__Stop what you're doing...__ We've got trends to report. Mary Meeker, aka Queen of the Internet, just dropped her 333-slide "Internet Trends Report." The hugely successful tech investor's annual deck is read across the venture capital community to find the next "BLANK of BLANK." We read it for you.

__It comes down to 3 key trends...__ (but [here's](https://www.bondcap.com/report/itr19/#view/1) the full deck for your reading pleasure). 

- __Internet growth worldwide is slowing:__ The number of www users grew just 6% (the slowest growth ever) in the past year to 3.8B people. 
- __Online ads are growing in an interesting way:__ 22% more bucks were spent on online ads, and that growth is rising. But targeted ads (aka the ones that freakishly know you clicked a blue shirt, so keep offering you blue shirts) are getting hit by regulation like Europe's GDPR. And __Amazon__ & __Twitter__ are winning ad market share from __Facebook__ and __Google__.
- __Americans are disturbingly online all the time:__ Time spent on the internet rose from 5.9 hours/day to 6.3 this year. 26% of US adults say they're "almost constantly online."

Trends

__This hurts [Google](https://www.robinhood.com/stocks/GOOG) and [Facebook](https://www.robinhood.com/stocks/FB) the hardest...__ Big Tech was already on the defense everywhere. Now two of its leaders can add "Internet Trends" to the list of things they have to fight against:

- Congress held a [hearing](https://www.cnbc.com/2019/06/10/congressional-hearing-takes-on-antitrust-behavior-among-digital-giants.html?utm_source=morning_brew) yesterday to see if the pair's online advertising dominance __was killing news__ (and thereby threatening our democracy). 
- The Federal Trade Commission and Department of Justice just added them to their radars for __antitrust worries__ (aka are they monopolies that should be regulated).
- __[Apple](https://www.robinhood.com/stocks/AAPL)__ is religiously positioning itself as a privacy god compared to Google and Facebook (see its new "[Sign in with Apple](https://gizmodo.com/how-sign-in-with-apple-improves-on-google-facebook-an-1835348338)").


Mary Meeker's epic "Internet Trends Report" has victims: Google & Facebook

__Apparently Amazon fails at some things...__ The company's restaurant delivery service, uncreatively-named Amazon Restaurants, will [end](https://www.theverge.com/2019/6/11/18661240/amazon-restaurants-discontinued-usa-uber-eats-deliveroo-food-delivery) on June 24th — The 1-hour meal delivery for Prime members is over. Now "Restaurants" gets to join the rarely-discussed club of __[Amazon](https://robinhood.com/stocks/amzn)__ un-successes:

- __Amazon Fire:__ A smartphone. 2014-2015. RIP.
- __Destinations:__ An attempt to get into the travel bookings game. Shut down the year it launched.
- __Dash Buttons:__ $5 gadgets you press to auto-order more things, like Tide. Barking at Alexa turned out to be easier.
- And now, __Amazon Restaurants:__ It was tiny — Just 20 cities and 2% of the overall market.

__90% of the food delivery market...__ is [devoured](https://trends.edison.tech/research/doordash-vs-grubhub-vs-ubereats-march-2019.html) by 4 companies: Grubhub, Uber Eats, DoorDash, and Postmates. Word that Amazon canceled its delivery plans popped __[Grubhub](https://robinhood.com/stocks/grub)__ shares 8% Tuesday (shares of the others are either private or complicated by Uber's ride-share majority business). Amazon's not completely out, though — Last month it led a $575M investment in UK-based deliverer __Deliveroo__. 

Devoured

__Amazon clearly didn’t promote Restaurants enough...__ And we found a key example that highlights that: *Fast food partnerships*. Uber Eats delivers for McDonald's, DoorDash has Wendy's, and Grubhub handles Taco Bell. Amazon didn't invest in driving growth to its own service, so it'll invest in startups to do that instead.

Amazon shuts down "Amazon Restaurants" —  Grubhub celebrates with 8% jump

__All the cool kids are doing it...__ Last month, __[Snap](https://robinhood.com/stocks/snap)__ whipped out two new filters — One transformed your face into a baby's, the other switched your gender. The result for society: Good material to [share/scare](https://www.newsweek.com/snapchat-gender-swap-filter-how-get-girl-boy-change-male-female-how-use-not-1425014)  your friends, big conversations on "gender," and it was used to [catch](https://gizmodo.com/snapchat-gender-swap-used-to-catch-cop-who-was-allegedl-1835425979) a pedophile.

__But we just got the results for Snapchat...__ and they were big:

- __600K:__ The number of Snapchat downloads/day worldwide *before* the baby/gender switcheroo filters.
- __1.5M+:__ Daily downloads of the app *after* the filters hit, according to a [report](https://onezero.medium.com/snapchats-gender-swap-and-baby-filters-doubled-downloads-of-the-app-40a633c02ff0).

Viral

__But will it be copied?...__ Back in 2016, Snapchat was the fastest-growing social network in the US. Then "inspired" Facebook "replicated" its features (first Stories, now [Bitmoji](https://techcrunch.com/2019/06/03/facebook-avatars-stickers/)). When Snapchat debuted its Lens filters in 2015, Facebook even [acquired](https://techcrunch.com/2016/03/09/facebook-acquires-video-filter-app-msqrd-to-square-up-to-snapchat/) facial-recognition startup Msqrd to build its own filters. Snapchat's #GenderSwitch needs IP protection from the 'Book so it can get loyalty from you.

Snapchat's freaky face filters doubled app downloads

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

_Every non-Amazon delivery company right now_

Trends aren’t good for Facebook & Google

__It literally acquired DATA...__ __[Salesforce](https://www.robinhood.com/stocks/CRM)__ has become a software legend through acquisitions (it [snagged](https://www.salesforceben.com/salesforce-2016-acquisitions-infographic/) 12 in one year), but this one's the biggest — The software-as-a-service pioneer dropped $15.7B [to buy](https://techcrunch.com/2019/06/10/salesforce-is-buying-data-visualization-company-tableau-for-15-7b-in-all-stock-deal/) __[Tableau](https://www.robinhood.com/stocks/DATA)__ (ticker "symbol DATA") in an all-stock deal. DATA shares rose 34% because Salesforce is paying plenty to add to its menu of clouds:

- __"Sales Cloud":__ Salesforce's OG customer relationship management (CRM) platform lets you (the salesperson) obsessively track everyone. Every. Single. Lead. And your company keeps all that data even if you leave. 
- __"Marketing Cloud":__ It's all about emails. Your company's "15% off flip flops" subject line got an open, but not a click? Marketing Cloud suggests a better option.
- __A bunch of other clouds:__ Health Cloud, Service Cloud, Commerce Cloud... Salesforce is the sales dashboard for everything.

__Your worst nightmare...__ You get an email from Debbie (head of sales) asking to "break down adoption trends in the southwest region over Q3." Instead of bribing the engineer in your office for help, Tableau converts your raw data spreadsheet into visual charts, graphs, and data maps that make sense. From numbers to art.

