__When your mouth just wants to relax...__ but you have 10,000 things to do. There's a sparkling water for that. __[Coca-Cola](https://robinhood.com/stocks/ko)__ just announced AHA (actual name), a flavored sparkling water with almost as much caffeine as a soda. It hits shelves in March bursting with flavor combos like citrus+green tea or black cherry+coffee. But Coke's tried (and failed) with seltzer before:

- __Take I (2014):__ Coca-Cola launches "Dasani Sparkling Water." It goes nowhere because the brand isn't fresh and it's too similar to every other seltzer option.
- __Take II (2017):__ Coca-Cola acquires Topo Chico to get in on the pseudo-hipster craft mineral water trend (*is it just us or does Topo Chico not make that easy to discover on its website or bottles*).
- __Take III (2019):__ Coca-Cola shuts down Dasani's version and starts from scratch with AHA — the brand is new and the differentiator is caffeine.

__Coca-Cola drowned in the sparkling water industry...__ 5 years later, it's only earned 2.5% of the US flavored sparkling water market. Here's who really [owns](https://www.wsj.com/articles/coca-cola-takes-on-lacroix-with-caffeinated-seltzer-11573135321) it:
- __Polar__ = 7.7%
- __Pepsi__ (Bubly) = 8.5%
- __Nestlé__ (San Pellegrino, Poland Spring) = 11.3%
- __LaCroix__ = 18%. It's the leader, but owner __National Beverage Corp's__ stock is down 60% in the last year facing all that above competition (it fell another 11% Thursday on this AHA moment).

"_You drink bubbles often?_"

__Sparkling Water became so big, it’s got niches now...__ While soda sales fell, sparkling water sales [surged](https://www.wsj.com/articles/coca-cola-takes-on-lacroix-with-caffeinated-seltzer-11573135321) epically from 100M gallons in 2013 to almost 400M last year. That's created a demand for different types of sparkling water for niche needs: Bud Light Seltzer and Corona Hard Seltzer want to replace your evening cocktail, while Coke's AHA goes after your morning espresso.

Coca-Cola re-enters the fight against LaCroix with a flavored, caffeinated seltzer

__Memorize the Bill of Rights...__ define what "unnecessary roughness" means, and reveal the size of your truck. That's the modern citizenship test for foreign carmakers in the US — and __[Toyota](https://robinhood.com/stocks/TM)__ is the only one passing. __Mazda__, __Nissan__, __Honda__, and __Mitsubishi__ all [struggle](https://www.wsj.com/articles/toyota-rides-out-american-shift-to-trucks-suvs-11573132232?mod=hp_lista_pos1) to sell cars to Americans, while Toyota's total sales jumped 4.5% last quarter to 7.6T yen ($70B) globally. Here's why:

- __Smaller cars:__ They represent __just 28%__ of all vehicle sales in America last quarter. Picture little Civics, Accords, and Corollas (aka Uber driver go-to's).
- __Trucks & SUVs:__ 4x4s, pickups, and 7-seaters are all the rage, making up a shocking 66% of new vehicle sales in America last quarter. This is one of Toyota's money-makers. 

__It's all about destroying *muda*...__ We're not shocked that Toyota's winning in cars, trucks, and SUVs. Its passionate culture is committed to eliminating waste — "[muda](https://blog.toyota.co.uk/muda-muri-mura-toyota-production-system)," as the Japanese call it. It would be *wasteful* to produce tiny coupes and sedans that Americans don't want, so Toyota invested years ago in assembly lines for its hefty Tundra, Tacoma, 4Runner, and Rav 4 truck/SUVs.

_Americana just hanging out in a Japanese truck-bed_

Assimilate

__America created the assembly line. Toyota perfected it...__ Thanks to Toyota's anti-muda obsession, it runs an insanely efficient shop, wringing more profits out of each vehicle sale than other car brands. We crunched some numbers on profit per car sold for last quarter:

- __Tesla__ made $268 per car sold.
- __Ford__ brought in $1,400.
- __Toyota__ snagged a cool $2,300 in cold, hard, profit for each car it sold (and it expects to sell 9M of them this year). 


Toyota stands out from its Japanese pals — SUVs and trucks are the key

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

The LaCroix Killer. Coca-Cola just created one.

__New job posting: Ads Lead...__ “*Responsible for creating a new ads business that enables eaters to discover new foods.*” TechCrunch reporters [noticed](https://techcrunch.com/2019/11/06/uber-ad-platform/) that up on the Uber Eats career page. It's a signal that instead of taking just a delivery fee off your late-night chimichanga order, __[Uber](https://robinhood.com/stocks/uber)__ is adding a new revenue stream from the prime real estate at the top of its Uber Eats app.

__We're calling it a "Browsing Billboard"...__ As your fingers browse Uber Eats for dinner, your eyes will see a billboard. The app's valuable space highlighting food options can be sold as ads to restaurants that crave better delivery sales. Here's how Uber Eats' Browsing Billboard would go down:

- __You:__ Starved for saucy pizza, but don't want to get up. So you open the Uber Eats app.
- __The list:__ Before, the top 5 NYC pizza joints delivering to you featured Di Fara's, Pasquale Jones, Lil' Frankie's, Dani's, and Emily. *They're at the top of the list because of their ratings.*
- __The (future) list:__ Soon, that top spot might be occupied by __Pizza Hut__ (with the word "sponsored" in small letters underneath). *It's at the top of the list because it paid for it.*
- __Uber:__ Makes money selling ads, just like Google does on Google search.

_"Which one of you wants the Uber ad job?"_

__The Browsing Billboard is the next evolution of platforms...__ Web platforms like Uber play a middleman role, connecting buyers with sellers. Expedia plays that role too — but when you search for vacation options, some of the top results are paid ads. And more platforms could start doing that:

- __Spotify's__ platform for music discovery could start making money by promoting artists that pay for it.
- __Apple's__ podcast store could make $$$ the same way.
- Tweet us your own ideas for potential Browsing Billboards __@[RobinhoodSnacks](https://twitter.com/robinhoodsnacks?lang=en)__.


