__Treat yo' self...__ A pair of coffee stocks are enjoying record highs — __[Dunkin'](https://robinhood.com/stocks/dnkn)__ is up 29% this year and __[Starbucks](https://robinhood.com/stocks/sbux)__ has risen 30%. [An analyst](http://fortune.com/2019/06/25/stocks-coffee-starbucks-dunkin/) who doesn't even drink coffee (more of a "tea and hot chocolate" guy) just upgraded where he thinks Dunkin's shares can go thanks to a 4-part java strategy.

__"*I'll have what she's having*" — Starbucks...__ It looks like Dunkin's rival ordered the same 4-part coffee growth plan:
1. __Streamlined menus:__ The faster customers can figure out what obscure Arabica bean combo they want, "the happier they'll be" (according to one of Starbucks' [menu engineers](https://www.huffpost.com/entry/starbucks-menus-shorter_n_5bfc3673e4b0eb6d93126cd6)).
2. __More espresso-based drinks:__ For the [1st](https://www.qsrmagazine.com/fast-food/dunkins-espresso-game-changer-years-making) time ever, consumers under 35 drank more espresso drinks (like lattés) than hot drip coffee, in 2017.
3. __Super loyalty programs:__ We're talking "MCommerce." *Mobile* commerce. The ability to see a full menu, order ahead, and gamify buying with rewards leads to orders that are bigger and more frequent.
4. __Tech delivery partnerships:__ Both coffee brands signed delivery deals with Grubhub.

__Coffee *consumption* isn’t a commodity...__ Oil, copper, coffee — All commodities because they aren't differentiated (one bean's pretty much the same as another). But coffee-buying experiences are different. Through apps, delivery, and [Zombie Frappuccino](https://www.starbucks.com/menu/drinks/frappuccino-blended-beverages/zombie-frappuccino-), Starbucks and Dunkin' can charge a premium for coffee, thereby un-commodifying it.

Starbucks and Dunkin' hit record highs — And they're using the same 4-part strategy

__1 city + 1 tech company = Sidewalk Labs...__ Toronto solicited proposals from private companies to redevelop an empty waterfront neighborhood. Sidewalk Labs won. It's a sister company of Google, a subsidiary of __[Alphabet](https://robinhood.com/stocks/GOOG)__, and just unveiled a 1,500-page, multi-volume smart city plan. If Toronto approves, then one corner of the city gets elegantly coded.

__DWI = Driving While Incognito mode...__ This neighborhood ("super-hood?") will be built [from scratch](https://www.sidewalktoronto.ca/) with every detail optimized for internet-connectedness. Here are a few of them: 

- __Smarts:__ The sidewalks would expand into a lane of traffic before/after rush hour.
- __Reimagined:__ Nobody likes loud trucks, so freight delivery would happen underground.
- __Random:__ [This](https://www.dezeen.com/2019/03/11/building-raincoat-prototype-sidewalk-labs-toronto-smart-city/) "giant raincoat" is supposed to protect buildings from snow (it's basically just a big awning).
- __Earth-loving:__ Everything would be built with "[mass timber](https://www.thinkwood.com/news/4-things-to-know-about-mass-timber)," which is apparently better for the world than steel and concrete (and more [*hygge*](https://www.countryliving.com/life/a41187/what-is-hygge-things-to-know-about-the-danish-lifestyle-trend/)).
- __Money:__ Sidewalk Labs would invest $1B in housing (20% "affordable", 20% "middle class", and 60% probably very expensive), office space, retail stores, and community centers like parks.


Cities

__It's not trying to take your data...__ Sidewalk's PR got out ahead of privacy concerns: "*Sidewalk Labs does not share urban data, user data, or personal data with Google.*" Instead, Sidewalk will make money on rent in Toronto. And if other cities buy Sidewalk's plan, it'll charge for its smart-city tricks learned in Toronto. Picture real estate development meets tech. 

- __WeWork__ has perfected how to build __modern offices__.
- __Sidewalk Labs__ is perfecting how to build __modern neighborhoods__.


Alphabet's futuristic smart city division ("Sidewalk Labs") unveils its Toronto plan

__"He Who Must Not Be Named"...__ was dropped a lot at __[BMW's](https://robinhood.com/stocks/BMWYY)__ NEXTGen event in Munich, showing off its electric car progress. The hugely profitable German carmaker's stock has been down on trade war worries and tough new emission regulations in Europe. So it's accelerating plans to cut emissions out altogether with Tesla-killing electric cars. 

__The lead engineer's name means "Happy" auf Deutsch...__ and Mr. Klaus Fröhlich was 110% himself when he made these updates:

1. __The Vision M Next.__ It's basically an electric [batmobile](https://electrek.co/2019/06/25/bmw-unveils-electric-concept-that-looks-like-next-gen-i8-sports-car/). The concept car isn't for sale (it might never be), but it shows how BMW wants e-cars to be sexy.
2. __Vision DC Roadster.__ Also a concept vehicle, but a 2-wheeled electric motorcycle that looks like a [Transformer](https://www.motorauthority.com/news/1123784_bmw-motorrad-vision-dc-roadster-concept-charts-path-for-electric-motorcycles).
3. __The big corporate update.__ BMW will meet its goal of 25 electric models by 2023, two years [ahead of schedule](https://techcrunch.com/2019/06/25/bmw-says-its-running-ahead-of-its-electrification-goals/). Next year we get an all-electric X3 SUV. 

Drive

__How valuable is Tesla's head start?...__ Back when Americans obsessed over Chevy Suburbans and other SUVs in the mid-2000s, Elon launched an electric car company. Now, German luxury brands on the short list for the affluent Tesla-buying demographic are catching up. Tesla's a purebred. BMW, Audi, and Mercedes have adapted, Darwin-style.

BMW unveils new electric cars to hit 25 models by 2023

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

_"And we're putting the Google innovation center up here on the left"_

Google built a WeWork, but for entire cities

__Extra fries...__ Pairs with the 40M more "*fresh beef*" Quarter Pounder burgers that __[McDonald's](https://robinhood.com/stocks/mcd)__ pumped out last quarter compared to a year before. McD's [revealed](https://news.mcdonalds.com/news-releases/news-release-details/one-year-fresh-beef) that sales of Big Mac's new anti-frozen cousin are up 30% since it introduced the option in 2018 — And for the 1st time in 5 years, it gained market share in the obscurely delicious "informal burger category."

__Ronald deserves a Masters Degree...__ in smiles and supply chain management. The creation of a "fresh beef" option was a major investment by the McDonald's team — It took *4 years* to install a new process to go from cow-to-mouth faster and never frozen. Here's what that "[massive transformation](https://www.restaurantbusinessonline.com/financing/mcdonalds-has-sold-lot-fresh-beef-burgers)" included:

- __Designing new fridges__ to handle fresh beef at the right temperature.
- __Distributing new kitchen utensils__ (aka spatulas) to every participating franchise about to flip the softer burgers.
- __Training 3,000 restaurant operators__ to prepare the actual patties.

Crave

__This is why you invest in your growth...__ Just as McD's is spending on its supply chain to accommodate the new patties, it's pursuing another major overhaul: The $6B nationwide [renovation](https://www.qsrmagazine.com/fast-food/mcdonalds-spending-6-billion-nationwide-remodels) of the majority of its 14K US stores by 2020. Fresh beef is a case study on how investing big into your infrastructure can cook up major payoffs.

