__In the era of extra virgin kale...__ __[Pepsi](https://robinhood.com/stocks/pep)__ has aggressively focused on healthier-anything. It recently acquired fruit/veggie innovator Bare Foods, dropped $3.2B to buy SodaStream, and launched LIFEWTR *water*. But shares jumped to a record high Wednesday thanks to the opposite: Salty snacks and soda — Growth was its fastest in three years:

- __Frito-Lay:__ Sales surged 5.5% last quarter — The new CEO called that "[extraordinary](https://www.pepsico.com/docs/album/investors/q1-2019/q1_2019_pep_transcript_6scyk0s61xvqpvwx.pdf)" and thanked Super Bowl stock-ups.
- __The Pepsi soda fam:__ Sales across Pepsi-branded drinks rose 3% after years of [not](https://www.wsj.com/articles/pepsico-beverage-sales-fall-in-home-market-1531219456) doing that.

__But calories are complicated...__ Dive deeper into Pepsi's drink menu and you see its top-performers are specifically the anti-sugar crew — Healthy fizz is [making up](https://www.wsj.com/articles/pepsicos-sales-rise-on-boost-from-snacks-11555498324) for slowness in cavity-inducing sodas:

1. __Bubly:__ Pepsi's new Insta-friendly sparkling water earned its 1st Super Bowl ad and the 16% sales [jump](https://www.bloomberg.com/news/articles/2019-04-16/pepsi-s-bubly-seltzer-brand-gains-ground-on-lacroix-perrier) since last year scares your LaCroix pamplemousse.
2. __Pepsi Zero Sugar:__ The least unhealthy Pepsi option enjoyed a 29% sales surge thanks to a year-long marketing campaign.


__"*Advertising*...__ *is working*." [That's](https://www.reuters.com/article/us-pepsico-results/pepsico-results-beat-as-new-ceos-ad-push-lifts-sales-idUSKCN1RT133) the simple/literal message from Pepsi's CFO. Even though the company's still in battle mode (closing factories and laying off people), it upped its ad spending by double-digits. Steve Carell and Cardi B [together](https://www.youtube.com/watch?v=9sYElEbRzKA) are selling more soda. Innovation isn't.

Soda (not sugar) powers Pepsi to all-time high

__Your 1887-self telegrammed...__ It's so proud of what you've become, __[Kansas City Southern](https://www.robinhood.com/stocks/KSU)__. The historic freight train made the most of its 6,700 miles of track last quarter, hitting record revenues of $675M. Its specialty is US-Mexico trade, and it wouldn't trade that for anything right now. Shares just rose to a 3-year high.

__Monthly active thieves...__ The train biz has to deal with vandalism because its trains are 6K feet long on average. That's why "velocity" (train speed) is crucial — It inched up 12 mph for KC Southern last quarter. Faster trains can ship more of anything (cars, food, oil) with a fixed number of boxcars and locomotives. 

Move

__Geopolitics is the X-factor...__ KC Southern's 6% revenue jump was driven by cross-border biz with Mexico (it's got plenty of train track there). US-Mexico trade has boomed since 1995 — Cars built in Mexico have quadrupled over that period. But KC Southern's stock rides with politics:

- __On Trump's inauguration day,__ shares hit a low of __$67__ after he campaigned on fighting Mexican trade.
- __Today,__ the stock's risen to __$123__ as a new trade agreement has calmed cross-border econ tensions for now.

Kansas City Southern railroad is thriving with Mexico trade

__Not a VEEP episode...__ Real life DC intensity has hurt healthcare stocks all year. While the broader stock market (the S&P 500) is up 16% in 2019, healthcare stocks are [down](https://www.wsj.com/articles/washington-targets-health-care-investors-should-duck-11552476781?mod=article_inline) 1%. That lack of fun stretched from patient to pill the past five trading days:

- __Health insurance:__ [__Cigna__](https://www.robinhood.com/stocks/CI) (-14%), [__UnitedHealth__](https://www.robinhood.com/stocks/UNH) (-12%), and [__Anthem__](https://www.robinhood.com/stocks/ANTM) (-18%) 
- __Pharmaceuticals:__ __[Pfizer](https://www.robinhood.com/stocks/PFE)__ (-7%), __[Eli Lily](https://www.robinhood.com/stocks/LLY)__ (-8%)

__There's nowhere to hide...__ New business regulation usually gets pushed by *one* side of the political spectrum. But two very old, very different New Yorkers are trapping healthcare execs: 

- __The left:__ Bernie Sanders wants to eliminate private health insurance completely, [replacing](https://www.cbsnews.com/news/medicare-for-all-gives-health-care-industry-stocks-the-chills/) the health-care middlewoman with a government-run system.
- __The right:__ To shame pharma firms into lowering (often exorbitant) prices, President Trump's admin is [exploring](https://www.wsj.com/articles/trump-administration-weighs-publicizing-hospital-rates-negotiated-with-insurers-11551990505?mod=article_inline) new rules to stick drug prices clearly on labels and in commercials.

Sick

__US healthcare's been un-fixable so far...__ The cost to keep an American healthy is [double](https://www.vox.com/a/health-prices) the cost for humans in other developed economies. Health insurance makes customers oblivious to treatment prices. And competition-less, patent-protected drugs let pharma firms charge anything. But healthcare profits have always seemed to beat healthcare reform proposals.

Healthcare stocks fall, because, politics

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

"_We love KFC chicken zero sugar_"

"Zero Sugar" works for Pepsi

__The treaty of Vers-iPhone...__ __[Apple](https://www.robinhood.com/stocks/aapl)__ announced a legal truce Tuesday with __[Qualcomm](https://www.robinhood.com/stocks/QCOM)__. The patent lawsuit courtroom drama is over. Then it shockingly defined the relationship, announcing they're biz partners. Again. Qualcomm shares hulked out, surging 23% on news they'll supply iPhones [once again](https://www.nytimes.com/2019/04/16/technology/apple-qualcomm-settle.html). 

 __Designed in California. Made in China. Litigated everywhere...__ The relationship between Apple and Qualcomm is swinging back to love after previous love/hate chapters:

- __2007 - 2016:__ Qualcomm provided Apple bits of hardware that helped iPhones destroy BlackBerry, Motorola, Nokia, and a million other now-obsolete gadgets.
- __2016 - 2019:__ Apple ditched Qualcomm for Intel. Qualcomm went on a suing rampage, claiming Apple whispered its secrets into Intel's ear and profited off its patented tech.
- __Yesterday:__ Apple settled — It's paying Qualcomm an [undisclosed](https://www.apple.com/newsroom/2019/04/qualcomm-and-apple-agree-to-drop-all-litigation/) amount for past misdeeds. And it's switching back to Q for iPhone modems. Lawyers aren't thrilled.
- __The next six years (with option to extend for two more):__ Based on our rough calculations, that'll add $3B-$5B annually in sales for Qualcomm (that's a big, big deal). 

