__Tasers are having a moment...__ Nationwide focus on police conduct has departments buying up Tasers, body cameras, and software to upload the footage. Taser inventor __[Axon Enterprises](https://robinhood.com/stocks/aaxn)__ makes all that, and just granted CEO/co-founder Patrick Smith [$246M in compensation](https://www.wsj.com/articles/taser-chief-gets-stunning-246-million-stock-option-award-11556817574?mod=hp_listb_pos4) — 20x the pay of a normal (still very rich) big company CEO. But read the [fine print](https://d18rn0p25nwr6d.cloudfront.net/CIK-0001069183/41e1ea87-f981-4193-a3a0-3311fac90a55.pdf)...  

__Dangling million dollar carrots...__ The board wants Smith to capitalize on the Taser era. So they've set up performance-based targets that will turn his stock options into real dollars:

- __Stock price:__ All the Axon shares out there are worth $3.8B total right now. There are __12 "market cap" milestones__ that will convert his options to cash money as it hits points on the way up to $13.5B.  
- __Revenues:__ They're currently at $400M. If it reaches $2B, Smith will score __8 separate stock option bonuses__.
- __Profits:__ Yup, there are __8 more prizes based on profitability targets__. 

Payday

__Smith's living on the edge...__ Although technically (based on accounting rules) he got "paid" $246M this month, it was all in stock options — Those have no value unless they "vest" (aka hit those goals above). *His current salary is just $24K.* He doesn't get rich unless his company does too. 

The Taser CEO gets paid $246M (only if his company does reeeeally well)

__Compliments to the chef...__ __[Beyond Meat](https://robinhood.com/stocks/bynd)__ enjoyed the biggest 1st day jump of any stock since 2000: +163%. Shares of the plant-based protein pioneer actually surged so fast they had to be halted by Nasdaq. Despite just $90M in annual revenues, Beyond is now worth twice as much as all of __[Shake Shack](https://www.robinhood.com/stocks/SHAK)__ ($3.8B vs. $1.8B).

__It's all about *reducetarians*...__ Not vegans. A Nielsen survey says just 6% of Americans are vegetarian, and half that are veganites. But 39% now [crave](https://www.nielsen.com/us/en/insights/news/2017/plant-based-proteins-are-gaining-dollar-share-among-north-americans.html) to eat more plant-based foods and less animal-based ones. Beyond's pea-based protein strategy is targeting those meat "reducetarians."

- __Grocery stores (58% of revenues):__ Beyond's sold in 15K so far — And 93% of Kroger customers who bought the Beyond Burger [also](https://www.forbes.com/sites/greatspeculations/2019/05/01/pre-ipo-coverage-beyond-meat-bynd/#39bd9bf95fd3) bought animal meat.
- __Restaurants (42%):__ Beyond Burger is served in 12K restaurants that also offer plenty of beef — Carl’s Jr., TGI Fridays, and BurgerFi.

Bleed

__A big IPO isn't necessarily a successful IPO...__ Beyond Meat issued 9.5M raw, new shares to brand new investors this week to raise  money to grow. Naturally, it aimed to sell at the highest price. Thursday's insane jump though shows it under-priced the shares and could have raised more money:

- __$25/share:__ That's the price at which Beyond Meat issued shares = __$238M raised__.
- __$68.70/share:__ That's the price after Day #1 of trading = __$653M potentially (but not) raised__.
- __$415M:__ that's how much money Beyond Meat "left on the table" by IPO-ing at a share price that seemed to be too low.


Beyond Meat surges 163% on record IPO day

__Free-to-play video games...__ are the arch-enemy of pay-to-play companies like __[Activision Blizzard](https://www.robinhood.com/stocks/ATVI)__. The gamer's 1st quarter revenues fell 8% from last year — And since gaming juggernaut __Fortnite__ (owned by private company Epic) took over social lives beginning July 25, 2017, Activision's stock is down 28%.

🎮 __Q1 Lowlight:__ *Monthly active gamers dropped to 345M from 374M last year.*

__Pwnd by Fortnite...__ Activision's new games [aren't impressing](https://www.barrons.com/articles/how-fortnite-spoiled-the-party-for-electronic-arts-and-activision-blizzard-51547858173), so it's trying out different ways to win: 

- __Make addicting games:__ Average time spent by customers on its games was *50 minutes per day* last quarter.
- __Learn to play their game:__ Fortnite trained a generation of players to pay money for extra, in-game features (virtual players need costumes) — But those sales actually fell for Fortnite from $1B to $800M. 
- __Build stadiums:__ *Overwatch* League (a pro e-sports tournament) depends on live-gaming with live fans of Activision's popular battle game. It's launching *Call of Duty* League soon, too.

Play

__Gamers need to stay focused...__ To deal with shrinking revenues, Activision already laid off [750](https://www.hollywoodreporter.com/news/activision-blizzard-revenue-slumps-massive-layoffs-1207007) employees this year to cut costs. The still-active Acti-visionaries (new nickname) are working on its top games only — *Call of Duty, Overwatch,* and *Warcraft* — which are on their last lives. Others are already Game Over (RIP, *Destiny*).

Activision Blizzard still can't beat Fortnite

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

_Good, gooder, "beyond"_

Beyond Meat. Hangry.

__Call a cab...__ __[Molson Coors'](https://robinhood.com/stocks/tap)__ night is over after shares fell 7% following its earnings report. The volume of alcohol it sold dropped 4.7% [worldwide](http://ir.molsoncoors.com/news/press-release-details/2019/Molson-Coors-Reports-2019-First-Quarter-Results/default.aspx) — That's its 6th-straight quarterly decline. One small piece of dignity salvaged: Coors light showed "improvement."

__Innovation cravings...__ Molson's feeling them. A highlight in the report was the brewer's [goal](http://www.molsoncoors.com/en/sustainability/responsibly-refreshing/drive-innovation) to introduce non/low-alcohol drinks to 100% of its markets by 2025. Here's who's making moves:

- __Alt-Beer:__ "Arnold Palmer Spiked" is its new 5% ABV drink that enjoyed “rapid growth” last quarter (no word on what this "malt beverage" is actually spiked with).
- __Tap Ventures:__ Molson's venture capital arm already [bought](https://www.brewbound.com/news/molson-coors-acquires-california-kombucha-maker) a California kombucha and invested in chai tea within the last year.
- __Cannabis drinks:__ Pot is legal in Canada, but the *edibles* laws are a bit hazy. So Molson [confirmed](https://www.cbc.ca/news/business/molson-coors-reports-weaker-1st-quarter-but-not-because-of-cannabis-legalization-1.5118712) its cannabis-infused drink lineup will arrive this fall once regulations get all cleared up.

