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

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

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

_IPO bankers going through WeWork's mandatory culture training_

IPO'ing

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

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


WeWork reveals its IPO paperwork — and things got weird

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

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

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

Econ

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

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


Bizarre Wall Street alarm goes off, signaling recession coming soon

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

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

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

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

The Starbucks of China plummets because it's actually a tech company

Dow Jones

S&P 500

Nasdaq

BItcoin

10-Yr US Treasury

_IPO bankers going through mandatory WeWork culture training_

Markets are predicting an economic recession 

__Forward to your 1 friend who will actually get these...__ For a cool $380, they too can strut around in a pair of __[Snap's](https://robinhood.com/stocks/snap)__ Spectacles 3. A limited number go on sale [here](https://www.spectacles.com/) in November, featuring a new HD camera to create depth perception as you semi-creepily record everyone around you. We consider the [design](https://www.theverge.com/2019/8/13/20802239/snapchat-spectacles-3-pricing-release-date-snap) pseudo-Coachella-geek-hipster chic.

__If at first you don't succeed...__ spend a lot of company resources to try 2 more times. Here's the social network's timeline/quest to add hardware to its app success:

- __Spectacles 1 (2017):__ A $130-per-pair costly mistake — Snap sold them via pop-up vending machine, but made [way more](https://www.theverge.com/2018/4/26/17279434/snapchat-spectacles-pricing-availability-snap-wearable-camera) glasses than the 150K that were actually sold, costing it $40M.
- __Spectacles 2 (2018):__ A $150 thinner mistake — Snap made the glasses narrower and waterproof, but they didn't catch on, either.
- __Spectacles 3 (Now):__ A *$380* potential mistake [obsessed](https://www.engadget.com/2019/08/13/snap-spectacles-3/) with augmented reality — It definitely prices out most of Snap's teen userbase, but 3D filters make your walk to work look actually interesting.

Appear

__Friction is the problem...__ There's nothing wrong with a tech company testing out a wearable device like Spectacles — but Snapchat still hasn't fixed problems that make them hard to use. Example: Footage taken on Spectacles doesn't automatically transfer to your Snapchat account. *(Friction)*. That's why [over half](https://www.businessinsider.com/snap-writes-off-nearly-40-million-spectacles-charges-after-product-flops-2017-11) of Spectacles 1 & 2 users quit after a month.

Snap tries (again) with hardware: Spectacles 3

__[iTariffs](https://snacks.robinhood.com/newsletters/4I2g1BvqYXxHUuLoQhwXlQ/articles/1TiNJgUt9g8BeSm3lygZXl/?utm_source=snacks&utm_campaign=email_Weekly&utm_content=iTariffs&utm_term=the%20trade%20war%20just%20hit%20a%20fresh%20new%20level%20iTariffs)...__ President Trump announced them just 2 weeks ago. With everything else already tariff'd, the US planned to tax the remaining $300B worth of consumer products made in China starting September 1st — including the iPhone. Yesterday, he said nevermind: *waiting until December 15th for most new tariffs so American shoppers can have a Merry Christmas*. 

__Teachers hate procrastination...__ Markets don't. The tariffs were essentially a 10% tax that would hurt profits for companies manufacturing in China, while raising prices by 10% for everybody. Here's who wins with Tuesday's sudden flip:

- __[Apple](https://robinhood.com/stocks/AAPL):__ Shares popped 4% because iPhones and MacBooks won't get 10% more expensive until after most holiday shopping is done. Made in China AirPods, the Watch, and HomePod still get hit on September 1st, though.
- __[Mattel](https://robinhood.com/stocks/MAT)__ & __[Best Buy](https://robinhood.com/stocks/BBY):__ The stocks rose 5% and 6% as Made in China action figures and speakers will remain tariff-free through the holidays.
- __[Nike](https://robinhood.com/stocks/NKE):__ Sneakers were also on the exemption list, so the swoosh jumped up 2%.

_Markets weren't expecting this, but kind of love it_

Un-tariff

__This sends a message to China...__ If the trade war has political or stock market costs, America might cave. Credibility is important in negotiations, and Trump's credibility takes a hit with this one. 

1. __Political cost:__ Since American buyers pay US tariffs, not Chinese exporters, this latest round would have grinched Christmas for American households.
2. __Stock market cost:__ If tariffs caused poor holiday sales, stock markets likely would've suffered.

New US tariffs on China get delayed... because of holiday shopping

__Distance makes the heart grow fonder...__ Or something like that. Take __[CBS](https://robinhood.com/stocks/cbs)__ and MTV/Nickelodeon-owner __[Viacom](https://robinhood.com/stocks/viab)__. The two media legends split 13 years ago — and then, like Ross and Rachel, they spent the past 3 years (slowly) flirting over whether to get back together. Now the deal has officially been reached, and these are the primetime [numbers](https://www.cbscorporation.com/wp-content/uploads/2019/08/ViacomCBS-Press-Release-FINAL.pdf):

- __$28B:__ The combined revenue of the Brangelina-esque new "ViacomCBS."
- __140K & 3.6K:__ The combined number of TV episodes and movies the new company will own.
- __4.3B:__ The incredibly massive global reach of TV subscribers ViacomCBS claims to have.
- __61% vs. 39%:__ When the deal likely closes at the end of the year, CBS shareholders get 61% of the new company, Viacom shareholders get 39%.

__Family Matters...__ The Redstone family ran Viacom until 2006, when it made sense to split off CBS as a separate company. But now that YouTube, Netflix, and social networks are [eating into](https://www.nytimes.com/2019/08/13/business/cbs-viacom-merger.html) both companies' profits, a re-merger seems prudent. Media heiress Shari Redstone wanted to reunite, but former CBS CEO Les Moonves was against it — now that he's been pushed out for alleged sexual assault, Shari gets her family reunion.

Mergin'

__This all comes down to one word: streaming...__ CBS All Access was actually one of the 1st streaming networks, but never really took off. Consolidating Viacom and CBS' original content from Spongebob to Star Trek is respectable enough to entice cord-cutters — but Netflix and Amazon are already way bigger, and Disney just acquired Fox. Content remains king, and ViacomCBS is a smaller kingdom.