Settle

__Qualcomm's leverage = 5G...__ The San Diego-based chip-maker is one of just a few making chips needed for the new 5G network. Intel is reportedly behind (you can't round up from 4.5G), and China's __Huawei__ was labeled a national security threat. Apple needs Qualcomm.

*__PS:__ Right after the deal, __[Intel](https://robinhood.com/stocks/intc)__ [announced](https://newsroom.intel.com/news-releases/intel-modem-statement/#gs.63bj6t) it's done with 5G. That's one way to rebound from getting broken up with by Apple.*

Qualcomm wins estimated $3B/year from Apple

__Fancy new onesie...__ Got it from __[Walmart](https://robinhood.com/stocks/wmt)__, which just [partnered](https://news.walmart.com/2019/04/16/walmart-partners-with-kidbox-to-deliver-premium-personalized-kids-fashion-to-parents-front-doors) with KidBox to launch its 1st subscription box for clothes. But it's for kids and "borrows" [heavily](https://www.cnbc.com/2019/04/15/walmart-launches-its-first-subscription-box-for-apparel-with-kidbox.html) from __[Stitch Fix's](https://robinhood.com/stocks/sfix)__ core business model: *Fill out online personality/style quiz, then Walmart's human/algorithm stylists choose/send you clothing*.

- __The price:__ 4-5 items per box, $48 per box (Walmart says that's 1/2 the retail price of the bundle).
- __The "Kid Quiz":__ Awkwardly select if your toddler is "City Cool," "Modern Casual," or one of their other kid types. 

__Your kids' dept. was *this tall* the last time I saw you!...__ The $203B kids clothing industry is growing [faster](https://fashionista.com/2017/07/luxury-fancy-baby-kids-clothes-trend) than adult-wear. And the opportunity is even bigger because Gymboree and Toys 'R' Us recently went bankrupt, leaving toddlers with no fashion direction. It's not just Walmart jumping in:
- __[Target's](https://www.robinhood.com/stocks/TGT)__ new kids line did $2B in sales in its first year.
- __Rent-The-Runway__ announced a kids line [this](https://www.cnbc.com/2019/04/05/rent-the-runway-is-getting-into-the-kids-business.html) month, and Stitch Fix's began last year.
- __[Gap](https://www.robinhood.com/stocks/GPS)__ just tried a kids subscription box, but [failed](https://www.digitalcommerce360.com/2018/09/26/gap-suspends-its-subscription-kids-clothing-boxes/) 😰.

Subscribe

__"Subscription" isn't a defensible advantage...__ __Birchbox__ created the subscription box concept 9 years ago. __[Blue Apron](https://www.robinhood.com/stocks/APRN)__ ran with it in meal kits. Both are now struggling as competitors jump in because launching subscription services doesn't require a major investment. Now Walmart (and [even](https://www.marketwatch.com/articles/stitch-fix-stock-falls-amazon-prime-wardrobe-stylist-51555343917?mod=mw_latestnews) __[Amazon](https://www.robinhood.com/stocks/AMZN)__) boast algorithm-focused *fashion* subscriptions. Stitch Fix is on notice.

Walmart's first subscription box: it's for kids

__*You don't have my blessing*...__ That's the word from the Dept. of Justice regarding __T-Mobile__ and __Sprint's__ planned merger, which was announced almost 1 year ago. According to the [*Wall Street Journal*](https://www.wsj.com/articles/t-mobile-sprint-deal-runs-into-resistance-from-doj-antitrust-staff-11555446461), the reason it's likely to get blocked is that combining the #3 and #4 wireless companies would threaten competition.

__Like you and your S.O. post-move-in...__ Sprint and T-Mobile want to get on one plan to save costs. Merging would also pool resources so they could build out a 5G network (they've been [repeating](https://www.theverge.com/2019/2/12/18222545/t-mobile-sprint-merger-china-5g-john-legere) that argument to China-phobic politicians). But they'll also be *under less pressure to offer low prices* to customers. And antitrust laws aren't cool with that last part.   

Merge

__Wireless investors want this merger to happen...__ which is a reason why customers probably shouldn't. With less competition, big companies can set prices higher — Customers pay more, companies take more profits. And word that the deal's in jeopardy hit shares of the top four wireless companies, even though T-Mobile's  CEO called the report "[simply untrue](https://twitter.com/JohnLegere/status/1118265746453192704)":

1. [__Verizon__](https://www.robinhood.com/stocks/VZ) ⬇️1% 
2. __[AT&T](https://www.robinhood.com/stocks/T)__ ⬇️1%
3. __[T-Mobile](https://www.robinhood.com/stocks/TMUS)__ ⬇️4%
4. [__Sprint__](https://www.robinhood.com/stocks/S) ⬇️8%


That big T-Mobile & Sprint merger will reportedly be denied

_First-degree iPhone obsession. You're all guilty_

Apple & Qualcomm agree to disagree

__Let's get together...__ Shares of both __[Waste Management](https://www.robinhood.com/stocks/WM)__ and __[Advanced Disposal](https://www.robinhood.com/stocks/ADSW)__ jumped Monday on word the trash titans are merging. That crams the #1 and #4 solid waste companies under one lid. Investors like Houston-based Waste Management's new, polished look:

- __25M__ customers across just about every US state
- __50K__ employees
- __$17B__ annual revenue
- __310__ Landfills (!)

__*Consolidate trash into 1 can*...__ *Then save money*. That's basically why this happened. Waste Management thinks it can save $100M every year on "synergies" — Cutting redundant costs and using its bigger size to negotiate lower prices. Now regulators just have to stamp approval that this keeps the trash industry competitive.

__Managing waste is hard...__ Waste Management is on it. First, it hauls trash from residential, government, and corporate customers. Then it sorts recycling. Then it compacts. Then it packs landfills. That all requires humans and machines (lots). But it's not all dirty — Now Waste Management [renews](http://www.wm.com/sustainability/renewable-energy.jsp) gas from landfills into electric energy. Power move.

Waste Management is now #1 and #4 in trash

__Blame the new firm-wide "[flexible dress code](https://www.wsj.com/articles/how-to-dress-at-goldman-sachs-11552063215)"...__ Profits at __[Goldman Sachs](https://www.robinhood.com/stocks/GS)__ [fell](https://www.cnbc.com/2019/04/15/goldman-sachs-earnings-1q-2019.html) 21% last quarter, sending shares down 4% Monday. Wherever you look on Goldman's investment banking revenue menu, it was probably down:

- __Trading ⬇️ 18%:__ Markets were calm and steady last quarter. That makes it harder for Goldman to buy things low and sell them high. 
- __Underwriting ⬇️ 24%:__ Goldman's guidance to companies that want to issue stock or debt to raise money took a hit. You can partly blame the government shutdown that delayed some IPOs.
- __Mergers & acquisitions ⬆️ 51%:__ Goldman still gets to say it's #1 in advising companies getting hitched, but that makes up just 1/10th of its business.  