Merger #1

__Data is the currency...__ Every CEO tells her employees "we're a tech company now." AKA "*we need to take data seriously or we'll get disrupted by an engineer somewhere.*" To capitalize on that demand for data analytics, Salesforce snagged Tableau, while __[Google](https://www.robinhood.com/stocks/GOOG)__ bought Looker last week for $2.6B. "*Data-driven decision making*" — Add it to your resumé.

Salesforce acquires Tableau because everybody wants to be a data-star

__Those kid-sized army toys...__ __[Raytheon](https://robinhood.com/stocks/rtn)__ and __[United Technologies](https://robinhood.com/stocks/utx)__ make real sized ones for real armies. The New England-based defense companies announced a merger Monday — The US government hasn't approved it yet, but the PR teams seem confident it will (they just launched [FutureOfAerospaceDefense.com](http://www.FutureOfAerospaceDefense.com) to promote the deal). It'll be called "Raytheon Technologies," and [build](https://www.npr.org/2019/06/10/731225619/raytheon-and-united-technologies-merge-to-create-a-new-aerospace-giant) for the front lines and the homefront:

- __Raytheon (defense):__ Its Tomahawk cruise missiles are launched straight off US Navy ships.
- __United Technologies (aerospace):__ Its engines power the stealthy F-35 fighter jets.
- __Inventions that eventually get into your kitchen & car:__ It turns out United invented the microwave, and Raytheon sent the first ever photo via satellite.

__There's 1 customer here...__ The government. Over 80% of Raytheon's revenues came from contracts with US and foreign governments — Its Patriot missile system is used by 9 nations. Raytheon and United hope teaming up will help it win more of the [$398B](https://www.cnbc.com/2019/01/10/top-10-defense-contractors-in-the-world.html) governments dropped on weapons in 2017 (a 3rd straight annual increase). 

Merger #2

__We're looking at you, [Boeing](https://robinhood.com/stocks/ba)...__ The leader of the aerospace industry has $101B in annual revenue. This Raytheon-United merger will result in $74B in combined sales, making it #2 behind Boeing (__[Lockheed Martin](https://www.robinhood.com/stocks/LMT)__ would be distant #3). This could be the big rival Boeing needed to keep it honest and competitive in bids for things like the $900M Growler Jet [order](https://www.businessinsider.com/the-top-9-biggest-defense-contractors-in-america-2016-5#2-the-boeing-company-2) it won last year. *No typo — this merger could boost competition.*

Defense icons Raytheon and United Tech merge into an aerospace beast

__*Leave no trace*...__ __[Starbucks](https://robinhood.com/stocks/sbux)__ is testing out a reusable cups system at Gatwick Airport in London (and taking its Boy Scout [commandment](https://www.scouting.org/outdoor-programs/leave-no-trace/) very seriously). Here's how it works:

- __The pickup:__ For one month, a Starbucks will charge 5 pence for a paper cup, or you can drink from a reusable cup for free.
- __The dropoff:__ There are 5 [tubs](https://twitter.com/JazRabadia/status/1138033182958379010?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed&ref_url=https%3A%2F%2Fwww.cnbc.com%2F2019%2F06%2F10%2Fstarbucks-is-testing-a-reusable-cup-program-at-londons-gatwick-airport.html) around the terminal where you can drop your empty chalice. The [press release](https://stories.starbucks.com/emea/stories/2019/starbucks-launch-reusable-cup-trial-at-gatwick-airport/) makes it seem like there's no punishment if you forget to drop off (or steal) the cup (besides shame). 
- __The cleaning:__ The airport waste staff collects and tosses them in the dishwasher.  
- __The reason for it all:__ Starbucks uses 7M cups at that terminal each year. It says it can save 2K paper cups per month. *Reminder: Paper cups are made of trees.* It will take its learnings from here to scale beyond one single airport terminal. 

__One cafe latte with room for responsibility...__ Starbucks is killing-off plastic straws, has increased pay for employees, and put its employees through discrimination sensitivity [training](https://www.nytimes.com/2018/04/17/business/starbucks-arrests-racial-bias.html) within the last two years. It's all to convince you to pay $4 for a Starbucks even if you think "coffee is coffee" (marketers can't stand those types). 

Re-use

__Wanted: sustainable packaging for your dim sum...__ The combo of ecommerce and food delivery (@UberEats, @Doordash) means [more](https://www.forbes.com/sites/jonbird1/2018/07/29/what-a-waste-online-retails-big-packaging-problem/#681bbe09371d) packaging. So your curry dinner's six styrofoam tubs are popular, too. Delivery diets have become a packaging problem that we hope becomes an entrepreneur's opportunity. Some ways to do it: 

- __Recyclable packaging:__ Good start, but what happens when it's covered in chili paste?
- __Package taxes:__ Since adding 10-cents to your plastic bag isn't loved, companies tend to avoid them (unless a law requires it). FYI, Maine and New York City just [banned](https://www.nytimes.com/2018/12/31/nyregion/styrofoam-ban-new-laws-ny.html) styrofoam.
- __Compostable and reusable packaging:__ Even "[luxe](https://www.vogue.com/article/sustainable-reusable-packaging-loop-fashion-home-products)" packaging startups are getting into this.

Starbucks tests reusable cups in London

_Merger season_

Mega Merger Monday

__Pea protein is living its best life...__  Shares of __[Beyond Meat](https://www.robinhood.com/stocks/BYND)__ surged 40% higher Friday on word its revenue tripled in the 1st quarter — [15%](https://www.wsj.com/articles/fast-food-embraces-meatless-burgers-but-there-arent-enough-to-go-around-11559640601?mod=hp_lead_pos11) of American restaurants now boast meat-alternative burgers (we're not just talking black bean patties). Shares of the 10-year old vegan champion are now up 451% since its May 2nd IPO as production launches [across](https://london.eater.com/2019/5/29/18642673/beyond-meat-vegan-bleeding-burger-production-europe) the pond.

__Stick it up on the shelf...__ Months after putting itself on the auction block, __[Barnes & Noble](https://www.robinhood.com/stocks/bks)__ has been sold to hedge fund Elliott Management for $638M (that's more than Wall Street thought it was worth, so shares jumped over 50% last week). After [closing](https://www.nytimes.com/2019/06/07/books/barnes-noble-sale.html) 150 stores in the last decade, B&N's desperate turnaround plan to lure Millennials with wine/beer/snacks-filled "experiential" concept stores didn't work. Its new owner is reading Harry Potter for magical inspo.

__The fire's been put out...__ __[GM](https://www.robinhood.com/stocks/GM)__, __[Ford](https://www.robinhood.com/stocks/F)__, and even German car makers (__[BMW](https://www.robinhood.com/stocks/BMWYY)__, __[VW](https://www.robinhood.com/stocks/VWAGY)__, and __[Daimler](https://www.robinhood.com/stocks/DMLRY)__) all produce some fleets south of the border for US customers. So their stocks were down on fears of new Mexican tariffs. But leaks throughout the week that [a deal](https://www.latimes.com/nation/la-na-pol-us-mexico-tariffs-immigration-talks-20190607-story.html) to cancel them was in gear (+ Friday's final Trump Tweet-nouncement) rebounded the auto stocks.