An Uber Eats job post reveals it's about to add digital billboards to its app

__Feel like the Lannisters in Season 7?...__ __[Kroger](https://robinhood.com/stocks/kr)__ is a seasoned grocery biz vet, founded 136 years ago in Cincinnati by a German immigrant's son. Now it's facing competition from German discount grocers __Aldi__ and __Lidl__, which expanded rapidly to the US. __Amazon__, __Walmart__, and __Target__ all got in on groceries, too. Doing nothing isn't an option anymore for Kroger, so it's changing everything:

- __The project:__ "Restock Kroger" is what they're calling it (great inventory inside joke). We call it "Operation don't-go-out-of-business."
- __The changes:__ Adding __Walgreens__ stores within its stores, delivering with __Instacart__, and buying back $1B of shares (to thank investors for their patience). It also acquired a meal kit company.
- __The rebrand:__ "Fresh for Everyone" is the new slogan — that'll be trumpeted by the "[Kroji](https://www.bizjournals.com/cincinnati/news/2019/11/06/here-s-your-first-look-at-kroger-s-new-branding.html#g/463169/5)," Kroger's (new) emoji-ish, post-racial cartoon mascots.

_Navigating a future "dynamic pricing" situation at Kroger_

Price

__"Dynamic pricing" could be up next for groceries...__ Kroger also recently [partnered](https://news.microsoft.com/2019/01/07/kroger-and-microsoft-partner-to-redefine-customer-experience-introduce-digital-solutions-for-retail-industry/) with __Microsoft__ on a project that includes replacing a shelf's old price labels with digital ones. That got us thinking: *"dynamic pricing" could be coming*. AKA pricing that can change based on supply/demand (picture Uber's surge pricing). Digital price stickers would let Kroger...

- __Raise prices when peanut butter is almost out of stock__ to ensure whoever gets that last jar *really* wants it. 
- __And lower prices when there's too much milk__ to prevent cartons from going bad. 
- These changes could reduce waste, increase revenue, and make Kroger more efficient. And if Kroger's not thinking about it, *Amazon almost definitely is.*


Kroger rebrands itself in every way (and might add "dynamic pricing")

Uber Eats delivers "Browsing Billboard"

__*This is my first time, so cut me some slack*...__ Fresh off its September IPO, __[Peloton](https://robinhood.com/stocks/pton)__ announced its first quarterly earnings report as a publicly traded company Tuesday. The results and calorie count all beat analysts' expectations: 

- Revenue more than doubled to $228M.
- The __number of Peloton monthly subscribers__ (you buy the $2K bike, *then* you drop $39/month to be yelled at via streaming spin classes) more than doubled to 563K.
- Peloton projected it'll __add 100K Pelotonistas this holiday season__. 
- Plus: The average __number of workouts per month__ on Pelotons rose from 8.7 to 11.7 (more fun stats in this pretty [presentation](https://investor.onepeloton.com/static-files/db61e1a5-40e5-4bfd-b929-7a1798ba28a1)). 

__So it's a shocker that the stock dropped 8%...__ Peloton felt like a middle schooler who brought home A's when their parents expected B's — and then got grounded. Its CEO struggled to rationalize Wall Street's punishment for its rippling results: "*The stock going backward is a bit of a head-scratcher, I’ve got to be totally honest with you.*" Well put.

_The Profit Police just took down Peloton_

Unsatisfied

__This is a *claaaassic* "Profits vs. Growth" tradeoff...__ Peloton loses money each quarter, spending more than it brings in. Its $50M loss invited investor disgust, but the CEO pointed out the loss was necessary in order to grow quickly. You're either focused on profits or growth — in the saddle or out of it:

- Peloton __could cancel__ its expensive TV ads, stop adding stores at fancy malls, and layoff salespeople to become profitable.
- But is that the right move at this crucial moment when __Mirror__ and __SoulCycle__ are chasing its head start?


Peloton's 8% drop highlights a classic Growth vs. Profits tradeoff

__1st date humble brag...__ __[Match](https://robinhood.com/stocks/mtch)__ owns the trademark on "Swipe" and "Swipe Right" — a huge advantage for the owner of Tinder and 44 other dating apps. Match shares dropped 15% Tuesday though on word that its projections for the upcoming quarter aren't worth [bringing](https://www.marketwatch.com/story/match-group-adds-437000-tinder-subscribers-but-stock-takes-a-tumble-2019-11-05?mod=mw_latestnews) home to Mom and Dad. But its Tinder numbers are.

__Tinder is a stage 5 clinger...__ Actually, its Tinderella users are. The app enjoyed (another) surge in downloads by 437K last quarter to hit 5.6M total users. The new "Swipe Night" interactive in-app choose-your-adventure show that debuted last month was a hit (especially among Gen Z and women). But 2 specific numbers in the [charming](https://s22.q4cdn.com/279430125/files/doc_financials/2019/q3/MTCH-Q3-2019-Investor-Presentation.pdf) earnings stood out to your Snacks team:

- __5 days:__ On average, users check out Tinder 5 days a week.
- __30%:__ That's the increase in users who now open the app 7 days a week compared to last year.

_Those second Tinder date vibes_

__International is Match's opportunity — *but it requires “product localization”*...__ __Uber__ barged into new countries and didn’t adapt to local culture. Match uses the opposite strategy as it heads abroad — it's all about being culturally sensitive. Take Match's OKCupid app tactics in India:

- __Situation:__ Online dating isn't the go-to option and arranged marriage is still common.
- __Response:__ Match made Indian OKCupid dating profiles include more user info than in other countries so that more conservative daters could get comfortable.
- __Result:__ A surge in app downloads to 1.4M over the last year.