__Less harvest, less bacon...__ Slower business meant Goldman just [cut](https://www.cnbc.com/2019/04/15/goldman-sachs-slashes-compensation-for-employees-as-revenue-drops.html) comp. Salaries are generally fixed, but Goldman tightens its belt through bonuses — The average employees' pay fell to $91K in the 1st quarter of 2019 compared to $119K in last year's (that's 24% less $$$). 

Bank'd

__Time to pivot...__ Exotic/risky investment banking is Goldman's historic money-maker. Now management wants more reliable, steady, and boring businesses. At Goldman's age, it's trading in the Ferrari for the Buick. And the answer is "Marcus" (named for its founder):

- Marcus is __Goldman's "Main Street" bank__
- Its focus is __checking accounts and loans to normal folk__, not globo-corporates.
- And Marcus is __teaming up with Apple__ for a consumer credit card.

Goldman Sachs cuts bonuses and falls 4%

__Amazon-proof yourself...__ Since 2012, __[Best Buy](http://robinhood.com/stocks/bby)__ CEO Hubert Joly pulled that off. Now the turnaround magician from Minnesota is stepping down  as CEO, but will remain Chairman of the board — Current CFO Corie Barry takes over in June. While __Circuit City__ was dying, Joly did this with Best Buy:

- __The stock quadrupled__ during his reign.
- Stores enjoyed __5-straight years__ of sales growth.
- The chain rose from a $421M loss in 2013 to a __$1.5B profit in 2018__.

__Operation "Renew Blue"...__ That's the actual plan turnaround artist Joly [kicked](https://www.fool.com/investing/2019/04/15/the-end-of-an-era-for-best-buy.aspx) off in 2013. We ID'd his 4 strategic moves that transformed Best Buy into a retail phoenix:

1. __Price matching:__ Joly refused to let you test out Dance Dance Revolution at Best Buy before actually buying it on Amazon for cheaper.  
2. __Store-within-a-store:__ He turned Best Buys into showrooms, carving out mini-stores for brands like Apple to better show-off their goods.
3. __eGrandparent Tech:__ He bought Life Alert owner GreatCall ("[Help](https://www.youtube.com/watch?v=gh0Sslh9JKA), I've fallen and I can't get up!") along with its 900K [paying](https://www.theverge.com/2018/8/16/17697952/best-buy-greatcall-acquire-purchase-jitterbug) subscribers, and also invested more in Geek Squad for in-home installation.
4. __Dual/Purpose Stores:__ He combined warehouses with regular stores — Now 40% of online orders are picked up in-store, an Amazon-beating advantage.

Rebound

__"*There's no room for mediocrity in retail*"...__ We'll let Hubert's words take our takeaway today. He realized early that Amazon can't completely replace in-person shopping experiences — Ecommerce just raised expectations. As a leader, Hubert saw Best Buy's physical stories as a "[wonderful asset](https://www.cnn.com/2019/04/15/business/best-buy-ceo-hubert-joly-corie-barry/index.html)," so they became just that.

*FYI, just check out [these](https://www.glassdoor.com/Reviews/Employee-Review-Best-Buy-RVW24790846.htm) Glassdoor employee reviews of Hubert.*

Best Buy's stock-quadrupling CEO is out

"_You're priceless to me, Waste Management_"

The great garbage merger

__"Amazon of Africa"...__ The continent's first tech IPO on the New York Stock Exchange is __[Jumia](https://robinhood.com/stocks/jmia)__. Shoppers in 14 African countries (which represent 74% of the continent's consumer spending) can hit the ecommerce site to buy a dress. Or get Lagos' finest *suya* skewers delivered. Or book flights to Cairo. Or rent a Nairobi 1-BR flat. It's a mashup of plenty of US apps and is still plenty unprofitable, but the stock still surged 75% on Day #1.

[*More on Jumia in today's Snacks pod*](https://podcasts.apple.com/us/podcast/marketsnacks-daily/id1386234384?mt=2).

__Suit up...__ Big banks kicked off earnings season, and __[JPMorgan](https://robinhood.com/stocks/jpm)__ set the tone with record revenues and profits. As interest rates rise, so has its lending biz, which helped profits at its "Main Street" divisions surge 19%. Then CEO Jamie Dimon added some flair: The current economic expansion "[could](https://www.nytimes.com/2019/04/12/business/wall-street-bank-earnings-economy.html) go on for years."

__Extra legroom for all...__ First __[JetBlue](https://www.robinhood.com/stocks/jblu)__ rose after [revealing](http://otp.investis.com/clients/us/jetblue_airways/usn/usnews-story.aspx?cid=981&newsid=60609) its first transatlantic flights land in London by 2021. Then __[Delta's](https://www.robinhood.com/stocks/dal)__ profits [surged](https://www.cnbc.com/2019/04/10/delta-q1-2019-earnings.html) 31% last quarter. We broke down the two key reasons for Delta's jump (aka, its "Profit Puppies"):

1. __Biz/1st class:__ Fancy bookings rose 8% — And even though they're just about 1/3 of the seats, they make up about half the ticket revenue. Strong economy ==> more upgrade splurges.
2. __The credit card:__ Delta's plastic partnership with __[Amex](https://www.robinhood.com/stocks/axp)__ was extended another 11 years — That card's expected to bring in $7B annually for Delta, and [reportedly](https://thepointsguy.com/news/delta-amex-relationship-profitable/) makes up 35% of profits. 


Highs

Who's up...

__New vs. Nostalgia...__  __[Netflix](https://robinhood.com/stocks/nflx)__  fell 4.5% Friday after __[Disney's](https://robinhood.com/stocks/dis)__ Netflix-killer was revealed: Disney+ (Mickey's shares hit a record high the same day). Disney's strength is its library of timeless hits: *Star Wars*, *The Simpsons*, *Toy Story*, and other OG titles. And just as Netflix raises the price for its most popular plan to $13/month, D+ arrives at a binge-able $6.99.

__Fashion beat function...__ __[Under Armour](https://robinhood.com/stocks/uaa)__ dropped 4% on a single day after an annual survey showed people just aren't into it: UA's [ranking](https://www.barrons.com/articles/under-armour-stock-falls-because-consumers-like-other-brands-51554828676) dropped to 5th place in the basketball category and 7th in "casual." The report slammed UA for lacking innovation (too much *ath*, not enough *leisure*), just as [__Adidas__](https://www.robinhood.com/stocks/ADDYY) signed [Beyoncé](https://www.hollywoodreporter.com/news/beyonce-joins-adidas-as-creative-design-partner-1199522) as its creative partner.

__Out of battery...__ __[Panasonic](https://robinhood.com/stocks/PCRFY)__ may [pause](https://www.theverge.com/2019/4/11/18305976/tesla-panasonic-gigafactory-batteries-model-3) plans to expand battery production at __[Tesla's](https://robinhood.com/stocks/tsla)__ Nevada "Gigafactory 1." Its investment in Elon's China-based "Gigafactory 2" could be off too. Tesla dropped 4% as investors worry the joint venture drama's a sign of uninspiring car sales.