Highs

Who's up...

__$125M...__ That's [how much](https://finance.yahoo.com/news/brown-forman-fiscal-4q-earnings-120711073.html) Jack Daniel's owner __[Brown-Forman](https://www.robinhood.com/stocks/bf.b)__ is losing each year because of tariffs. Sales rose just 1% last quarter because Europe's retaliatory tariffs specifically targetted America's finest (whiskey, jeans, and motorcycles). The happy hour bright spot: Sales of Brown-Forman's tequila brand combo (Herradura and el Jimador) jumped 13%.

__You're dead to me, Amazon...__ __[FedEx](https://www.robinhood.com/stocks/FDX)__ made the bold move to [end](https://www.cnn.com/2019/06/07/tech/fedex-amazon/index.html) its frenemy-ship with the ecommerce beast. Shockingly, __[Amazon](https://www.robinhood.com/stocks/amzn)__ only made up 1.3% of FedEx's annual biz. Then Amazon got deeper in the shipping game — It opened an air cargo hub in Kentucky last month and now lets local logistics entrepreneurs drop-off Amazon packages. Last week's drone delivery [teaser](https://www.youtube.com/watch?v=3HJtmx5f1Fc) (coming from Amazon "in the coming months") was the last straw for FedEx.   

__Wedding's off...__ __[Fiat Chrysler](https://www.robinhood.com/stocks/FCAU)__ and __Renault__ planned a $40B summer merger. Then a Japanese relative canceled the nuptials. Renault has a long/incestuous relationship with Japan's __[Nissan](https://www.robinhood.com/stocks/NSANY)__ (they own a significant chunk of each others' shares) — Apparently Nissan felt [betrayed](https://markets.businessinsider.com/news/stocks/fiat-chrysler-renault-nissan-deal-undone-by-politics-and-betrayal-2019-6-1028263089) it wasn't asked by Renault for its merger blessing, so Fiat Chrysler pulled out over the family drama.

Lows

...And who's down

__FOMO = The competitive advantage...__ Founded in '03, __[Revolve](https://robinhood.com/stocks/rvlv)__ pioneered influencer marketing as social media became a thing. Now the fashion company that finds buyers with hashtags had the 2nd best IPO of 2019 — Its shares nearly doubled on its first day of trading on Friday. Revolve knows our generation's not watching TV or reading magazines, so it meets you on Instagram (where the eyeballs are).

- It sells clothes under 21 of its own brands and hundreds of others, marketing them through its __3,500 influencers'__ social media accounts.
- And it gives them no-filter-needed venues to pose for — Revolve [throws](https://fashionista.com/2019/06/revolve-clothing-ipo-marketing-strategy) 100s of Coachella-fied __#RevolveAroundTheWorldTrips__ events annually to get the floral-print tankinis in your feed.

__Not just beautiful people with millions of followers...__ Revolve tracks fashion styles based on what's getting clicked, shared, and bought by its 3M+ Insta followers — Then [its algorithm](http://fortune.com/2019/06/07/millennial-fashion-revolve-stock-ipo-instagram-influence-marketing/) detects patterns from the data to determine if sequins are in or wrap dresses are out.  
- __The Goal:__ “Constant newness” — Revolves adds 1,000 new styles/week based on what its learning (fast) from its trends-tracking algorithm.
- __The Purpose:__ “Less inventory risk” — Since Revolve better predicts what the insta-scrollers will want, it has fewer misses and keeps unwanted inventory low.
- __The Result:__ 79% of Revolve's clothes were sold at full price, helping nail a $31M profit look last year.


IPO'd

__Revolve's greatest strength is its greatest weakness...__ It expects Insta to remain the home of fashion discovery – But a single tweak to how the social network works could cut off its main sales channel. We've seen this before — Online publishers or even Zynga's mobile games have been hurt badly because of a Facebook algorithm change. Now social media regulation could mess with Revolve's marketing mojo, too.

Influencer fashion pioneer Revolve just surged 89% on IPO day

_"Imagine the likes coming for these frames"_

The Insta Influencer IPO

__Pure protein...__ Beefless burger company __[Beyond Meat](https://www.robinhood.com/stocks/BYND)__ served its first earnings report to Wall Street since last month's IPO (one of the best in years — the stock rose 163% on day #1 of trading). On Thursday, Beyond shares surged another 18% after sales  from January-March tripled to $40M from the same period last year.

__Profits were as non-existent as cornish hen...__ Costs were $7M more than revenue, leading to a loss. But Beyond's splurging each buck it has on growth. The WSJ [just reported](https://www.wsj.com/articles/fast-food-embraces-meatless-burgers-but-there-arent-enough-to-go-around-11559640601?mod=searchresults&page=1&pos=6) there's a shortage of meat alternatives that juice just like a burger. So Beyond is spending the $253M it raised in May's IPO on new factories (next destination: Holland) to pump out pea-protein patties.

Debut

__Beyond Meat has the 1st mover advantage...__ the challenge is keeping it. There's growing demand for a burger that doesn't make you guilty (for eating unhealthy, eating another mammal, and dropping a giant carbon footprint) — 15% of restaurants in the US have "fake meat" on the menu, up from 3% last year. That's attracted some serious competition:

- __[Nestlé](https://www.robinhood.com/stocks/NSRGY)__ just [unveiled](https://uproxx.com/life/nestle-awesome-burger/) the awkwardly-named "Awesome Burger".
- __[Tyson Foods](https://www.robinhood.com/stocks/TSN)__ is developing its own meat alternative.
- Countless startups are trying to turn alt-protein, potatoes, beats, and other grown-from-earth foods into something juicy and tasty (looking at you, __Impossible Burger__).


Beyond Meat's sales triple in first earnings report

__What happened to us, man?...__ __[Toyota](https://www.robinhood.com/stocks/TM)__ and __[Subaru](https://www.robinhood.com/stocks/FUJHY)__ announced a [partnership](https://www.reuters.com/article/us-toyota-subaru/toyota-subaru-team-up-to-develop-electric-suv-in-battle-against-costs-idUSKCN1T70DG) to build electric SUVs. Together. Driven by already passed (and future projected) government mandates to fight climate change, electric vehicles (EVs) are expected to be the status quo rides of you later this century. So Subaru's taking care of the all-wheel-drive, and Toyota's got the electrification.

__Surprised these two are behind in EVs?...__ We were too. The two Japanese carmakers are hugely dependent on the American market. Plus, they're surprisingly not leading in full-electric options. Here are more resumé bullets on the future partners:

- __Subaru:__ The #1 choice for Sierra Club members who live within a Harry Potter audiobook's drive of a protected national seashore. 
- __Toyota:__ The most profitable car company in the world (by far), with the largest value by market cap, and the first to produce a hybrid car.