Viacom & CBS finally agree to a huge re-merger

Bitcoin

Christmas shopping just delayed iTariffs

__Not Big Oil. *Biggest Oil*...__ __Saudi Arabian Oil Co__ — aka "Aramco" — just stuck its financial statements up on the web for the first time ever. It didn't have to (it's not publicly traded), but it's trying to pique some investor intrigue. Here's what Earth's most profitable company looks like:

- __Private:__ Saudi Aramco has 1 shareholder — the Kingdom of Saudi Arabia — since 1976, when the government took full control of what was then an American company. __It's still 100% private today__.
- __Public-curious:__ In April it __interacted with public markets for the first time__, offering $15B in bonds to raise some money for itself.
- __Public:__ The Saudi government __is thinking about IPO-ing Aramco__ to sell some shares to the markets in exchange for cash — that's why it wants to show what some of its numbers look like.

__The home run record was 16. Then Babe Ruth hit 29. Then he hit 54...__ Aramco is the Bambino of profits. Behold, its elusive [financial stats](https://www.saudiaramco.com/-/media/publications/corporate-reports/saudi-aramco-h1-2019-half-yearly-report-english.pdf?la=en&hash=1C305066A4A712137399DC1B2A395E71D14FB807) from the 1st half of 2019:

- __Profits:__ $47B. That's double what Apple made. *Double*. (And almost 8x Amazon).
- __Dividends:__ It delivered almost 100% of that profit to its 1 single shareholder as a [dividend](https://learn.robinhood.com/articles/6jGOO5O2YvyoZzlEUtIq0F/what-is-a-dividend/) so government services for 33M people could be paid for.
- __Oil:__ It pumps out 10M barrels of crude oil *per day*. [Only](https://www.eia.gov/energyexplained/index.php?page=oil_where) Russia and the US (two countries) produce more oil than this *company*.
- *__Fun Fact:__* And it's still got half-a-century's worth of reserves to tap from the ground.

Private

__Operation: Modernize...__ The next Saudi King (Crown Prince Mohammed Bin Salman) was all the rage trying to modernize his intensely conservative country (women [just got](https://www.nytimes.com/2019/06/24/world/middleeast/saudi-driving-ban-anniversary.html) the right to drive). That plan was put on ice after the murder of journalist Jamal Khashoggi (believed to be at the Crown Prince's order). Now he's venturing out of the moral doghouse and the finance world doesn't seem to mind. The biggest IPO ever could be coming.

For the 1st time ever, mysterious Saudi Aramco reveals its financial details

__Can I borrow your car charger?...__ __[GM](https://robinhood.com/stocks/GM)__ and __[Volkswagen](https://robinhood.com/stocks/VWAGY)__ are ditching the hybrid technology that Toyota made famous with the Prius back in the 90s. Here's a cheat sheet on conventional vs. hybrid vs. electric as they go long on plug-ins.

- __Conventional:__ An engine burns gasoline, which pumps pistons up and down, which spins your wheels (we skipped over some physics and engineering).
- __Electric:__ A battery powers a motor which vrooms you forward. The downside — pricey batteries make e-cars $6K-10K more expensive than conventional ones on average (but tax incentives and gas savings make up for some/all of that). 
- __Hybrid:__ A little bit of both. Drivers want to help Mother Earth, but crave the warm-fuzzy feeling of an engine. Hybrid tech costs about $2K extra compared to a conventional car. 

__Hybrid upped America's MPG...__ but barely. According to the [WSJ](https://www.wsj.com/articles/gm-volkswagen-say-goodbye-to-hybrid-vehicles-11565602200?mod=hp_lead_pos9), the carmakers are realizing hybrid isn't cutting greenhouse gases enough for the future, especially with Europe and China's aggressive environmental plans. __[Ford](https://robinhood.com/stocks/F)__, Volvo, and __[Toyota](https://robinhood.com/stocks/TM)__ though are sticking to hybrid because some customers aren't ready to go cold turkey with regular unleaded.

Charging

__Companies can only make so many bets...__ A car CEO has a ridiculous menu of expensive things she could invest in — autonomous driving, car sharing, pickup trucks, hybrids, and electric. Each buck spent on hybrid tech is a buck not spent on those other things. More car bosses believe hybrid's era is coming to a close soon.

The car industry begins going all-in on electric, phasing out hybrids

__If baby Jordan went back-to-school...__ he'd subscribe. A stealthy sneaker club startup called Easy Kicks has been delivering shoes to 10K member families. Turns out it was __[Nike](https://robinhood.com/stocks/NKE)__ all along. Easy Kicks just got rebranded as "[Nike Adventure Club](https://www.easykicks.com/)" for kids 2-10, and it's Nike's 1st-ever subscription service:

- __The tiers:__ 3 options — Get 4 pairs of sneakers per year for $20/month, 6 pairs for $30/month, or 12 pairs for $50/month.
- __The feel-good:__ Send back the kicks and Nike donates or recycles them.
- __The asterisk:__ Pediatricians say that's way too many shoes for even fast-growing kids.

__Subscriptions — so hot right now...__ From Dollar Shave Club razors to Lola tampons, subscriptions guarantee recurring revenues for the biz and build brand loyalty (plus, customers don't have to shop/think anymore). Now, Kid-scriptions are gaining traction because they grow so fast (😭) they constantly need new stuff. Here's who else has boxes for size "24 months" up to "16 husky":

- __[Walmart](https://robinhood.com/stocks/WMT)__ partnered up with kids' clothing startup Kidbox.
- __[Foot Locker](https://robinhood.com/stocks/FL)__ invested in Kidbox rival Rockets of Awesome.
- Algorithm-powered fashion subscription __[Stitch Fix](https://robinhood.com/stocks/SFIX)__ launched a kids version last year.

Subscribe

__It's all about the upgrade...__ The biggest surprise for Nike was how offering different price tiers let users test it — and then commit. Intensely. Most began at the cheap $20/month option,  craving more adorably small kicks. And then they paid up for the fancier tier ("just $10 more for 2 more pairs!"). Nike's pricing strategy was the real winner.

Nike unveils its 1st kids kicks subscription box: "4 pairs/year for $20/month"

_The first ever kombucha-powered car_

Death of a hybrid salesman

__Makeover...__ __[Weight Watchers](https://robinhood.com/stocks/ww)__ officially changed its name (hello, "WW") and rebranded itself from a weight loss to a wellness company late last year. And it's working. Shares surged nearly 50% last week after it announced the [highest number](https://www.marketwatch.com/story/weight-watchers-upgraded-at-bank-of-america-as-2020-innovation-sparks-optimism-2019-08-07) of members ever for a 2nd quarter: 4.6M. Now it's got board member (and shareholder) Oprah pushing its new "wellness" look.