Lows

...And who's down

__Millennials broke Wall Street...__ Big corporate names made big moves to cater to cord-cut and car-less customers last week. Investors appreciated __[Disney](https://www.robinhood.com/stocks/DIS)__ acting like a tech company but punished __[Lyft](https://www.robinhood.com/stocks/LYFT)__ for acting too much like one. 

__Disruption + Profits. It’s complicated...__ Video-streaming and ride-hailing were born to break things. Profits were an afterthought. But investors' feelings shift when the companies move from the pre-disrupt to post-disrupt era. 

- __Streaming:__ Disney blessed us with an insane library of throwbacks, blockbusters, and TV-ish shows for silly cheap ($6.99/month), and shares popped 11% Friday.  
- __Ride-hailing:__ Since the IPO rush to buy Lyft drove the stock to $88, shares fell last week to under $60. And __Uber’s__ IPO paperwork Thursday [didn't help](https://www.cnbc.com/2019/04/12/lyft-stock-plunges-as-investors-get-a-first-look-into-ubers-finances.html) — Uber lost nearly $2B last year, and (by certain complex measurements) its revenue growth slowed.

Disrupt

__Streaming's getting baby treatment. Ride-hailing has to grow up...__ Investors showed they’re still cool with one's unprofitability, but they're losing patience with the other. 

- Disney earned Simba-worthy respect for __its magically unprofitable pricing__ for video streaming (ESPN+ and Disney+ are expected to lose money until at least [2023](https://www.theinformation.com/articles/disneys-costly-streaming-plans-wins-approval-from-wall-street?utm_medium=email&utm_source=sg&utm_campaign=article_email)).
- But since Lyft and Uber (let's go with "LUber") have been replacing local taxis for a decade, investors are ready for them to __stop losing billions of dollars__.


Streaming video & ride-hailing just grew up

_When you're waiting for Pinterest and Zoom's IPOs_

Streaming and ride-hailing just grew up

__Tinkerbell trained two years for this...__ __[Disney](https://www.robinhood.com/stocks/DIS)__ finally announced details on "Disney+," its streaming video service to take on [__Netflix__](https://www.robinhood.com/stocks/NFLX). Disney blasted the audience at its Apple-esque unveil with its magical advantage: Its "[treasure trove](https://www.nytimes.com/2019/04/11/business/media/disney-plus-streaming.html)" of movies. Here are the details:

- __Price:__ [$6.99/month](https://variety.com/2019/digital/news/disney-plus-streaming-launch-date-pricing-1203187007/) or $69.99/year, nearly half of Netflix's comparable plan.
- __Launch:__ Nov 12, 2019, in the US.
- __Bundle:__ Disney+ is separate from Hulu and ESPN+, Disney's other streaming assets, but there will "likely" be a discount if you bundle them.

__Gold, silver, and bronze...__ Now that Disney's acquired 21st Century Fox, it owns the [top three](https://variety.com/2019/film/box-office/2018-domestic-box-office-1203102841/) box-office films from 2016 and 2018. And it had 2017's top two. Imagine the binge-worthiness of Disney+:

- __Adult:__ *Star Wars, Marvel, Bohemian Rhapsody*
- __Kids:__ *Toy Story, Frozen, Finding Nemo*
- __Classics:__ *The Sound of Music, Titanic, Lion King, The Simpsons*


Watch

__Nostalgia vs. New...__ Disney's fighting Netflix with all the old DVDs and classic titles that Netflix execs probably grew up loving. When D+ rolls out, Disney will remove all its content from Netflix. Then it's Disney's billion-dollar branded movies/series vs. Netflix's *never-heard-of-but-my-friends-say-it's-awesome* original content.

Disney unveils "Treasure Trove" to kill Netflix

__"We do the right thing. Period."...__ Bold opening pitch by Dara Khosrowshahi, CEO of __Uber__. The IPO paperwork filed Thursday revealed its financials, risks, opportunities, and a bunch of missions and values. These [420 pages](https://www.sec.gov/Archives/edgar/data/1543151/000119312519103850/d647752ds1.htm) are its most official step yet to become publicly traded, and the IPO ETA is early May. 

__312...__ That's how many times we counted "ride-sharing" in the filing. It's technically "[ride-*hailing*](https://www.buzzfeednews.com/article/charliewarzel/lets-all-join-the-ap-stylebook-in-killing-the-term-ride-shar#.ksk27KmN0)" – And the word choice was a calculated (and not quite accurate) move. Here's what else we noticed:

- __Slowing (even negative) growth:__ Revenues grew 22x from 2014 to 2018, reaching $11B. But it's pumped the brakes — in mid-2017, one measure of its revenue was growing 22% per year. By the end of 2018 that was [actually negative](https://www.wsj.com/articles/uber-discloses-ipo-filing-11555015305?mod=hp_lead_pos2), at -0.04%.
- __Democracy:__ Unlike Lyft, Uber boasts a *one share, one vote* policy. Some Lyft investors are worried their two co-founders control 5% of shares but almost [50%](https://www.sfchronicle.com/business/networth/article/Lyft-wants-the-public-s-money-but-not-their-13701367.php) of voting power. 
- __Uber everything, everywhere:__ Uber has 91M users on 6 continents and 4 kids: ride-hailing, bikes/scooters, food delivery, and freight — with [autonomous](https://techcrunch.com/2019/04/11/uber-spent-457-million-on-self-driving-and-flying-car-rd-last-year/) driving/flying babies on the way.

__*Spoiler Alert:* "*We may not achieve profitability*"...__ Uber lost $10B in the past three years as it's fought viciously with Lyft for market share. For Uber to reach profits, it'll need to make some changes. 

- __Fewer promos:__ Each "refer-a-friend and get $10 off" code costs money. 
- __Fewer human drivers:__ Awkward, but if it can replace drivers with computer software, it'll keep more of the *78% of each ride fare* going to drivers.
- __More rent-taking:__ Eventually Uber's likely to raise prices for rides, spend less on lawsuits and acquisitions, and take its cut of the billions of Ubers happening every year.

Uber's IPO paperwork arrives (with a growth problem)


__All latte highs come to an end...__ That's the message from a Morgan Stanley analyst who downgraded K-Cup icon __[Keurig Dr. Pepper](https://robinhood.com/stocks/kdp)__. Shares fell 4% after he said the single-cup coffee's [explosive growth](https://www.barrons.com/articles/keurig-dr-pepper-stock-slips-morgan-stanley-downgrade-51554997515?mod=RTA) era is ending. Blame Keurig's patent expiration and competition from Nespresso.

__You take that mid-week cosmo shaken or stirred?...__ Cocktail mixing is now automated thanks to the recently-announced Keurig "Drinkworks" machine. It's a joint venture with Bud-owner __[AB-InBev](https://robinhood.com/stocks/bud)__, but the partnership is a result of both companies' insecurity: slowing growth.