Charge

__EVs need to adapt to American tastes...__ When it comes to cars, all 50 states are like Texas. They like 'em bigger. SUVs and trucks make up about [2/3](https://www.autonews.com/sales/light-trucks-take-record-69-us-market) of new car sales in the US today. So Subaru and Toyota are matching present wants with future needs. They're sharing engineers and R&D centers to produce the skeletons of electric SUVs together.

Toyota and Subaru car-pool their electric SUV development

__Who gets the rose?...__ Looks like a hedge fund. __Barnes & Noble__ surged 30% on word it's ["near a deal"](https://www.wsj.com/articles/elliott-management-is-lead-bidder-in-auction-of-barnes-noble-11559843348) to be bought by Elliott Management. That's the financial firm that recently acquired the UK's version of B&N (__Waterstones__). 

__Your local bookstore is into poetic justice...__ B&N closed 90 stores in just the last 7 years as Amazon kept being Amazon. But while Oprah's Book Club was busy shifting online, local bookstores (once B&N victims) have made a comeback. Now they're disrupting their original big box disruptor:

- Sales at indie bookstores __[rose](https://goodereader.com/blog/bookselling/indie-bookstores-sales-increase-by-5-in-2018) 5% in 2018,__ while Barnes & Noble's have fallen for 5 straight years.
- Your local shop's curated offerings are beating B&N as __fewer Americans head to malls__ for their *50 Shades* sequel.

Books

__The “Millennial Turnaround Formula” didn't work...__ Barnes & Noble tried it. Last year, the chain whipped up a "[concept store](https://www.retaildive.com/news/is-barnes-nobles-new-concept-store-the-answer-to-its-woes/539563/)" in a desperate attempt to become "experiential." It added a really big café with instagrammable food, sandwich-priced lattés, wine, and (of course) craft beer. It also tried tech, investing further in its Nook reader. But not every turnaround plan can work. We'll see what Elliott has in store now.

Barnes & Noble put itself up for auction – Now it may have found its buyer

_How is this not meat?_

Beyond-er Meat

__Someone got Smirnoff Ice'd...__ and it's __[Brown-Forman](https://www.robinhood.com/stocks/BF.B)__. Sales for the liquor legend behind Jack Daniel's only rose 1% last quarter, but would've jumped 5%. It's blaming European tariffs on its booze:
- __1st punch:__ The US slapped tariffs on steel and aluminum that Americans buy from Europe.
- __Retaliatory punch back:__ Europe threw tariffs on pure Americana: Harley-Davidson, Levi's, and Jack Daniel's — That [made](https://www.reuters.com/article/usa-trade-europe/update-3-europe-targets-u-s-bourbon-bikes-blue-jeans-for-trade-riposte-idUSL8N1QK2SZ) $3.5B/year worth of US goods 25% more expensive in Europe.

__Jack can't afford another round...__ Yesterday, we learned the price tag of these tariffs in dollars for Brown-Forman:
- A hefty __60%__ of the American whiskey that Europe imports [is](https://www.wsj.com/articles/tariff-fights-are-a-drag-for-maker-of-jack-daniels-11559763689) Brown-Forman’s (Old Forester. Woodford Reserve. It's got a lot of bourbon brands).
- The company has __lost $125M__ in potential sales.
- And the CEO is taking it personally: “We view these tariffs as a targeted campaign against Brown-Forman.” *That's because they are.*


__Tequila was the savior — Now it's not...__ Tequila's only 3% of Brown-Forman's sales so far, but the Herradura and el Jimador brands are growing fast (sales were up 13% last quarter). But Agave prices have surged by 7X as supplies are ([barely](https://www.courier-journal.com/story/news/local/2019/06/05/brown-forman-estimates-annual-retaliatory-tariffs-to-cost-125-million/1352410001/)) keeping up with tequila demand. And just as Brown-Forman's leaning on its south-of-the-border spirits, new tariffs on Mexico are scheduled to arrive this weekend.

Jack Daniel's owner revealed it’s losing $125M because of tariffs 

__If anyone believes these two should not be wed...__ please speak now. __[Fiat Chrysler](https://robinhood.com/stocks/FCAU)__ spoke. About itself. The car-glomerate left Europe's __Renault__ on the altar, withdrawing the $40B merger offer it had announced just two weeks ago. Here's the strange family background behind the deal:

- The __French government__ is Renault's biggest shareholder.
- Renault also has a __loooong relationship with Japan's Nissan__, which it owns 43% of (and Nissan incestuously owns 15% of Renault).
- Fiat Chrysler is __part Italian, part American__, with a dozen brands including Alfa Romeo, Jeep, and Ram. 

__Straight up family drama...__ All those underlying relationships created tension — And within just a few days, a series of events broke up the wedding while the prenup was still getting signed:

- French officials went into a __"[marathon](https://www.wsj.com/articles/fiat-chrysler-withdraws-merger-offer-for-renault-11559773129) board meeting"__ to discuss the deal Wednesday.
- __Their main focus:__ Don't let the deal affect Renault's special relationship with Nissan.
- Then Nissan indicated it __may end its relationship__ with Renault if the deal went through, feeling betrayed it hadn't been consulted before the deal offer became public.
- So __France asked to delay__ the vote on the merger — That's when Fiat Chrysler withdrew its proposal.

Break-ups

__This reflects Europe's national divides...__ With dozens of brands, Europe's carmakers are constantly competing with each other. Alliances or mergers could save money and boost efficiency so that everybody wins — Fiat Chrysler thought committing to Renault would be "transformational" to take on Germany's __[Volkswagen](https://www.robinhood.com/stocks/VWAGY)__. But now it's back to national rivalries.

That huge Fiat Chrysler / Renault merger is off because of family drama

__Extra green vibes...__ Last year Canadian cannabis icon __[Cronos](https://www.robinhood.com/stocks/CRON)__ was the first "pure play" pot stock to list on an American exchange. On Wednesday, its shares enjoyed a mellow 11% lifting sensation.

- __Cause:__ CEO Mike Gorenstein said his company will be "aggressive" with its CBD expansion to the United States, expected [this year](https://markets.businessinsider.com/news/stocks/weed-stocks-cronos-plans-us-cbd-market-entry-2019-6-1028257779).
- __Effect:__ Bank of America's analyst who covers Cronos upgraded the stock by two notches, from "Underperform" to "Buy". 

__Cronos is hungry for USA...__ Currently, 99.6% of its sales are in Canada, where recreational Cannabis was legalized last fall. The US is still working on that, but CBD (cannabidiol, which delivers weed's "chill" effect without the "whoa") [looks](https://www.nytimes.com/2019/05/06/us/cbd-cannabis-marijuana-hemp.html) like it's on the faster track to legalization. The [TSA](https://news3lv.com/news/local/tsa-to-allow-some-travelers-to-fly-with-cbd-hemp-products) is letting some passengers fly with it, and the [FDA](https://www.upi.com/Top_News/US/2019/06/04/FDA-hearing-leaves-CBD-industry-concerned-about-future/7011559600121/) is holding hearings on its medical benefits.