__Beer is a shrinking market...__  Alcohol sales are slipping nationwide, but beer demand dropped the [most](https://www.wsj.com/articles/americans-are-drinking-less-alcohol-11547733600) (down 1.5% last year). Since the size of the liquid pie is shrinking, Molson's task of getting someone to drink their beer requires *converting* drinkers of the competition. Unfortunately, __[Bud](https://robinhood.com/stocks/bud)__ spends a ton on beer advertising, and __[Corona](https://robinhood.com/stocks/stz)__ has (almost) caught Coors in sales.

Molson Coors falls 8% despite kombucha/canna-beer bets

__Extra shrimp cocktail...__ __[Royal Caribbean's](https://www.robinhood.com/stocks/RCL)__ profits popped 14% from last year to $250M during "wave season" (official industry [jargon](https://www.cntraveler.com/story/what-is-wave-season-for-cruises) for Americans flocking south for winter). Tickets rose, on-board spending increased, and the share price closed in on a record high. 

__Man down...__ For the rest of the year, Royal's facing currents in both directions:

- __Bad & embarrassing:__ The "Grand Bahama Shipyard Incident of 2019." Two cranes [dropped](https://www.rclinvestor.com/press-releases/release/?id=1407) on docked ships during routine maintenance, canceling three "Oasis of the Seas" voyages.
- __Bad & out of its control:__ With the stronger US dollar, profits earned in euros (Royal runs German and Spanish cruisers) translate to fewer dollars. Plus, fuel prices rose.
- __Good & awesome:__ It's raising prices for beds on its ships (the ones with the folded towel origami animals) — Up 7.5%-9.5% across the board.

Cruise

__Pricing power is a rare muscle...__ Royal is swole with it. It raised prices 7.2% last quarter, but passengers kept coming. That vacation splurging signals a strong economy, consumer confidence, and demand for the Royal treatment. Competitors like __[Carnival Cruises](https://robinhood.com/stocks/ccl)__ also rose Wednesday as Royal captains capitalize on price hikes.

Royal Caribbean jumps 7% on its pricing superpower

__Square. A really sexy cash register...__ It looked more like a wad of street cash Wednesday. Shares fell 6% after __[Square](https://www.robinhood.com/stocks/SQ)__ [reported](https://techcrunch.com/2019/05/01/square-reports-q1-sales-of-489m-up-59-but-net-loss-widens-to-38m/) a big loss and slowing revenue growth. Tough combo.

__It's all over your money...__ Square launched with dongles to let farmers markets accept credit cards for beets. Then it evolved  into sleek iPad-connected credit card swipers for your morning latte routine. But it's blown up into a whole financial services beast for small business. Now it's even curious about consumer finance: 

- 🏦 __Square Capital:__ If your barbershop clippers broke so you need some cash, Square's there. It inked 70K loans last quarter worth $508M, up 50%.
- 💻 __Subscriptions:__ Its main money-maker. Barbershops can pay monthly for software to handle the accounting books.
- 🤪 __Cash App:__ Square Cash has been on top of Venmo in the App Store for a while, offering pretty much the same peer-to-peer payment app.
- 🍤 __Other bets:__ Well-bearded CEO Jack Dorsey (also CEO of Twitter) is hiring crypto engineers. And Square owns Caviar, the gourmet-endowed food delivery app.

Swipe

__Square suddenly decided to do everything...__ Its stock rose from $12 at its 2015 IPO to $100 last fall, as it shockingly reached a profit (fast for a fast-growing tech company). But the stock has fallen as losses return. Those bets above show Square's big consumer and crypto ambitions. Reaching them costs $$$.

Square's many side-hustles killed profits

"_What do you mean, 'it's kombucha'?_"

The Molson Coors kombucha bet

__*Welcome to Zuckapalooza. Now please update your FB app*...__ Mark began __[Facebook's](https://robinhood.com/stocks/fb)__ F8 developer conference with a preview/tour of the redesigned Facebook: aka "[FB5](https://finance.yahoo.com/news/facebook-redesign-fb5-180931424.html)" (it's rolling out to users starting today). Facebook Dating is also expanding to the US later this year and 14 more countries right now — [Swipe right](https://techcrunch.com/2019/04/30/facebook-dating-secret-crush/) on any friend *or* indicate a friend-of-a-friend "Secret Crush."

__Operation FB5-star is a Group team effort...__ Go look at Facebook's app in the App Store — it has about as many 1-star as 5-star ratings. It's polarizing. This redesign is intended to improve that by focusing on Groups:

- __Better privacy:__ Worried those embarrassing freshmen year pics may go viral? Facebook's concerned, too. So it's emphasizing Groups and Messaging, which keep posts more contained.
- __Admins = Policemen:__ It doesn't have enough humans or AI to stop extreme content from reaching innocent eyes. So it's de-emphasizing the newsfeed, and letting your Group's Admin take down bad stuff.
- __*Potentially worse isolation:*__ Limiting chats to Group life means conspiracy theories, hate, and misinformation could potentially thrive even more.

Social

__This could hurt profits. It doesn't matter...__ It's not clear how this privacy focus will affect the Book's ad-tastic business model. But 18-29-year-olds are ditching Facebook [fastest](https://www.pewresearch.org/fact-tank/2018/09/05/americans-are-changing-their-relationship-with-facebook/) (usually for Insta, which Facebook also owns) because FB posting is too public. So it's disrupting itself with a more private version before a competitor does.

Facebook rolls out dating and one big redesign

__Pop the top-shelf McFlurry...__ __[McDonald's](https://robinhood.com/stocks/mcd)__ just notched its 15th-straight quarter of sales growth, jumping 5.4% globally. But McD's suffered two menu casualties: Its fancy burgers (the "Signature Crafted Recipes" lineup) is 86'd and its late-night menu is getting [trimmed](https://www.cnn.com/2019/04/18/business/mcdonalds-signature-craft-burgers/index.html).

__Ronald has settled into a 2-carb diet...__ And it's working. McDonald's [credited](https://news.mcdonalds.com/news-releases/news-release-details/mcdonalds-reports-first-quarter-2019-results) a pair of promotional foods for the strong 2019 start:

- __Donut Sticks:__ Added to the menu in February, the 280-calorie balanced breakfast headlined McD's new 2-for-$5 "Mix and Match" deal.
- __Bacon Day:__ The one-day event in January let you toss bacon on the side of any order. That delivered a single-day sales pop *and* an opportunity for diners to experience new menu options.

Chew

__The Breakfast Wars just got kicked up a notch...__ Fast food sales were flat last year overall, but breakfast sales rose 1%. Breakfast is now the last quick-serve food frontier because it's the meal you [most likely](https://www.cnn.com/2019/04/30/investing/mcdonalds-first-quarter-earnings/index.html) prepare at home. Donut Sticks were McD's latest Breakfast War attack — Here are the other recent battle moves:

- __[Burger King](https://www.robinhood.com/stocks/QSR)__ introduced a $5-a-month coffee [subscription](https://sprudge.com/burger-king-has-a-coffee-subscription-service-for-5-a-month-141811.html) in March.
- __Panera__ redesigned its morning menu in April.
- __[Dunkin'](https://robinhood.com/stocks/dnkn)__ launched two new sausage & egg-white breakfast bowls this week.

