__*Honesty's the best policy...*__ So after regretfully letting Russia influence the US presidential election, Facebook took steps to be more open about threats it faces and how Zuck's army deals with them. In its 3rd [Transparency Report](https://transparency.facebook.com/community-standards-enforcement#fake-accounts) (they're published every 6 months) __[Facebook](https://www.robinhood.com/stocks/FB)__ revealed it deleted 2.2B fake accounts — just in the past 3 months. 

__Whoever wrote that code...__ deserves a real-life medal. Facebook's artificial intelligence is trained by humans to automatically detect and destroy fake, porn-y, hateful, and other bad content from Facebook. Here are some disturbing but also impressive stats from the report:

- __2.2B:__ That's the shocking number of fake accounts that were attempted by bad people in Q1 (99.8% of those were caught by AI very quickly).
- __4M:__ The number of hate-posts (65% were detected by AI).
- __670K:__ the number of posts about gun sales (70% were taken down by AI, before any users had to complain). 
- *__~20K:__ That's how many human moderators Zuck's hired to review and obliterate the bad content that AI misses.*

Friend

__Verifying users' IDs would help...__ Beer, TSA, opening a bank account. All require proving who you are. But not Facebook (or most social media). Its number of fake account attempts quadrupled from last year — The problem is getting worse. If accounts were linked to real people's names and reputations, lameness could be held accountable.

Facebook had to delete 2.2 billion fake accounts. *Billion*

__Party in the castle penthouse...__ We get it — Disney+ is going to be a big deal and Marvel is a money-making movie machine. The stock is up 14% since __[Disney's](https://robinhood.com/stocks/dis)__ big streaming announcement. But now [a report](https://www.themeparkinsider.com/flume/201905/6792/) on its world-leading theme parks deserves your attention:

- Disney owns the __top 4__ theme parks worldwide: Orlando's Disney World, California's Disneyland, and 2 in Tokyo.
- The Magic Kingdom led with __20,859,000 visitors__ last year.
- And __8 of the top 10__ properties are Mickey's.

__Magical timing...__ On May 31st, Disney unleashes its new “Star Wars: Galaxy’s Edge” park in Anaheim, CA — the biggest expansion of a Disney park ever. Drop a cool [$200](https://www.travelandleisure.com/trip-ideas/disney-vacations/disneyland-star-wars-land-lightsabers-droids-prices) on a lightsaber after you've crushed some galactic Tandorian chicken. Or go for the $99 custom drone that interacts with the Planet Batuu scenery around you. It's an aggressively immersive park.

Ride

__It all goes back to a 62-year-old diagram...__ In 1957 (29 years after he drew Mickey), Walt Disney sketched out [this](https://hbr.org/resources/images/article_assets/2013/05/disney-2.jpeg) biz plan, with Disney characters at the center. Connected to them were 5 "areas": Film, TV, music, merchandise licensing, and theme parks. Today's theme parks tie directly back to that diagram — A never-ending profit ecosystem.

Disney dominates theme parks — And is about to unleash The Force

__But seriously. Show me the money...__ __Endeavor__ (aka William Morris Endeavor) has “represented the world’s greatest talent since 1898” (picture thousands of Jerry Maguires). Now the talent agency that entertained itself with $3.6B in revenues last year has filed to IPO.

*Fun SnackFact: CEO Ari Emanuel is the brother of former Chicago mayor Rahm — And the inspiration for [Ari Gold](https://giphy.com/explore/ari-gold) from HBO's show "Entourage".*

__Content is king...__ and Endeavor wants to *Game of Thrones* the whole thing. Ari made it [clear](https://www.hollywoodreporter.com/news/endeavor-files-go-public-1213239) in the IPO paperwork: “Wherever you are in the world and whatever way you define content, Endeavor is likely playing a role.” Here's how Endeavor's jumped beyond just repping A-listers:

- It acquired Ultimate Fighting Championship (UFC) for $4B in 2016.
- Also bought Professional Bull Riding, Miss Universe, the Frieze Art Fair, and a marketing agency. Plus, it's got a WWE streaming partnership.
- Endeavor boasts that its talent now infiltrates __300 TV shows__, __60% of musical festival headliners__, and __7 of the 10 highest-paid models__ on Earth.