Impressed

__Altria + Cronos = Big Corporate + Weed Dealer...__ The analyst highlighted Cronos' 45% owner: American tobacco giant __[Altria](https://www.robinhood.com/stocks/MO)__. Altria's access to 230K US stores (Altria already sells cigarettes in them) is key for Cronos to get to US customers before the competition. PS: Cronos' weed brands are compelling — look at this [slide deck](https://ir.thecronosgroup.com/static-files/d02a0916-b7d5-4120-8e51-49e1419f5891), page #8: 

- __"Spinach"__ is Cronos' recreational marijuana brand, offering "Farm-To-Bowl" for "consumers that don't take life too seriously."
- __"Cove"__ is for "premium weed customers... focused on every detail of the process." The stuff is "hand-trimmed."

Cronos cannabis surges 11% thanks to the rare "double upgrade"

_Booze was already sad. Then tariffs happened_

Family drama kills car mega-marriage

__Nice antenna 😏...__ __[Spotify](https://www.robinhood.com/stocks/SPOT)__ is now the proud parent of a [new app](https://itunes.apple.com/us/app/spotify-stations/id1453043471) — "Stations." The Spotify sequel is designed to bring the best parts of old school radio to an app (but better because, Spotify). And Spotify shares jumped 4% on the new market potential:

- __Stations = "Lean-back" media:__ Music, video, or other content that just plays. It's on in the background or whenever you can't decide what to watch/listen to. 
- __Spotify = "Lean Forward" media:__ When you know what you want, and you want it now. 

__The original lean-back media is radio...__ Stations takes that on, as well as __[Sirius XM](https://www.robinhood.com/stocks/SIRI)__ and Pandora (which Sirius owns). Here's how Stations is lean-back: 

- __Instant music:__ It starts playing right when you open the app.
- __Personalized:__ It has pre-set stations based on what you like on Spotify.
- __Radio-like:__ The app is super simple — you ~~turn~~ scroll the dial to find the right station.
- __Free:__ Spotify's calling it an experiment, and it costs nothing (for now). 

Tune

__Just like that, Radio's advantage is gone...__ Stations is a simplified, dumbed-down, smartened-up version of Spotify offering the users *less* control. Turns out, that's what we always wanted. Radio's "just turn it on" convenience advantage is baked into this product tweak – And the target is commuters and background listeners.

Spotify unveils a new app: "Stations" is your personalized radio

__Drink plenty of fluids...__ and open a lot of new "HealthHUBs" by 2021. That's the prognosis for __[CVS](https://robinhood.com/stocks/cvs)__, whose stock is down 14% in the last year. It announced yesterday it's remodeling a fifth of the floorspace in 1,500 CVS stores to create [HealthHUBs](https://www.forbes.com/sites/brucejapsen/2019/06/04/cvs-plans-national-rollout-of-1500-healthhub-stores/#7818214259c8): Part pharmacy, part hospital, and part urban wellness retreat. We also noticed these perks:

- __"Care Concierge":__ Someone who walks you through how your medical insurance works (only 9% of Americans [understand](https://www.healthcaredive.com/news/unitedhealth-survey-most-americans-dont-understand-basic-health-plan-term/506895/) 4 key health insurance terms).
- __A little bit of yoga:__ Each spot gets wellness rooms (+ dieticians) so you can practice your practice.
- __A serious amount of lab work:__ Blood-testing and health screenings will be going down, using medical equipment that’s permanently installed.

__Who's the adult responsible?...__ Aetna. CVS acquired the health insurer last year — And that gave it direct access to Aetna's 22M members. Next, it's scaling HealthHUBs from a pilot version in Texas, to Philadelphia, Atlanta, and Tampa first. And it's got 10K of its own pharmacies to potentially freshen up after revamping the first 1.5K.




Aerobic

__This is about empty shelves, not your heart rate...__ Candy. Protein bars. Tissue paper. Your random go-to's used to be bought at drugstores — Now they're bought online (via Amazon). That's given CVS empty space, so it's investing big on its expertise in health to fill that gap: Turn its pharmacies into immersive experiences (think, 6pm vinyasa flow after the eye exam). 

CVS just evolved pharmacies — They're now "HealthHUBs"

__When a parking spot costs $400/month...__ You ditch your car. And when public transit looks [like this](http://nymag.com/intelligencer/2016/08/more-complaints-about-hot-cars-on-the-subway-this-summer.html), you want 2-wheels. So e-scooter pioneer __Bird__ introduced another ride option Tuesday — *Bird Cruiser* — a motorized moped/bike thing. They'll be available this summer in some cities where Bird operates, helping the $2B startup expand its not-car mobility game (macro-valuation, micro-transit). 

__For sitting, not standing...__ Bird and Lime raced for e-scooter domination [last summer](https://techcrunch.com/2018/12/23/the-electric-scooter-wars-of-2018/), parking fleets in every city and college town. Now Bird's trying to differentiate itself with a menu of mobility modes.

- __The OG [scoot-share](https://itunes.apple.com/us/app/bird-enjoy-the-ride/id1260842311?mt=8):__ Bird's electric rides go about 15 miles on 1 charge, and can be rented starting at $1/ride through the app. 
- __"[Bird One](https://shop.bird.co/)":__ The $1,299 version for riders who are tired of renting, but cool with standing on the Razor scooter-with-motor. 
- __NEW "[Bird Cruiser](https://cruiser.bird.co/)":__ This thing's got room for 2 butts, and is a bike that doesn't need pedaling. Not for buying yet, just for inclusion in Bird's scoot-share fleets.


Ride

__Urban + high income + low time...__ That's the target market. As high-income jobs consolidate in tops cities whose transit systems can't handle that much human cargo, there's demand for "last mile transit" options. Uber and Lyft are both chasing that. But Bird and Lime are totally focused on scoots and bikes to get you to work and home faster. 

Bird unveils a big-wheeled "Cruiser" e-bike

_"Let's dedicate this one to Spotify's new app"_

Spotify's "Stations" app reinvents radio

__Cue the PowerPoints...__ __[Apple's](https://robinhood.com/stocks/aapl)__ multi-day *here's-what-we've-been-working-on* Worldwide Developers Conference kicked off in San Jose. Apple's operating system got some big updates (spoiler alert: "dark mode" is coming to your iPhone), but these are our 4 highlights.

1. __A SciFi-ish show:__ The 1st original show for Apple TV+ (its paid video subscription) will be *For All Mankind* — An alt-history where Russia lands on the moon first ([here's](https://uproxx.com/tv/for-all-mankind-trailer-apple-tv/) the trailer).
2. __End awkward earwax:__ Share the music you're listening to by holding your phone next to your buddy's (like AirDrop) instead of sharing/trading headphones.
3. __Hello, Siri:__ She's getting a more "natural" sounding voice and will work better with AirPods.
4. __Goodbye, iTunes:__ Since '01, iTunes has delivered you everything media-ish. Now it'll be split into 3 separate apps — Music, Podcasts, TV (like it already is on the iPhone). 

