__Founded by a New Yorker annoyed by sold-out spin classes...__ Now __Peloton__ is almost a publicly traded stock. The at-home fitness company trying to crush gyms (and hammies) just revealed its S-1 — that's the tell-all document every company must issue before its IPO (read the thing [here](https://www.sec.gov/Archives/edgar/data/1639825/000119312519230923/d738839ds1.htm)). The highlight was the numbers:

- Bike-powered revenues [were](https://www.cnn.com/2019/08/27/tech/peloton-ipo-filing/index.html) __$915M__ last year.
- But costs were way more — especially the marketing splurge on those Jay-Z [soundtracked](https://www.ispot.tv/ad/dfnS/peloton-on-to-the-next-song-by-jay-z) commercials, leading to a loss of __$196M__.

__For thousands of $$$, Peloton instructors will yell at you...__ from the comfort of your own basement. Here's the value prop, which has converted 613K spinners to become Pelotonians/Pelotonistas.

- __Really expensive equipment:__ A $2,245 indoor bike or a $4,295 treadmill, both with HD touchscreens. Perfect reach wedding registry item.
- __Pricey monthly subscription:__ $39/month for streaming fitness classes, taught by super fit, probably good-looking instructors with Instagram-toned muscles.
- __Once a Pelotoner, always a Pelotoner:__ Only 0.65% of its monthly subscribers cancel each month. That's loyalty.

_The plot for Peloton's IPO, in 1 picture_

Reveal

__This is all the trends in one hill climb...__ Peloton thinks  there are enough high-income earners craving abs *and* time by exercising at home. That's earned it a $4B valuation in the private market. Once it IPOs, regular investors have a chance to own shares of this Franken-monster of business models. Here's what Peloton's like:

- __Netflix:__ Peloton is a media company with a library of original content.
- __Apple:__ Peloton makes beautifully-designed hardware that's top-shelf price.
- __Casper:__ Peloton sells directly to consumers, with 74 of its own retail showrooms.

Peloton takes off its bike shorts to show off its pre-IPO financials

__Second time's a charm...__ __[Altria](https://robinhood.com/stocks/MO)__ and __[Philip Morris International](https://robinhood.com/stocks/PM)__ both sell Marlboro cigarettes. Altria's got dibs on the US market and Philip covers the rest of the world. They used to be the same company, then they split, now they confirmed they're trying to merge again. Here's the relationship timeline.

- __1998:__ The tobacco companies settled with 46 states plus DC for [$246B](https://www.npr.org/2013/10/13/233449505/15-years-later-where-did-all-the-cigarette-money-go) for the health damages they helped create. That's. A lot. Of money.
- __2008:__ Fearing another lawsuit, Altria split off Philip and gave it a foreign passport — that shielded PMI from American lawsuits and anti-smoking legislation.
- __Now:__ With tobacco sales [declining](https://www.wsj.com/articles/philip-morris-altria-discussing-all-stock-merger-of-equals-11566913969) globally (except some developing markets) the two want to move back in to save money. Picture that couple paying $2K each for studios in TriBeCa. Shares fell for both companies on the uninspiring news that it's just a practical move.

Rekindle

__Tobacco's not even worth suing anymore...__ Health worries had already crushed cigarette growth — now existing smokers are gravitating toward e-cigs and cannabis.

- Altria's sales are 35% lower than ten years ago.
- PMI's have dropped 10% over the same decade.


Altria and Philip Morris hope to light back up together in cigarette love

__Need milk...__ __[J. M. Smucker](https://robinhood.com/stocks/sjm)__ dropped 8%, making it the worst-performing stock in the S&P 500 yesterday. The 4-generation, 122-year-old company is grumpy about 1 product: peanut butter.

__"Choosy moms choose Jif"...__ Now they choose humanely-raised alt-nut options. Sales of peanut butter and Smucker's other headline jam/jelly/butter foods fell 6% last quarter — the company is blaming grocery stores, which are cutting PB prices. But those retailers are discounting for 2 reasons:

1. __Gotta compete:__ With Amazon pushing harder into food and Walmart already America's biggest grocer, grocery stores are slashing prices to keep win customers. 
1. __The rise of the anti-peanut butters:__ Almond. Macadamia. Cashew with a little cinnamon swirl. More expensive fancy butters are [encroaching](https://www.reuters.com/brandfeatures/venture-capital/article?id=82896) on peanut butter's bread real estate.