McDonald's burger market share rises for 1st time in 5 years

__"One + One = Five"...__ That's how Carl Icahn described the merger of __[Eldorado Resorts](https://robinhood.com/stocks/ERI)__ and __[Caesars Entertainment](https://robinhood.com/stocks/CZR)__, announced Monday. Teaming up creates the largest US casino operator, with 60 gambling spots across 16 states. Technically, Eldorado is buying Caesars (faux gondola [situation](https://www.venetian.com/resort/attractions/gondola-rides.html) included), but they'll share ownership 51%/49%. Here's the receipt:

- __Price:__ Eldorado's paying __$8.5B__ in cash and some stock to acquire 100% of Caesars' shares.
- __Debt:__ Caesars carries some baggage — __$8.8B__ of debt. That now belongs to Eldorado.
- __Total cost:__ The law of addition gets us to __$17.3B__ Eldorado is throwing on the table for all of Caesars' chips.


__"Sir, I strongly suggest you [hit](https://www.youtube.com/watch?v=HkzMA1jrm00)"...__ Carl Icahn [made](https://www.axios.com/carl-icahn-caesars-eldorado-resorts-acquisition-eac97058-8383-4131-8516-7b0f0ea4e4f7.html) this happen. Here's how:

- His hedge fund __Icahn Enterprises__ bought up 9.8% of Caesars' shares. Then he went public with it, and announced that __the company should sell itself__.
- Caesars' directors immediately __gave Carl 3 seats on the board__ and let him help choose the next CEO.
- Carl's ownership rose to nearly 16%, and he wielded his power to __push for the highest bid from Eldorado__.
- Carl's shares will now be bought for $13.01 — That's __a 51% return in just 4 months__ since he snagged the board seats. 


Gamble

__This is American-style investor activism...__ Carl Icahn helped create that term in 1985, when he famously took control of __TWA Airlines__, turned himself a nice profit, and then left (TWA ended up in bankruptcy 3 times). Here's that activist playbook:  

1. Buy a big chunk of a company's shares.
2. Publicly demand change (often insulting management's competence). 
3. Hope to sell after changes have boosted the stock.

As Carl likes to [put it](https://carlicahn.com/): "*A lot of people die fighting tyranny. The least I can do is vote against it.*"


The biggest US casino was just created — And Carl Icahn orchestrated the whole thing

__Guy sex problems generate billions of profits...__ Not so much for women. __AMAG__ is trying to change that with "Vyleesi," which just earned FDA approval to treat premenopausal Hypoactive Sexual Desire Disorder. That affects 5.8M American women, yet only 1 [other](https://www.nytimes.com/2019/06/21/health/vyleesi-libido-women.html) type of therapy is available on the market. But here's how it's different from Viagra:

- Viagra treats arousal problems. __When you want to have sex__.
- Vyleesi treats desire problems. __When you *want to* want to have sex__.  

__The 2nd problem is harder to cure...__ This isn't a pill. Vyleesi requires injection in the thigh or abdomen 45 minutes before sex. And it actually affects the brain (unlike Viagra, which affects one thing). Vyleesi's branding though looks strategically more like a new direct-to-consumer soap startup, brushed with hints of [Millennial pink](https://people.com/health/fda-approves-drug-improve-womens-sex-drive/).

Injection

__The news didn't go down as planned...__ Two key stocks are involved in this story: __[Palatin Technologies](https://robinhood.com/stocks/PTN)__ (which developed the drug) and __[AMAG](https://robinhood.com/stocks/AMAG)__ (the just-outside-of-Boston company licensing/marketing it). Their stocks were up as high as 39% and 12% after the news... until [this article](https://twitter.com/adamfeuerstein/status/1143114841764372480). A science reporter panned the drug for its brutally pill-less injection and unpleasant side effects. Wall Street is [concerned](https://seekingalpha.com/news/3473312-palatin-amag-give-gains-feuerstein-rains-vyleesi-parade). 

"The Viagra for women," Vyleesi, gets FDA approval (and then the stock drops)

_Cooking with the real thing_

Meat-full meats at McDonald's 

__"Searchable Log of All Conversation and Knowledge"...__ You know the [acronym](https://www.theverge.com/2016/9/28/13098164/slack-is-an-acronym) as __[Slack](https://robinhood.com/stocks/work)__, the office messaging tool whose CEO/founder [predicts](https://www.cnbc.com/2019/06/20/slack-ceo-predicts-end-of-company-email-as-we-know-it-in-7-years.html) the end of work email within 7 years. It boasts 10M daily active users, while the number of paying corporate accounts is growing (at 95K right now). Like plenty of other tech, it's losing money still as it spends to beat competition from Facebook ("Workplace") and Microsoft ("Teams"). Shares rose 49% on Day #1 of trading, even as Slack chose to go public via a "Direct Listing" — not an IPO. Here are 3 reasons why it did:

1. A direct offering __doesn't raise new money__ like an IPO would, (but it still gave early investors the chance to sell their stock in the public markets).
2. That's why it was __cheaper than an IPO__ (you don't pay the investment banking fees of issuing new shares).
3. And Slack's __got a big enough brand__ to list shares without needing an IPO-style promotional roadshow (Spotify pulled the same direct listing move last year).

__New crypto, who dis?...__ __[Facebook](https://robinhood.com/stocks/fb)__ revealed its blockchain-based cryptocurrency, "[Libra](https://calibra.com/)": its logo is three exotic-ish waves, it'll be ready to use by the world's 2.4B FBers by 2020, and it's a "stable-coin" (backed by real money like the US dollar so the price shouldn't swing as much). 27 other companies will share oversight of ZuckBucks along with Facebook. And with the new cryptocurrency, you can pay friends in Libra, then easily convert to whatever currency you want to send back to your old school bank account. It's also Facebook's plan B if regulators cut down on its ad biz.

__Shavasana smells great...__ because __[Lululemon's](https://robinhood.com/stocks/lulu)__ expanded from apparel to [introduce](https://finance.yahoo.com/news/lululemon-launches-selfcare-products-teams-140502809.html) its own selfcare products. The deodorant, shampoo, lip balm, and face moisturizer are strategically aluminum-free and marketed gender-neutral to cure "hot yoga face." It's Lulu's first step to lean into its new 5-year plan hard: “Become the experiential brand for people living the sweatlife.”

Highs

Who's up...

__A signal of how bad things have gotten...__ __[Blue Apron](https://robinhood.com/stocks/APRN)__ was forced to cook up a "reverse stock split." The stock price got so small ($0.55 heading into last week) that the meal kit pioneer is merging every 15 of its own shares into 1 to boost the price to a less embarrassing number (fractions aren't in season). Now a single serving of Blue Apron stock is around $7, but its logistics, competition, and customer loyalty challenges are the same. 

__Limited breadsticks...__ Olive Garden owner __[Darden Restaurants](https://robinhood.com/stocks/DRI)__ fell 4% Thursday on [word](https://www.cnbc.com/2019/06/20/darden-restaurants-q4-2019.html) the number of visitors at its top chain actually slowed (despite them being assured that they were family). Olive Garden makes up *half* its parent company's sales, but it wants more "quality" customers ([their words](https://www.investors.com/news/darden-restaurants-earnings-q4-2019-darden-restaurants-stock/)), so it's cutting back on "value meals." 