__It's a keeper...__ __[Match](https://robinhood.com/stocks/mtch)__ stock jumped 20% last week, but that's all thanks to its better half, __Tinder__. The number of users on the dating app last quarter [surged](https://www.cnbc.com/2019/08/06/match-group-earnings-2019-tinder-subscribers.html) 40% from the year before. Powering the Tinder love are its aggressive new premium features you pay up for: Tinder Gold lets you see if your match read your message, and Super Boost lets you algorithmically/intensely promote yourself.

__Shack burgers on your couch...__ can become part of your new weekday routine. __[Shake Shack](https://robinhood.com/stocks/shak)__ jumped nearly 20% after its earnings revealed global expansion plans are on track ("fries with that, Singapore?"). But the highlight was a [new partnership](https://www.engadget.com/2019/08/05/grubhub-seamless-shake-shack-delivery/) — after years of being a delivery holdout (soggy burger buns and cold beef scare the CEO), Shake Shack's finally partnering with __[GrubHub](https://robinhood.com/stocks/grub)__ for nationwide delivery.

Highs

Who's up...

__What would Tinkerbell do?...__ __[Disney](https://robinhood.com/stocks/dis)__ just announced record high quarterly revenues of $20B. That's mainly thanks to *Avengers: Endgame* crushing box office records. But profits plunged 51% because Disney treated itself to 2 [major acquisitions](https://www.nytimes.com/2019/08/06/business/media/disney-earnings-disappoint-in-first-full-quarter-after-fox-deal.html): Mickey bought Fox and most of Hulu as it preps its own streaming service, Disney+, for a November launch.

__Four-letter verb for "drop"...__ Shares of The __[New York Times](https://robinhood.com/stocks/nyt)__ fell as the number of new paying subscribers missed analysts' expectations. The paper's got 4.7M paying for its news, crosswords, and cooking apps, but wants 10M by 2025. So it's hired *more* journalists to up its content —  1,750 total are on staff, the [most](https://www.nytimes.com/2019/08/07/business/media/new-york-times-earnings.html) it's ever had.

__Despite aggressive ketchup usage...__ __[Kraft Heinz](https://robinhood.com/stocks/khc)__ has a problem. Last February, it had to write-down the value of its processed food brands by $15B because they clearly aren't as valuable as they used to be. Then last week, it [devalued](https://www.wsj.com/articles/kraft-heinz-books-1-22-billion-in-impairment-charges-11565267075) your diner's go-to labels by another $1.2B. Velveeta, A-1 steak sauce, and mac-n-cheese sales are all lowering sales projections in an organic chia world.

Lows

...and who's down

__Uber and Lyft should start side-hustle Ubering and Lyfting...__ The ride-hail pioneers announced earnings with 1 main theme: they're making huge losses. __[Uber](https://robinhood.com/stocks/UBER)__ lost a shocking $5.2B (but that's mostly caused by one-time IPO costs). __[Lyft's](https://robinhood.com/stocks/LYFT)__ loss was a lot smaller at $644M, which makes sense because it's a much smaller company. 

__"Shareholders, how was your ride?"...__ Rough. Both stocks dropped by at least 5% Friday after experiencing both reports. Here are the Q2 scorecards for the 2 gig rivals:

- __Revenue (Point Uber 🖤):__ Uber brought in $3.2B of cash from April - June (even after drivers get paid) compared to Lyft's cute $868M.  
- __Revenue growth (Point Lyft 💖):__ Lyft owns this. Uber is post-puberty, with revenues growing an all-time slow 14% last quarter. Lyft's voice is still changing, as revenues busted 72% higher.
- __Who takes a bigger cut of each fare (depends if you're a user or a shareholder):__ Both companies make this percentage hard to find. A recent [report](https://mashable.com/article/uber-lyft-driver-earnings-jalopnik-fares/) shows Uber takes 22% of each fare (leaving drivers with 78% of your post-Trader Joe's haul back home), and Lyft takes more at 26.8%.  
- __Panic button (Point Uber 🖤):__ A *Washington Post* [report](https://www.washingtonpost.com/technology/2019/08/02/how-lyft-lost-trust-deleteuber-women-who-thought-it-was-woke/) last week highlighted several women who felt Lyft didn't handle their allegations of driver harassment well — and it requires several "clicks" in the app to report an emergency. Uber takes just [1 click](https://www.uber.com/us/en/ride/safety/). 

Ride

__Good news for shareholders — 2019 is "peak loss"...__ The Lyft CEO said that, but Uber investors hope it's true for them too. The idea is that this year Uber/Lyft must spend more than they ever have to grow  — but they hope losses will begin to shrink and eventually flip to profits. The revenues vs. costs see-saw could start tipping in the right direction. *And guess what* — both companies are [raising](https://www.marketwatch.com/story/lyft-and-uber-are-giving-investors-what-they-want-which-is-bad-for-the-rest-of-us-2019-08-08) prices.

Lyft and Uber both reported earnings — both losing a lot of money

_Two ride-share apps figuring out how to make money_

Our Uber vs. Lyft Q2 scorecard

__This has rom-com written all over it...__ We're at the last 30 minutes when __[Facebook](https://robinhood.com/stocks/FB)__ tries to rekindle its fraught relationship with the news industry. According to the [WSJ](https://www.wsj.com/articles/facebook-offers-news-outlets-millions-of-dollars-a-year-to-license-content-11565294575?emailToken=2fb7dd9340744d942b7f643ec04ced4e46VFJoAA0C+opwfYOyjxIspA4BAz9lBRXiTrf4h1P2IThnv+ZziMYG6kSmiJTg5f8sBjNfLz1JER+bAS8W1x2L3W6dcoX8nZh7cwyqkHFN1KipapXb/QVwYObzbTUERfteIkCikG8dqLXYNb6li2Tg%3D%3D&reflink=article_copyURL_share), Facebook is offering news publishers up to $3M per year to license entire articles and stick them in your newsfeed. 

__The last time Facebook dated news, it didn't go well...__ Promises were broken, and the breakup was bad.

- __How the relationship worked:__ Just as news publishers were getting disrupted by the internet, Zuck welcomed them to post articles on Facebook, which it would promote in newsfeeds.
- __The promise to news:__ *People will click on your articles! And you can make money through that web traffic (with ads) or by getting them to subscribe!*
- __What actually happened:__ FB traffic didn't lead to much money for news publishers, who struggled. Then Facebook tweaked its algorithm to demote news, and promote baby pics instead.
- __The really bad part:__ Fake news replaced real news, and the troll-authored content got loads of likes, shares, and comments.