__But 1 update is (subtly) the biggest...__ *“Sign In With Apple.”* Bought a succulent online lately? You probably experienced "1-click sign-in with Google or Facebook" options (looks [like this](https://images.app.goo.gl/JtqFjn8zzHRf32c96)). Using your FB or Google creds logs you in faster, but you feel like you're giving up privacy/security. Apple thinks it's better than its tech rivals — Face ID tech can log you into anything more safely.

Presenting

__The next tech battle is privacy...__ and Apple is positioning itself as the savior. It hasn't suffered Facebook-style privacy leaks, CEO Tim Cook [proactively](http://time.com/5574143/technology-regulated-apple-tim-cook/) calls for more regulation, and Apple keeps your data locked down on your device with encryption (it doesn't need personal data to sell ads). This conference shows it's wrapping its brand all around privacy.

Everything you need to know about Apple's big annual event

__Charming, roomy, 1-floor, multi-bathroom warehouse...__ for $18.7B. In the biggest private real estate deal ever, private equity firm __[Blackstone](https://www.robinhood.com/stocks/BX)__ acquired __GLP__. That's the Singapore-based owner (and leaser) of a ton of American warehouses. Blackstone knows a thing or two about landlord-ing already (it owns Chicago's Willis Tower, NYC's StuyTown, and Vegas casinos). Here's how the deal was probably pitched to the CEO:

- __What Blackstone gets:__ 180M square feet of modern, industrial US warehouses.
- __Why that's valuable:__ The biggest tenant is Amazon — And the 1,300 warehouses are near cities (aka where all the ecommerce customers are).
- __How Blackstone will make money:__ Rent. Lots of it. Paid by Amazon, Walmart, Target, and whoever else needs a warehouse to store and ship the stuff you need ASAP.

__"Buy it, fix it, sell it."...__ That's the corporate [slogan](https://www.blackstone.com/the-firm/asset-management/real-estate) going on Blackstone coffee mugs. With the help of bank loans, Blackstone has made bucks flipping land: 

- __[Hilton](https://www.robinhood.com/stocks/HLT)__ was Blackstone'd in 2007 and the private equity firm made [$14B](https://www.reuters.com/article/us-hilton-wrldwide-stake-blackstone-grou/blackstone-to-end-its-stay-at-hilton-after-11-years-idUSKCN1IJ1FZ) before selling its last stake in the hotel chain last year. 
- __[SeaWorld](https://www.robinhood.com/stocks/SEAS)__ was sold by Blackstone in 2017 for nearly [triple](https://www.nytimes.com/2017/03/24/business/dealbook/seaworld-blackstone-deal.html) the price it paid 7 years earlier.


Land

__This is really all about ecommerce...__ Here's how Blackstone [announced](https://www.blackstone.com/media/press-releases/article/blackstone-to-buy-u.s.-logistics-assets-from-glp-for-$18.7-billion) the deal: "*Logistics is our highest conviction global investment theme today.*" The reason Blackstone's dropping $19B on warehouses is that they're part of the "logistics" that powers ecommerce. Blackstone believes online shopping is the future, so it's expressing itself through real estate.

The biggest private real estate transaction ever

__According to extra scoops of *WSJ* journalism...__ Two of the nation's main business regulators, the Federal Trade Commission (FTC) and the Justice Department (DOJ), are divvying up which tech companies to [regulate](https://www.wsj.com/articles/ftc-to-examine-how-facebook-s-practices-affect-digital-competition-11559576731?mod=hp_lead_pos1). And they've been training: FTC and DOJ can enforce antitrust laws — the power to investigate, sue, fine, and break up monopolies.

- __DOJ:__ It's focused on __Apple__ and __Google__.
- __FTC:__ It's taking on __Facebook__ and __Amazon__.

__Fun party game...__ Try naming a bipartisan political issue. *Answer:* Regulate Silicon Valley. Conservatives think tech is too liberal and censors conservative voices, liberals think it kills jobs/equality/competition. But Capitol Hill hasn't teamed up to do anything about it — Then we learned regulators game planned X's and O's, and __[Google](https://robinhood.com/stocks/googl)__ fell 6% while __[Facebook](https://robinhood.com/stocks/fb)__ face-planted 8% Monday.

- __$130B:__ That's the total market value [lost](https://www.cnbc.com/2019/06/03/apple-google-facebook-amazon-facing-potential-regulatory-scrutiny.html) by tech companies in just Monday's drop.
- __10%:__ That's how much lower the tech-heavy Nasdaq stock index is from its high in April (that means it's technically in "correction" status).

Tech-phobia

__Tech is free, but it still has a price...__ Regulators used to tackle monopolies only when customers were hit by high prices. Now Google and Facebook definitely could fit the definition of monopolies — they [own](https://www.reuters.com/article/us-google-doj-probe/u-s-probe-of-googles-online-ad-dominance-would-appease-long-suffering-rivals-publishers-idUSKCN1T42PI) nearly *60%* of all US online ads — but they're free for us to use. So if regulators finally regulate tech, they won't be looking at prices — they’ll look purely at power (too much of it). That's a new frontier.

The Regu-tech-lation wars just began —  And Google and Facebook fell over 6%

_Prepare to be investigated_

Tech's terrible, horrible, no good, very bad Monday

__Your Uber earnings report has arrived...__ For the first time since IPO-ing last month, __[Uber](https://robinhood.com/stocks/uber)__ issued its quarterly report card to investors. Shares rose despite mostly negative themes (because expectations were low):
1. Uber's __loss [doubled](https://www.nytimes.com/2019/05/30/technology/uber-stock-earnings.html) to $1B__ as it splurges on more promo codes to keep you off Lyft or DoorDash.
2. __Growth is a problem__, with quarterly revenues just 20% higher than last year because competition is fierce.
3. __Uber Eats is the golden child__, growing much faster than Uber rides — It now makes up 17% of all of Uber's revenue.

__The other, other white meat...__ __[Yum Brands](https://robinhood.com/stocks/yum)__ is now in an "[exploration phase](https://www.cnbc.com/2019/05/30/kfc-is-considering-plant-based-fried-chicken-but-has-no-plans-to-test-right-now.html)" for a plant-based chicken alternative for all its  __KFC__ restaurants. Good timing — __[Burger King](https://www.robinhood.com/stocks/QSR)__ just announced that its meat-free Impossible Whoppers [boosted](https://www.cnbc.com/2019/05/28/impossible-whopper-boosted-burger-king-traffic-by-18percent-report-says.html) store traffic by 18%.

__Location. Location. Location...__ "Words With Friends" creator __[Zynga](https://robinhood.com/stocks/znga)__ is now better at real estate than mobile gaming. It just [sold](https://www.sfchronicle.com/business/article/Zynga-to-sell-lease-back-SF-headquarters-for-13901353.php) its SF headquarters building for almost three-times what it paid for it in 2012, earning a $372M profit. Some context: Its core biz (gaming) lost $660M over those 7 years.