"_Stay with me until the next earnings report, Strawberry!_"

Jammin'

__We need to redefine food “staples”...__ A staple = *“Eaten routinely and in such quantities that it constitutes a dominant portion of a standard diet.”* Peanut butter has always been one. And Jif was the staple food's staple brand. But as consumers upgrade their spreads and retailers downgrade prices,  old school "staples" like Jif are losing their staple "status."

Peanut butter price drop hits Smucker's hard

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

Peloton is Netflix, Apple, and Casper all in one

__Take one and call us in the morning...__ Mega drug company __[Johnson & Johnson](https://robinhood.com/stocks/jnj)__ was handed a verdict by an Oklahoma judge: *pay the good people of the state $572M for what you did*. 

- __The crime:__ J&J was over-selling Oklahomans about the application of its prescription pain medications and under-warning about the risk of addiction. 
- __The damage:__ In 2015, 326M opioid pills were prescribed in the state — that's enough for each adult to have 110 pills. And [6K died](https://www.npr.org/sections/health-shots/2019/08/26/754481268/judge-in-opioid-trial-rules-johnson-johnson-must-pay-oklahoma-572-million) from overdoses since 2000.
- __The penalty:__ $572M. But it's way less than the $17.5B the state's Attorney General pushed for.

__It's over for J&J in Oklahoma...__ But the legal tour goes on. Next is Cleveland, where a bunch of drugmakers and distributors suit up for another courtroom trial. J&J investors were pleased about the smaller-than-expected dent in the company's bank account — shares rose 3% despite the half-a-billion dollar fine.  

Judged

__Dirty corporate deeds will chase you for years...__ Johnson & Johnson's exited many of its opioid-dealing businesses. But its drug marketing has left huge emotional and physical wounds — these cases call it a "public nuisance" — which are now facing lawsuits in civil court. Fyi, over 2K other opioid cases remain.

The 1st big corporate opioid lawsuit: Johnson & Johnson got off not too bad

__New play-date for the Power Rangers...__ This one's with [Peppa Pig](https://www.peppapig.com/), the British kids show featuring alliteration-enabled animal characters. Toy icon __[Hasbro](https://robinhood.com/stocks/has)__ will is paying $4B for the company behind the cartoon, __Entertainment One__. Fun side fact: In addition to Peppa, Entertainment One also owns Death Row Records, the production company behind Dr. Dre.

__Peppa's got a passport for China...__ (stamped regularly). The Blues Clues-meets-Mary Poppins character is translated into 40 languages. But to Hasbro, she's a "Beachhead to go into China for many years to come.”

- She's been in China since the mid 2000s — and was temporarily [banned](https://www.independent.co.uk/news/world/asia/peppa-pig-ban-china-childrens-tv-cartoon-gangster-douyin-a8332846.html) once for "promoting gangster attitudes."
- Now she's [loved](https://www.npr.org/sections/goatsandsoda/2019/02/05/691501906/why-its-the-year-of-peppa-pig-in-china) by the People's Liberation Army (they do these military formations in the cartoon's honor).
- And she's got a spot on China Central Television (that's the state-owned channel).

Play

__"Disneyfication" is the future of entertainment...__ Hasb-rival __[Mattel](https://robinhood.com/stocks/MAT)__ is transforming Barbie from toy-to-franchise with her own real-life [movie](https://variety.com/2019/scene/news/margot-robbie-on-playing-barbie-it-is-a-great-opportunity-to-put-some-positivity-out-in-the-world-1203276988/) starring Margot Robbie. Hasbro wants a similar profit ecosystem with Peppa. But Hasbro stock had fallen as investors weighed the hefty price tag for the strategy — turns out __[Disney](https://robinhood.com/stocks/DIS)__ paid the same sum to get Star Wars back in 2012 as Hasbro splurged for Peppa.

Hasbro drops $4B on a kids TV program (and it got some rappers)

__Movie night! (*Unless it rains*)...__ That's the reality for '80s babies who grew up with a satellite dish. __[Dish Network's](https://robinhood.com/stocks/DISH)__ stock just enjoyed a "buy" [recommendation](https://www.cnbc.com/2019/08/26/dish-shares-climb-after-analyst-declares-an-opportune-time-to-buy.html) from a Wall Street analyst — only a month after it was hit with a "sell" recommendation. That made us want to sit down, kick off our shoes, and take a look at the satellite OG.