__I'm not feeling lucky...__ __[Google](https://robinhood.com/stocks/GOOG)__ faced a few more existential issues with the free internet last week:

- [Reports](https://www.wsj.com/articles/google-maps-littered-with-fake-business-listings-harming-consumers-and-competitors-11561042283) surfaced that Google Maps is being manipulated in order to drown competition in an ocean of fake business pins.  
- And Google Calendar was [down](https://www.theverge.com/2019/6/18/18683625/google-calendar-down-worldwide-outage-404-error) for three hours due to an outage. "Fashionably panicked."
- Then the FTC [opened](https://www.washingtonpost.com/technology/2019/06/19/facing-federal-investigation-youtube-is-considering-broad-changes-childrens-content/?utm_term=.59a113730d54) an investigation into Google-owned YouTube for the way it protects/exposes children's privacy. 

Lows

...And who's down

__"I must not have done it right"...__ That's the uninspired reaction from investors after  __[Canopy Growth's](https://robinhood.com/stocks/CGC)__ earnings just before the weekend. Based in Canada, the world's largest cannabis corporation fell 8% based on these low-lights:

- __Revenue__ for its high-end dried weed jars, prescription-looking softgel canisters, and yoga-friendly vapes (check [these](https://www.canopygrowth.com/brands/) out) only rose 13% from last quarter to $94M (Canadian dollars).
- Good ol' __supply and demand__ was an issue, as Canopy sold 9.3K kilos of "product" and [expects](https://www.canopygrowth.com/wp-content/uploads/2019/06/190616-Q4-FY-2019-Earnings-Final.pdf) to grow 34K kilos this quarter. That surplus-y situation pushed the average price of pot sold down 11% to $7.49/gram.    

__Going from black market to white is tough...__ Hype for Canada's recreational weed legalization last October pushed Canopy's market value to $13B. Now it needs to convince cannabis buyers to switch from "their guy" to "the man," AKA Canopy's corporate-branded products. It also has to deal with regulation, taxes, and advertising rules that limit it to medical-style bland marketing. 

Awkward

__Canopy is the pot stock in global prep mode...__ Thanks in part to the [$4B](https://www.cnbc.com/2018/08/15/corona-maker-constellation-ups-bet-on-cannabis-with-4-billion-investm.html) investment it got from Corona-owner __[Constellation Brands](https://robinhood.com/stocks/STZ)__, Canopy has acquired production facilities, device companies, and retail stores — The value chain is Canopy's from plant to pipe. Now it's awkwardly waiting for growth catalysts: 

- __Ontario:__ The biggest province by population (40% of Canada's pop) just got marijuana retail stores in April, so first-time Canadians are trying it out.
- __US:__ Not legal yet nationwide, but when/if it is, Canopy's [acquisition](https://www.reuters.com/article/us-acreage-m-a-canopy-growth/canopy-growth-to-buy-acreage-in-3-4-billion-deal-idUSKCN1RU1K9) of pot producer __Acreage Holdings__ will be legally complete.
- __UK:__ Last month it [acquired](https://www.prnewswire.com/news-releases/canopy-growth-acquires-established-skincare-and-well-being-company-this-works-300855013.html) London-based This Works, a natural skincare developer with a CBD interest.
- __Gummies:__ Edibles are legalized in Canada this fall, and Canopy's new 197K square foot plant will be [ready](https://www.bloomberg.com/news/articles/2019-06-16/a-gummy-conundrum-for-canada-s-pot-producers-cannabis-weekly) to start cooking. 

Earth's biggest cannabis company falls 8% because investors are impatient

_"Just waiting for a bunch of legalization"_

Canopy (waiting for) Growth

__Seven years from now, office email will be dead...__ That's the [bold](https://www.cnbc.com/2019/06/20/slack-ceo-predicts-end-of-company-email-as-we-know-it-in-7-years.html) prediction from __[Slack](https://robinhood.com/stocks/WORK)__ CEO/founder Stewart Butterfield. His messaging platform for office ~~distraction~~ productivity states its purpose elegantly in its ["S-1"](https://sec.report/Document/0001628280-19-004786/), the required paperwork for a company to go public: Slack *“replaces the use of email inside the organization."* And the stock popped 49% Thursday, its first day as a public company. 

__#fun-facts__

- __Slack was an accident:__ Butterfield created an online game called Glitch — He realized the messaging feature in the game had potential, so he focused on what ultimately became Slack.
- __It's an acronym:__ Stands for "Searchable Log of All Conversation and Knowledge."

__#interesting-numbers__

- Slack boasts 10M daily users and 95K paying accounts.
- Its biggest customers pay $100K+ annually, and Slack's got 93% more of those whales than last year (645 as of April).
- Revenues almost doubled last year to $400M, but the biz generated a loss of $140M. 

__One big question...__ Why the "Direct Listing?" Slack didn't IPO to become public as most companies would. Following the path Spotify carved out last year, Slack listed shares directly. That's __cheaper__ (you don't pay banks fees to take you public) because you __don't raise new money__. It's a rare move that Spotify or Slack can pull off since they don't need new cash, and their brands are strong enough that they don't need a pre-IPO roadshow to get to know investors.

Listing

__Slack's all about "ROC"...__ That's "return on communication." Slack dropped that reference in the S-1 — its core pitch is that your company "feels empowered" by Slacking, which leads to  ➡️ more communication  ➡️ more productivity  ➡️ more business. Meanwhile, Microsoft (with "Teams") and Facebook (with "Workplace") want in on the conversation.

Slack jumps 49% on Day #1 of trading (after its not-IPO)

__So we’re cutting rates now?...__ Wednesday, America's central bank [set](https://www.npr.org/2019/06/19/734016930/fed-ponders-when-to-cut-interest-rates) the stage to reduce interest rates nationwide later this summer. It’s a sign those wise government bankers are concerned the trade war could hurt the economy, so they’re saying “we got your back” — Lower rates would support borrowing, potentially offsetting trade war pain. The Fed hasn’t cut interest rates yet, but markets are acting like they have...

- __Mortgage rates:__ A 30-year house loan had a 5% average interest rate in November. Now it’s down to [3.86%](https://www.cnbc.com/2019/06/20/falling-mortgage-rates-may-already-be-lifting-home-prices.html), *close to record low levels*.
- __10-Year US government bonds:__ The interest the government pays for 10-year loans dropped below 2% yesterday *for the first time since 2016*.

__We're talking supremely unsexy industries...__ Electric utilities, packaged goods, wireless — lower rates could change that. __[NextEra Energy](https://robinhood.com/stocks/NEE)__, __[Procter & Gamble](https://robinhood.com/stocks/PG)__, and __[Verizon](https://robinhood.com/stocks/VZ)__ don't have the cachet of self-driving meal kits startups these days. But they all boast profitable track records and hook up shareholders with cash [dividends](https://learn.robinhood.com/articles/6jGOO5O2YvyoZzlEUtIq0F/what-is-a-dividend/) every quarter. Most fast-growing companies don't pay dividends at all.

__Everything’s relative...__ The dividends of these companies haven’t changed much since December. But interest rates overall have. With lower rates today compared to December, these dividends look good to investors that just want reliable cash payments. That's why the Fed's words Wednesday are bringing sexy back.