Inform

__Facebook knows news got burned last time...__ so it's offering money this time. News agencies aren't buying the "traffic will convert to subscriptions" story. Facebook's eager to prove it can now help news agencies by paying them $$$ for their product. As soon as this fall, we could get a new tab on the FB app for news, with real, paid news in there.

Facebook is reportedly planning a new initiative to fix the news it helped break

__*Rudy*...*Rudy*...*Rudy*...__ The streaming company that turns dumb TVs into smart TVs with its HDMI dongle and software just announced 2nd quarter earnings. And __[Roku's](https://robinhood.com/stocks/roku)__ stock surged 21% on a made-for-TV trifecta of [growth](https://ir.roku.com/static-files/df3d060c-0975-4903-83d3-0e1f2e482d79) stories:

- __+39%:__ The # of active Roku accounts is up from last year.
- __+72%:__ The increase in time users spent Roku-ing with their dongle or Roku-equipped smart TV compared to the same time in 2018.
- __+59%:__ The amount of money Roku made last quarter, compared to the year before.

__It was already varsity. Now it's the QB...__ Roku just hit some big milestones that show how the tech company controls cord-cutters' binging time. All that netflixing America loves — it happens via Roku [more](https://www.wsj.com/articles/tech-giants-leave-room-for-roku-in-streaming-video-11565280696?mod=hp_lead_pos11) than anything else.
1. __Roku's the #1 streaming stick__ with a 39% share of the market. Amazon, Apple, and Google are 2-3-4.
2. __Roku's the #1 smart-TV software__ with a 33% share of the market. Samsung, Vizio, and LG are 2-3-4.

Rise

__Its tininess was its advantage...__ Put all of Roku's stock in a sack and it's worth just under $14B (that's also called its [market cap](https://learn.robinhood.com/articles/GByCbiOluG2kcWs1AF6m5/what-is-market-capitalization/)). That's like 2% as big as the tech giants it competes against. Its size helped it avoid the rumbling of its bigger tech rivals:

- YouTube was blocked from Amazon's Fire Stick. Amazon Prime Video wasn't available on Apple TV or Google Chromecast.
- Walmart refuses to sell Amazon devices (for obvious reasons).
- Meanwhile, __Roku's stock has quadrupled in the past 9 months.__

How Roku quietly became the #1 king for cord-cutters

__Self-driving, AI, Internet-of-Things, VR...__ Fertility. The ability to have babies is a market that VC money is finally flowing into. Polina Marinova's [*Term Sheet*](https://fortune.com/2019/08/08/why-venture-capitalists-are-pouring-money-into-male-fertility-startups-term-sheet/) captured its momentum with just 3 numbers:

- __475:__ That's the total number of women in the US who froze their eggs in 2009. Out of the entire country. *Four hundred and seventy five*.
- __7,300:__ That's how many did in 2016. Big jump.
- __$102M:__ And that's how much venture capitalists have invested in fertility startups so far in 2019.


__Just add guys...__ The fertility-tech industry is now expanding to target men, too. __Legacy__ recently raised $1.5M and mail-order sperm-testing startup __Dadi__ [just](https://techcrunch.com/2019/08/08/dadi-raises-5m/amp/) added $5M. Here's how Dadi's going full "23&Me" on the male fertility market:

- __The issue:__ Dadi's [website](https://www.dadikit.com/) says 1/2 of all fertility challenges are on the man's side. 
- __The value prop:__ Order the $99 kit and send back a sample. They'll evaluate your fertility percentile and suggest lifestyle changes to up the likelihood you'll be able to conceive.
- __The revenues:__ One-time sales are nice, but how do they get recurring money out of this? Subscriptions — $9.99/month keeps the sperm frozen as you age, so it's ready when you are.


Procreate

__"Brand-icorns" are emerging in health-tech...__ Not unicorns. Brand-icorns. __Casper__, __Allbirds__, or __Away__ = digital-first startups that focus on branding, cut out middlemen, and hit $1B valuations. Now health-tech could lead the next wave of direct-to-consumer Brand-icorns. Balding and erectile dysfunction startup __Roman__ is worth half-a-billion and rival __Hims__ just passed the billion mark. Fertility could be up next.

Sperm-analyzing startup raises $5M — and health-tech investments are booming

_Facebook explaining how it messed up the first time_

Facebook wants to try again with news

__Carb problems...__ Beer feels 'em. We've been chatting with you for weeks about declining sales (beer is now [under](https://www.brewbound.com/news/beer-market-share-falls-below-50-percent-in-2018) 50% of all alcohol consumed in the US). And __[Boston Beer Co.](https://robinhood.com/stocks/sam)__ is obsessed with ales — it owns Sam Adams, just bought IPA fan Dogfish Head, and often touts its beard-approved craft status. But research firm IRI recently reported [this](https://www.bloomberg.com/news/articles/2019-07-22/boston-beer-s-spiked-seltzer-not-sam-adams-drives-sales-boom) stat: *Only 25% of Boston Beer's biz is beer.*

__That means 75% is non-beer stuff...__ In fact, its new profit puppy is super clear: Truly Hard Seltzer. The citrus-infused, gluten-free option has been Boston's summer tailgate champ, driving the company's 21% increase in shipments last quarter. Here's the rest of Boston Beer's non-beer, beach-beverage roster:

- __Truly:__ Sorry, had to mention this one again — its sales surged 163% last quarter from the year before (prepping for peak summer).
- __Twisted Tea:__ The hard iced tea sat back and enjoyed 22% sales growth.
- __Angry Orchard Cider:__ Just came out with a "rosé" option, because, rosé.
- __Other [non-beer bets](http://www.bostonbeer.com/our-company/brands):__ A hard kombucha called Tura and a "craft" hard tea that goes by Wild Leaf.

Fizz

__Pure beer stocks are disappearing...__ Boston Beer isn't really a *beer* company anymore. Corona-owner __[Constellation Brands](https://robinhood.com/stocks/stz)__ is big on whiskey, vodka, and CBD-infused experi-beverages. Bud-owner __[AB-InBev](https://robinhood.com/stocks/bud)__ is also investing hard in non-beer options, like Babe. Meanwhile, __[Molson Coors](https://robinhood.com/stocks/tap)__ dropped last week because it's overly dependent on [Coors](https://markets.businessinsider.com/news/stocks/molson-coors-stock-price-tumbles-after-earnings-q2-miss-2019-7-1028403995). The beer legends that are succeeding do it by trading what's on tap for what's light, fruity, or Cannabis-y.

