platform __[Eventbrite](https://robinhood.com/stocks/eb)__ falling 20% last week (the stock is now below September's IPO price). The problem lies with headliner Ticketfly, which Eventbrite bought from Pandora for $200M. The two-year-old acquisition has become a "[complex](http://fortune.com/2019/05/02/eventbrite-stock-plunges/) and consuming integration process" that's still not over. And that drama affects Eventbrite growth.

__All quiet on the US-China trade front since December...__ Then this weekend happened. Yesterday, Trump [announced](https://twitter.com/realDonaldTrump/status/1125069835044573186) two fresh trade war attacks:

- __$200B:__ The president is increasing the tax we impose on $200B worth of annual imports from China from 10% to 25% this Friday.
- __$325B:__ The rest of the Made in China stuff we import is currently excluded. But Trump tweet-warned that all that would get punished too "shortly, at a rate of 25%." 

__Quick reminder: Tariffs hurt importers, exporters, and everyone else...__  

- __Corporate winners:__ Made in USA companies that compete with foreign firms for sales to Americans. With tariffs, __[Whirlpool](https://www.robinhood.com/stocks/WHR)__ washing machines snag an [advantage](https://www.npr.org/2019/04/09/711001915/tariffs-complex-ripple-effects-hit-appliance-shoppers-and-makers) because Chinese rivals become more expensive.
- __Corporate losers:__ American companies that export to China (think __[Caterpillar's](https://www.robinhood.com/stocks/CAT)__ big rigs) suffer from China's *retaliatory* tariffs. And US companies that import raw materials like steel (like __[Ford](https://www.robinhood.com/stocks/F)__) have to pay for steel + US tariffs now.
- __The next possible loser:__ Most __[Apple](https://www.robinhood.com/stocks/AAPL)__ products are assembeled in China, but fall into the "not tariffed yet" category. Trump's threatened expansion would include your whole drawer of iPhones, Macs, and AirPods. 
- __Everyone else (losers):__ You and us. US consumers [pay](https://www.reuters.com/article/us-usa-trade-tariffs-explainer/explainer-who-pays-trumps-tariffs-china-and-other-exporters-or-u-s-customers-idUSKCN1SB0UF) for tariffs through higher prices on what's imported from China. Picture a "25% off" sale, but in reverse. 

Bombs

__You thought trade spring was coming?...__ Bam. It's winter again. One reason this update hurts is because investors were expecting a peace deal this week, based on signals from DC and Beijing — It's a key reason markets are at a record high. Now investors have to re-calculate how continued trade war pain will affect company profits. 

- __Up next:__ A top Chinese trade negotiator was supposed to visit DC on Wednesday. Now he may [cancel](https://www.wsj.com/articles/trump-says-he-will-increase-tariffs-on-200-billion-of-chinese-goods-from-10-to-25-on-friday-11557075332)... 