- __The dream:__ If you already toss in Keurig coffee pods in the *morning*, a Drinkworks cocktail was strategically conceived as your Keurig product *in the evening*.
- __The reality:__ That $4 Moscow Mule pod may save you compared to $10 at the bar, but the $299 Drinkworks machine isn't cheap.
- __And the history:__ Keurig's had partnership problems before — Its "Keurig Kold" creation with __[Coca-Cola](https://robinhood.com/stocks/ko)__ was [shut down](https://www.businessinsider.com/why-keurig-kold-failed-2016-6) in 2016.

__The "razor and blades business model" isn't working here...__ That's when you sell one cheap item (razor) then make money off expensive refills (razor *blades*). Or your printer and its absurdly-priced ink. Keurig embraced the same model, but fresh competition makes its "cheap" entry pod machines too expensive to ever start.

Keurig Dr. Pepper downgraded despite cocktail K-Cups

Bitcoin Price

"_All of this content will be yours_"

Disney's Netflix-killer is born

__Over promise, under deliver...__ __[T-Mobile](https://www.robinhood.com/stocks/TMUS)__ followed that weak playbook by unveiling its "Un-Carrier TV" product — The wireless provider's attempt to "[replace cable](https://www.youtube.com/watch?v=hZJDAJDD-uw)." Society thought it would be big. It wasn't. But the number of TV announcements Wednesday was.

__Glad we DVR'd this...__ It's a lot to take in:

- __[T-Mobile](https://www.robinhood.com/stocks/TMUS):__ Unveiled its new video package. But it looks just like cable — For [$100/month](https://www.engadget.com/2019/04/10/t-mobile-tvision-home/), 150 channels are powered by a remote-controlled box connected to your TV.
- __[Alphabet](https://www.robinhood.com/stocks/GOOG):__ Jacked up the price for its live YouTube TV offering from $40 to [$50](https://www.theverge.com/2019/4/10/18304871/youtube-tv-april-2019-price-increase-discovery-hgtv). 
- __[AT&T](https://www.robinhood.com/stocks/T):__ The not-so-proud owner of *Game of Thrones* is reportedly thinking of selling off HBO in Europe for cash to pay down its debt (although the company [denied](https://variety.com/2019/tv/news/warnermedia-denies-sale-hbo-europe-att-1203185554/) it was true).
- __[Disney](https://www.robinhood.com/stocks/DIS):__ The biggest Netflix competitor is Disney+. It launches soon with TV series and movies including *Star Wars* and *Marvel.* And it [announced](https://deadline.com/2019/04/disney-non-fiction-slate-supper-club-1202592504/) Wednesday non-fiction will be on the menu, like delightful cooking shows (*Be Our Chef*).


Tube

__Cable might have been better after all...__ The 3-digit price of T-Mobile's TV shocked us. But it shouldn't have. Hulu, Netflix, and other OG cord-cutters have raised prices over the past year. Add up all your cord-cut subscriptions and the bill looks a lot like cable did (just more passwords to memorize/mooch).

TV cord-cutting's big day 

__More peanuts...__ __[Delta's](https://robinhood.com/stocks/dal)__ quarterly profits just jumped by 31%. The stock's now up 14% this year thanks to its two profit puppies: business class and credit cards. The strong economy has flyers upgrading to the expensive seats, but we're more interested in Delta's Amex plastic partnership.

__Long-term commitment...__ Delta just signed an 11-year extension to its __[American Express](https://www.robinhood.com/stocks/AXP)__ partnership for co-branded credit cards. That SkyMiles card is big for the airline's wallet:

- Amex [pays](https://skift.com/2019/04/10/delta-expects-to-make-7-billion-from-its-amex-relationship-by-2023-but-how/) Delta __1.25-1.50 cents per mile__ for the points you earn swiping your credit card.
- That's expected to add up to __$7B annually__ with this new contract by 2023 — *That's [double](https://www.bloomberg.com/news/articles/2019-04-02/delta-renews-amex-co-brand-credit-card-partnership-for-11-years) what Delta made with the Amex deal last year.*
- Now analysts [estimate](https://thepointsguy.com/news/delta-amex-relationship-profitable/) that __35% of Delta's profits__ come courtesy of all those Delta Amex cards.

Flight

__"*Emerging High Value Customers*"...__ That's the Delta marketing team's over-thought term for top Millennial fliers. It wants you hooked on its loyalty program because frequent flyer programs are airlines' [most](https://skift.com/2017/12/15/delta-air-lines-is-going-after-future-business-travelers-while-still-in-college/) profitable service. The co-branded Amex card is how it gets young travelers committed ASAP.

Delta rises 2% thanks to its "profit puppies"

__4,268 (and counting)...__ That's the number of __[Amazon](https://www.robinhood.com/stocks/AMZN)__ employees asking CEO Jeff Bezos and the Board to be more woke. And they all signed [the letter](https://medium.com/@amazonemployeesclimatejustice/public-letter-to-jeff-bezos-and-the-amazon-board-of-directors-82a8405f5e38). Their demand: Amazon adopt a "company-wide climate plan" to make the ecommerce icon a better global citizen.

__Good timing...__ Tech comrades at competitors have successfully [forced](https://www.theguardian.com/us-news/2019/mar/28/tech-workers-silicon-valley-activism) their companies to change policies on sexual harassment and AI ethics. Here's what the Amazonians want:

- __100% renewable energy:__ Amazon's failed to set a date to achieve it. [__Facebook__](https://sustainability.fb.com/) and [__Google__](https://sustainability.google/environment/) have.
- __Cloud for Oil & Gas:__ Amazon Web Services (its cloud division) has special services to help energy companies slurp out more oil from the earth.
- __Political donations:__ The Amazonians list 68 members of Congress that get Amazon donations who are solidly against climate change action. 

Activism

__Sustainability is Amazon's liability...__ "The Everything Store" has stellar likeability ratings (2019's #2 best corporate [reputation](https://theharrispoll.com/axios-harrispoll-100/)). That's despite its business model's impact on Earth. With companies held more accountable for social issues, consumers could push back on ecommerce's carbon footprint: *Amazon packing one pen in a desk-sized cardboard box*.

Amazon's climate policies challenged by 4,268+ workers

"_What does cord-cutting even mean?_"

Cord cutting gets less cool

__No shrinkage...__ In its first earnings report since its March IPO, __[Levi's](https://robinhood.com/stocks/levi)__ sales and profits rose 11% and 81%. That's 11x81 in jean-speak. The stock's now up 25% since its first day of trading. Even better, the CEO [doesn't think](https://www.youtube.com/watch?v=XYoyojCcgsc) you should wash your jeans. Maybe ever.

__Ripped. Not intentionally...__ Because of two market trends, denim sales globally have only risen 3.5% per year over the past decade — Not very fast, considering the rest of the economy's grown faster.

1. __Athleisure's__ [surged](https://www.businessinsider.com/denim-back-in-style-but-athleisure-changed-it-forever-2018-4) 7% per year as consumers rethink boot-cut skinny-crops for jog-worthy yoga pants — In 2017, US imports of stretchy knit options beat denim for the 1st time ever.
2. __Online shopping__ now makes up [over a quarter](https://www.retaildive.com/news/27-of-apparel-sales-are-now-online/526941/) of all apparel sales. But unlike jeggings, jeans need to fit just right, best tried-on pre-purchase. That's a challenge online.