Turns out Sam Adams isn't really a beer company anymore

__Three drug dealers are getting sued by 35 states...__ The stocks of __[McKesson Corp](https://robinhood.com/stocks/MCK)__, __[Cardinal Health](https://robinhood.com/stocks/CAH)__, and __[AmerisourceBergen](https://robinhood.com/stocks/ABC)__ fell on a report from [Bloomberg](https://www.bloomberg.com/news/articles/2019-08-06/opioid-distributors-propose-10-billion-to-end-state-lawsuits) that they offered $10B to settle opioid lawsuits. Those 35 states had a completely different number in mind.

__There's plenty to blame for America's opioid epidemic...__ __Purdue Pharma__ invented (and aggressively marketed) the addictive Oxycontin, while doctors over-prescribed it. Then there are these 3 prescription drug *distributors* — they hook up pharmacies with the pills (aka the drug dealer's drug dealer). Here's why that $10B they offered to end the whole thing is a problem:

- __The allegation:__ 35 states believe the drug distributors turned their heads to what was obviously a dangerous problem.
- __The painful example:__ Some US counties had over [100 pills distributed per person,](https://www.washingtonpost.com/graphics/2019/investigations/dea-pain-pill-database/) per year — to make more profits. *100 opioids per person.*
- __The counter:__ Instead of accepting a $10B settlement, the 35 states proposed drug distributors pay up $45B. Big difference.


__What matters to stocks isn’t when news becomes *official*...__ it’s when news becomes *credible*. Investors reacted fast to Bloomberg's *credible* report, dropping drug distributor stocks — so by the time an *official* verdict is reached, the fine could already be "baked in" to the drug distributors' stock prices. Just like Facebook shares barely budging after its $5B fine became official last month — the news was already baked in.

35 states just rejected a $10B settlement from opioid distributors

__"Use code EARNINGS to get 15% off your 1st ride"...__ __[Lyft](https://robinhood.com/stocks/lyft)__ jumped on word that revenues surged 72% to a new record high. But because those discount codes it dishes out to drive growth are getting expensive, we noticed its growing loss.
- Last year’s 2nd quarter = __Lyft lost $179M__
- This year’s 2nd quarter = __Lyft lost $644M__
- __The good news:__ That loss was huge, but Lyft thinks 2019 is its "peak loss" year — losses will shrink from here on out (and hopefully/eventually become profits).

__But then we noticed 2 other stories...__ and both looked less good on Lyft. Together, they highlight a couple major issues that de-woke Lyft's previous wokeness.

1. __It's not handling harassment well:__ If a driver bothers you, __[Uber's](https://robinhood.com/stocks/uber)__ got a panic button that takes just 1 click to report – The *Washington Post* [notes](https://www.washingtonpost.com/technology/2019/08/02/how-lyft-lost-trust-deleteuber-women-who-thought-it-was-woke/) that it takes a bunch of clicks to reach Lyft's safety team (and their responses haven't been satisfactory).
2. __Congestion — it's a problem:__ Uber and Lyft commissioned their [own report](https://www.theverge.com/2019/8/6/20756945/uber-lyft-tnc-vmt-traffic-congestion-study-fehr-peers) on traffic. Turns out a whopping 14% of vehicle miles traveled in San Francisco are ride-hails — and ~40% of driver time overall is spent cruising around without riders.

__Lyft had one advantage over Uber...__ *Reputation*. Uber owns more of the ride share market, offers more services (like Uber Eats), and has more big bets (like UberFreight). Lyft had a #DeleteUber reputation advantage that helped it gain market share last year. It can't afford to waste that.

Lyft shares jumped, but 2 other stories revealed its "de-wokeing"

_That glass was actually spiked seltzer, not beer_

Lyft's profit ETA: TBD

__Tinder gets all the looks...__ And it's owned by __[Match](https://robinhood.com/stocks/mtch)__, whose stock surged 19% Tuesday as the dating app's growth jumped again. But it wasn't just Match that popped — __[IAC](https://robinhood.com/stocks/iac)__ shares rose 12% too. That's because IAC owns the majority of Match, along with 150 other brands that you likely used at some point today.

__It's all in the name...__ "InterActive." That's what IAC's "I" and "A" stand for. And its legendary leader Barry Diller (aka designer Diane von Furstenberg's husband) is obsessed with that. So the company invests in innovative apps that it thinks have viral interactive potential — people-to-people platforms and shareability are its thing. Recognize this IAC portfolio candy?

- __Public companies:__ IAC has launched 10 of them, including Match. It's also got __[ANGI Home Services](https://robinhood.com/stocks/angi)__, the company behind Angie's List, HomeAdvisor, and Handy, to connect you with someone to build/fix/repair/clean the thing you can't.
- __Private startups:__ College Humor (aggressively shareable videos), Investopedia (financial info), Ask (yes, this used to be Ask Jeeves), The Daily Beast (news), and plenty more viral-ish digital media.

Family

__IAC acts like a venture capital firm...__ but it's a publicly-traded company. That's unique. Most VCs who got in early to Uber or Pinterest are companies that you can't invest in — only the extra-wealthy or institutions typically get access. Yet IAC has become the Berkshire Hathaway of tech, giving retail investors access to a portfolio committed to a specific theme: digital interaction.

IAC is the venture capital-like public company powering Match

__A chain is only as strong as its weakest superhero blockbuster...__ __[Disney](https://robinhood.com/stocks/DIS)__ just announced that revenues hit a record high of $20B (up 33%), but profit dropped 51% in the 2nd quarter. Now that Disney's officially [acquired](https://www.cnbc.com/2019/08/06/disney-fiscal-q3-2019-earnings.html) Fox and most of Hulu to add to the Mouse family, you have to take the good with the bad:

- __The Good (mostly Disney):__ __Avengers:Endgame__ became the best performer in movie history. And the __ESPN__ and __Discovery__ channels brought home big bucks. 
- __The Bad (mostly Fox):__ We're huge Wolverine fans, but the most recent X-Men movie missed (badly). Also, a tournament-worth of cricket matches got rained out, hurting Fox's international revenues. Now Disney wants to [resurrect](https://www.digitalspy.com/movies/a28627166/home-alone-disney-reboot/) Fox's *Home Alone*.