Bacon and Donut Sticks power McDonald's to a record high

__When a realtor brags about the house's plumbing...__ walk right out the door. Now __[Apple's](https://www.robinhood.com/stocks/AAPL)__ boasting in the [first paragraph](https://www.apple.com/newsroom/2019/04/apple-reports-second-quarter-results/) of its earnings about iPad and Watch sales — But they're just a sliver of company revenues. Overall, *Apple's profits fell* 16% because fewer people are upgrading to $1K iPhones (your $750 iBrick is still solid).

__Cash hookups are rising...__ as sales are falling. Apple's got a case of "lack-of-iPhone-growth," so it distracted shareholders with goodies:

- __The dividend is growing by 5%__ — Each quarter, Apple will wire almost $4B worth of company cash to stockholders based on the # of shares they own ($0.77 per share, to be exact).
- __It'll spend $75B to buy back some Apple shares__ — That increases the value of all the other shares out there by removing some from the market.
- *The result: __Apple stock rose 5% Tuesday__ because investors will get cash hookups.*

Trillions

__Apple's become a giant ATM...__ Even though business is shrinking, Apple has so much past and future profit that it's expected to surpass __[Microsoft](https://www.robinhood.com/stocks/MSFT)__ today to become the #1 most valuable company again.

- __The past:__ $225B in the [bank](https://www.cnbc.com/2019/04/30/apple-now-has-225-billion-cash-on-hand.html) from the good ol' iPhone days that it'll continue dishing out to shareholders as dividends + share buybacks.
- __The future:__ 900M people use iPhones right now. And Apple will make more money by mooching services off them like Apple TV+, Apple News+, Apple Music, Apple Pay.


Apple about to hit $1T valuation (again) as iPhone era fades

_Makeovers and Groups. Facebook's trying both_

Facebook's 5th makeover

__Off by a billion...__ Revenue growth for Google-parent __[Alphabet](https://www.robinhood.com/stocks/GOOG)__ decelerated hard in the 1st quarter to its [slowest](https://www.reuters.com/article/us-alphabet-results/google-parent-alphabets-revenue-misses-estimates-rises-at-slowest-pace-in-three-years-idUSKCN1S521N) pace since 2015. And the profit made off that *$1B-less-than-expected* revenue was also (you got it) less than expected. Shares tanked 7% after investors learned Google is ~~human~~ fallible. 
 
__"Hey Google: What is *competition*?"...__ It's Facebook, Twitter, Snapchat, and Amazon. All of them have surging advertising divisions and they're all bad for Google. Here's the ad growth scoreboard for Q1:

- __[Snap](https://www.robinhood.com/stocks/SNAP)__: +39%
- __[Amazon](https://www.robinhood.com/stocks/AMZN)__: +34%
- __[Facebook](https://www.robinhood.com/stocks/FB)__: +26%
- __[Twitter](https://www.robinhood.com/stocks/TWTR)__: +18%
- __*Google: +15%*__ 
- *Perspective: In fairness, Google's ad biz is the largest of all these by far — 2x bigger than Facebook's, and 100x bigger than Snap's*.


Search

__Google's monopoly game is over...__ For 15 years, its business model was to grow the internet (developed to developing nations, desktop to mobile), then reap more and more $$ off it with online ads. Now it's ad-dependent — Ads are 86% of its revenues. With today's real competition, Google needs to embrace a new skill or embrace less growth.

Google falls 7% because Big Tech stole its ads

__Hitting 100M app downloads deserves Adele's Grammy...__ Getting 100M humans to pay monthly for something is elite tech status — Netflix and Amazon have it, and now __[Spotify](https://www.robinhood.com/stocks/SPOT)__ has joined the band, too. Quarterly earnings showed 217M people logged into Spotify accounts at least once a month. Here's who they/you are:

- __100M *premium* users (twice as many as Apple Music):__ Family and student discounts have cut the average amount users pay to just $5.27/month. But that's okay because streaming customers are "[very sticky](https://www.wsj.com/articles/spotify-narrows-loss-hits-100-million-subscribers-11556532073)" — "Premium" revenue makes up 90% of Spotify's total.
- __117M *free* users:__ They can jam out on "Taylor Swift Radio" until *Love Story* gets buzz-killed by a mortgage ad. Spotify's goal is converting them to Premium via those free trials and discounts. 

__*A scrub is a guy that thinks he's fly*...__ but doesn't make profits. If you're surprised Spotify lost $158M last quarter, remember it pays [70%](https://www.investopedia.com/articles/investing/120314/spotify-makes-internet-music-make-money.asp) of revenue back to artists like TLC and their record labels. And it splurged $500M lately to buy podcast companies...

Stream

__Pods are Spotify's profit puppies...__ CEO Daniel Ek thinks 20% of listening on his platform won't be music — that's why he calls Spotify an "[audio](https://newsroom.spotify.com/2019-02-06/audio-first/)" company. And it's why he bought Gimlet's pod portfolio in February. Spotify doesn't have to share revenue with podcasts because they're financed by their *own* in-pod ads. Or Spotify already owns them.

Spotify's $158M loss highlights why it needs podcasts 

__Same architect?...__ __[Marriott International](https://www.robinhood.com/stocks/MAR)__ and __Airbnb__ both announced shiny new ventures Monday. But they look a lot alike: Airbnb is entering the hotel biz, while Marriott is jumping into home rentals:

- __Marriott__ unveiled "[Homes & Villas](https://mashable.com/article/marriott-airbnb-competitor-homes-and-villas/)" — A booking platform for __shared apartments and houses__ (sounds Airbnb-ish). The best part for Marriott's hardcore customers: It's reward-program eligible.
- __Airbnb__ unveiled... it's actually not named anything yet. But this "[new category](https://www.cnbc.com/2019/04/28/airbnb-is-partnering-with-rxr-realty-to-convert-new-york-city-commercial-properties-into-a-new-category-of-urban-lodging.html) of urban lodging" begins with 10-floors of curated, designer-designed __high-end hotel-like units__ in NYC's Rockefeller Center. Airbnb calls it "authentic." New Yorkers doubt that.

__That's not where the similarities end...__ Both will feel more *hotel*, less *Craigslist*. They'll be maintained and cleaned by 3rd party management companies so you're not guessing whether the sheets are supposed to be off-white.

Host

__Same product, but different target customers...__ As Airbnb preps to IPO soon, Marriott doesn't want to lose its old school business travelers. And Airbnb wants its Millennials to stop wasting money at old school hotels. They're each dipping into the other's playbook to hospitably keep their same core users.