Wear

__Stretch jeans to everywhere...__ That's Levi's strategy. It's leaning into its 166-year-old brand's global recognition to win jean sales away from other denim denizens. The real growth story is international, and it IPO'd to focus on that. So far, it's working — Here's [where](https://investors.levistrauss.com/news/financial-news/news-details/2019/Levi-Strauss-Co-Reports-First-Quarter-2019-Earnings/default.aspx) that happened last quarter (adjusted for foreign currencies):

1. __Americas:__ Sales up 10% to $717M
2. __Europe:__ Up 10% to $465M
3. __Asia:__ Up 14% to $253M — *China + India is where Levi thinks there's huge potential for growth*

Levi's tries on its first post-IPO earnings report

__Pulling a Meghan Markle...__ Shares of __[JetBlue](https://robinhood.com/stocks/jblu)__ popped in after-hours trading on speculation it could go transatlantic for its 1st time with a new London flight. Word [leaked](https://www.cnbc.com/2019/04/09/jetblue-appears-to-be-gearing-up-to-announce-service-across-the-atlantic.html) to CNBC that JetBlue's holding an "all-hands" meeting this afternoon from New York's JFK airport,  with "viewing parties" from other hubs. The details look cheeky:

- A __save-the-date email__ announcing the April 10th event featured a London ~~subway~~ underground style design.
- __Buttons with Big Ben and the London Eye__ were sent to JetBlue offices to be handed out during the "event."

__The royal treatment...__ JetBlue's channeling it. The airline's focused on its profitable business class-ish segment — Mint. It has flat-lying seats, fancy sliding-door suites, and meals that don't come in wrappers. Since 2013, Mint's  focused on long East Coast <> West Coast flights (for now).

- JetBlue's President: "*When we think about transatlantic, we do think we can __disrupt largely around a Mint-like product__.*"
- Then she goes on about the transatlantic haul: "*It suffers from __the same lack of competition and high fares__ that transcontinental routes in the US saw before JetBlue introduced Mint.*" That's convenient.

Surprise

__JetBlue's innovating a whole new category...__ "*Upgraded Low-Cost.*" The airline industry's divided between low-cost and high-cost carriers — 75% of transatlantic flights last year were high-cost airlines like __[Delta](https://robinhood.com/stocks/dal)__ or __[British Airways](https://robinhood.com/stocks/ICAGY)__. But among the 25% that are low-cost, JetBlue's Mint option would fly above. London's calling.

JetBlue jumps on new London flight leaks

__Inspired by Captain America...__ The North Carolina based bank is [jacking up](https://newsroom.bankofamerica.com/press-releases/corporate-and-financial-news/bank-america-raise-minimum-wage-20-hour) its minimum wage to $17/hour on May 1st, rising to $20/hour by 2021. Boom. Compared to the too-low minimum wage of $7.25/hour nationwide, we're impressed. __[Bank of America](https://robinhood.com/stocks/bac)__ shareholders weren't, because higher pay could affect profits.

__The economy needs this...__ Americans in the bottom 60% of the wage scale haven't enjoyed a real income raise [since 1980](https://www.linkedin.com/pulse/why-how-capitalism-needs-reformed-parts-1-2-ray-dalio/?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosam&stream=top). Pay promotions have happened, but barely covered the increased cost of living. But record low unemployment of 3.8% is changing things:

- Since available workers are so scarce, they've got __serious leverage__ in pay conversations with their bosses. 
- So Bank of America is paying workers (a lot) more because they could __probably go somewhere else__.

Payday

__Treat tellers right...__ With digital-based banks sprouting up, Bank of America's building [500](https://www.reuters.com/article/us-bank-of-america-expansion/bofa-to-open-500-new-u-s-branches-in-four-years-idUSKCN1GA2JG) more physical branches to remind customers that it's physically there for them. Branches need human tellers. This pay raise ups morale for "[tens of thousands](https://www.wsj.com/articles/bank-of-america-aims-to-raise-minimum-wage-to-20-an-hour-by-2021-11554809603)" at BoA — And happier tellers charm customers.

Bank of America leads with $20 minimum wage

"_Behold... Denim!_"

Skinny jeans. Big Levi's profits.

__Sparkling water wasn't mindful enough...__ So __[New Age Beverage](https://robinhood.com/stocks/nbev)__ happened. It's leading the wellness beverage space with exotic kombucha-esque drinks. New Age shares surged 39% Monday as it signed a __[Walmart](https://robinhood.com/stocks/wmt)__ distribution deal — three low-sugar/carb/calorie Bob Marley-branded energy teas will [hit](https://www.nasdaq.com/press-release/new-age-beverages-corporation-expands-with-walmart---20190408-00206) shelves of Earth's biggest retailer.

__The deal smelled of CBD...__ (but it was technically CBD-free). New Age bought the Marley brand in 2017. With the blessing of Bob's family and a partnership with a cannabis investment fund, New Age turned to CBD: The relaxing, psychoactive-less pot extract you see [everywhere](https://www.usatoday.com/story/news/health/2019/04/08/cbd-marketers-cannabidiol-claim-hemp-derived-product-works/3374793002/).

- In January, New Age [announced](https://www.benzinga.com/markets/cannabis/19/01/12995005/new-age-beverages-to-develop-distribute-bob-marley-branded-cbd-infus) plans for a __CBD-enhanced "Marley Mellow Mood"__ flavor within the next year.
- Those 15.5-ounce cans would be filled with __25mg of "pharmacy-grade" CBD__.
- The CEO already __projected $30M in sales__ nationwide in the first year of CBD Mellow's launch.
- And you can already [find](https://www.amazon.com/product-reviews/B01KIYU58O/ref=acr_dpproductdetail_text?ie=UTF8&showViewpoints=1) Mellow on Amazon — __But it's got no CBD__. And there's a reason.


__One main factor affects New Age's CBD future...__ The federal government. While cannabis is legal in some US states, it's still not legal federally. That's an issue if you're distributing nationwide with, say, Walmart. May 31st is the FDA's public hearing on CBD foods, so New Age has its calendar circled. Until legalization, only CBD-free New Age drinks are included in the Walmart deal. 

CBD-focused New Age Beverage surges 39% on Walmart hookup

__Best superhero in a supporting role...__ goes to *Avengers: Endgame*. Pre-sale tickets for the roughly 712th edition of the Marvel movie series immediately [broke](https://www.cnbc.com/2019/04/08/amc-shares-soar-as-avengers-endgame-ticket-sales-fuel-confidence.html) records. That's why a research analyst upgraded shares of __[AMC Entertainment](https://www.robinhood.com/stocks/amc)__, and they jumped 9% on the report. 