__Here's what Disney actually *does*...__ Mickey lives off of 4 profit food groups:

1. __Media Networks (33% of revenue):__ Things at Disney's many cable TV channels (includes ESPN and ABC) were solid.
2. __Parks, Experiences, and Products (31%):__ Attendance fell 3% at Disney's US parks, but per-tourist spending jumped 10%. Could be the disturbingly large [turkey legs](https://www.delish.com/food/a22736394/disneys-giant-turkey-legs-facts/). 
3. __Studio Entertainment (18%):__ Re-butter the popcorn for Disney's hits on hits on hits. The movie studio set a record $3.8B revenue.
4. __Direct-to-consumer (18%):__ The home of Disney+, the much-hyped new streaming network that arrives  in November.

Acquire

__Disney+ doesn't need to make money...__ (that's its secret). The new Netflix rival just needs to feed the Disney profit beast. Disney makes money everywhere, and that gives it a huge advantage over Netflix.

- __[Netflix](https://robinhood.com/stocks/NFLX):__ $12.99/month, because Netflix has 1 product that needs to make all the profits.
- __Disney+:__ Can charge just $6.99/month because the more fans that fall in love with *Coco*, the more Disney can make money on theme parks, toys, and shows covered in *Coco*.  

__PS:__ The CEO just [announced](https://seekingalpha.com/article/4282384-walt-disney-co-dis-ceo-robert-iger-q3-2019-results-earnings-call-transcript?part=single) the mega package of Disney+, Hulu, and ESPN+ will cost $12.99/month.


Disney's stock falls 5% as its acquisition spree catches up

__Bankruptcy is the new black...__ Among department stores, __Barneys__ was the fancy NYC option with just 22 locations and a cooler-than-us kind of vibe. It's a private company controlled by a hedge fund — now it's shutting 15 stores to enter Chapter 11 bankruptcy (Barneys' biggest locations will keep the doors open while a judge figures out what to do with it).

__Makeover...__ Barneys has been here before, going through bankruptcy in the '90s. But if it re-emerges from bankruptcy (again), it will do so promising to focus on "[experiences](https://www.nytimes.com/2019/08/06/business/barneys-bankruptcy.html)." You know, because us Millennials love experiential experiences. Barneys says it's adding more in-store restaurants and "entertainment," but we haven't heard what that includes exactly.

__But do you own the real estate?...__ Barneys' core problem is that it didn't. Last year, the rent at Barneys' flagship Madison Ave. store jumped to $2.5M/month. Those costs can kill if you don't own the land. Meanwhile, rival __Saks Fifth Ave__ may be suffering from the retail-pocalypse too, but it owns most of its stores (including the iconic 5th Ave. spot) — so it's benefiting from the price-pocalypse of rising real estate values.

Barneys is going bankrupt — but this has a different retail lesson

_When you hear your IAC stock is really Tinder stock_

Tinder jumped. Match jumped. Then IAC jumped.

__Not quiet on the Eastern front...__ Governments worldwide let the free market determine how much a dollar, peso, real, or pound is worth through supply and demand. *Europe buying some fancy American corn? They'll have to sell euros and buy dollars first.* That's why those airport currency exchange boards are constantly changing. But China's government does the opposite — it dictates how much yuan each $ is worth. Then this happened Monday:

- __What China did:__ The government is [weakening](https://www.cnbc.com/2019/08/05/chinese-yuan-moves-against-the-dollar-amid-us-china-trade-turmoil.html) its currency so that your $1 now buys a whopping 7 yuan — the weakest level the currency has hit in over a decade.
- __What the US did:__ It [called out](https://finance.yahoo.com/news/us-treasury-department-labels-china-221455220.html) China — the Treasury Department labeled China a "currency manipulator," a naughty list the country hasn't been on since 1994.

__Currency manipulation = Tariff kryptonite...__ China just opened up a whole new front in the trade war because this move neutralizes US tariffs. It's an intense escalation, but it's *classic* trade war tit-for-tat-for-tit-for-tat. Here's why it went down:

- Last week, the __trade deal talks in Shanghai__ didn't end well.
- The __US pledged a 10% tariff__ on the remaining $300B in Chinese goods not yet tariffed (mainly consumer goods you use, like toys and tech stuff).
- Since tariffs are like taxes, that __would make the Chinese-produced iPhone X 10% more expensive__ to Americans.
- So by weakening the value of its currency compared to the US dollar, __China offsets part of the tariff's impact__.

Battles

__Nobody really wins in a trade war...__ At first, US tariffs hurt China by making it more expensive to manufacture across the Great Wall, encouraging US companies (like Apple) to make stuff elsewhere. Now, China's currency manipulation hurts American companies because their Chinese competition is suddenly cheaper for customers to buy. Trade wars are races to the bottom (welcome to the new front).

Stocks plummeted because of China's dramatic currency move

__ShackBurgers are studying abroad...__ __[Shake Shack](https://robinhood.com/stocks/shak)__ shares (say it five times fast) were already up 60% this year. They just rose higher as the chain spreads its caloric gospel worldwide — it's raising revenue expectations in Shanghai and Hong Kong, just opened in Mexico, and has new shops ready for the Philippines and Singapore. But we couldn't ignore the other earnings report highlight.

__Shake Shack always hated delivery...__ That policy has led to brutal date-destroying lines (the Madison Square Park original literally has a [live cam](https://www.shakeshack.com/location/madison-square-park/)). For years, Shake Shack insisted your 'Shroom Burger and fries be eaten on-site. Here's what the CEO even said last year:

- Burgers were "[not intended](https://thetakeout.com/shake-shack-launches-delivery-grubhub-1836972345) to be eaten half an hour after they were cooked."
- And delivery didn't "necessarily fit really well" with the brand.
- __But wait — Update:__ *Shake Shack [just announced](https://s2.q4cdn.com/686132520/files/doc_financials/2019/q2/2Q-2019-Supplemental-Earnings-Slides-vFINAL.pdf) in its earnings that it's partnering up with __[GrubHub](https://robinhood.com/stocks/GRUB)__ for delivery at 150 locations over the next 9 months.*

Sauce

__*We know, we know*...__ We just chatted with you yesterday about [the pinnacle](https://snacks.robinhood.com/newsletters/1lhKrJbYhU7yubeT1vTLKf/) of the food delivery wars (food delivery startups consolidating). But this Shake Shack update was the perfect example of another phase: *exclusivity.* Taco Bell's now with GrubHub. McDonald's committed to Uber Eats and DoorDash. The Shack tested delivery with Postmates, but ultimately landed with GrubHub. Exclusivity is the other key delivery battle you can't ignore.