Marriott and Airbnb simultaneously unveil knock-offs (of each other)

_Googlers need to find a furry wall_

Spotify's 100M "Unprofitables"

__Scroll-worthy...__ __[Facebook](https://robinhood.com/stocks/fb)__ stashed aside $3B to prep for a big government [penalty](http://nymag.com/intelligencer/2019/04/facebook-sets-aside-usd3-billion-for-ftc-fine.html), but shares still hit 9-month highs — 500M people use Facebook Stories daily (aka Facebook's copy of Instagram Stories, which was copied from Snap). And __[Twitter](https://robinhood.com/stocks/twtr)__ enjoyed its 6th [straight](https://variety.com/2019/digital/news/twitter-q1-2019-earnings-1203195229/) profitable quarter in a row — Its user base isn't growing, but more people are using it *every day*. 

__Loyalty programs get VIP treatment...__ __[Starbucks](https://robinhood.com/stocks/sbux)__ rose on word membership in its Rewards [topped](https://www.cnbc.com/2019/04/25/starbucks-q2-2019-earnings.html) 17M, and it powers 40% of all transactions. __[Domino's](https://robinhood.com/stocks/dpz)__ sales rose 4% as its caloric commitment club [passed](https://www.cnbc.com/2019/04/24/dominos-ceo-some-random-third-party-wont-deliver-our-pizza.html) 20M members. And __[Chipotle](https://robinhood.com/stocks/cmg)__ boasted that its 1-month-old loyalty program already has 3M burrito faithful (but then the chain was [subpoenaed](https://www.cnn.com/2019/04/25/business/chipotle-illness-subpoena/index.html) over 2018 food illness issues).

__The cloud is making it rain...__ __[Amazon's](https://robinhood.com/stocks/amzn)__ profits [doubled](http://fortune.com/2019/04/25/amazon-quarterly-earnings-profits-cloud-computing/) even though its old school ecommerce sales slowed (so it's working to cut free Prime delivery down to one day). It's thanks to *Amazon Web Services,* which now powers 2/3 of total company profits. __[Microsoft](https://robinhood.com/stocks/msft)__ joined the $1T valuation [club](https://www.barrons.com/articles/can-microsoft-break-the-trillion-dollar-curse-51556330191) as cloud services now make up 1/3 of its revenues (plus, Windows software sales shockingly rose 9%).

__Set an intention...__ Like __[Lululemon's](https://robinhood.com/stocks/lulu)__ new 5-year plan to [evolve](https://www.cnbc.com/2019/04/24/lululemon-unveils-growth-plan-for-the-next-5-years.html) into a full-on lifestyle brand. It's releasing sneakers,  more deodorant, and fresh shampoo this year, and expanding travel/work khaki pants to double its men's biz. Then it goes experiential, with a 25K-square-foot Chicago store featuring meditation rooms, juice bars, and karma.

Highs

Who's up...

__Barbie carries the team...__ Her sales jumped 7% and Hot Wheels rose 4%. __[Mattel](https://robinhood.com/stocks/mat)__ has survived 2018's play-pocalypse (driven by the Toys 'R' Us bankruptcy), but it's also [recalling](https://www.latimes.com/business/la-fi-mattel-fisher-price-20190425-story.html) Fisher-Price sleepers linked to 30 infant deaths.

__Classic Tesla combo...__ First, Elon's Autonomy Investor Day [revealed](https://techcrunch.com/2019/04/22/tesla-plans-to-launch-a-robotaxi-network-in-2020/) his (aggressive) plan for 1 million robotaxis by 2020. Two days later, __[Tesla](https://robinhood.com/stocks/tsla)__ announced last quarter's loss was four times what analysts expected and it's down to just $2.2B in cash.

__Worst week of the year of the pig...__ for Chinese stocks. The Shanghai stock index dropped 6% even though the country's GDP growth beat economists' expectations. One big [worry](https://www.wsj.com/articles/chinas-new-gdp-data-shows-the-economys-biggest-vulnerability-is-growing-11555490553): That economic growth is increasingly driven by government-supported real estate development. It can't go on forever.

__Two big thermometers...__ Construction equipment can be a hefty measurement of the world's economic health — And __[Caterpillar](https://robinhood.com/stocks/cat)__ sales [slowed](https://markets.businessinsider.com/news/stocks/caterpillar-earnings-q1-earnings-send-shares-lower-2019-4-1028134452) in every region on Earth except North America. Meanwhile, __[Harley-Davidson's](https://robinhood.com/stocks/hog)__ weaknesses reflect trade war drama — Profits fell 27% last quarter for the bike victim of retaliatory tariffs.

Lows

...And who's down

__Venmo etiquette is [debatable](https://www.vox.com/the-goods/2018/10/12/17959636/venmo-etiquette)...__ Now __Venmo's__ numbers aren't. __[PayPal](https://robinhood.com/stocks/pypl)__ bought Venmo's parent company in 2013 for $800M. Last week, PayPal (finally) revealed Venmo's key info: Payments on the peer-to-peer payment platform jumped 73% to $21B in just the 1st quarter. But the big surprise was that total [*active digital users*](https://www.wsj.com/articles/venmo-has-40-million-users-outnumbering-most-big-banks-11556142906) is right up there with big banks:

- __[JPMorgan](https://robinhood.com/stocks/jpm):__ 51M
- __*Venmo: 40M*__
- __[Bank of America](https://robinhood.com/stocks/bac):__ 37M
- __[Wells Fargo](https://robinhood.com/stocks/wfc):__ 30M

🍳🚕☕ __= $$$...__ We also learned Venmo is expected to deliver PayPal $300M in revenues this year. So far, it has 4 main fees to make money off your endless friend-payback loop:
1. __Instant Transfers:__ 1% fee if you don't want to wait 48 hours to move that Venmo balance to your bank account.
2. __Credit vs Debit:__ A 3% fee to pay using your credit card instead of debit.
3. __Merchant fee:__ Venmo earns a small piece of the action when you pay Chipotle directly for a burrito bowl using the Venmo [app](https://www.businessinsider.com/venmo-chipotle-rewards-loyalty-program-launch-2019-3).
4. __Interchange fee:__ It also takes a slice when you swipe its prepaid physical debit card, just like credit card companies do.