__While you were enjoying *Clueless* on Netflix...__ Dish Network realized it needed a makeover. 

- __The old Dish = *Pay TV*:__ It literally owns satellites that orbit the earth, sending signals to the dish jiggered to grandpa's garage. That biz has shrunk for years from cord-cutting.
- __The new Dish = *Wireless*:__ It's gearing up to launch 5G service for the Internet of Things ➡️ Connect your appliances so they buzz your phone when the wash cycle finishes. Dish is also acquiring Boost Mobile as part of the Sprint/T-Mobile merger.

Redefine

__Pay TV companies are evolving gorgeously fast...__ Just look at __[AT&T](https://robinhood.com/stocks/T)__: it's evolved from its landline past, acquired Time Warner, now owns HBO, and is going big on wireless and streaming. Telecom companies are becoming media giants. Dish hopes to Metamorphosize as gracefully, but hasn't quite yet. It's still almost 100% dependent on pay TV revenue because it's mid-makeover.

Dish Network faces mixed Wall Street reviews during its transformation

"_You're telling me I'm fined $572M, and my stock price increased?_"

The 1st corporate opioid verdict

__Retail-pocalypse survivor = Target...__ Shares surged 17% for Minnesota's pride-and-joy because its $7B Millennial makeover is winning — __[Target](https://robinhood.com/stocks/tgt)__ has remodeled 500 locations and just [unveiled](https://www.cnbc.com/2019/08/23/target-opens-100-mini-stores-remodels-500-bigger-ones.html) its 100th mini-store, where sales are actually rising. It [also launched](https://www.eater.com/2019/8/19/20812094/target-store-good-and-gather-grocery-food-brand) its biggest ever food brand, Good & Gather, which is smothered in organic-ness.

__5.6M wrists...__ __[Fitbit](https://robinhood.com/stocks/fit)__ just snagged them via a [big new client](https://www.forbes.com/sites/jamessomauroo/2019/08/22/fitbit-partners-with-singapore-government-to-offer-trackers-to-56m-people/#197dd03b2031): the government of Singapore wants its citizens wearing quasi-cool fitness trackers for a nationwide public health initiative. Sales for Fitbit's "health solutions", through partnerships like this, have jumped 42% from last year.

__11...__ That's how many times __[Estée Lauder](https://robinhood.com/stocks/el)__ dropped the term "travel retail" in [its latest](https://media.elcompanies.com/files/e/estee-lauder-companies/universal/investors/earnings-and-financials/quarterly-earnings/2019/q4/q4-fiscal-2019-earnings-release.pdf) earnings report. The makeup legend is squeezing splurge-cash from captive audiences stuck in airport terminals. The trend isn't limited to just EL's makeup and skincare sales — spending overall at airports tripled over 15 years, hitting $69B in 2017.

Highs

Who's up...

__New card, who dis?…__ __[Apple’s](https://robinhood.com/stocks/aapl)__ digital-first credit card with __[Goldman Sachs](https://robinhood.com/stocks/gs)__ went [live](https://www.apple.com/newsroom/2019/08/apple-card-launches-today-for-all-us-customers/.) nationwide to everyone with iPhones. Apple’s proud of its hoverability (you don't "swipe" your iPhone), privacy (the number changes with each transaction), and rando-coolness (it turns colors based on your purchase). But Apple's most innovative creation since AirPods couldn’t save the stock from the trade war cross-fire — nearly all Apple hardware is made in China.

__Fewer angel sightings...__ More bralettes and inclusive sizing. __Victoria's Secret__ missed that trend — and shares of its owner __[L Brands](https://robinhood.com/stocks/lb)__ plummeted to a [10-year low](https://www.cnbc.com/2019/08/22/victorias-secret-parent-l-brands-shares-tank-touch-near-10-year-low.html) after the lingerie icon's sales fell another 6% last quarter. The Chief Marketing Officer behind its push-up culture is out after 30 years and the company will stop broadcasting its fashion show.

__Propagandists ❤️ [Twitter](https://robinhood.com/stocks/TWTR), [Facebook](https://robinhood.com/stocks/FB), and [Google](https://robinhood.com/stocks/GOOG)...__ As activists in Hong Kong protest for more democracy, Chinese authorities started buying ads online. And posting a lot of [false details](https://www.reuters.com/article/us-hongkong-protests-twitter/twitter-discloses-china-backed-interference-in-hong-kong-protests-idUSKCN1V91NX). The social media platforms acted to crush the state-sponsored disinformation — a reminder to investors that online ads are good for mattress companies that want to sell to you... and dishonest governments that want to mislead you.