Match plummets 15% even though Tinder is thriving

Match Group goes international (respectfully)

__Protect this house...__ from a federal investigation. While __[Under Armour](https://robinhood.com/stocks/ua)__ was busy wicking sweat, the *WSJ* [discovered](https://www.wsj.com/articles/under-armour-posts-flat-sales-in-latest-quarter-11572871976) that SEC investigators are questioning people at its Baltimore office about its accounting practices. The question is whether UA shifted around numbers to *strategically* make sales appear stronger than they really are.

- __2.5:__ That's how many years the investigation has been going on, according to the report.
- __0:__ That's how much info Under Armour has told the public about this ongoing investigation. If execs don't think it's material to the stock, they don't have to disclose it. So they didn't. 

__Coach always said "Talk is cheap"...__ Except when it reveals fundamental issues about your business. Take these 2 [soundbites](https://www.businessinsider.com/under-armour-executives-defend-accounting-practices-2019-11) from Under Armour's earnings call: 

- *“So now we’re focused on 2020 and beyond.”* 
- *“The next chapter”* was mentioned multiple times.
- If you had a 3rd quarter like Under Armour's, you'd want investors looking to the future too. 

_When federal investigators ask to look at Under Armour's files_

Worn

__Under Armour stock plummeted 18% because its core biz is the real issue...__ While your wardrobe trended athleisure, Under Armour doubled-down on more "*ath*," less "*leisure*." CEO/founder Kevin Plank just gave up his role to become the brand chief, dedicated to make Under Armour even "[louder](https://www.cnbc.com/2019/07/30/under-armour-q2-2019-earnings.html)." Now we're seeing how that injures UA:

- __Its home market:__ Sales in North America fell 4%. That was offset by 5% growth internationally, but sales for the entire company shrank over the past year by 1%.
- __The core product of sports apparel:__ Sneaker sales dropped 12% – and if you can’t do sneakers, can you really take on Nike?

Under Armour plummets after an accounting investigation (sneakers are the real issue)

__Losing $543K per hour...__ Think about that. One time you lost nana's birthday check and you were inconsolable. __[Uber](https://robinhood.com/stocks/UBER)__ just told investors everything about its 3rd quarter, but it's hard to not focus on the $1.2B it [lost](https://www.cnbc.com/2019/11/04/uber-uber-q3-2019-earnings.html). After losing $5B the previous quarter (that was higher because of one-time IPO costs), Uber's on pace to lose $8B this year. *$8 billion.*

__It's Uber vs. Everybody...__ Investors piled into Uber for years with the hope it would become like Amazon — an unstoppable giant — but for transportation. In reality though it has enemies. Everywhere:

- __Competition:__ __[Lyft](https://robinhood.com/stocks/LYFT)__ rose from the ashes of Uber’s scandals. Delivery apps are all over your phone. And self-driving car companies could unleash self-driver not-Uber fleets before Uber. 
- __Politicians:__ California's new [law](https://www.fastcompany.com/90424008/uber-and-pals-unveil-a-last-ditch-effort-to-fight-californias-new-gig-economy-law) could make Uber even more unprofitable by forcing it to pay drivers actual wages and benefits. 
- __Restaurants:__ Yup, spots like __Bareburger__ get 20% of their sales from delivery apps — but they're fed up with paying away 15% of those sales as fees to Uber Eats and its delivery rivals. The CEO calls the apps "[a necessary evil](https://www.reuters.com/article/us-grubhub-uber-restaurants/trouble-cooking-grubhub-uber-eats-get-pushback-from-restaurants-on-fees-idUSKBN1XE171)" that he hopes to be rid of by next year.

_Uber figuring out how to make money before its 2021 graduation_

Losses

__Uber prefers you look at its sales growth instead...__ If you do, you're impressed by rides (revenues up 20%), Eats food delivery (+71%), and Freight (+81%!). Here's the problem: Uber's paying for all that growth. Competition forces it to dish out discounts and promo codes Oprah-style. So it's pledged to change things... in 2 years:

- __2021:__ That's the magical year when Uber CEO Dara Khosrowshahi says it'll become profitable. *Funny — that's also when Lyft said it will stop destroying money and start making it, too*. 

Uber stock sinks 6% because it's on pace to lose $8B this year

Uber loses $543,478 every hour

__Start company. Get acquired by Google 12 years later...__ Not a bad way to go out for __[Fitbit](https://robinhood.com/stocks/FIT)__. It's joining the __[Alphabet](https://robinhood.com/stocks/GOOG)__ family after Friday's announcement that Google will drop $2.1B for it. That's a fraction of the almost $10B it was worth after IPO-ing in 2015, but Google's wizardry will help Fitbit take on __Apple__ — Apple Watch sucked away anyone else's smartwatch sales like a dementor.

__What's in it for Google?...__ Then-Google (the parent company is called Alphabet now) paid $12.5B for __Motorola__ in 2011, $3.2B for __Nest__ in 2014, and $1.1B for part of __HTC__ in 2017. It doesn't have much to show for any of this hardware since then. Here's what Fitbit can contribute:

- __Sneaky ad sales:__ 84% of Alphabet's 3rd quarter revenues came from ads. Fitbit could become another platform for Google to slip in paid suggestions when you ask your wrist "*Hey Google...*"
- __Fancy device sales:__ The tiny wedge of Google's biz that's not related to ads is growing faster, led by Pixel phones and Google Home. 
- __Data. Lots of it.:__ Now Google will know your mid-jog blood pressure. Its press release [promised](https://investor.fitbit.com/press/press-releases/press-release-details/2019/Fitbit-to-Be-Acquired-by-Google/default.aspx) it won't use health/wellness data for better-targeted ads (anti-BO antiperspirant?). We'll see. 

_"It's Fitbit, not footbit"_

Sweat equity

__If you want to buy an entire company, you've got to pay extra...__ When one company acquires another, it typically splurges about [33% more](https://www.bcg.com/publications/2018/synergies-take-center-stage-2018-m-and-a-report.aspx) than the stock price of the company it's buying. Alphabet paid 71% more:

- __Sept. 20th: $4.10.__ That was the price of Fitbit shares before word it was open to selling itself.
- __Nov. 1st: $7.35.__ That's how much Alphabet is paying for each and every Fitbit share that exists — aka it's paying $2.1B total.