Charge

__Emoji aren't a competitive advantage...__ PayPal's relying on your post-brunch venmoing game to protect its growth with Millennials and Gen Z. The CEO believes "the magic is its social experience." But __[Square's](https://robinhood.com/stocks/sq)__ Cash App with 15M monthly users now [outpaces](https://www.barrons.com/articles/squares-cash-app-downloads-outpace-venmo-again-analyst-says-51549384522) Venmo in app downloads. And while Venmo thinks users will jump at its own planned credit card, __[Apple](https://robinhood.com/stocks/aapl)__ and __[Goldman](https://robinhood.com/stocks/gs)__ just teamed up for one, too. 😥

PayPal reveals Venmo's secret numbers (as digital wallet wars heat up)

"_Who should we venmo for all this destruction?_"

40M Venmo-ers vs. Everybody

__Weird consistency...__ Four quarters in a row __[Amazon](https://www.robinhood.com/stocks/AMZN)__ has set record profits and slowed its revenue growth — Having already *Primed* most Americans and lots of Europeans, growth is bound to slow. Investors were glad it's wringing more profit juice from every eBuck. Here's how the money math worked out last quarter:

- __Revenues__ rose 19%
- __Costs__ only rose 13% 
- __Profits__ more than *doubled* to $3.6B 

__Strengths, weaknesses, and teases...__  Investors weren't overly impressed or upset. So they nudged shares up half a percent higher. 

- 👨‍🦳 __Old bets:__ Amazon.com ecommerce sales rose 10%, while Whole Foods and Amazon Go physical sales crept up 1%. 
- 👧 __New bets:__ Advertising is big now for Amazon, but it rose just 34% after almost doubling last quarter.
- 🇨🇳 __China rewind:__ Amazon failed in China by ending its 3rd party marketplace because nobody was using it (__[Alibaba](https://www.robinhood.com/stocks/BABA)__ and __[JD.com](https://www.robinhood.com/stocks/JD)__ already won there). International sales rose just 9% overall.
- 😍 __*OMG-OMG-OMG*:__ The CFO said Amazon's [working](https://www.theverge.com/2019/4/25/18516795/amazon-prime-free-one-day-shipping-update-earnings) on cutting free delivery time in half from 2 days to 1 day for Prime members. 

Ecomm

__AWS is still profit puppy #1...__ Amazon started building cloud services (aka renting out computer storage/power) back in '06. Few companies today don't use cloud, and most use Amazon Web Services (Apple pays Amazon $30M per month on it). AWS profit just hit $2.2B — Almost 2/3 of Amazon's total. Microsoft and Google are slowly catching up, but Bezos should promote the palm reader who helped him greenlight AWS 13 years ago.

Amazon scores 4th-straight record profit

__No room for milk...__ __[Starbucks](https://robinhood.com/stocks/sbux)__ shares overflowed to a record high after its earnings report. We were most interested in potential drama behind its latest loyalty program changes. But Starbucks first [shared](https://investor.starbucks.com/press-releases/financial-releases/press-release-details/2019/Starbucks-Reports-Q2-Fiscal-2019-Results/default.aspx) some personal updates:

- It's bringing back the __S'mores Frappuccino__.
- The __30,000th Starbucks__ just opened (in Shenzhen, China).
- And it's __investing $100M__ into a food/packaging-focused venture capital fund, probably to find the elusive spill-proof lid.
- The "Starbucks Rewards" loyalty program __now accounts for 40% of all transactions__, so we jumped into its details...

__Remember February 2016?...__ We do. Starbucks tweaked its reward points from per-visit to per-dollar-spent perks. People vented. [*Aggressively*](http://fortune.com/2016/02/23/starbucks-rewards-program-changes/). This month, Starbucks tweaked the program again — Drama-free this time. Participation jumped 13% from last year to 17M members.


__The future of rewards programs is smaller perks but more often...__ Airlines are doing away with biz class upgrades, offering drink vouchers instead. Looking at Starbucks' new program, it's the same thing — Rewarding you more often with smaller gifts. Here's the [system](https://thepointsguy.com/news/starbucks-announces-changes-to-rewards-program-effective-april-16/) that keeps us *just* caffeinated enough:

- It now takes 150 Starbucks Stars (=$75) __to earn a free drink__, not 125 (=$62.50).
- But along the way, you now get __"flexibility benefits"__ of free vanilla or espresso shots.

*Smaller perks. More often.*

Starbucks hits record high (despite loyalty program change)

__No white fence, Golden Retriever, or Buick Skylark...__ __[Walmart's](https://www.robinhood.com/stocks/WMT)__ got something totally different going on in Long Island's Levittown ([literal](https://www.newsday.com/long-island/nassau/levittown-history-in-photos-1.13458781) home of the suburbs). Thursday, it revealed its "Intelligent Retail Lab," aka [IRL](https://news.walmart.com/2019/04/25/walmarts-new-intelligent-retail-lab-shows-a-glimpse-into-the-future-of-retail-irl). In real life, this is an artificial intelligence-powered superstore of the future.  

__If you don't like FaceTiming...__ you'll hate this place. It's a spinoff of Walmart's "Store Number 8," the top-secret innovation lab where it's been cooking up ways to stay competitive against Amazon. 

- __The size:__ IRL is 50K-square-feet huge with 30K items for sale and 100+ humans stocking shelves or working check-out.
- __The cameras:__ IRL stuck lenses and sensors everywhere. Walmart says data is deleted weekly, but you'll want to iron your shirt before arriving onto the stage/grocery store.  
- __The AI help:__ Those cameras watch shelves, informing human associates when something runs out, goes bad, or if there's a disturbance on aisle 6.

Experiment

__AI: Helping humans or replacing them?...__ Both. Amazon's taken a more openly *anti-human* approach with its person-free and cashier-less Amazon Go stores. Walmart claimed yesterday its AI *helps* humans operate more efficiently. That's a feel-good, PR-friendly take on how Walmart's handling the question of the century. 

Walmart unveils "Store of the Future"

_Every time you get free Starbucks anything_

One-day Prime is coming

__The FTC would like a word with Zuck...__ The social network is expecting a [gigantic fine](https://www.npr.org/2019/04/24/716886822/facebook-could-face-up-to-5-billion-fine-for-privacy-violations) ($3B-$5B) from the Federal Trade Commission for violating users' privacy by hooking up Cambridge Analytica with data. Facebook's profits fell 51% because it's prepping the legal splurge account with $3B right now.

__Zucks fly together...__ Investor bandwidth focused on a bunch of big tech earnings that all seemed to arrive together:

✍️ __[Facebook](https://www.robinhood.com/stocks/FB):__ Its core business of filling your newsfeed with shockingly on-point ads did well (sales rose 26%) and daily users rose 8%. Shares jumped 7% despite the huge looming fine. 

🦄 __[Microsoft](https://www.robinhood.com/stocks/MSFT):__ Welcome back to the *Platinum Platypus* club, Microsoft. The OG tech giant is [worth](https://www.businessinsider.com/microsoft-earnings-fiscal-q3-revenue-profit-2019-4) over $1T again courtesy of a 41% jump in cloud computing sales. Even throwback Windows was up 9%.  

⚡️ __[Tesla](https://www.robinhood.com/stocks/TSLA):__ We already knew its 1st quarter car deliveries struggled, but its loss was [twice](https://www.nytimes.com/2019/04/24/business/tesla-earnings-elon-musk.html) as big as analysts expected. Elon promises it will make money the next three quarters, but it's down to just $2.2B in cash in the bank. 