Lows

...and who's down

__If you snoozed news Friday...__ you missed a 24-hour drama of Twitter squabbling and real economic punching that unfolded in 4 parts: 

1. 🇨🇳 🤜 🇺🇸 __China__ announced it was increasing tariffs on a hefty $75B worth of stuff it buys from the US every year (including cars).
2. 🇺🇸 🤜 🇺🇸 __President Trump__ [wondered](https://twitter.com/realdonaldtrump/status/1164914610836783104) aloud on Twitter who was a bigger enemy to the US: China's President Xi or the Chairman of the Fed, Jerry Powell.
3. 🇺🇸 🤜 🇨🇳 🇺🇸 __Trump__ ordered US companies to start the process of removing production from China.
4. 🇺🇸 🤜 🇨🇳 __Trump__ increased all existing and planned tariffs on China by 5%.  

__As always with tariffs, there are plenty of losers...__

- __Cars:__ Besides Americans, China buys the 2nd-most US-made cars. Tariffs are like a tax raise on __[Tesla](https://robinhood.com/stocks/TSLA)__ (-5%), __[Ford](https://robinhood.com/stocks/F)__ (-3%), and __[BMW](https://robinhood.com/stocks/BMWYY)__ (-3% — the Carolina-made X5 is the #1 exported car in America, going mostly to China).
- __Toys:__ __[Mattel](https://robinhood.com/stocks/MAT)__ fell 7% because most of Barbie is made in China.
- __Electronics:__ Entertainment staples __[Best Buy](https://robinhood.com/stocks/BBY)__, __[Apple](https://robinhood.com/stocks/AAPL)__, and __[GoPro](https://robinhood.com/stocks/GPRO)__ were destined for punishment after producing in China.
- __Everything else:__ Tariffs will look to us like price increases on the stuff we buy, which JP Morgan [estimates](https://www.cnbc.com/2019/08/19/heres-what-new-tariffs-will-cost-an-average-american-household.html) will cost every American household $1K/year.

_A whole lot of trade war ping pong_

Drama

__The crazy curve is getting steeper...__ We've never seen so many economic punches thrown in one day. A crucial element of economic growth is business investment — and it's hard out there for a CEO to do that right now. With President Trump and President Xi openly calling each other names, both sides are less likely to back down and cooperate if it could make them look weak-ish. 

4 moments that made Friday the worst day of the Trade War

Your new $1K trade "tax"

__There's a disturbance in the universe...__ Spider-Man (we know — he should drop the hyphen) is stuck in the middle of it. And it's a battle between __[Sony](https://robinhood.com/stocks/sne)__ and Marvel Comics, which is now owned by __[Disney](https://robinhood.com/stocks/dis)__. Back in 2015, the two struck a deal:

- __The superheroes:__ Marvel's creative team includes Spider-Man in its films, but Sony surprisingly owns the film rights.
- __The money:__ In return, Marvel (now Disney) got 5% of the ticket sales from the 1st day of a Spider-Man movie release (+ all the merchandise $$) — Sony got the rest of the box office.
- __The switcheroo:__ Now Disney's proposed a new 50/50 plan — both companies pay the production costs and split the profits evenly. But Sony said 'No.'

__So who's got the Infinity Stones?...__ No one. If this doesn't get resolved, then Spider-Man [won't be](https://www.vox.com/culture/2019/8/22/20827020/spider-man-mcu-sony-disney-tom-holland) in any Marvel films in the future. That means Iron Man and Black Panther can't call on Peter to save the world the next time it inevitably faces eternal death. That would be bad for both Disney and Sony, but right now the talks show no signs of life.

"_Are spidey-hands why nobody wants me?_"

Negotiate

__We're witnessing the power of franchise ecosystems...__ That new Spider-Man movie *Far from Home* is now Sony's top-grossing movie ever. Meanwhile, Disney's *Avengers: Endgame* became the largest movie of all time, period. Both share characters, which drives engagement and future spin-offs. That's why Disney acquired Fox for $71B — it's adding 15 movie franchises to its Star Wars and Avengers treasure chest. And it just delivered a record film year.