That's why you often hear of a company's stock rising when investors believe it could get acquired — they want to ride the stock higher, like some did with Fitbit's. 

Google acquires Fitbit — adding another device, ad platform, and data tracker

__Leave the iPhone in your pocket...__ __[Apple](https://robinhood.com/stocks/aapl)__ is now (almost) a Wearables company. iPhone sales have slipped for a full year, but sales in Apple's AirPods and Apple Watch division [surged](https://snacks.robinhood.com/newsletters/7IJVPlBvy3s6Lbf05gZweN/articles/2oxseRVSUKHDdlbpHsyf4o/) over 50% for the 2nd straight quarter. That biz brings in as much revenue as all of __Starbucks__, so CEO Tim Cook's going extra venti with new $249 noise-canceling AirPod Pros. Plus, Apple TV+ launched Friday, adding starpower to its Services division. 

__It took more than 280 characters...__ CEO Jack Dorsey needed 11 tweets to explain that __[Twitter](https://robinhood.com/stocks/twtr)__ has [banned](https://snacks.robinhood.com/newsletters/2dSff7JReMeiN3irHKbN10/articles/ADu90z4izWCG9cipcG1kr) political ads. It still lets world leaders tweet free of fact-checking, but it won't accept cash from them to boost their reach to millions of Twitter users (Jack says it's too risky to society). __[Facebook](https://robinhood.com/stocks/FB)__ still lets politicians push their messages to undecided potential voters — and it expects just [0.5%](https://techcrunch.com/2019/10/30/zuckerberg-political-ads/) of its total revenue for 2020 to come from political ads,

Highs

Who's up...

__Your "promiscuous" chicken curry ordering...__ It's a problem for __[GrubHub](https://robinhood.com/stocks/grub)__. That's how the CEO [described](https://snacks.robinhood.com/newsletters/3o0KQAYYbRpqhqULwfOWaD/articles/7m8VoFteAIgGsRXEzlIssk) your disloyal strategy of ordering dinner on whatever delivery app happens to be the cheapest at the moment. GrubHub is forced to whip up promo codes to entice you away from __Uber__ Eats — those extra marketing costs ate down profits by 96% last quarter. Grubhub stock fell to its lowest point in 2.5 years as delivery apps become a commodity.

__Shoulda learned from Leslie Knope in *Parks and Rec*...__ Don't date co-workers. __[McDonald's](https://robinhood.com/stocks/MCD)__ fired CEO Steve Easterbrook on Sunday for his consensual romantic relationship with an employee that [broke](https://www.cnn.com/2019/11/03/business/mcdonalds-ceo-steve-easterbrook-steps-down/index.html) company policy. Since Easterbrook took over in 2015, McDonald's got into shape menu-wise (breakfast expansion) and tech-wise (order kiosks) — The stock doubled in the Easterbrook era. Now shareholders are mourning/adjusting their outlook on McD's future.

Lows

...and who's down

_"It's Fitbit, not Footbit"_

Google snags Fitbit, McDonald's fires its CEO mid-weekend

__iPhone is too good...__ You're not replacing/upgrading your pocket's best friend often enough, and that's a problem for __[Apple](https://robinhood.com/stocks/AAPL)__. But now it's found 2 saviors. 1 was expected, 1 is a surprise:

- __Services (sales up 18% last quarter):__ You knew about this one — Apple's made $46B over the past year in sales of iCloud, Apple Music, etc. And (starting today) Apple TV+. 
- __Wearables, Home, and Accessories (up 54%):__ Apple's AirPod and Apple Watch division is living its best life — it's grown over 50% for two-straight quarters.

__Apple's side hustles are entire companies...__ That Wearables division has the same sales as __Starbucks__. Services is bigger than __Delta__. And since 3/4 of Apple Watch sales are 1st-time Watch buyers, there's room to grow. But Apple's getting greedy — CEO Tim Cook thinks new $249 noise-cancelling AirPod Pros [complement](https://9to5mac.com/2019/10/30/tim-cook-says-airpods-pro-are-complementary-to-airpods-not-replacements/) the regular ol' $159 Airpods. *He thinks you should buy both*. 

"_He said the AirPods sales are really, really, really good_"

Remake

__That explains Apple's "record high" situation...__ iPhone sales have boringly dipped for [four-straight quarters](https://www.washingtonpost.com/business/economy/apple-overcomes-lagging-iphone-revenue-beats-earnings-estimates/2019/10/30/9ec9fed8-fb2e-11e9-8190-6be4deb56e01_story.html), but Apple's stock has never been higher. It's creatively replaced its lost biz with a new one focused on covering your body real estate with Wearables. As a reward, Apple's enjoying its $1.1 *trillion* market cap — making it the most valuable public company in the world (again).

Wearables are the surprise MVP of Apple's latest earnings report

__Whip out the celebratory Boston Creme...__ __[Dunkin'](https://robinhood.com/stocks/dnkn)__ shares rose 6% after its earnings report — the stock's tripled over the last 5 years as it [dropped](https://www.nytimes.com/2018/09/25/business/media/dunkin-donuts-new-name.html) the "Donuts" from its name to focus on getting America to run on it. Investors are rewarding last quarter's commitment to the 4-part grand slam of chain restaurant profitability:
1. __Premium items:__ The 1 [specific](http://investor.dunkinbrands.com/news-releases/news-release-details/dunkin-brands-reports-third-quarter-2019-results) beverage mentioned in the entire earnings report: "Cold Brew" — Dunkin's new higher-priced option doesn't get latté-style barista art, but does drive profits.
2. __Breakfast:__ To make breakfast your daily habit, Dunkin' added menu items like the new Beyond Meat breakfast sandwich — it goes nationwide on 11/6.
3. __Digital Loyalty guilt:__ 25% of transactions in some cities are [now paid](https://www.qsrmagazine.com/technology/mobile-ordering-gets-upgrade-dunkin) with the "DD Perks" app. Dunkin' increasingly tempts you to return for that Coolatta with points.
4. __Delivery/Pick-Up:__ There's fast food peer pressure to deliver via 3rd party app. So even though your coffee routine is probably delivery guy-free, Dunkin has partnered up with __GrubHub__, just in case.