Earn

__Wall Street's winning percentage would lead the AL East...__ [72%](https://insight.factset.com/will-sp-500-report-an-actual-year-over-year-decline-in-earnings-in-q1-2019) of companies in the S&P 500 that reported earnings through Tuesday had beaten analysts' profit estimates. That percentage deserves an MVP. But Wednesday was a tad more mixed, with [__Caterpillar__](https://www.robinhood.com/stocks/CAT) and __[AT&T](https://www.robinhood.com/stocks/T)__ disappointing.

Facebook's $3B fine, Microsoft's $1T value, Tesla's $2B cash

__No time for *shavasana*...__ __[Lululemon](https://robinhood.com/stocks/lulu)__ was busy revealing its 5-year strategic plan, heroically christened “The Power of Three.” It began with a humble brag ("*we've [already delivered](http://investor.lululemon.com/news-releases/news-release-details/lululemon-unveils-power-three-strategic-plan-accelerate-growth) on several 2020 goals*") and then focused on three big new ones — two are huge, one is surprising:

1. __"Product innovation":__ Lulu's [designing](https://www.businessinsider.com/lululemon-sneakers-take-on-nike-adidas-2019-4) its own sneakers this year and expanding its khaki-infused office/travel/commute wear.
2. __"Market expansion":__ Double its men's business (see khaki reference above), double online sales, and quadruple international sales. Ambitious.
3. __"Omniguest experience":__ This one intrigued us. More below.


__"Sweatlife" is why you athleisure...__ Lulu's calling us "guests" instead of customers. The omniguest element of its master plan is about transforming beyond stretchy cloth into “an experiential brand for people living the sweatlife.” Sweatlife looks like this:
- Lulu shampoo, deodorant, moisturizer, and __other self-care bathroom shelf-stuffers__ through partnerships (SoulCyle is partner #1).
- A new __25K-square-foot mega-store__ in Chicago with meditation space, yoga studios, and a juice bar. It's so big you'll lose yourself (and then find yourself).

Sweat

__It all comes down to sales channels...__ Lululemon owns them. Yes, you can find its high-rise yoga leggings on Amazon. But Lulu mainly sells directly through its own website and stores. No retail middleman means more profits namastaying with Lulu.

Lululemon reveals 5-year plan: sneakers, shampoo, "sweatlife"

__Extra cheese...__ Despite vicious competition, __[Domino's](https://www.robinhood.com/stocks/DPZ)__ quarterly sales still rose 4%. But the highlight was new CEO Ritch Allison [defending](https://www.cnbc.com/2019/04/24/dominos-ceo-some-random-third-party-wont-deliver-our-pizza.html) the chain's contrarian delivery strategy: Domino's handles its own deliveries instead of using those flashy new apps. And it's proud of it. 

__Dough-to-door delivery happens under the Domino's brand...__ Meanwhile, __[McDonald's](https://robinhood.com/stocks/mcd)__, __[Starbucks](https://robinhood.com/stocks/sbux)__, and __[Chipotle](https://robinhood.com/stocks/cmg)__ use third-party delivery apps __DoorDash__, __Uber Eats__, or __Postmates__, with aggressive discounts to lure new eaters. That delivery outsourcing can cut costs and boost sales. But Ritch has problems with it:

- __Quality:__ DoorDash's gig workers won't treat the pizza with the same love and care as Domino's faithful deliverers would.
- __Fees:__ Uber Eats would snag 15%-30% of each order, and that adds up.
- __Data:__ Postmates won't share key info about the orderer with Domino's. So Ritch won't give up data to "some third party who will ultimately use it against us." 

Deliver

__Domino's has an obsession for the customer (data)...__ Acting like a tech company, Domino's has converted tons of phone call deliveries into app-ordered ones. Not only does Domino's keep the entire pizza bill by delivering on its own — It also understands eaters' eating habits. Knowing your Saturday late-night order helps it better sell you pizza midweek. 

Domino's jumps 5% as CEO defends in-house delivery

_Facebook finally terminates Cambridge Analytica_

Lulu unveils sneakers, shampoo, "sweatlife"

__Snap back...__ First, CEO Evan Spiegel changed his office uniform from t-shirt to nicer t-shirt. Then [__Snap__](https://www.robinhood.com/stocks/SNAP) rolled out its [Games](https://www.snap.com/en-US/news/post/snap-partner-summit-introducing-snap-games/) initiative last month. Now the mojo's officially returned after its 1st quarter earnings beat expectations. Our highlights:

- __Revenues rose__ 39% to $320M.
- The number of Snapchat __daily users rose__ 2% to 190M — That's more than Twitter.
- A [new Android app upgrade](https://www.theverge.com/2019/4/8/18300720/snapchat-android-app-rebuilt-release-speed-bugs-features) is finally done that's less derpy. It's already __increased snaps sent__ by 6% in the first week because the app simply opens faster.  
- It spent more cash on the biz than it made (aka "negative cash flow") but that __deficit shrank__ from $232M to just $66M.

__World War Gen Z...__ This report was a reminder of how incredibly [engaged](https://www.theverge.com/2019/4/23/18513016/snapchat-snap-earnings-call-release-users-android-app) the youngest generation of adults (and future adults) in America is with Snap:

- 75% of 13-34 year-olds snap daily.
- 90% of 13-24 year-olds do.
- And they're all still the "[most coveted demographic](https://www.marketplace.org/2017/12/08/business/coveted-18-34-year-old-demographic)" for advertisers.

Chat

__But are they taking ads from Facebook?...__ Both [__Twitter__](https://www.robinhood.com/stocks/TWTR) and Snap's earnings delighted Tuesday (Twitter stock rose 16%, Snap gained 7%). Both grew ad revenues — But where were those ads before switching to Twitter & Snap? They could've taken ads away from Google or Facebook. Zuck will reveal some answers when his baby releases earnings later today. 

Snapchat's big comeback step

__Schedule more playdates...__ with the Pawtucket, RI-based team over at [__Hasbro__](https://robinhood.com/stocks/has). The 2018 Toys 'R' Us bankruptcy dropped toy sales nationwide 2% last year. But Hasbro stock jumped 14% Tuesday on signs it survived the play-pocalypse.

- __February 2019:__ Hasbro [revealed](https://www.wsj.com/articles/mattel-hasbro-stung-by-collapse-of-toys-r-us-11549634019) its toy sales fell 13% over the holidays (blames Toys 'R' Us).
- __Yesterday:__ Hasbro's 1st quarter sales *rose* 2% — Their first gain in six quarters.