Dividend stocks are living their best lives thanks to the Fed

__Less chill...__ __[Netflix](https://robinhood.com/stocks/nflx)__ whipped up a new comedy over the weekend featuring Adam Sandler and Jennifer Aniston — *Murder Mystery* was Netflix's biggest opening weekend original movie yet. Critics didn't love the story, but we loved the numbers Netflix [revealed](https://twitter.com/NetflixIsAJoke/status/1141088463934173189) (it rarely shares info like this). Here are the personal records Netflix [set](https://variety.com/2019/digital/news/netflix-murder-mystery-stats-1203246899/):

- 30,869,863 viewers in 3 days.
- That was 10% of all Netflix views.
- Over half were from outside the US (FYI -  getting through 70% of the movie counts as a "watch").

__Pressure is on...__ Netflix is showing off its latest win because everyone's jumping on the streaming couch. Amazon, Hulu, Comcast, and AT&T’s HBO — They're all pushing streaming options as you cut the cord. And Disney's pulling its own magical content from Netflix as it launches its own Disney+ in November.


Stream

__Netflix's homescreen is the most valuable billboard ever...__ As it jumps deeper into original content, it's also jumping into competition with Lionsgate, 20th Century Fox, and other movie producers. Netflix's new competitive advantage is that it owns its whole ecosystem. Instead of paying for ads and buying trailer spots, it just sticks *Murder Mystery* at the top of your screen — its homepage — to ease your viewing decision stress.

Netflix's Sandler/Aniston flick reveals some valuable numbers and intel

_"Join my handshake channel"_

Slack's ticker symbol says it all

__This is why babysitters need references...__ According to [WaPo](https://www.washingtonpost.com/technology/2019/06/19/facing-federal-investigation-youtube-is-considering-broad-changes-childrens-content/?utm_term=.c2ef47fe453b), the FTC is investigating YouTube (owned by __[Alphabet](https://robinhood.com/stocks/goog)__) for violating children's privacy. YouTube has a history of conduct parents wouldn't approve of — and the [WSJ](https://www.wsj.com/articles/youtube-under-fire-considers-major-changes-to-kids-content-11560953721?emailToken=91db9e70c797f22badc7f8eb03e60999jhQW4pHbe655ZEcMj/k8Amg2FiInFJ+Fn2EaNw2BR52k0panXgPhtNwtGdsw0Dki0eXCP+112mM/0Z/TqC0ZLV/lt2RdXPSw1ehsL1IujAJStvZqQ0wQtVSYTZK9B+pU&reflink=article_copyURL_share) reports that YouTube's considering two big changes to try to fix its kid problems:

- __"YouTube Kids":__ Pushing all kids content to a separate children's app, insulating them from vids that would keep you up at night. 
- __Kill "Auto-play":__ Parents can put on a wholesome "[Dude Perfect](https://www.youtube.com/watch?v=7y-hKLfeurY)" video for the twins, only to be smacked by something totally R-rated right after. YouTube could cut the risk by cutting its favorite feature.

__One of the best buys ever: YouTube...__ Google dropped $1.6B for a budding video website back in 2006 — Today, it's estimated to be worth between [$75B](https://www.cnbc.com/2017/07/25/top-google-analyst-says-youtube-is-worth-75-billion.html) and [$160B](https://www.businessinsider.com/morgan-stanley-values-youtube-160-billion-dollars-2018-5). YouTube says humans are watching 1B hours on it daily, generating billions worth of ad dollars. But it's also been used for [child exploitation](https://www.usatoday.com/story/tech/news/2019/02/22/at-t-disney-epic-games-pull-youtube-ads-child-exploitation-concerns-pedophiles/2948825002/) and can [radicalize](https://www.thedailybeast.com/how-youtube-pulled-these-men-down-a-vortex-of-far-right-hate) people.

Protect

__When kids need regulation, it actually happens...__ Paralysis in DC is constant. But children's safety is bipartisan. Google could be preempting future regulation by regulating itself for the kids. A couple fresh examples of kid-catalyzed business regulation:

- Since 2018, new cars are [required](https://www.autotrader.com/car-news/new-backup-camera-rule-cameras-will-be-mandatory-by-2018-223739) to __have backup cameras__. The reason? Protecting toddlers from backing-up cars. 
- This week, San Francisco [voted](https://www.sfgate.com/news/medical/article/San-Francisco-weighs-1st-US-city-ban-on-14010921.php) to __ban the sale of vape products__ and there's a growing push to raise the tobacco age to 21. The reason? Protect kids.

YouTube considers a major change for kids (because it's under investigation)

__We'll cover Slack tomorrow after Day #1 of trading...__ __Grocery Outlet__ earned your attention today. The 73-year-old chain is the nation's fastest-growing "extreme-value" grocery retailer. Picture Trader Joe's meets Dollar General — 300 independently-run stores generated $2.3B in sales with prices that are 40% under regular ol' "conventional" grocers. Here's how:

- __The secret sauce:__ Strong supplier relationships — 30-year average connections with 15 key suppliers (Grocery Outlet buys their foods when other grocers won't).
- __The not-so-secret risk:__ Relationships aren't permanent. They can end. And Walmart, Aldi, and Amazon's Whole Foods can build supplier relationships, too.

__One word: "WOW!"...__ We noticed the term 48 times in Grocery Outlet's pre-IPO paperwork (aka its [S-1](https://www.sec.gov/Archives/edgar/data/1771515/000119312519145450/d710724ds1.htm)) describing its values, business model, and risks. Turns out WOW! is how Grocery Outlet promotes its "Power Wall" (also a real thing) of top deals hitting you as soon as its automatic doors open. Here's how else it energizes your weekly guac run.

- “Deliver a __treasure hunt shopping__ experience” with extra-wide aisles and ceiling-high packs of anything.
- Then it makes its cashiers __circle the savings with a marker__ on your receipt.

Bagged

__This is the convergence of 2 major retail trends...__ *Extremification and experiences*. Society-wide income inequality is driving high-end luxury retailers and low-end dollar stores to record high stock prices. Meanwhile, stores that are actually fun to go to can get you off Amazon. Grocery Outlet covers both.


Grocery Outlet: The not-Slack stock listing to know today

__Hate TPS reports?...__ You'll hate this story. __[Adobe](https://robinhood.com/stocks/adbe)__, the digital design company that invented the PDF, has quietly grown to a $130B in value by [market cap](https://learn.robinhood.com/articles/GByCbiOluG2kcWs1AF6m5/what-is-market-capitalization/), after setting a record quarterly profit of $2.7B. Its mission statement is bold, but confusing:

*"Adobe...gives everyone — from emerging artists to global brands — everything they need to design and deliver exceptional digital experiences."*

__It makes money because digital things need to look good...__ Adobe's a SaaS company (software-as-a-service) that brings in monthly revenue for its software, mostly from businesses:

- __PDF:__ You use it and hope it's "ctrl+F"-able. Adobe invented it in '93.
- __Adobe Illustrator:__ For professional designers who choreographed the graphics in whatever app you were just on.
- __Adobe Photoshop:__ The photo filter from before Insta-filters.
- __Adobe Spark Post:__ This new-ish app was built with social media in mind, offering small businesses beautiful templates to easily turn into shareable biz posts.

Download

__Adobe's profit margins are why investors love software...__ Every buck Adobe earns in subscription revenue costs it only $0.15 to produce. That shows how software is way more scalable than a car — GM's costs are much higher (think equipment, factories) at $0.93 for each dollar of a sale. Profits come easier when adding a customer only requires a new username/password, instead of metal and four wheels.