"_My lord, Dunkin' just won all the coffee business on Tatooine_"

Chew

__This is the new playbook for fast food...__ __Chipotle__ is testing pickup, __Shake Shack__ is pushing fried chicken sammies, and __Starbucks__' app is America's [2nd](https://www.emarketer.com/content/apple-pay-overtakes-starbucks-as-top-mobile-payment-app-in-the-us) most-used mobile payment platform. Investors are evaluating fast food brands on this 4-part gameplan: Premium items, breakfast, loyalty apps, and delivery. Everyone's doing it.

Dunkin' pops 6% because it's onto the grand slam of fast food

__Tapped out...__ Too much investment pain. __[WWE](https://robinhood.com/stocks/WWE)__ stock dropped 16% Thursday after its 3rd quarter earnings revealed serious injuries to its pro wrestling business model:

- Sales rose just 1%, profits got erased by 2/3, and bodyslams doubled. That last part wasn't real (we were acting).

__WWE runs a good, clean operation...__ with 3 business lines: Media/TV, live events, and consumer products (picture action figures and t-shirts). Its media division gets most of the love from investors, bringing in about 78% of total revenues. WWE does TV HBO-style — cable and streaming (plus pay-per-view):

- __TV:__ Like HBO, you can watch WWE *Smackdown* on cable through its deal with Fox.
- __Streaming:__ Like HBO Now (and soon "HBO Max"), WWE will happily collect your $9.99/month in return for streaming access to Stone Cold Steve Austin and the Undertaker. But subscriber numbers dipped 9% to 1.5M.  

"_Why are you no longer subscribed to my streaming network?_"

Grapple

__The main issue is Saudi Arabia...__ WWE actually hosted the 1st ever wrestling match last night in Saudi Arabia featuring [women](https://corporate.wwe.com/investors/news/press-releases/2019/10-30-2019-093744552). But its TV deal in the Middle East and North Africa is delayed — and some analysts think it's never happening. Adding that entire geography would've brought a lot of revenue at little extra cost to WWE (the matches are already happening — feeding video to Egypt doesn't cost that much). Investors crave those easy extra profits, but aren't sure they'll happen.

WWE stock drops 16% on Middle East pain

Apple's Wearables = 1 Starbucks

__Twitter just banned one of its revenue streams (via tweet)...__ Bold move. Misinformation (aka lies, false info, and deceptive non-truths) has hit such a level that __[Twitter's](https://robinhood.com/stocks/TWTR)__ CEO banned political ads on Twitter — his tweet-based announcement also casually trolled Facebook: 

- *For instance, it‘s not credible for us to say: “We’re working hard to stop people from gaming our systems to spread misleading info, buuut if someone pays us to target and force people to see their political ad…well...they can say whatever they want! 😉”* -- [@Jack](https://twitter.com/jack/status/1189634360472829952)

__Kill misinformation...__ (except when it comes to politicians). They're Facebook and Twitter's big exception. Both platforms let political leaders post without fact-checking. Plus, they won't remove/flag tweets/posts from politicians even if they're false.

- __Zuck's approach:__ He doesn't want to referee free speech — a politician lying is in-and-of-itself, news, that shouldn't be censored by Facebook.
- __Jack's approach:__ But getting paid to expand the reach of misinformation is where Twitter's drawing the line (Facebook isn't into line drawing).

_Sorry, your political ad is no longer accepted at Twitter_

Takedown

__This is straight-up #ShortTermCost cost for #LongTermGain...__ Jack's leadership on a divisive topic will probably hurt profits before it helps them:

- __Short-term = lost revenues:__ Twitter won't snag any of the advertising bonanza of 2020 election campaigns.
- __Long-term = gained trust/cred:__ Twitter can now say it's doing more than Facebook to limit the spread of misinformation, whether it's from a politician or not — and that may earn new users.

Twitter bans political ads — a short-term revenue hit for long-term trust

__Long distance relationship...__ Europe's __Peugeot__ and __[Fiat Chrysler](https://robinhood.com/stocks/FCAU)__ are living it. The pair is [reportedly](https://www.wsj.com/articles/fiat-chrysler-gets-second-chance-at-merger-this-time-with-peugeot-11572433235?mod=hp_lista_pos5) merging for $48.8B to create the 4th biggest car company on Earth. Peugeot is French, Fiat is Italian, and Chrysler is American. The 3 surprises from studying this thing abroad:

1. __Peugeot__ (founded 1810) was the [1st](https://www.peugeot.co.uk/peugeot-history/) to put solid rubber tires on a gas-powered car.
2. __Fiat__ (1899) owns a dozen brands, from Maserati to Dodge — but the profit puppies driving its $$$ are Jeep SUVs and Ram trucks, not adorable Italian mini-machines.
3. __Chrysler__ (1925) is one of Detroit's "Big 3" carmakers, but is now owned by Fiat, which snagged it post-Chrysler bailout/bankruptcy in 2009.

__This fulfills a dream...__ Former CEO Sergio Marchionne’s dream. The godfather of modern automobile strategy passed away last year, but he called shotgun on merging whenever he could:

- __2004:__ When Fiat's small cars were losing $1.1M a day, Sergio took over the company as CEO.
- __2009:__ He got Fiat on its feet and then took over Chrysler.
- __2015:__ He tried (but [failed](https://www.reuters.com/article/us-autoshow-geneva-fiatchrysler-m-a/fiat-chryslers-ceo-says-a-gm-merger-still-makes-sense-idUSKBN16E1DH)) to merge with __GM__.