IPO'ing

__This looks like a media company to us...__ If you think it's strange for a "professional services" company to IPO, you're right. Uncommon. But as Americans now spend half [their day](https://www.nielsen.com/us/en/insights/news/2018/time-flies-us-adults-now-spend-nearly-half-a-day-interacting-with-media.html) interacting with media, Endeavor's snuck itself into the scene — From cord-cutting to streaming, it's become the *enabler* of content critical to media.

The talent agency that inspired "Entourage" is IPO'ing

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

"_Show me the IPO_"

Ari Gold prepares for IPO

__Sauce on the side...__ forever. Turns out __[Uber's](https://robinhood.com/stocks/uber)__ food delivery app wants a seat at the subscription table — Uber Eats is working on unlimited food delivery for $9.99 a month. “Uber Eats *Pass*” will waive the typically 15% delivery fee on your evening enchilada ritual, but still require that order minimum. And Uber Eats already cooks up [good numbers](https://news.crunchbase.com/news/inside-the-uber-s-1-revenue-growth-and-losses/):

- It makes up __13% of Uber's total revenues__ (according to the IPO paperwork).
- And while ride-hailing revenue grew 33% for Uber last year, __Eats surged 149%__.
-  Now Uber Eats is __the [biggest](https://www.eater.com/2019/5/1/18524180/uber-eats-ipo-sec-filing-restaurant-food-delivery-app-profits) food deliverer on Earth__ outside of China.

__One thing tastes better than this story...__ It's how it went down. Jane Manchun Wong is a “reverse-engineering specialist”: She looks through code hidden in apps, puts two-and-two together, then [tips off](https://techcrunch.com/2019/05/21/uber-eats-pass-subscription/) TechCrunch with a juicy story. She discovered not-yet-announced images for "free delivery" and the other deets that make up this story. 

Order

__Subscriptions are all about “guilt” loyalty...__ Competitors __DoorDash__ and __Postmates__ already have the same monthly commitment passes. But if you're an Uber Eats Pass-er, you'd hate yourself wasting money on delivery fees with other apps. Loyalty leads to habits — And once Uber Eats enables your Monday maki roll routine, Uber could raise prices in the future.

A leak just revealed "Uber Eats Pass" (aka unlimited free delivery)

__When you're here, you're family...__ Public companies invite shareholders — *all of them* — once a year for a shareholder meeting. CEO Jeff Bezos may regret this corporate democracy in action — Fiery investors at __[Amazon](https://www.robinhood.com/stocks/AMZN)__ got 12 petitions on the ballot for a vote on Wednesday. 

__Jeff should've hit up his stunt double...__ Amazon became a symbol of tough worker conditions, extreme wealth (of Bezos), and a force for gentrification in Seattle. Unshockingly, it attracted some pretty aggressive shareholder [proposals](https://www.cnn.com/2019/05/22/economy/amazon-shareholder-meeting/index.html). Here are our highlights:

- A [resolution](https://gizmodo.com/jeff-bezos-wouldn-t-even-come-on-stage-to-listen-to-his-1834957220) to make a company plan to __fight  climate change__.
- A __ban on selling facial recognition tech__ to governments (because they can be used for discrimination or creepily controlling, you know, society). 
- A __gender pay equity__ requirement.
- Disclosure from the executives on __where they stand politically__ (*Washington Post*-owning Bezos has been accused of bias). 

Vote

__Losing votes can make a difference...__ The resolutions all failed, but there's still symbolic importance to a "no" — the issue gets raised in the news and execs have to talk about it publicly. Pressure like that can lead to future change. Now here's your election night vote coverage: 

- __16%:__ That's Bezos' voting power based on his shares. We're guessing he voted "no" to all 12 proposals. 
- __6.2%, 5.2%:__ The next biggest shareholders are Vanguard and BlackRock, brokerages that hold shares for regular investors. They tend to follow the recommendation of the board. That was "no."