__Don't care about IMAX or 3D-printed massage recliner seats...__ Your Snacks team ID'd three trends that explain why movie theaters are still a growing business:

1. __International:__ AMC's got a [deal](https://www.hollywoodreporter.com/news/amc-proceeding-plan-build-movie-theaters-saudi-arabia-1199362) to bring movies to Saudi Arabia for the first time. And China's [expected](https://www.scmp.com/culture/film-tv/article/2140381/china-will-soon-be-worlds-top-film-market-having-overtaken-us-canada) to become the world's biggest movie market soon. 
2. __Remakes, reboots, & blockbusters:__ Global hunger for spandex'd superhumans is insatiable. Aladdin, Lion King, and Pikachu are joining this year's summer movie [lineup](https://editorial.rottentomatoes.com/prev/summer-movie-calendar-2019/), too.
3. __Subscriptions:__ __MoviePass__ brought subscriptions to movies, but AMC's running with it — Its copycat "Stubs A-List" program ($24/month for 3 movies/week) has 19M members now. 

Oscar

__International growth > Domestic problems...__ With Netflix standing by, it's easy to decline Saturday's expensive $50 movie-out-for-two. North American box office sales barely budged over the past decade (just up ~1% per year). But AMC's tapping into a still growing industry: Exporting American-style movie theaters abroad for American-style movies.

AMC theaters jumps 9% thanks to huge Avengers ticket pre-sale

__Don't take it personally, GE...__ The "equity analyst" job description involves being judgy. Really judgy. About stocks. And JPMorgan's analyst for __[General Electric](https://www.robinhood.com/stocks/GE)__ [announced](https://www.cnbc.com/2019/04/08/ge-shares-dive-after-downgrade-by-top-analyst-tusa-at-jp-morgan-price-target-cut-to-5.html) he thinks the stock's not worth as much as everybody else thinks. It's just his opinion, but investors listen, so GE shares fell 5%. 

__GE's come a long way...__ Just not long enough, according to Stephen Tusa:

- __The Golden Era (1892-2016):__ GE became the American corporate conglomerate legend, making machines that moved people, mountains, and power.
- __The Reckoning (2016-2017):__ Tusa was first to call out GE for its profitability problems in a 235-page memo in May 2016. Here's his follow-up a year later (a quick [133-page read](https://www.docdroid.net/z2v4Xvp/jpm-general-electric-co-2017-07-06-2375286.pdf)). *Shares are down 68% since 2016.*
- __The Cleanup (2018-today):__ Fixing GE is a work in progress, but shares have risen 50% on that progress so far.

Buzzkill

__A 127-year-old is really, really slow to change...__ GE's been impressively honest with itself about its problems. It's on its 3rd CEO in two years, written down the value of a bunch of its poorer divisions, and [chosen](https://www.ge.com/reports/ge-next-chapter-ge-ceo-lays-plans-future-company/) just three it'll focus on going forward (aviation, power, and renewable energy). Tusa sees a lot more work to do.

One particular analyst made General Electric fall 5%

"_Watch what I can do to AMC shares_"

Ironman and Thor saved a stock

__Snapchat's into gaming...__ Shares rose 6% last week after __[Snap's](https://robinhood.com/stocks/snap)__ first "Partner Summit." The [highlight](https://www.youtube.com/watch?v=zlbRDJhUXwE): The new "Bitmoji Party" you can play with your avatar-ized buddies. And it's got 5 more multi-player smartphone games hitting the app soon. It's all about user engagement and re-finding Snap's mojo since user-growth stalled.

__*Not* Lyft...__ (and that's OK). Two IPOs last week showed you don't have to be an app — just be yourself. First, __[Tradeweb Markets](https://robinhood.com/stocks/tw)__, an electronic trading platform, jumped 33% on its first day of trading (kinda meta). Then __[Silk Road Medical](https://robinhood.com/stocks/silk)__ surged 81% on excitement for its stroke-prevention medical treatments. FYI, __[Lyft](https://robinhood.com/stocks/lyft)__ swung down before finishing the week above its IPO price.

__What happens in Vegas...__ doesn't really matter compared to Macau. The government authority in China's gambling mecca announced the highest monthly gaming revenues of the year so far. Count it as a [win](https://www.thestreet.com/investing/stocks/casino-stocks-hit-the-jackpot-on-latest-macau-gaming-numbers-14912704) for US gambling stocks — 69% of __[Wynn's](https://robinhood.com/stocks/wynn)__ biz comes from Macau and __[MGM](https://robinhood.com/stocks/mgm)__ just dropped a $3.4B resort there.

__*Streaming* is a side-hustle...__ for Apple and Amazon. But it's full-hustle for __[Roku](https://robinhood.com/stocks/roku)__. The TV streamer's shares fell 4% last week on [word](https://www.marketwatch.com/story/roku-stock-tumbles-after-analyst-says-apple-is-indeed-a-threat-2019-04-04) Big Tech will compete more in its media space. Bright side: At least Roku now says its system will be [ready](https://techcrunch.com/2019/04/05/the-roku-channel-adds-support-for-hbo-just-in-time-for-game-of-thrones/) for *Game of Thrones*.

__"Put your reasonableness pants on"...__ That's what a judge just [told](https://www.cnn.com/2019/04/04/business/sec-elon-musk-contempt-hearing/index.html) Elon. And that was the least concerning issue for __[Tesla](https://robinhood.com/stocks/tsla)__ shareholders. They were more worried about its [production report](https://www.wired.com/story/teslas-disappointing-numbers-more-car-news-this-week/) showing 63K Teslas delivered last quarter — a 31% drop from the previous quarter. Blame how long it takes to ship cars to China and Europe, and (maybe) less demand from buyers. 

__No good deed goes unpunished...__ __[Boeing](https://robinhood.com/stocks/ba)__  decided to pour [more resources](https://www.nytimes.com/2019/04/05/business/boeing-737-production.html) into figuring out what went wrong with its 737 Max jets. Humanity likes that. But shares fell Friday because it means Boeing's cutting production of those jetliners by 20% from 52 to 42 per month.

__Big first move...__ The dating app where ladies initiate, __Bumble__ already revealed its IPO interest last fall. Now it's just [launched](https://bumble.com/the-buzz/introducing-bumble-mag/) *Bumble Mag*: A 100-page, coffee-table worthy, lifestyle advice-packed, physical magazine (remember those?). Our favorite numbers from the Mag:

- __Issue #1:__ Bumble advisor Serena Williams quilled a story, with interviews from female founders like Man Repeller's Leandra Medine.
- __50M:__ Bumble's total userbase (who can request a copy of the mag in-app).
- __2:__ Pull-out posters in the mag that can be used as backdrops for new profile pics in the dating app.

__Online just defined the relationship with offline...__ After digging into *Bumble Mag*, we were shocked at the number of [digital brands](https://techcrunch.com/2019/04/04/bumble-goes-to-print-with-its-new-lifestyle-magazine-bumble-mag/) with a thing for analog publications. In an app-first era, *disconnected* engagement now drives *connections* with digitally-native brands:

- __"*Wooly*":__ Mattress-in-a-box pioneer __Casper__ explores "comfort, wellness, and modern life" for $12 per magazine.
- __"*Here*":__ Suitcase icon __Away__ is on issue #7 of its travel print.
- __"*Grow*":__ Yes, __Facebook__ has a quarterly magazine for business leaders who love "thought leadership," "synergies," and buzzwords.
- __"*Airbnb Mag*":__ That Wes Anderson-inspired movie theater apartment in Ontario? __Airbnb__ curates its most obscure experiences at $18 for 6 issues.