"_Wanna go for a merge?_"

Mergin'

__If you ain’t merging, you’re dying...__ For years, Sergio called on the car industry to consolidate. He predicted and watched car companies go bankrupt in the '08-'09 Recession. He recognized that people stop buying cars mid-recession, so a merged "team" of car companies can better survive. Now Peugeot and Fiat Chrysler can own 1/4 of the European car market. Together.

Fiat Chrysler and Peugeot are merging — an Italian-French-American car giant is born

_Sorry, your political ad is no longer accepted on Twitter_

Too political for Twitter

__Groceries. Delivered free. Within 2 hours...__ That insanely convenient [offering](https://techcrunch.com/2019/10/29/amazon-axes-14-99-amazon-fresh-fee-making-grocery-delivery-free-for-prime-members-to-boost-use/) is now real for __[Amazon](https://robinhood.com/stocks/AMZN)__ Prime members in America's top 20 cities (it's coming to 2K cities total, but not necessarily within 2 hours). Pulling that off is so logistically hard that only existing Amazon Fresh customers get it right now — 1st-timers will hit a waitlist so Amazon can assess how many grocery-dashing humans it needs to hire (spoiler alert: lots). 

__Will this finally make grocery delivery a thing?...__ Most Americans still grocery shop the ol'-fashioned way — by grabbing a shopping cart and blocking the aisle while squish-testing avocado firmness. Amazon's new offering eliminates 2 of the 3 big barriers to grocery delivery:

- __The cost barrier:__ Grocery delivery today features fees (Amazon's used to be $15/month on top of Prime). Plus tips. 
- __The planning barrier:__ You typically need to know your fridge's shelf status at least 6 hours in advance. That's cut to 2 hours with Amazon's new offering.
- __The freshness barrier:__ Some of us undoubtedly still want to harvest our own produce and not risk someone grabbing the wrong almond milk. 

_A scene yesterday from the grocery delivery wars_

Faster

__Don't try to beat Amazon on price. You'll lose...__ Last week we mentioned that Amazon's profits suffered because it insisted on beating __[Walmart](https://robinhood.com/stocks/WMT)__ and __[Target's](https://robinhood.com/stocks/TGT)__ 1-day shipping. Now its profits could suffer more (in the short-term) as it takes on those two in groceries plus __Instacart__ and __Good Eggs__. Amazon's long-term plan: Get everyone to join Prime by offering the lowest prices/best deals, no matter what the cost.

Amazon triggers nuclear option: Free grocery delivery for Prime members

__Your chicken parm is a million minutes away...__ __[GrubHub](https://robinhood.com/stocks/grub)__ shares plummeted 43% to their lowest level in 2.5 years. The restaurant food delivery pioneer is sandwiched between 2 numbers from last quarter:

- Revenues rose __a healthy 30%__.
- But profits __plummeted 96%__. *96%.* Let that sink in and sit in your stomach — Here's why:

__“Promiscuous” customers...__ That's what the CEO just [called](https://fortune.com/2019/10/28/promiscuous-grubhub-customers-just-helped-lower-the-companys-value-by-1-2-billion-in-minutes/) us disloyal, price-focused GrubHub users. When we crave some pad thai, we open DoorDash...then Caviar...Uber Eats...Postmates. Comparison shopping forces delivery apps to slash prices to snag our late-night dinner $$$. Those "$2 off" coupon codes are crushing GrubHub's profits.

A GrubHub hero

Delivered

__GrubHub should focus on brand — not price...__ Delivery is a commodity — it doesn't matter where it get it from, it's the same (just like socks). But people do irrational things for a brand (like splurging $200 on a Patagonia pullover, because, Patagonia). If GrubHub can build loyalty for its brand with banh mi festivals or a stance on social food issues, customers may ignore lower-priced rivals and become monogamous.

GrubHub plummets 43% because we're all disloyal food orderers

__Could I get a 478-pack of F-35s?...__ The procurement person for the US government just [placed](https://www.cnbc.com/2019/10/29/lockheed-martin-costly-f-35-program-gets-biggest-pentagon-contract-yet.html) the biggest order ever for military-grade fighter jets. __[Lockheed Martin](https://robinhood.com/stocks/LMT)__ won the deal. The Defense Department's pumped about the savings: Each $71M jet is 12.7% less than the last order — but Wall Street expected the result, barely budging Lockheed's stock on the news.

__This thing is Air Force Fancy...__ The stealth F-35 is [nearly invisible](https://www.forbes.com/sites/lorenthompson/2019/10/29/pentagon-and-lockheed-martin-agree-to-big-cost-reduction-on-f-35-fighters/#774b3737314c) to the enemy and hits Mach 1.6 speed (a smooth 1,227 MPH). The Department of Defense calls it the “world’s most advanced, lethal, interoperable aircraft ever developed.” Most of the manufacturing happens in Texas, but they’re only flown by the US and 12 allies. Now Lockheed's gotta deliver them.

When you save 12% on a $71M fighter jet

Order

__Lockheed Martin is in the business of war — and politics...__ Its core customers are governments treating themselves to battle machines. On the one hand, it's pretty much the only producer of its products... but there's pretty much just one buyer. So negotiations on price are tricky. And Lockheed investors may want an international relations degree to handle things like Turkey — geopolitical [drama](https://www.businessinsider.com/turkey-in-talks-to-buy-russian-su35-after-exiting-f35-2019-10) there may force Lockheed to find a new supplier for the nearly 1,000 Turkish-made parts in the F-35 program.