Spider-Man is a victim of a Disney/Sony contract war

__Curling is having a moment...__ Sporting goods stores aren't. With Amazon competition and a decline in youth team non-virtual sports, __[Dick's Sporting Goods](https://robinhood.com/stocks/DKS)__ stock is below where it was 12 years ago (and compadre __The Sports Authority__ is RIP). But it showed it can still suit up and take the field, announcing quarterly sales rose 3.2%. But we're interested in its guns experiment.

__The school shooting in Parkland, FL in Feb, 2018 was heartbreaking...__ Dick's CEO Ed Stack took action by banning assault rifles and raising the age to buy a gun at Dick's to 21. He's also [deciding](https://www.marketwatch.com/story/dicks-sporting-goods-removed-hunting-category-including-guns-from-125-more-stores-2019-08-22) whether to ban firearms altogether at the sporting goods store (they're in the "hunting & shooting" section). Here are the two intense choices he's facing:

1. __Don't ban guns__, and potentially face the negative PR of selling a weapon used in a mass shooting.
2. __Ban guns__, and face the negative PR of being anti-2nd amendment.  

Experiment

__This is *claaaassic* "A/B testing"...__ That's when you isolate one variable, then measure two groups to see which was best — one with it, one without it. In the fall, Dick's ended gun sales at 10 of its stores. This spring, it did it for 120 more. Now it's watching the performance of two groups: 

- __Group A:__ 600 stores still sell guns & ammo.
- __Group B:__ 130 stores don't.

Management hasn't decided yet which group is performing better, but it knows the one variable that would drive the difference: __guns__. Soon it'll announce which way is better for its profits.

Dick's Sporting Goods decided to A/B test guns

__Negative interest rates = The bizarro market...__ And it's happening right now in most of Europe. The federal government of Germany just did something nearly unheard of: It issued a 30-year bond with a *negative* interest rate. Here's why that's weird:

- __How a 30-yr bond normally works:__ An investor gives $900 today, in return for $1,000 in 30 years. *Investors make money by lending.*
- __How Germany's 30-yr bonds work right now:__ Investors gave Germany $1,149 today, in return for just $1,000 in 30 years. *Investors pay money to lend.*

__The asparagus is white...__ and you have to pay to keep money in a bank. These are both truths about Germany right now, and it's thanks to the European Central Bank — Europe's equivalent to the Fed. It's using a *negative interest rate* to force you to take cash from your savings account and invest it instead. It's like opposite day for European bank accounts:

- In Germany, banks won't pay you interest — *they charge you interest.*
- Banks have to pay money for holding your money in an account, so they probably pass that charge on to you.

Upside-down

__This is punishing you for not investing...__ European economies didn't recover from the financial crisis as well or fast as America's did. Policymakers there are still desperate to stimulate growth, which requires investment. So negative interest rates hurt people who don't invest. You're more likely to buy things or invest in stocks if the alternative is your money *shrinking* in a bank account. 

Germany is getting paid to borrow money — We explain "negative interest rates"

Spider-Man needs to sign a contract (and drop the hyphen)

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

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

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

_Street smarts, for free, from Google_

Help

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

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

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

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

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

Pivot

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

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

Google's self-driving charitable donation

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

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

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

_3% cash back. 3% body fat._

"Hover"

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

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


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

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

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

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

Tastes

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

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

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

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

Charge

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

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

Apple Card. Now available to all*

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

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

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

"_Just bought a nice mascara_"

Blush

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

Estée Lauder jumps 13% because of airport splurging

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

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


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

Pre-IPO

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

SmileDirectClub files to IPO, is thankful for Instagram

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

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

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

_CEOs will finally start thinking about the Lorax_

Suits

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

181 CEOs just renewed their vows with society

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

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

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

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

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

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

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

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

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

_Becoming a profitable cannabis biz takes time_

Budding

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

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




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

Bitcoin 

Pot CEO: Profits not coming for at least 3 years

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

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

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

Burn

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

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

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

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

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


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

Overstock surges back on strange CEO slash Russian spy situation

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

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

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

Shop

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

Walmart becomes Wall Street's white knight

_Not all heroes wear Walmart smiley face pins_ 

The Russian spy and the ecommerce CEO

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

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

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

_IPO bankers going through WeWork's mandatory culture training_

IPO'ing

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

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


WeWork reveals its IPO paperwork — and things got weird

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

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

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

Econ

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

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


Bizarre Wall Street alarm goes off, signaling recession coming soon

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

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

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

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