PDF-legend Adobe just hit a record high on record profits

_Just a couple guys YouTube wants to keep away from kids_

YouTube's kids table

__Because we all want *more* Facebook in our lives...__ The social network just [announced](https://calibra.com/) Libra, its own cryptocurrency. Like Bitcoin, __[Facebook's](https://www.robinhood.com/stocks/FB)__ ZuckBucks run on the blockchain, not banking systems. And the digital wallet that holds Libra (its symbol is three exotic waves instead of "$" or "€") will be pre-installed in accounts of 2.4B Facebook users. If you can Venmo your roommate Laura $26 + emoji for brunch, you can send her Libra (starting in 2020).

__"A new global currency on a new global network"...__ That's one of the (many) lofty claims from Facebook about what this could mean for the world.

- __Cheap:__ According to FB, $25B is lost by migrants every year through fees paid on international transfers. Transferring on Libra will be "low to no cost." 
- __Shared responsibility:__ Facebook and 27 other "partners" (aka well known international corporations like Uber and Mastercard) will run a nonprofit that oversees this currency, so it's not all in Zuck's control (they each [paid](https://techcrunch.com/2019/06/18/facebook-libra/) $10M to fund Libra and get one vote governing it).
- __Stable:__ This "stablecoin" will be backed up by hard money, like the US dollar, South Korean won, or South African rand. So unlike Bitcoin, the value of Libra will be relatively stable.  
- __Awkward [name](https://qz.com/1647118/the-problem-with-facebook-calling-its-crypto-libra/):__ In horoscopes, *Libras* are balanced babies born Sept 23-Oct 23. In French, *Libre* means free. In Australia, *Libra* is a leading tampon brand. 


Create

__This is targeting emerging markets...__ In the West, Facebook faces major distrust — Libra's combatting that with ID verification, fraud protection, and a promise not to use financial data to sell ads without users' consent. But even if Libra fails in the US, it could succeed in developing countries where there are more people, more trust for the 'Book, and huge needs for low-cost banking services.

"Libra": Facebook unveils its cryptocurrency (and global banking ambition)

__"Put them where the DVDs were"...__ __[Best Buy's](https://robinhood.com/stocks/bby)__ upgrading its shelf space — 100 stores will dedicate entire sections to fitness gear by year-end. That fits with the chain's "store-within-a-store" strategy (picture your local Best Buy's Apple, Samsung, and Google sections), but this isn't free weights. It's tech-infused workout gear. Here are our highlights:

- Flywheel stationary bikes that __stream live spin classes__, just like Peloton (which is why Peloton is [suing](http://fortune.com/2019/06/06/peloton-flywheel-patent-infringement/) Flywheel).
- NordicTrack treadmills (yep, they still exist) with __interactive coaching__ built in.
- Hydrow rowing machines featuring __an immersive water scene on the screen__ — so you forget about land.

__Home FitnessTech is the new iPhone...__ so Best Buy wants in. Wearable tech like Fitbits have become one of its fastest-growing categories. Meanwhile, home-bike Peloton is planning an IPO and furniture-turned-workout-buddy Mirror just [hit](https://techcrunch.com/2019/06/03/fitness-startup-mirror-nears-300m-valuation/) a nearly $300M valuation. Best Buy wants to [become](https://www.cnn.com/2019/06/18/business/best-buy-fitness-flywheel-hyrdrow-peloton/index.html) the resource for that “growing intersection between fitness and technology.”

Sweat

__Best Buy is trying to be the Apple Store for Baby Boomers...__ It's using the Millennial-powered wellness trend to become extra relevant for an aging Boomer population. Its two latest acquisitions show that its focus on FitnessTech is embedded in HealthTech:
- 2018: Acquired __GreatCall__ — maker of __LifeAlert__ ("[Help, I've fallen and I can't get up!](https://www.youtube.com/watch?v=bQlpDiXPZHQ)") for $800M.
- Last month: Acquired __Critical Signal Technologies__, [featuring](https://medcitynews.com/2019/06/best-buy-acquires-senior-remote-monitoring-company-critical-signal-technologies/) telemedicine and remote vital sign monitoring for seniors. 

Best Buy's big move into FitnessTech

__Paris: City of Flights...__ Airline execs and fans of flying are gathered this week at the 53rd annual International Paris Air Show. Aside from some aerial [acrobatics](https://www.youtube.com/watch?v=2ovqzioYQX8), cool new toys ([electric planes](https://www.cnbc.com/2019/06/18/all-electric-jet-firm-eviation-announces-us-airline-as-first-customer.html)), and we assume a lack of legroom, the show has high PR potential.  

__CEOs brought their most expensive pens...__ Here are the big deals that went down so far this week:

- __[Boeing's](https://www.robinhood.com/stocks/BA)__ crippling order drought for its toxic 737 Max brand was snapped — __British Airways__ parent __[IAG](https://www.robinhood.com/stocks/ICAGY)__ is [buying](https://www.cnbc.com/2019/06/18/british-airways-parent-places-first-new-order-for-boeing-737-max-since-grounding.html) 200 of them.
- __[Amazon](https://www.robinhood.com/stocks/AMZN)__ is [leasing](https://venturebeat.com/2019/06/18/amazon-leases-15-more-boeing-planes-to-expand-air-cargo-network-by-28/) 15 Boeings (that brings the total to 70) to continue growing its FedEx-scaring shipping operation. 
- The only thing Europe's truly united on is __[Airbus](https://www.robinhood.com/stocks/EADSY)__, the continent's proud Boeing competitor. It unveiled the uncreatively-named [A321XLR](https://www.cnn.com/travel/article/airbus-single-aisle-long-range-plane-scli-intl/index.html), a slender single-aisle jetliner for trans-Atlantic hauls.

Takeoff

__But what's up with that 737 Max?...__ Boeing's back to selling planes, but the problems with its former "best seller ever" aren't gone. Here's a status update on the flight delay:

- Boeing finished __a software upgrade and new training materials__ while the model remains grounded during the height of travel (and wedding) season.
- Today, American Airlines' pilots union reveals what it thinks of the new training — It's expected to be __"[concerned](https://www.cnbc.com/2019/06/18/american-airlines-pilots-union-concerned-about-boeing-737-max-training.html)."__
- Then Boeing __needs regulators' approval__ to get 737 Max in the air again.


Everyone who just won and lost the Paris Air Show

_"Just Libra me 50 and the couch is yours"_

Your FB account = Your bank account

__More cheese, less human...__ __[Domino's](https://robinhood.com/stocks/dpz)__ is launching self-driving pizza delivery in Houston, TX later this year. The fully-autonomous minivans are named "R2" and created by California-based __Nuro__ ([look at this thing go](https://www.youtube.com/watch?time_continue=47&v=wsI7N7hhZTg)). The startup was founded by two Waymo engineers (that's Google's self-driving car side-hustle) who tested them out in the dry heat of Scottsdale, Arizona.