Lockheed Martin gets $34B order for F-35 fighter jets (on sale)

GrubHub's "promiscuous" problem

__Take me to your leader...__ __[Virgin Galactic's](https://robinhood.com/stocks/SPCE)__ founder is Richard Branson — he hit billionaire and British "Sir" status by founding Virgin Records music, Virgin Atlantic airline, and Virgin Hotels. But Richard called this IPO "the most satisfying" of all. Virgin Galactic's ticker is "SPCE," now traded on the NYSE after [Monday's IPO](https://www.cnbc.com/2019/10/28/virgin-galactic-to-trade-on-the-nyse-on-monday-as-the-first-space-tourism-stock.html).

__This business is astronomically unprofitable...__ Since its 2004 launch, VG exists because Sir Branson has invested almost $1B to own 51% of the shares today. Here's its corporate timeline:

- __Past:__ 600 very wealthy people (including Bieber and Leo DiCaprio) splurged $250K for a spot on Virgin's virgin voyages for summer 2020. They get a 90-minute [ride](https://www.aljazeera.com/ajimpact/flight-virgin-galactic-public-space-tourism-191028150739973.html) on a hybrid [spaceship/airplane](https://www.virgingalactic.com) for 3 minutes of spacetime. 
- __Present:__ VG only brought in $2.4M in revenue last year, but spent $140M, causing a Jupiter-sized loss.
- __Future:__ Initially only affordable by the ultra-Bieber-rich, VG wants to make space tourism accessible to all humans over time by eventually lowering prices.

_If you reduce that expense ratio, Buzz, your space stock could really take off_

Explore

__Virgin Galactic is incomparable...__ Investors love "comps" that help them assess the value of one company by referencing another (it's easier to evaluate Lyft when you know how much Uber is worth). But Virgin's comps don't exist in the public markets.

- __Tourism?:__ Airlines or cruise lines don't feel the same as Virgin.
- __Tesla?:__ Both catered to the wealthy initially with hopes to eventually lower prices for the rest of us. 
- __Private:__ The real comps are Elon Musk's __SpaceX__ and Jeff Bezos' __Blue Origin__. But those 2 pals kept their space companies private, so Virgin investors face an uncharted public market ride.

Virgin Galactic is the 1st publicly traded company dedicated to space

__But did they get down on one knee?...__ Luxe-glomerate Louis Vuitton Moët Hennessy (aka __[LVMH](https://robinhood.com/stocks/lvmuy)__) just [offered](https://www.forbes.com/sites/pamdanziger/2019/10/28/lvmh-and-tiffany-is-a-marriage-made-in-luxury-heaven/#e9a6f9d35b72) $14.5B to buy up jewelry icon __[Tiffany](https://robinhood.com/stocks/tif)__. LVMH is run by the world's richest non-American (Bernard Arnault) and it owns 75 brands, from fancy champagne to fancy handbags. But here's the potential couple:

- __LVMH:__ Its founding goes way back to 1987, it's headquartered in Paris, and worth $214B.
- __Tiffany:__ Founded in 1837, Tiffany is HQ'd in NYC — but worth 1/14 of LVMH.

__Breakfast at Tiffany's $215 semi-affordable earrings display...__ Tiff's board hasn't decided to accept/reject the offer. But if it goes through, the acquisition will up LVMH's jewelry game from just 8% of its sales today. Meanwhile, 92% of Tiffany's revenues are straight-up jewelry (and over a quarter of that is engagement-related).

"_LVMH dropped $14.5B on this rock_"

Splurge

__This acquisition come down to T.L.C...__ *Timing. Location. Customer.* (Forget "the 4 C's"):

- __Timing:__ With Chinese tourism down, Tiffany's sales dropped 3% last quarter — and the stock price has fallen 1/3 from its all-time high.
- __Location:__ LVMH is focused on growing in the US with a new Texas factory and a partnership with Rihanna — America has more [millionaires](https://www.forbes.com/sites/pamdanziger/2019/10/28/lvmh-and-tiffany-is-a-marriage-made-in-luxury-heaven/#36b9795135b7) (19M) than France, UK, Germany, China, and Japan. Combined.
- __Customer:__ Tiffany wants to be the “luxe for less" jeweler by tossing Dakota Fanning in some commercials — LVMH craves that millennial appeal.

Tiffany surges 32% after a shiny acquisition offer from LVMH

__Thanksgiving's coming up...__ Vegan kids are hatching "swap the turkey with meatless meat" plans to trick carnivorous dads. __[Beyond Meat](https://robinhood.com/stocks/BYND)__ gave shareholders something to celebrate heading into the holiday quarter:

- __Growth in all the right places:__ Revenues more than tripled to $92M, way outpacing costs, leading to its __first ever profit__.
- __How much profit per pound?:__ A $12 4-pack of quarter-pounder Beyond burgers resulted in 52 cents of profit (based on last quarter's 4% [net profit](https://learn.robinhood.com/articles/4S0rJX1MDXwzMDTtZM38Qa/what-is-profit/) margin).
- __What about the future?:__ Beefy strong — Beyond boosted its revenue projections for the 2nd-straight time as orders from restaurants for sizzle-able pea patties beat expectations.

__So why did shares drop 10%?...__ Not totally clear. Our guess: the end of Beyond's "lockup period." Today's the 6-month anniversary of Beyond's IPO, which means early pre-IPO investors are [finally](https://www.bloomberg.com/news/articles/2019-10-28/beyond-meat-falls-as-lockup-expiration-offsets-rosier-outlook) eligible to sell their stock (lockups apply to most newly-listed companies). So nervous investors may have sold to avoid dealing with a potential increase in Tuesday's new "lockup" sellers.  

_Beyond Meat investors feel lost_

Retreat

__The growth is in restaurants — not groceries...__ Beyond surged over 200% after its IPO, but has fallen from that high. Food-glomerates like Kellogg and Nestlé have dropped some plant-based competition — and they've shown up in grocery stores. But restaurants (like McDonald's, Taco Bell, and Dunkin') power 45% of Beyond's revenues — and those already quintupled (5x) this year.