__Lime problems...__ President Trump's new immigration-motivated 5% tariff on everything imported from Mexico starts June 10th. And car companies aren't the only ones who are affected — Beer-glomerate __[Constellation Brands](https://robinhood.com/stocks/stz)__ fell 11% last week. The Corona-maker [brews](https://www.thestreet.com/investing/constellation-brands-beverage-stocks-go-flat-on-proposed-tariffs-on-mexico-14977945) in Mexico, and 73% of its revenues are from Mexican imports to the US (aka exactly what will get taxed by the new tariffs).

__FYI on your mango-infused beach companion...__ New reports revealed that __LaCroix__ sales plummeted 9% over the last quarter as competitive sparkling waters sprout up. And it isn't thrilled about a lawsuit claiming its "all natural" ingredients aren't actually all that natural. Owner __[National Beverage Corp](https://robinhood.com/stocks/fizz)__ fell 8% because an analyst thinks it's "effectively in a [free fall](https://www.businessinsider.com/la-croix-sales-decline-free-fall-2019-5)."

__An extra grand or two...__ That's the increase in price for cars imported from Mexico if the tariffs come into full effect. Shares of __[GM](https://www.robinhood.com/stocks/GM)__, __[Ford](https://www.robinhood.com/stocks/F)__, and all their car-making buddies fell on word that the 2.6M cars imported from Mexico each year could face the political tax — President Trump [won't stop](https://www.cnbc.com/2019/06/01/trumps-mexico-tariffs-risk-pricing-some-americans-out-of-buying-a-car.html) the tariffs "until the Illegal Immigration problem is remedied."

__Go high or go low...__ The final heat of 1st quarter earnings marathoners crossed the finish line last week. Setting personal records were __[Dollar General](https://www.robinhood.com/stocks/DG)__ and __[Dollar Tree](https://www.robinhood.com/stocks/DLTR)__. But a closet-full of apparel companies __[Gap](https://www.robinhood.com/stocks/GPS)__, __[Abercrombie & Fitch](https://www.robinhood.com/stocks/ANF)__, and __[Calvin Klein](https://www.robinhood.com/stocks/PVH)__ looked like they still had those annoying plastic security tags on. We noticed something: *High-end is winning, low-end is winning, middle-end is not*.

__Sad but true...__ The US economy has experienced [serious](https://www.bloomberg.com/news/articles/2019-05-10/fed-officials-warn-inequality-is-threat-to-what-made-u-s-great) income inequality since the '09 recession. And companies up high and down low have open arms welcoming in those masses. 

- ⬆️ __High-end retail:__ __[LVMH's](https://robinhood.com/stocks/LVMUY)__ mortgageable handbags are still flying off shelves (so is its stock). Tiffany, Lululemon, and other brands catering to well-off customers are doing well too.  
- ⬆️ __Low-end retail:__ Stocks of big dollar store chains are enjoying record results (and stock prices). So is __[Walmart](https://www.robinhood.com/stocks/WMT)__, which has figured out how to tech-ify itself enough to keep budget-conscious customers around.
- 😬 __Everyone else:__ A shocking [8K store closures](https://twitter.com/mitchnolen/status/1131256525614243842) have been announced so far this year, including Payless, Dressbarn, Gap, and GNC.

Shop

__When your spending changes, so does the entire industry...__ Apple crushed camera stores, Netflix crushed movie rental, and Tinder crushed "a drink for the guy at the end of the bar, on me." Now Amazon Prime has ushered in recurring diaper refills. Some companies have adapted to the changes in how you shop (FedEx [introduced](https://www.cnn.com/2019/05/31/business/fedex-seven-day-shipping-sundays/index.html) Sunday ground delivery last week to keep up with your online orders) — But most middle-end retail hasn't.

High-end & low-end retail is winning (everything in between isn't)

_When the entire recipe just got tariff'd_

Taco Tuesday is the new trade war victim

__Mo' money, mo' problems...__ In its first earnings report since this month's IPO, __[Uber's](https://www.robinhood.com/stocks/UBER)__ revenues rose 22%, but its loss *doubled* to $1B. The happier highlights: Uber Eats (food delivery), Freight, and NeMo (New Mobility aka bikes and scooters). Despite the epic loss, shares rose after [the report](https://www.cnbc.com/2019/05/30/uber-earnings-q1-2019.html) because investors actually expected it.

__That's a lot of billion$...__ and they're going to new driver promotions. Remember — Lyft, Uber, Doordash, Postmates, and other gig mobility companies are just apps. To grow, they pay drivers and eaters to try them out. A lot. And it's an aggressive arms race to fund all that:

- __[Lyft](https://www.robinhood.com/stocks/lyft)__ just raised $2B in its March IPO.
- __DoorDash__ has raised $1B since February.
- __Rappi__ (the "anything-delivery" of Latin America) also bagged $1B last month.


Un-profits

__Uber has a dirty little secret...__ To become profitable, it'll need to increase revenue or lower cost — And it can get there in just one of three ways (they're not pretty):

- __Raise prices__.
- __Cut promotions and discounts__.
- __Pay drivers less__ — Or replace them with __self-driving cars__ (which it's investing in).


Uber revealed its 1st public earnings report (and it may not be a growth company)

__"Extremely challenging"...__ Worst one-liner [ever](https://www.barrons.com/articles/gap-stock-is-plunging-as-earnings-and-guidance-were-big-disappointments-51559250559). That's courtesy of __[Gap's](https://www.robinhood.com/stocks/GPS)__ CEO after its sales dropped 4% to $3.7B from February-April. That's a lot worse than expected, so shares slipped 13%. Even show-off golden child __Old Navy__ struggled. Here's the brutal sales breakdown by each Gap brand:

- 😑 __Old Navy:__ $1.8B in sales, down 1%.
- 🙁 __Banana Republic:__ $568M, down 3%.
- 😖 __Gap:__ $1.1B, down 10%.
- 👌The others __(Athleta + Intermix + Hill City):__ $287M, *up 6%*.

__The unacceptable excuse...__ Gap's CEO partially blamed cold/wet late winter weather for keeping you out of Gap stores. Investors wished he followed up with "but don't worry, we captured those missed in-store sales with online shopping. Rain can't ruin this party!" But he didn't. 

Strut

__Gap's a house turned against itself...__ #ItCannotStand. Gap's in the process of separating Old Navy from the rest of the company — That lower-cost brand still has growth momentum while the rest doesn't. Investors prefer a clean break between a healthy company and a shrinking one. 

- __Old Navy__ will be spun-off to trade as a separate stock starting in 2020. 
- __Gap__ will keep thinking of new ideas (hopefully instead of shutting stores).