__Here's how it goes down...__ These adorable pizza-packed vehicles are [purpose-built](https://techcrunch.com/2019/06/17/dominos-serves-up-self-driving-pizza-delivery-pilot-in-houston/) — designed to deliver you carbs as efficiently as possible:

- __No room for people:__ At 8.5-feet long, the R2 has no driver's seat, steering wheel, or brake pedal — just pizza box storage.
- __No sidewalks:__ Unlike Postmates' and Amazon's mini-bot delivery concepts, R2 rides with traffic at 25 mph.
- __Easy, app-y process:__ Houstonians can open their Domino's app, click "robot delivery," and they'll receive a PIN when R2 arrives. Type those digits into the delivery bot and boom — it's pepperoni time. 

Delivered

__Domino's is cutting humans from its diet...__ Just as Uber and Lyft are banking on self-driving cars to help them achieve future profitability, the pizza chain wants to avoid delivery boys to save costs (it's [thinking like](https://www.forbes.com/sites/aliciakelso/2018/04/30/delivery-digital-provide-dominos-with-game-changing-advantages/#4c01b27e7771) a tech company). We counted three other Domino’s partnerships to cut out drivers and their costly wages:

1. One in __New Zealand__ with an aerial [drone](https://money.cnn.com/2016/08/26/technology/dominos-drone-new-zealand/index.html) startup for delivery.
2. One in __Michigan__ with Ford for self-driving [cars](https://www.mlive.com/business/ann-arbor/2018/03/dominos_pizza_expanding_self-d.html).
3. And one in __Europe__ with smaller sidewalk-loving delivery [robots](https://www.chicagotribune.com/business/blue-sky/ct-dominos-robots-pizza-delivery-europe-20170329-story.html).


Domino's self-driving minivan is coming to Texas

__Pfizer really wanted these drugs...__ NY-based pharma giant __[Pfizer](https://www.robinhood.com/stocks/PFE)__ just dropped $10.6B for cancer drug company __[Array BioPharma](https://www.robinhood.com/stocks/ARRY)__. Pfizer wanted Array so badly that it offered $48 cash per share to [buy](https://www.cnbc.com/2019/06/17/pfizer-to-buy-array-biopharma-for-48-a-share-in-cash.html) out the whole company — That's 62% higher than Array's stock was trading on Friday.  

__2 cancer-crushing future money-makers...__ That's what Pfizer gets. Braftovi and Mektovi are both approved to treat skin cancer, including melanoma. Pending the results of a couple other studies, they could treat colon and rectal cancer patients, too. Guess how much each of those drugs cost per month — [$11K](https://www.wsj.com/articles/pfizer-to-acquire-array-biopharma-for-11-4-billion-enterprise-value-11560769500). *That* adds up over the life of a cancer survivor.

Dose

__Life-saving monopoly drugs are good business...__ Life-improving non-monopoly drugs aren't so much. Pfizer got famous with erection-helping Viagra and cholesterol-hating Lipitor. Both face competition now that their patents expired (online disruptors, like Hims and Roman, copied the generic versions). That's why Pfizer's buying up these life-saving cancer drugs. 

Pfizer pays big (strategically) for a cancer drug company

__Not a good sign...__ __[Blue Apron](https://www.robinhood.com/stocks/APRN)__ just completed a "reverse stock split" — It's combining 15 (really tiny) Blue Apron shares into 1 (way more reasonably sized) share. That financial engineering boosted the stock price from $0.55 to over $8 in one day. The struggling meal kit pioneer pulled off the maneuver for two key reasons:

- __Psychological messing:__ Seeing the stock fall from its $10 IPO price down to $1 in less than two years was depressing. And when potential investors check and see the stock's under a buck, it sends a bad signal.
- __The minor leagues:__ The New York Stock Exchange may actually de-list stocks that are less than $1. If they stay below that price for too long, the stock is relegated down to the "Over the Counter" markets.

Merge

__Blue Apron warned us this could happen...__ When Blue Apron prepped to become the first publicly traded company focused on zucchini-wrapped salmon entrées for your night in, it was honest with investors about the risks it faced. Here are three top concerns the company listed in its pre-IPO [S-1](https://www.sec.gov/Archives/edgar/data/1701114/000104746917003765/a2232259zs-1.htm) document, all of which have come true: 

1. “We have a history of losses, and we may be unable to achieve or sustain profitability.” *That first profit champagne is still in the fridge.*
2. “If we fail to cost-effectively acquire new customers or retain our existing customers... our business could be materially adversely affected.” *Customers haven't been loyal.*
3. "If we fail to manage future growth effectively, our business could be materially adversely affected.” *Competition is everywhere.*

Blue Apron pulls a "reverse split" in a desperation move

_"Sense my pizza delivery coming, I do"_

15-pack of Blue Apron = $8

__AM, FM, CD, AUX, Spotify...__ The Swedish music streamer just called shotgun on your commute with "Your Daily Drive" — That's __[Spotify's](https://www.robinhood.com/stocks/SPOT)__ new custom playlist to replace your local morning radio show with a combo of music and news (@Spotify what about traffic and weather?). If Your Daily Drive wins ears, it could eat into conventional radio's shocking [17% share](https://www.nielsen.com/us/en/insights/reports/2019/q3-2018-total-audience-report.html) of American adults' daily time spent with media. 

__Fancy armoire rebel...__ While the rest of retail pushes online, __[Restoration Hardware](https://robinhood.com/stocks/rh)__ (aggressively) does the opposite. And it's [working](https://www.cnbc.com/2019/06/13/rh-soars-on-earnings-beat-as-retailers-luxury-strategy-begins-to-pay-off.html). Quarterly sales jumped another 7% as RH's $50M brick-and-mortar "[Galleries](https://www.restorationhardware.com/content/category.jsp?context=DesignGalleries)," concept stores worthy of a school field trip, drive sales higher. Now it's launching two new 130+ page *physical* catalogs: "RH Beach" and "RH Ski." Perfect for second nest builders. 

__Lunch on the Grubhub team...__ Your late-night meal hero's stock [jumped 8%](https://www.barrons.com/articles/an-amazon-exit-gives-grubhub-stock-the-boost-it-needs-51560505500) on word __Amazon__ is out of the food delivery kitchen — "Amazon Restaurants" officially shuts down next week. Now __[Grubhub](https://robinhood.com/stocks/grub)__ has to worry about Uber Eats, Postmates, and DoorDash. [Together](https://www.geekwire.com/2019/amazon-shut-amazon-restaurants-business-u-s/), those 4 leaders control 90% of online-ordered US food delivery (Amazon only nibbled 2%). But Grubhub can't get comfy — Amazon just led a [$575M](https://www.businessinsider.com/will-shu-deliveroo-cooking-could-be-hobby-in-decade-2019-6) investment in the UK's fast-growing __Deliveroo__.

__333 slides...__ Venture capitalist Mary Meeker's legendary "Internet Trends [Report](https://www.bondcap.com/report/itr19/#view/1)" comes out once a year. Surprisingly, internet adoption hit its slowest pace worldwide yet (just 6% more humans logged on this year compared to last). Not so surprising? Americans are unhealthily obsessed (we average 6.3 hours/day online). But the report was rainy for __[Google](https://robinhood.com/stocks/googl)__ and __[Facebook](https://robinhood.com/stocks/fb)__ — Twitter and Amazon stole more of the online ad market, while targeted ad regulation could weaken FB and GOOG's data advantage.