__Dust off the top-bunk play box...__ Hasbro has found new retail shelf-space in grocery and drug stores to replace losses at Toys 'R' Us. But here are the toys heroically [headlining](https://www.reuters.com/article/us-hasbro-results/transformers-toys-demand-helps-hasbro-beat-revenue-estimates-idUSKCN1RZ0ZC?il=0) its comeback:

- __Classics:__ Play-Doh and Monopoly sales rebounded hard.
- __Hollywood:__ *Transformers* got another movie (*BumbleBee* made $470M @ the box office) and an action figure with big sales.
- __Virtual:__ Forget cards. "Magic: The Gathering" now has a very real e-sports competition called "Arena" (and Hasbro's monetized it).

__It's all about "The Disney Playbook"...__ *Turn your childhood characters into profit ecosystems*. __[Disney](https://robinhood.com/stocks/dis)__ pumps out Star Wars theme parks and toys to complement its films. Hasbro rival __[Mattel's](https://robinhood.com/stocks/mat)__ giving Barbie live-action big screen [treatment](https://variety.com/2019/film/news/warner-bros-closes-deal-with-matell-barbie-margot-robbie-1203102234/) this year. To keep up, Hasbro needs a movie/event/resort future for its Nerf/Twister/Furby past.


Hasbro's best day in 20 years is thanks to Play-Doh and Transformers

__Update: The trade war's still raging...__ The US reamins in tit-for-tat mode with China and Europe on international trade. And the  trade taxes slapped on each other (aka tariffs) oozed out of Tuesday's serving of earnings reports. 

🤬__The loser:__ __[Harley Davidson](https://www.robinhood.com/stocks/HOG)__ — Its profits dropped 27% and shares fell Tuesday.

- Europe and China targeted Harley for [retaliatory](https://qz.com/1602441/trump-threatens-tariffs-following-harley-davidsons-earnings/) tariffs because the brand is so tattoo-ably American. That made bikes more expensive to customers abroad, hurting sales.

💵__The winner:__ __[Whirlpool](https://www.robinhood.com/stocks/WHR)__  — Its profits rose 10% and shares jumped Tuesday.

- Whirlpool's American-made washing machines have an advantage on __Samsung__ and __LG's__ Korean-made ones. Those two had to raise prices because of US tariffs. Whirlpool didn't... [*but did anyway*](https://www.cnn.com/business/live-news/stock-market-news-today-042319/h_92a214ac0d4ab10fa6e446bffc07b7b1). So fewer Whirlpools were sold, but the sold ones were more profitable.


Trade

__Tariffs aren't equal opportunity impacters...__ Most of America's economy is service-related. Apps, software, billable hours, haircuts. None of that is affected by tariffs, which hit imports and exports only. That's mainly manufacturing companies, like Harley and Whirlpool — And the impact is amplified (positively or negatively).

Tariffs hurt (Harley) and helped (Whirlpool)

_Toys without movies < Toys with movies_

Play-Doh & Transformers save Hasbro

__Feels like home...__ But isn't. Online real estate platform __[Zillow](https://robinhood.com/stocks/z)__ [expanded](https://www.engadget.com/2019/04/22/zillow-3d-home-tours-available-across-north-america/) its virtual reality feature Monday so you can tour that cozy 1-bedroom without schlepping there. But shares fell 4% on a *WSJ* [report](https://www.wsj.com/articles/will-zillows-flip-flop-11555844401?mod=djemheard_t&utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosmarkets&stream=business) that its "iBuying" house-flipping strategy may "flop."

- __The iBuying concept:__ Zillow will buy your house, often without seeing it, based on the price its algorithm says it's worth. Then Zillow sells it so you don't have to.
- __Your benefit:__ Speed. Convenience. No dressing up your studio to let strangers in to judge it.
- __Your cost:__ You pay Zillow a higher selling fee for that service.

__iBuying is like an affordable 2-BR NYC apartment w/ washer/dryer & AMAZING view...__ Maybe too good to be true. Zillow stock jumped 25% in Feb. when the CEO announced it was doubling down on iBuying. But shares are back down now on word Zillow's not making as much off the higher fee — And on the increased risks of owning tons of homes.

- __2018:__ 4% of Zillow's revenue came from iBuying.
- __2019:__ The percentage of revenue from house-flipping is predicted to rise to 41%.

Home

__Not all middlewomen can be cut...__ It's worked for mattresses and razor blades. But home selling is a unique, life-changing, big-money event. People may just want the handholding of a real estate agent, even if it costs money and time, to make sure the sale goes down smooth. Zillow's betting against that.

Investors turn on Zillow's agent-cutting "iBuying" strategy

__Set your watch to Elon-time...__ which is typically 18 months late. That's critical context for __[Tesla's](https://www.robinhood.com/stocks/TSLA)__ big autonomous driving update — Just as other carmakers [push back](https://www.engadget.com/2019/04/10/ford-ceo-says-the-company-overestimated-self-driving-cars/?dlbk&te=1&nl=dealbook&emc=edit_dk_20190422) timetables for robotaxis, CEO Elon Musk said this Monday:

- __The surprise:__ “All Teslas produced today have everything necessary for full self-driving — All you need to do is improve the software.“
- __The bold claim:__ He's "very confident" Teslas will be fully self-drivable by next year. 

__Airbnb your Tesla in an Uber network for Teslas...__ Here's the vision revealed Monday: Once the Teslas can drive themselves, owners can add their cars to the Tesla Ride-Sharing App. Elon sees it like [this](https://techcrunch.com/2019/04/22/tesla-plans-to-launch-a-robotaxi-network-in-2020/):

1. Tesla owner doesn't need it for a few hours, so __switches to "share mode"__.
2. That Tesla gets __summoned__ by someone who needs a ride.
3. Self-driving system __handles entire ride__ (don't forget to rate the robodriver).
4. Tesla __returns__ to the parking spot to await its owner.
5. __The ride fare gets split__: Tesla keeps 25%-30%, Tesla owner keeps the rest.




Self-drive

__This announcement was sooo Tesla...__ Shares are down over 30% from their high on weak 1st quarter sales and endless legal/boardroom issues. But Musk wants investors to look past today's drama for tomorrow's moonshot ideas. 

- *If Tesla can* offer customers electric cars that can also earn them money Airbnb-style, that's powerful.
- *If Tesla can't*, Elon needs another trick/event.


Tesla details 2020 Robotaxi plans

__Cue the hazing ritual...__ __[Kraft Heinz](https://robinhood.com/stocks/khc)__ announced Monday it's replacing its CEO with Miguel Patricio. Shares barely budged on the switch, but they're still down 43% in the past 12 months. Some of that's caused by you not eating hot dogs and mac anymore. The [rest](https://www.reuters.com/article/us-kraft-heinz-ceo/kraft-heinz-hires-global-brand-expert-patricio-as-ceo-idUSKCN1RY0X7) is on the company:

1. Kraft Heinz revealed in Feb. that its Oscar Mayer and Kraft brands were __worth $15B less than expected__.
2. Then __it cut its quarterly dividend__ payout to shareholders by over a third because of smaller profits.
3. __And the SEC's investigating it__ over something in its accounting books.