Shake Shack jumps to its highest point in a year (and pulls a delivery 180)

__Meat sweats...__ Planet Earth's 2nd biggest "processor of chicken, pork, and beef" (not a fun term here) enjoyed a healthy quarter — __[Tyson's](https://robinhood.com/stocks/tsn)__ sales rose 8% and profits surged 25%, so the stock jumped 5%. One issue: Tyson was also accused of a giant meat price conspiracy that may have affected your summer BBQ game.

__1 serving of subpoena from the Justice Department...__ Apparently some of Tyson's biggest clients have had some concerns about chicken prices — they rose 11% from 2012 to 2018. Walmart makes up 17% of Tyson's revenues and bolognese legend Olive Garden is another big buyer — but they (and others) got [skeptical](https://www.wsj.com/articles/tyson-says-it-hasnt-seen-major-benefits-from-swine-fever-in-china-11565007688).

- __The accusation:__ Tyson and other chicken producers colluded (which is illegal) to prop up prices by limiting chicken breeding (which is strange). Tyson denies it.
- __The culprits:__ Tyson, Perdue, Pilgrim's Pride, and other chicken producers.
- __The subpoena:__ The Justice Department is forcing Tyson to hand over any “documents and information related to the chicken industry.” Sounds official.

Chicken

__Cartels are hard...__ That's when companies get together, wink a few times, and make moves that keep prices artificially high. It's anti-competitive, anti-consumer, and simply illegal. But it's also challenging to pull off, since it requires the backdoor coordination of a few major players. That's why the most famous cartel isn't even in the US — it's __OPEC__, the international organization of 14 oil countries that control oil supplies so they can control oil prices.

Tyson Meats and the great chicken pricing debacle of 2019

_Feels like that_

Worst day of the year. Period.

__All part of a well-balanced breakfast...__ __[Kellogg](https://robinhood.com/stocks/k)__ stock enjoyed its best day in 19 years [thanks to](https://www.wsj.com/articles/snacks-bolster-kellogg-but-weaker-cereal-sales-weigh-on-results-11564663371) snacks (feels meta saying this). Cereal sales fell another 5% as açai and oats replace Frosted Flakes. But the highlight was Kellogg's Pringles, Cheez-Its, and Pop-Tart snacks growing 4%. Plus, its ingredient-transparent RX Bar enjoyed 20% growth to cap off the snacks theme.

__Magic Number = 50%...__ __[Apple](https://robinhood.com/stocks/aapl)__ popped 4% when it [revealed](https://www.nytimes.com/2019/07/30/technology/apple-earnings-iphone.html) that, for the first time since 2012, less than half of revenues came from iPhones. iPhone sales fell 12%, but investors are impressed by Apple's new profit puppies: recurring subscription revenues from Apple Music, iCloud, and Apple News+.

__Not your dad's lawn company...__ __[Scotts Miracle-Gro](https://robinhood.com/stocks/smg)__ is known for boosting homeowners' lawn and garden game. But the 151-year-old company enjoyed an 18% sales jump, powered by [indoor pot growing](https://finance.yahoo.com/news/why-scotts-miracle-gro-stock-194700866.html). Scotts' hydroponics division provides the lights, nutrients, and greenhouse goodies for marijuana cultivation — and those sales surged 49% as legalization gains mojo.

__We're issuing a "Code Blue"...__ for shares of __[Molson Coors](https://robinhood.com/stocks/tap)__. The nation's #2 brewer saw quarterly sales fall 4.4% as Americans swap light, frat-basement beers for rosé, canned wine, whiskeys, and artisan brews. It's launching a new "[Made to Chill](https://adage.com/article/cmo-strategy/coors-lights-new-made-chill-campaign-breaks-its-mountainous-past/2188001)" ad campaign (no silver bullets or rocky mountains in this one) to regain some demand for its flagship Coors Light.

__Buffering...__ __[Spotify](https://robinhood.com/stocks/spot)__ shares dipped after announcing it reached 232M monthly active users, just short of analysts' expectations. It added too few *paying* subscribers, but the music streamer's big [podcast bet](https://www.theverge.com/2019/7/31/20748337/spotify-earnings-q2-2019-podcasting-growth-users-subscribers) is showing results: The number of pod-faithfuls on Spotify has doubled over the last year (and they spend twice as much time on the platform as music listeners do).

__Someone dropped a banana...__ and __[Nintendo](https://robinhood.com/stocks/ntdoy)__ skidded on it. Shares dropped on word the gamer's profits fell 10% last quarter. This comes just before it launches Switch Lite — the lower-priced handheld game console it hopes will spark a new sales surge. Until then, it's [partnering up](https://www.reuters.com/article/us-nintendo-results/nintendo-quarterly-profit-drops-10-ahead-of-switch-lite-launch-idUSKCN1UP0PF) with Chinese tech to push its Pokemon crew deeper into China.

__Past: pizza and Chinese. Today: everything...__ Food delivery apps are exploding the amount of restaurant food we eat at home — over 50% of all restaurant orders will be delivery/takeout by [next year](https://www.theatlantic.com/ideas/archive/2019/08/all-food-will-be-delivered/595222/). *50%*. And the surging industry is catered to by The Big Food Four:

1. __DoorDash__ (private, SF-based): Leading with 34% of the market. That’s gonna grow now that it acquired Square-owned Caviar for $410M last week. 
2. __[GrubHub](https://robinhood.com/stocks/GRUB)__ (public, Chicago): The go-to in NYC, it owns 33% of the delivery-by-app market.
3. __[Uber Eats](https://robinhood.com/stocks/UBER)__ (public, SF): 17% of all food delivery. And the favorite in Miami and Atlanta.
4. __Postmates__ (private, SF): It delivers 11% of our meals, boasts the most whimsical logo of them all, and is testing a sidewalk delivery bot called [Serve](https://serve.postmates.com/).

__Now they're moving in together to save money…__ *Classic* Millennial style. The Big Food Four are still unprofitable (“$5 off your first 5 orders”) — so instead of fighting each other over growth, it may be more efficient to just team-up. Case in point: DoorDash acquiring Caviar. We expect more mergers to come — that’s how the airlines became profitable. It happened with ride-hailing too, and it’s hitting e-scooters right now.