Beyond Meat hit a huge corporate milestone — then the stock fell 10%

"_Reduce that expense ratio, Buzz, and your space stock could really take off_"

It feels like the 1st time... a space company went public

__Cancel your plans to see people...__ Your binging schedule is about to take over all social commitments — Apple TV+ hits November 1st ($4.99/month), then Disney+ takes position #1 in your bookmark manager on November 12th ($6.99/month). But last week we noticed that plenty of these new __[Netflix](https://robinhood.com/stocks/NFLX)__ rivals will actually be free:

- __[Verizon](https://robinhood.com/stocks/VZ)__ is [giving](https://variety.com/2019/digital/news/verizon-disney-plus-one-year-free-wireless-1203377660/) away __1 year of Disney+ free__ to customers with unlimited plans.
- __[Apple](https://robinhood.com/stocks/AAPL)__ is offering __1 year of Apple TV+ free__ to customers who buy a new Apple device (iPhone, Mac, iPad).
- __[AT&T](https://robinhood.com/stocks/T)__ [announced](https://9to5mac.com/2019/10/26/att-hbo-max-free-promo/) its HBO Max (debuting in April) __will be free to subscribers who have HBO__ already. 
- __[T-Mobile](https://robinhood.com/stocks/TMUS)__ [revealed](https://www.latimes.com/entertainment-arts/business/story/2019-10-18/quibi-has-partnered-with-t-mobile) a partnership with __Quibi__ (the name is a mashup of "quick" & "bites"). Details are TBD, but we wouldn't be surprised if the mobile-first premium video is __free to those with T-Mobile plans__.
- __[Netflix’s](https://robinhood.com/stocks/nflx)__ deal with T-Mobile goes waaaaaay back to [2017](https://www.youtube.com/watch?v=pwbVpHW1Q-E). But “Netflix on Us” only happens for T-Mobile users if your account has 2 lines. 

__The era of password mooching is over...__ Mobile phone companies are paying for your streaming. Binge-able content for free is their "promo puppy." Let us explain. 

- __"*Profit* puppy":__ The part of a company's business that makes a huge chunk of the profits. Like Ford's F-150 pickup truck, Lululemon's yoga pants, or Amazon's cloud service, AWS — they all drive profits. 
- __"*Promo* puppy":__ A shiny, cuddly, free perk that attracts customers to sign up. Think free streaming for a year, free shipping with Prime, or "60K reward points if you spend $4K in the first 4 months" — they all drive sign-ups.  

"_What do you mean you don't need our streaming passwords anymore?_"

Stream

__Promo puppies are discounts in disguise...__ It’s not clear who’s subsidizing the Disney+ account that Verizon offers for free. Is Disney+ giving it to Verizon customers, or is Verizon paying, or something in between? For customers, these promo puppies make you love Verizon and get addicted to Disney+ — both brands win. Discounts have the same outcome, but make the discounted thing look cheap.

"Promo puppies," and the Netflix/Disney/HBO Streaming Wars

__New Tesla collector's item...__ Profits. Shares surged 27% last week after __[Tesla](https://robinhood.com/stocks/tsla)__ revealed it [made](https://snacks.robinhood.com/newsletters/SJDB7f3KgYx0kks23Wmgl/articles/7BjUxnugG5FdZV7D9gReun) more money than it spent over the last 3 months (Elon's still never pulled that off for a whole year). Plus, that battery-producing gigafactory in China is ahead of schedule, and so is the new Model Y crossover.

__Survivor...__ __WeWork__ stock isn't publicly-traded since it canceled that IPO. At least it's not bankrupt. The injured unicorn that loses $219K [each hour](https://www.businessinsider.com/wework-not-close-to-profitable-loses-hundreds-thousands-every-hour-2019-7) was weeks from running out of cash — then __SoftBank__ (a Japanese fund that's the top investor in WeWork) [bailed it out](https://snacks.robinhood.com/newsletters/2FbrUPQhPtMrP4XrifjJcY/articles/2g3S3YqXfyVCnDx8zUQga8/) with billions of new money. Ex-CEO Adam Neuman walks away with $1.7B, yet employees' options are nearly worthless. If you're keeping score, WeWork's valuation fell from $47B to $8B and now SoftBank owns 80% of it — but it's still in business.

__No rest 'till everyone is Primed...__ __[Amazon](https://robinhood.com/stocks/AMZN)__ showed investors it'll do whatever it takes to beat __[Walmart](https://robinhood.com/stocks/WMT)__ and __[Target](https://robinhood.com/stocks/TGT)__ in the shipping wars — like spending 46% more on shipping so your packages arrive in 1 day instead of the old 2 (that [hurt](https://snacks.robinhood.com/newsletters/2FpHM9nWDxB2nEvxAwLaBM/articles/3ytJK68WokyuEzJc6SKrZK) profits last quarter). Then the Trump Administration crowned __[Microsoft](https://robinhood.com/stocks/MSFT)__ winner of its coveted [$10B](https://www.theverge.com/2019/10/25/20700698/microsoft-pentagon-contract-jedi-cloud-amazon-details) Defense Department deal — Amazon was in line to win the contract until politics got involved (the President's not a fan of CEO Jeff Bezos).

__Hoodie formal...__ Mark Zuckerberg tossed on a tie and visited Congress to defend __[Facebook's](https://robinhood.com/stocks/fb)__ Libra cryptocurrency. We [learned](https://snacks.robinhood.com/newsletters/SJDB7f3KgYx0kks23Wmgl/articles/2gQx23QTWdaC2CIxoQlCgK) how he's pitching Libra (to help the world's un-banked) and how it'll make money (the ability to "buy with Libra" would let Facebook charge more for ads). Zuck's biggest surprise: *He won't launch Libra unless US regulators OK it*, which may not happen. Then Friday he unveiled Facebook's new *news* tab, which finally pays news agencies directly — but only [30M](https://www.forbes.com/sites/mnunez/2019/10/25/facebook-launches-news-tab-with-dozens-of-us-publishers-to-combat-fake-news/#6f936cd83cfe) of Facebook's 2.6B users are expected to use it.