__Startup auction...__ __[GE](https://robinhood.com/stocks/ge)__ stock is down almost 70% since 2016. Its painful transformation from corporate titan to humbled has-been just hit a low-point — [Reports](https://www.cnn.com/2019/06/13/business/ge-ventures-sale/index.html) showed it's desperate to sell off its investments in over 100 startups (including Elon Musk's Virgin Hyperloop One). Instead of waiting for those shares to (ideally) blossom into way-more-valuable IPO stocks, GE wants cash now to pay down debt.

__Chip and dip 6%...__ In a week free from major trade war drama, San Jose-based chip-maker __[Broadcom](https://www.robinhood.com/stocks/AVGO)__ dropped *this* pre-weekend: It's expecting $2B less revenue this year than it forecasted in March. The cause: American companies have been [stopped](https://www.cnbc.com/2019/06/14/cramer-broadcom-hurt-by-trump-move-against-huawei-on-china-trade.html) by President Trump from doing business with China's __Huawei__, the world's 2nd largest phone company. Chip stocks __[Nvidia](https://www.robinhood.com/stocks/NVDA)__ and __[AMD](https://www.robinhood.com/stocks/AMD)__ both sank on this wake-up call.

__Hungry for some unicorn...__ A trio of companies went public last week with Initial Public Offerings ([IPOs](https://learn.robinhood.com/articles/6UsdUrlnUvxiDpDT4D2bup/what-is-an-initial-public-offering-ipo/)) — They all had reached $1B+ valuations when they were private, and they all rely on the internet to disrupt something. Of the more than 60 IPOs so far this year, [a dozen](https://www.bloomberg.com/news/articles/2019-06-14/the-first-day-pop-is-back-as-wall-street-gets-whiff-of-ipo-fever) have popped by over 50% on Day 1 of trading. Crowdstrike, Fiverr, and Chewy are into that trend.

__90%, 71%, and 59%...__ those are the percentages of the week — They're the boosts in share prices on the first day of trading for last week's big three:

- __[CrowdStrike](https://www.robinhood.com/stocks/CRWD):__ The struggle with hacking is real. CrowdStrike won street cred as the first to notice the DNC's breach by Russia before the '16 election. Now, it's worth $12.6B (according to its [market capitalization](https://learn.robinhood.com/articles/GByCbiOluG2kcWs1AF6m5/what-is-market-capitalization/)) as it defends business from cybercrime.
- __[Fiverr](https://www.robinhood.com/stocks/FVRR):__ The freelancer's Uber, Fiverr connects you with gig workers who have BAs, MAs, or PhD-qualified jobs. Think graphic design, SEO help, or language translation, without full-time commitment.
- __[Chewy](https://www.robinhood.com/stocks/CHWY):__ The online everything store for pets, Chewy was bought by __PetSmart__ in 2017 for just $3.4B. Now its parent company's letting it off-leash, and it's worth $14B after Friday's surge. Thank "[pet humanization](https://finance.yahoo.com/news/chewy-shows-wall-street-that-its-the-top-dog-in-the-pet-world-195648347.html)," because our generation can afford puppies, not babies (FYI, Chewy [sends](https://www.forbes.com/sites/joanverdon/2019/06/14/dont-bet-against-pets-retail-lessons-from-the-chewy-ipo/#670fa10b828c) condolence notes if your Fido passes away).

Fetch

__The highest profile unicorns have struggled...__ The decade-long countdown for __[Uber](https://www.robinhood.com/stocks/UBER)__ and __[Lyft's](https://www.robinhood.com/stocks/LYFT)__ IPOs burned out the hype — Both of their stocks are still "underwater," aka their share price is lower than on IPO-day. But the stocks without household names are living their best lives. This puts still-private __Airbnb__ and __WeWork__ in an awkward situation. To IPO or to wait?

3 days. 3 IPOs. 3 big numbers.

_Sit. Stay. And enjoy the "pet humanization" trend._

"Good boy, Chewy.com. Good boy."

__"It even lays eggs"...__ That's the fake final line to __[Tyson's](https://www.robinhood.com/stocks/TSN)__ fake chicken announcement. America's biggest meat company officially [rolled out](https://newfoodeconomy.org/after-backing-out-of-beyond-meat-tyson-foods-announces-a-new-plant-based-brand-of-its-own/) "Raised & Rooted — Nuggets Made With Plants!" It's a direct shot at __[Beyond Meat](https://www.robinhood.com/stocks/bynd)__, the faux-"meat" pioneer whose stock is enjoying one of the best 6-week starts in history (up 464% since its May 2nd IPO). Tyson used to be an investor in Beyond, now it's imitating it.

__It really looks like a chicken nugget...__ but there's no chicken. It's a mix of pea protein, egg white, bamboo (not just a panda thing), and golden flaxseed. That's the *vegetarian* option. Its *reduce-tarian* product is the "Blended Burger," which still has some beef, but it's diluted with some veggie stuff. 

__Can anyone make meatless meat?...__ The race is on to whip together some plant by-products in a bowl and somehow make it sticky enough for a respectable burger patty. Here's who's getting in besides Tyson and Beyond:

- __Impossible Foods:__ Still-private maker of the Insta-famous "Impossible Burger."
- __KFC:__ The chicken king launched "The Imposter" in the UK on Thursday, a [Quorn](https://london.eater.com/2019/6/13/18677745/kfc-vegan-burger-quorn-imposter-chicken) (fungus-based meat) fillet sandwich that looks like chicken.
- __Nestlé:__ Just [revealed](https://uproxx.com/life/nestle-awesome-burger/) an "Awesome Burger". 
- __Campbell Soup:__ Announced yesterday it plans to somehow take the animal out of [bone broth](https://www.cnbc.com/2019/06/13/campbell-promises-bone-broth-plant-based-cooking-platform.html). 


There's now a big alt-meat competitor: Tyson unveils"Raised & Rooted"

__Need new website, logo, and data entry?...__ __[Fiverr](https://robinhood.com/stocks/fvrr)__ knows a guy. The “freelance marketplace for the lean entrepreneur” is a [platform](https://www.fiverr.com/) connecting growing companies with freelancers — Gig workers for 200 categories of services, from SEO to resumé reading/writing (picture Uber, but for graphic design instead of a ride). While shares surged 90% on its IPO, we side-hustled some Fiverr facts:

- It literally [trademarked](https://www.marketwatch.com/story/fiverr-ipo-5-things-to-know-about-the-gig-economy-company-that-has-trademarked-the-word-gig-2019-05-31) __the word "gig."__
- And it's catching [this](http://fortune.com/2019/06/13/fiverr-ipo-gig-economy/) wave: *The US gig economy is growing __3X as fast__ as the general US workforce*.

__Fiverr's got 1 career weakness...__ Benefits. Technically, the freelance writer who Fiverr connects to Startup X to write website copy is an "independent contractor." If new laws and regulations start requiring gig workers to earn full-time employee-style benefits, that could hurt freelance hiring. And Fiverr knows it.

Giggidy

__The gig economy is two economies — Not one...__ Fiverr has focused on creative and professional services, like similar freelance connector __[Upwork](https://www.robinhood.com/stocks/UPWK)__ (it IPO'd last year). Uber and Lyft target more functional jobs, from driving cars to dropping off gyros. The existential question: Is there room for multiple middlemen to own these two separate gig economies?