Gap falls 13% because of its worst 3 months in 3 years

__Honeybadger don't care...__ Neither does __[Dollar General](https://www.robinhood.com/stocks/DG)__ or __[Dollar Tree](https://www.robinhood.com/stocks/DLTR)__. The 1-buck beasts both announced [earnings](https://www.forbes.com/sites/andriacheng/2019/05/30/against-tariffs-uncertainty-dollar-stores-show-they-have-a-sweet-spot-in-retail/#36438ef06037) Thursday, and their stocks jumped over 3% each. The reason: Both said they don't expect new tariffs on China to affect their profits this year. That's a big deal (those $1 thong sandals aren't made in the USA) and a nice surprise to shareholders. 

__Dollar stores = profit machines...__ America's cheapest chains are shockingly huge. Here's what they look like:

- __Dollar General__ has __15K stores__ (all in the US) and is expanding with almost 1K more this year. 
- __Dollar Tree's__ got __15K__, too.
- *For context:* Dollar Menu legend __McDonald's__ has __14K restaurants__ in the US.

Discount

__A sad economic story is good business...__ Inequality in wealth and income is growing in America — and companies on the high and low end both win. Case in point: __LVMH's__ stock (the bougie French luxury fashion icon) is close to a record high. So are Dollar General and Dollar Tree's shares.

*This quote from Dollar General's CEO in 2017 (sadly) nails it: __“The economy is continuing to create more of our core customer.”__*

Dollar stores are living their best life

_When you lose $1 billion_

Uber. No longer a growth company.

__Wardrobe malfunctions happen...__ Last week, we broke down the ecommerce-induced retail-pocalypse facing some department stores. Yesterday, 3 distinctive-ish fashion stocks fell enough to [wipe out](https://finance.yahoo.com/news/2-7-billion-wipeout-ensues-175839101.html) $2.9B in stock market value. Total *faux pas*:

- Throwback, logo-packed __[Abercrombie & Fitch](https://robinhood.com/stocks/anf):__ *__-26%__* — Worst drop since its 1996 IPO.
- Fancy jacket newbie __[Canada Goose](https://robinhood.com/stocks/goos):__ *__-31%__* — Worst loss ever.
- Luxury label conglomerate __[Capri Holdings](https://robinhood.com/stocks/cpri)__ (formerly known as __Michael Kors__)__:__ *__-10%__* — Worst in almost a year.

__Where's the blame?...__ Not all on ecommerce. Each brand revealed it's struggling for completely different reasons:

- Abercrombie is __closing 40 stores__ — including 3 big city [flagships ](https://www.forbes.com/sites/andriacheng/2019/05/29/what-abercrombie--fitchs-25-share-slide-signals-about-the-state-of-retail/#26e30dbd1504)— because its style still hasn't recovered from your middle school days.
- Canada Goose's CEO [claims](https://www.bloomberg.com/news/articles/2019-05-29/a-2-7-billion-wipeout-ensues-when-retailers-lose-the-thread) __spring weather is more "unpredictable"__ than ever, so it's harder to stack its stores with the right $1,000 parkas.
- And Capri's Michael Kors __diluted its brand__ by selling in too many department stores... and doesn't want to make [the same](https://www.marketwatch.com/story/capri-expects-debt-funded-growth-for-versace-while-core-michael-kors-brand-will-slow-2019-05-29) mistake with Versace (which it just bought).

Wear

__2 types of retail stores are thriving...__ "Small" and "Experiential." Abercrombie is shutting extremely expensive flagships, while Mikey Kors pulls out of malls. But Target and Ikea's smaller "urban" stores are expanding — And startups Casper and Allbirds are adding "experiential" stores with nap-zones and human [hamster wheels](http://bobbyredd.squarespace.com/allbirds-soho) to try-on shoes. The new fashion playbook is clear.

Weather, logos, and fancy — Fashion lost $2.9B in value in 1 day

__"New bot, who dis?"...__ The new Roomba s9+ and Braava Jet m6. These frustratingly named hardwares were just launched by __[iRobot](https://robinhood.com/stocks/irbt)__ to clean your home *together*. Vacuuming, mopping, dusting — They "[talk](https://venturebeat.com/2019/05/28/irobot-unveils-roomba-s9-and-braava-jet-m6-robots-that-clean-together/) to each other." Founded by MIT grads in 1990, iRobot is one of the few publicly-traded robotic companies pumping out consumer products you actually use.

__Can we please talk about the “immediate addressable market”?...__ That's not all the customers iRobot *could* target (aka everyone with a home with floors). It's the customers who fit its ideal profile — humans with homes who live tech-forward, clean-always lifestyles. iRobot really wants to talk about its immediate addressable market crew:

- It's already got __14M US households as customers__.
- Its immediate addressable market is __25M more households__.
- If it gets those Americans iRobot-ing, that __could triple sales__. 
- *__One catch:__* Its freakishly self-sufficient $1,300 vacuums are made in China. They're already getting [hit](https://www.cnbc.com/2018/10/24/maker-of-the-roomba-vacuum-gets-hit-by-china-tariffs.html) by tariffs, and China's competing with lower cost knockoffs.

Bots

__It's a cleaning/grooming company...__ And it may only be that. iRobot started with the Roomba vacuum. Then its Brava mop/duster came second. Product line #3 is "Terra," the lawn mowing robot coming soon. But iRobot doesn't seem interested in roboticizing other human activities we don't like to do:

- __Military robots:__ Until 2016, iRobot made rovers with robotic arms that could do dangerous things (they were built to be used on [Mars](https://techcrunch.com/2017/03/08/colin-angle-interview/)). But it sold that line.
- __Delivery robots:__ Postmates created a robot named "[Serve](https://serve.postmates.com/)" for restaurant delivery, but iRobot hasn't shown interest in the fast-growing delivery industry.

iRobot launches 2 (eerily) coordinated house-bots

__The titanium credit card...__ is one way to innovate plastic.  __Brex__ is going in a different direction — it's offering venture capital darlings credit cards. And for becoming the payment choice for tech startups, it's about to reach a [$2B valuation](https://www.bloomberg.com/news/articles/2019-05-29/startup-brex-is-raising-money-at-a-valuation-above-2-billion) with its latest fundraise. Everything Brex does is fast:

- __Growth:__ It joined the rarefied club of unicorns under 2-years-old thanks to plenty of funding from PayPal co-founder Peter Thiel and other big-time investors.  
- __Marketing:__ If your hometown is full of tech startups, its taxis, bus stops, and billboards are probably wallpapered with Brex ads. 
- __School:__ The Brazilian co-founders are in their early 20s and exited college fast (by dropping out of Stanford).

__Future > Past...__ That's the premise of Brex in 3 words or less. Most credit card companies want to see a robust and consistent credit *history* when a customer applies. But Brex looks at a startup's credit *future* instead. That tweak of an evaluation strategy lets Brex offer business cards for well-funded startups and their employees.

Swipe

__Fintech is about asking "why?"...__ The credit card industry's focus on credit histories to approve cards is a catch-22: Startups couldn't get credit cards without credit histories, but they couldn't get a credit history without a credit card. If a VC is willing to invest $10M in a startup, then Brex realizes the business can handle a 10K credit card line.