__*An "obsession for cutting costs*"...__ That's been the un-fun, un-secret, unsuccessful formula baked into Kraft Heinz lately. It's [the business doctrine](https://www.reuters.com/article/us-kraft-heinz-ceo-strategy/kraft-heinzs-new-ceo-looks-beyond-cost-cutting-big-ma-idUSKCN1RZ007) of Brazilian private equity firm 3G, which teamed up with Warren Buffett to finance the $49B Kraft and Heinz merger back in 2015 (3G also bought Budweiser). Cutting company-wide budgets may have made some short term extra profits, but insiders say it's [hurting](https://www.reuters.com/article/us-kraft-heinz-ceo/kraft-heinz-hires-global-brand-expert-patricio-as-ceo-idUSKCN1RY0X7) long term sales.

Talent

__Kraft's pulling a 180...__ "I bring a very different profile" (Patricio's words, not ours). The former Budweiser exec focuses on more than just ruthless low-cost efficiency — He expanded beer brands abroad at Bud. Now Kraft Heinz wants him to pour the same marketing formula on its ketchup to revive sales.

Kraft Heinz hires new CEO to end stock dive

_When you wish your driver wasn't human_

Tesla's Ride-Sharing App Tease

__Get Yoshi a passport...__ For the first time, the Chinese government will allow __[Nintendo's](https://robinhood.com/stocks/NTDOY)__ Switch gaming console to be sold in China, along with a new Super Mario Brothers game. Shares of the Japanese legend jumped 12% to their highest point in 6 months as they enter Earth's [biggest](https://www.cnn.com/2019/04/19/tech/nintendo-switch-tencent-china/index.html) gaming market.

__Acquisition with an asterisk...__ Canadian cannabis icon __[Canopy Growth](https://robinhood.com/stocks/cgc)__ rose 4% for its 4/20 Eve "[complex](https://www.barrons.com/articles/marijuana-stocks-jump--deal-by-canopy-growth-acerage-holdings-51555599196) transaction with a simple objective": *Buy American pot producer __Acreage Holdings__*. The $3.4B deal only happens if the US government first legalizes cannabis nationwide. If it does, Canopy will own Acreage's 20-state head start. 

__Best week ever...__ First __[Qualcomm](https://robinhood.com/stocks/qcom)__ ended its patent dispute with __[Apple](https://robinhood.com/stocks/aapl)__. Then it rekindled the relationship — iPhones will be powered by Qualcomm chips for the next six years (at least). The cherry on top was the announcement from Qualcomm's only other real competitor in 5G phone chips — __[Intel](https://www.robinhood.com/stocks/INTC)__ — that it's [quitting](https://www.theverge.com/2019/4/16/18411332/intel-exiting-5g-smartphone-modem-market-apple-qualcomm-settle-dispute) that biz. Add it all up and Qualcomm stock rose 42% last week.  

__"Alexa, what happened to Spotify stock?"...__ It fell after __[Amazon](https://www.robinhood.com/stocks/AMZN)__ stealthily [launched](https://techcrunch.com/2019/04/18/amazon-music-echo-ads/) free music (with ads) for anyone with an Echo device (no Prime membership needed). Now __[Spotify's](https://www.robinhood.com/stocks/SPOT)__ not the only one offering *Adele* for free, streaming, and on-demand.

__If these two should not be joined in matrimony...__ speak now. The Justice Department might. The *WSJ* [reported](https://www.wsj.com/articles/t-mobile-sprint-deal-runs-into-resistance-from-doj-antitrust-staff-11555446461?mod=article_inline) that regulators plan to block the $26B merger of US telecom's #3 and #4 players because it would be an "unacceptable threat to competition." That dropped shares of __[Sprint](https://robinhood.com/stocks/s)__ and __[T-Mobile](https://robinhood.com/stocks/tmus)__.

*Bonus: T-Mobile also just launched a banking product — [More on that in our podcast](https://itunes.apple.com/us/podcast/marketsnacks-daily/id1386234384?mt=2)*.

__Describe your pain on a scale from 1 to 10...__ Healthcare investors are feeling it as the 2020 election oven preheats. "Medicare For All" from the left has health insurers __[Cigna](https://www.robinhood.com/stocks/CI)__, __[United Health](https://www.robinhood.com/stocks/UNH)__, and __[Anthem](https://www.robinhood.com/stocks/ANTM)__ down over 10% in just six trading days. And [momentum](https://www.axios.com/bipartisan-push-to-lower-drug-prices-efceecdf-efc4-4464-bfc5-5163ad24b5a7.html?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiossneakpeek&stream=top) in DC to stop drug price-gouging has pharmaceutical companies [__Pfizer__](https://www.robinhood.com/stocks/PFE) and __[Eli Lily](https://www.robinhood.com/stocks/LLY)__ off over 8%.

__Rookie report...__ IPO-Palooza continued with Pinterest and Zoom, which both debuted Thursday. Digital tackboard Pinterest jumped 25% on day #1 of trading, while the video conference pioneer surged 72%. Here are the scouting reports:

__[Zoom's](https://www.robinhood.com/stocks/ZM)__ mission: *“To make video communications frictionless.”*

- __Opportunities:__ This century's flexible work-from-home rules boost corporate needs for non-brutal video chat.
- __Challenges:__ Google, Microsoft (which owns Skype), and Cisco are resource-rich and have been doing this for years.
- __Fun fact:__ Uber likes to zoom — Its employees [clock](https://www.sec.gov/Archives/edgar/data/1585521/000119312519083351/d642624ds1.htm) 14M meeting minutes of Zoom per month.


__[Pinterest's](https://robinhood.com/stocks/pins)__ mission: “*To bring everyone the inspiration to create a life they love.*”  

- __Opportunities:__ 80% of US women age 18-64 who have children use it. So do over half of Millennials. That combo sets trends.
- __Challenges:__ Pinterest says it's a social network for positivity — But social networks are ad companies, which means competing with Facebook and Google. __[Snap's](https://www.robinhood.com/stocks/SNAP)__ a case study in trying to do that.
- __Fun fact:__ 88% of Pinners [purchase](https://izea.com/2016/11/02/pinterest-purchasing-power/) a product they pin.


__One's focused on the now, the other on the future...__ The Silicon Valley pair evolved from unicorn status by going public, and they're both worth similar amounts based on their share price ($13B for Pinterest, $16B for Zoom). But Zoom's already profitable ($7.5M in 2018) with 344 customers paying $100K or more per year. Pinterest isn't profitable ($63M loss) with its 250M users. Not all ex-unicorns are [alike](https://www.bloomberg.com/opinion/articles/2019-04-18/zoom-and-pinterest-ipos-a-choice-between-reality-and-dreams), so it's best to learn up on their pedigrees.