Fiverr wants to own the gig economy — and surged 90% on IPO Day

__*You are the wind beneath my wings*...__ That's the message from Saudi Arabia to __[HSBC](https://www.robinhood.com/stocks/HSBC)__ whenever it needs a big bank, according to the [WSJ](https://www.wsj.com/articles/hsbc-carves-special-role-as-banker-to-the-saudis-11560425106). Founded in Hong Kong and now HQ'd in London, HSBC is a banking beast ([#7](https://platform.mi.spglobal.com/web/client?auth=inherit#news/article?id=44027195&cdid=A-44027195-11060) globally). And despite Saudi Arabia's 2018 killing of *Washington Post* journalist Jamal Khashoggi and its controversial Yemen war, HSBC is standing by.

__$65M in banking fees over two years...__ That's how HSBC is being rewarded for its loyalty. Since the Khashoggi murder, many banks and corporations have cut off business with Saudi Arabia. HSBC has turned its head and opened up its wallet.

- __Investment banking:__ The Saudi state-owned oil company __Aramco__ (aka the most valuable company in the world) got its [bonds](https://learn.robinhood.com/articles/6D8ArYVa2bpoTYhdgxxYKh/what-is-a-bond/) structured by HSBC this year. 
- __More I-Banking:__ HSBC helps the government issue bonds — Basically IOUs from the government — to help it handle inconsistent revenue from its giant oil business.
- __Retail banking:__ After an expected merger, HSBC will own 29% of the 3rd biggest bank for basic Main Street-style banking in the Kingdom.

Deals

__Higher risk = higher potential reward...__ Banks are in the business of calculated risks. There are conventional risks and unconventional ones, and HSBC is showing it's willing to take on both to make some $$$.

- __"Credit risk":__ Banks lend money, taking on the risk they won't get paid back.
- __"Investment risk":__ They also drop money into startups and new ventures, knowing they might completely fail.
- __"Reputational risk":__ HSBC is on speed dial with Saudi Arabia, knowing it could be labeled an accomplice to murder in the court of public opinion.

HSBC became top Saudi Arabia's top investment bank

_"Did someone hail a Fiverr?"_

The (not-Uber) gig IPO

__Relax into that upholstered sofa...__ and enjoy the 25% jump of __[Restoration Hardware](https://robinhood.com/stocks/rh)__ shares after Wednesday's earnings (FYI, it goes by __"RH"__ now). The fancy furniture brand jumped for 2 [reasons](http://ir.restorationhardware.com/news-releases/news-release-details/rh-reports-record-first-quarter-fiscal-2019-results?field_nir_news_date_value[min]=): Sales rose 7% and it's moving some production out of China because, you know, trade war (investors were glad). But 1 detail in the report was the centerpiece.

__Good news for your 3rd home's coffee table...__ RH just [released](https://www.restorationhardware.com/rooms/content.jsp?fId=fld-explorebeachhouse&id=1171009#/1171009-1164008) its 136-page "RH Beach House" catalog ("RH Ski House" arrives this fall). Real and printed. Flip through the St. Barts and Mykonos chapters to gaze upon the naturally "teak" $1,000+ patio necessities. While the rest of retail errs on the side of online, RH does the opposite.
- __CEO Gary Friedman:__ We "refuse to follow the herd in self-promotion on social media.”
- __And it's working:__ RH invested $50M to build a multi-story Gallery flagship (brick and mortar) in NYC's Meatpacking district. Now it's on pace to generate $100M in annual revenue.

Nesting

__This is the extremification of American retail...__ Income stratification in the US is increasingly reflected by what stores are succeeding — Stocks of __[Dollar General](https://robinhood.com/stocks/dg)__ *and* luxury __[LVMH](https://robinhood.com/stocks/lvmuy)__ are close to record highs. Now Restoration Hardware is leaning into its opulent origins by aiming even *higher* upscale with Beach House and Ski House. And more RH Galleries hit SF and Charlotte, NC this year.

Restoration Hardware jumps 25% (but its new magazine is the highlight)

__Stretchy pants, stretchy earnings...__ __[Lululemon's](https://www.robinhood.com/stocks/LULU)__ stock rose 5% Wednesday on a [report](https://www.cnbc.com/2019/06/12/lululemon-1q-2019-earnings.html) that sales jumped 20% last quarter compared to the year before. Here are the different *asanas* that contributed to that growth:

- __More sales:__ At existing stores (ones open a year or longer) sales __rose by 6%__ on average.
- __More stores:__ A fresh __44 new Lulus__ ceremonially ohhhhhhhhhhm'd over the past 12 months.  
- __More online:__ Online sales __leapt 33%__ as #SweatLife members order stuff they can stretch, sweat, and sip apres cocktails in. A quarter of total sales are online now.

__This is vintage Lulu...__ It constantly introduces new products, but last quarter was driven by its OG flagship goods — women's leggings and jogger pants. At $100+, they're more expensive than the competition, but the CEO has no plans to lower the price. He even boosted his expectations for profits for the rest of the year. 

Stretch

__Mo' men, mo' money...__ Lulu profits hit a record $97M last quarter driven by sales to women. But this past spring, the CEO released an aggressive [5-year plan](http://investor.lululemon.com/news-releases/news-release-details/lululemon-unveils-power-three-strategic-plan-accelerate-growth) with a bold goal: Double men's sales by 2023. He's also pushing the Lulu lifestyle with clothing-free deodorant and sneakers. Plus there's expansion to China and Europe. Operation power flow. 

Lululemon mindfully jumps on its upward-looking outlook

__When the DNC was hacked by Russia pre-election 2016...__ __[CrowdStrike](https://robinhood.com/stocks/crwd)__  was there. The cybersecurity company that protects against hacks discovered the breach, told the FBI, and then snagged [a lot](https://www.forbes.com/sites/kerryadolan/2019/06/12/as-crowdstrike-shares-soar-on-its-ipo-day-ceo-george-kurtz-joins-the-billionaire-ranks/#384c0533d697) of PR. Now it's earning attention for its IPO — Shares surged 71% in their first day of trading and CrowdStrike is worth almost $12B (aka 2/3 as much as Lyft).

__Who ya gonna call?...__ Probably one of these companies. The attention on CrowdSource reveals how packed the competitive landscape is for securing your digital stuff (work and home):

- __Personal:__ __[LogMeIn](https://robinhood.com/stocks/logm)__ owns LastPass, keeping your "!-2-3-4" passcode less obvious.
- __Home:__ __[ADT](https://robinhood.com/stocks/adt)__, __[Brinks](https://robinhood.com/stocks/bco)__, and __[Alarm.com](https://robinhood.com/stocks/alrm)__ are all on guard.
- __Business:__ __[Palo Alto Networks](https://www.robinhood.com/stocks/PANW)__ and __[FireEye](https://www.robinhood.com/stocks/FEYE)__ are always at work (competing with CrowdStrike).
- __Side-hustlers:__ Their core biz isn't security, but __[Google's](https://robinhood.com/stocks/googl)__ Nest covers your kitchen, while __[Amazon's](https://robinhood.com/stocks/amzn)__ Ring doorbell has the front porch.


__Bikes need bike helmets...__ As internet adoption grows, so does the data generated along with it — And each bit of data probably needs protecting. The rise of tech is driving the cybersecurity industry that guards it. CrowdStrike (and its 5X revenue growth since 2017 to $250M) is happily caught in that [trend](https://finance.yahoo.com/news/crowdstrike-holdings-ipo-investors-know-125800567.html).