Swipe

__This is Bumble's anti-Tinder strategy...__ __[Match Group](https://robinhood.com/stocks/mtch)__ dominates online dating with over 45 apps (including Tinder and Hinge). Bumble CEO and founder Whitney Wolffe [is open](https://www.wsj.com/articles/bumble-is-open-to-a-right-swipe-on-ipo-1542231332) to IPO, and knows a lifestyle brand is Bumble's differentiator — Its "Hives" (physical Bumble clubs for talks, socializing, and networking) were part of that strategy. So is its *Mag*.

Bumble launches physical magazine — Its future IPO differentiator

__It's the most wonderful time of the year...__ Happy earnings season, as companies give the gift of their financial and strategy updates, starting with big banks (__[Wells Fargo](https://www.robinhood.com/stocks/WFC)__ and __[JPMorgan](https://www.robinhood.com/stocks/jpm)__). But this season's different — Slowing global economies and shrinking impacts from 2017's US tax cut have investors worried about the first quarterly [profit decline](https://www.factset.com/hubfs/Resources%20Section/Research%20Desk/Earnings%20Insight/EarningsInsight_032919.pdf?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosedge&stream=business) in two years.

__2018. Good year. Maybe too good...__ The huge tax cut passed in December 2017 boosted 2018's profits for S&P 500 companies by 20%. *Twenty-percent* (that's crazy strong growth). Analysts aren't getting the same vibes for 2019. They predict first quarter profits will fall by 3.9% compared to last year.

Scoreboard

__Don't be shocked by *profit shrinkage*...__ Companies already showed their cards — Many CEOs have recently warned us through "guidance," a heads-up on what to expect. And 73% of guidance lately has been simple: Profits will be less than last year. [__Walgreens__](https://www.robinhood.com/stocks/WBA) did it just last week, and its shares are down 14% since.

The 1st quarter earnings season kicks off Friday (with one worry)

S&P 500 

_Get physically ready. It's earnings season._

Bumble goes off its app

__We're getting bold aromas and notes of oak...__ from the earnings report of __[Constellation Brands](https://robinhood.com/stocks/stz)__. The liquor legend's beer sales jumped 9%, but wine slipped 8%. Blame that on 3 key [trends](https://www.bloomberg.com/news/articles/2019-01-17/americans-drank-less-alcohol-in-2018-for-the-third-straight-year):

1. Americans are drinking less.
2. When they do drink, it's higher-end stuff.
3. And they want to try something lower-cal (but refreshing).

__"Rosé all day" is over...__ "*Expensive low-alcohol rosé occasionally*" is the new thing. Constellation's adjusting to those shifting tastes in a big way with its wine portfolio — "Non-premium" is out and vintage Brunello is in:

- __Under-$11 labels:__ Gone. Constellation just sold off 30 of its cheapest brands for $1.7B (it was hoping to get [twice that](https://www.winemag.com/2018/10/25/constellation-brands-seeks-to-sell-wine-brands-in-3-billion-deal/)).
- __Over-$11 labels:__ They get all the attention. Constellation's promoting them through [new partnerships](https://www.cnbc.com/2019/04/04/constellation-brands-q4-2019-earnings.html) with the PGA and a bunch of NFL teams.


__Constellation's making alcohol more like seltzer...__ Rising Modelo sales have Constellation focused on beer. Next is __Corona Refresca__, the Mexican brand's 1st non-beer (but beer-branded) option that comes this month. Look out [for its](https://www.simplemost.com/corona-launches-line-refresca-malt-beverages/) Insta-worthy guava or coconut-lime flavor cans. Pairs well with those 3 trends above. ⬆️⬆️

Corona-owner Constellation switches from wine to beer

__Just one of those days...__ Shares of the electric car pioneer __[Tesla](https://robinhood.com/stocks/tsla)__ sank 8% Thursday on 1 business headline and 1 legal one:

- Both its car production and deliveries were __down across *every* Tesla model__ in the last quarter of 2018.
- __Elon Musk visited court__ after ignoring an SEC order for Tesla lawyers to screen his tweets *pre*-tweet (the judge gave him [2 weeks](https://www.nytimes.com/2019/04/04/business/elon-musk-contempt-court-hearing.html) to agree to a settlement with the SEC).

__63K eCars delivered — But that's down 31%...__ And Tesla got right down to the excuses for [coming up short](http://ir.tesla.com/news-releases/news-release-details/tesla-q1-2019-vehicle-production-deliveries):

1. __Ships take time:__ Tesla began exporting its lower-priced Model 3 to China and Europe. It takes a while for them to get there.
2. __$$$:__ That US government subsidy to encourage electric car purchases? Just got cut in half, making Teslas more expensive for customers.

eDrive

__Tesla shares have no chill...__ The polarizing CEO attracts lovers and haters (think pineapple on pizza). Thursday's report makes Tesla's goal for 360K-400K car deliveries this year look unreachable, so investors piled on the hate and sold shares. They think it'll run out of money. Others still think it's *the* car company of the future.

Tesla sold way fewer cars last quarter (and Elon hit court)

__Two struggling tech icons got together...__ The result is [Bitmoji Party](https://www.youtube.com/watch?v=zlbRDJhUXwE). [__Snap's__](https://www.robinhood.com/stocks/SNAP) launching video games with Bitmoji, the app it bought in 2016 to create custom avatars, the cuter cartoon vision of yourself. "Words With Friends" creator [__Zynga's__](https://www.robinhood.com/stocks/ZNGA) adding 5 more games to Snapchat soon. All multi-player. All smartphone playable.

__Engagement. Engagement. Engagement...__ *Engagement*. That's what social networks do. Snap's under pressure to add users and power engagement back up since Instagram copied its [Stories](https://buffer.com/library/instagram-stories) in 2016. But this gaming move's not that new:
 
- [__Facebook__](https://www.robinhood.com/stocks/FB) got gaming in 2009 with Farmville. Now 700M humans game there.
- __[Amazon](https://www.robinhood.com/stocks/AMZN)__ dropped $970M for the live-streaming, watch-your-buddy-pwn platform __Twitch__ in 2014. One [celebri-gamer](https://www.theverge.com/2019/3/13/18264366/ninja-ea-apex-legends-1-million-dollars-promoted-stream-fortnite-sponsorships) now has *14M Twitch followers*.

Bitmoji

__It always comes back to ads...__ A live Bitmoji Party brings physical friends together digitally, for free. And Snap rose 1% on hopes you'll love Snap-gaming so much you'll tolerate *ads* to earn virtual coins. Fortnite games hope you pay up for *in-game purchases* (picture digital you in a new costume). But ads are Snap's main game.