__It's the sum of all current trends...__ We're connected to work through our phones and spend more time couch-side streaming than ever. And there's less time to cook if you're out trying to keep your Insta-feed fresh. These apps let us Netflix and not-have-to-grill. There’s downside though:

- __Fee madness:__ The GrubHub CEO [accused](https://www.forbes.com/sites/bizcarson/2019/07/30/grubhub-q2-earnings-delivery-price-gouging/#571bfca66c78) his competitors of sneakily charging too many fees (*service fee, delivery fee, food fee, fee fee...*)
- __Pay problems:__ DoorDash was caught not giving tips to drivers, and delivery wages are still low.
- __Waste:__ Separate packaging for your curry, rice, spring rolls, utensils, and sriracha are piling up landfills.

Delivery apps just hit a climax: huge convenience, huge costs, huge competition

_When a Seamless order has a bunch of special requests_ 

Peak food delivery madness

__Switch hitters are rare...__ __[Square's](https://robinhood.com/stocks/sq)__ winning a batting title with its consumer and small biz facing businesses, processing your latte purchase from the neighborhood spot. The digital payments icon announced revenues [rose](https://s21.q4cdn.com/114365585/files/doc_financials/2019/Q2/2019-Q2-Shareholder-Letter-Square.pdf) 44% to $1.2B (sounds pretty good). But Square spent so much on growth that it suffered a $7M loss. Here are its 3 areas of focus.

1. __Business biz:__ Square's "seller ecosystem" is for companies. Its software and card-swiping tech helps businesses collect payment for that buddha bowl. Once Square gets to know companies' payments, it can even lend to them.
2. __Consumer biz:__ Square's Cash App is the alt-Venmo that also trades Bitcoin. The peer-to-peer payment app makes up just under a quarter of company revenues, but its physical card can be used anywhere. Plus, it's the #1 free finance app 2 straight quarters.
3. __Delivery:__ Square acquired restaurant delivery app __Caviar__ to get you your chicken curry *and* process the payment. But now it's making a change...

__Who ordered the Caviar?...__ DoorDash. Square is selling Caviar to another food delivery app. Square CEO Jack Dorsey is busy building payments ecosystems (+side-hustling as Twitter's CEO) — no time to fight in food delivery wars. It's not a bad return though: Square bought Caviar in 2014 for $90M. Now it's [selling](https://www.cnbc.com/2019/08/01/square-earnings-q2-2019.html) to __DoorDash__ for $410M of cash and shares.

Deliver

__This is a rare miss for Square...__ The stock had risen 40% so far in 2019, and had more than tripled in the past two years. Becoming the *best money friend* of businesses was already an accomplishment. Then its Cash App came out of nowhere, becoming the best friend of fantasy football league coordinators who need to track down league dues. 

Square falls 7% — and it's selling Caviar to DoorDash for $410M

__Arctic-functional...__ Fifth Avenue-fashionable. According to __[Canada Goose](https://robinhood.com/stocks/goos)__ its jackets are packed with humanely-sourced goose down and lined with fur from coyotes in "overpopulated" areas (where the carnivores attack pets). So dropping $1,000 on a faux-rugged parka makes you feel ok. Canada Goose's [website](https://www.canadagoose.com/ca/en/fur-and-down-policy/fur-and-down-policy.html) said so. But shares fell after the New York Post [noticed](https://nypost.com/2019/08/01/canada-goose-pulls-claims-about-its-treatment-of-animals-amid-probe/) that website changed.

1. __Deleted:__ No more __"traceability video"__ to see where that coat's feathers and fur came from.
2. __Replaced:__ "We ensure ethical sourcing" is now "we're *__committed__* to ethical sourcing."

__This goes back to 2017...__ And it begins with the People for the Ethical Treatment of Animals:

- __PETA__ got its hands on a video of a bunch of guys man-handling geese in an inhumane way. PETA alleges it was a Canada Goose supplier (Canada Goose denies this).
- The __FTC__ began looking into Canada Goose for __“potentially false and misleading advertising”__ given all the our-fur-is-humane material on their website.
-  NY Post noticed Canada Goose made __"prompt, corrective action"__ to its website by totally watering-down its ethical promises.

Wear

__There's market value in 'wokeness'...__ Definition: *Being acutely aware of social injustices and acting accordingly.* We're seeing corporations take stands on social issues, from Nike's Kaepernick campaign to Patagonia's climate change initiatives. But Canada Goose's un-wokeness cost shareholders  a 5% drop — investors think customers judge values as much as they do style.

Canada Goose drops 5% on un-wokeness

__100% of Made In China is tarriff'd...__  Trade negotiators returned from chats in Shanghai this week, reporting to President Trump that China [had broken](https://abcnews.go.com/Politics/trump-escalates-trade-war-imposes-tariffs-remaining-300b/story?id=64712522) too many promises — it's not buying more US crops, and it hasn't stopped selling the addictive pain reliever fentanyl. So the president started [tweeting](https://twitter.com/realDonaldTrump/status/1156979443900067841).
- __Before:__ $250B worth of stuff the US imports from China each year was tariffed by 25% (think of it as a 25% tax) — mostly business products like steel and machines. 
- __Starting September 1st:__ The remaining $300B of Chinese imports get tariffed by 10% — and your wallet will notice this time (more in the takeaway).

__Tariffpalooza affects nearly everything...__ The [S&P 500](https://learn.robinhood.com/articles/7kFFEUv46vmMCmMfLuNiRX/what-is-the-s-and-p-500/) (a helpfully broad measure of the whole stock market) dropped 2% after the announcement. Then oil prices plummeted 7% because this escalation could hit global trade. __[GE](https://robinhood.com/stocks/ge)__ and __[Caterpillar](https://robinhood.com/stocks/cat)__ both dipped 4% because they produce and sell there. __[Best Buy](https://robinhood.com/stocks/BBY)__ dropped 11% and __[The Gap](https://robinhood.com/stocks/GPS)__ dipped 8%. 

__You’re gonna notice it this time...__ For political reasons, the tariffs have *so far* targeted the kind of things that probably don't affect your life ("steel beams" part of your daily routine?). But to escalate the trade war further, Trump started taxing the toys (Barbie, Hot Wheels), clothing (check your label), and tech (likely what you're reading this on) that consumers (read: voters) buy.

FYI: __[Apple](https://robinhood.com/stocks/aapl)__ dropped 2% because AirPods, MacBooks, iPhones, and iAnything are China-made and will likely get more expensive because of this.