Amazon shareholders vote NO on 12 activist policies

__Did it hurt...__ when your revenues fell from heaven? __Victoria's Secret's__ quarterly sales dropped (another) 5%, 35 stores were shut down, and only 1 was opened. But shares of Vicky's owner, __[L Brands](https://robinhood.com/stocks/lb)__, jumped 14% after the report because it happens to own another brand doing the opposite: __Bath & Body Works__ sales surged 13% and it opened 11 new stores.

__Gisele's been meditating on it...__ Victoria's Secret still pushes push-up bras in the bralette era, creepily dims the lights in its stores, and remains rooted in malls — That's all on the [wrong](https://www.forbes.com/sites/andriacheng/2019/02/28/theres-no-sign-of-reprieve-for-victorias-secret-yet/#224e88243775) side of Millennial retail. So Team Vicky has done some serious reflecting lately, and made moves to turn things around:

- __Bring back bathing suits:__ The company lost $500M in sales after ending its swimsuit line in 2016. Now they're coming back.
- __Turn off the TV:__ After its annual fashion show suffered its lowest ratings in 20 years, Victoria is "rethinking" the annual event of aggressive lingerie costumes.

Worn

__To split or not to split?...__ One L Brands investor is [pushing](https://www.wsj.com/articles/victorias-secret-owner-lifts-outlook-on-strength-of-bath-body-works-11558563059) the company to separate struggling Vicky from the successful Bath & Body chain. That move helps a successful brand keep its mojo, while letting the pained one regroup. It's a style we're trend-spotting across the fashion industry:

- __Gap__ is letting its star __Old Navy__ go free this spring.
- Vans-owner __VF Brands__ is spinning off its strained jeans brands __Wrangler__ and __Lee's__ this week.
- And __J. Crew__ [now wants](https://digiday.com/retail/bloated-brands-looking-spin-offs-save/) to do the same with __Madewell__.


Victoria's Secret owner jumps 14% because of not-Victoria's

_When you're counting votes at Amazon's big shareholder day_

The "Uber Eats Pass" just leaked

__That buddy who needs to borrow your car...__ for "just a little bit." She's mourning __[General Motors'](https://www.robinhood.com/stocks/GM)__ decision to cut Maven's footprint from 24 cities to 16. __Maven__ is GM's version of Zipcar, expanding for three years since it launched in Ann Arbor, MI. GM's [blaming](https://www.freep.com/story/money/cars/general-motors/2019/05/20/gms-ride-sharing-service-maven-start-exiting-certain-cities/3745289002/) this rollback on a lack of demand (but says it could still expand elsewhere). 

__The future = fewer cars...__ So GM's thinking about how it can still make money from people who don't buy pickup trucks. The solution is a whole flock of Maven car options:

- __Maven Share:__ GM's car-share to get around. Your app unlocks the doors thanks to Bluetooth. Then for $9/hour you get a GM car + insurance + gas.
- __Maven Gig:__ Use your car to make money driving Uber/Lyft but don't actually have a car? Gig with Maven.
- __Maven Home:__ A shared car or two for big apartment buildings. Reserve your Trader Joe's self-delivery on Tuesday mornings, when the car's probably available.
- __The competition:__ In 2016, __[Ford](https://www.robinhood.com/stocks/F)__ acquired __Chariot__, a van that fills in gaps from buses and subways. But it shut down in January.

Share

__This is GM's training wheels...__ Once its cars are fully self-driving (thanks to Cruise Automation, the startup it bought), GM will launch a fleet of self-driving robo-cabs that could compete with Uber. In the meantime, GM's letting non-car-owning Millennials guinea pig the whole thing while it collects ride data through the Maven app. It's a good deal.

General Motors shrinks its "Maven" car-sharing 

__Commitment issues over v-neck tees?...__ Perfect. __[Urban Outfitters](https://robinhood.com/stocks/urbn)__ is launching a clothing rental business: __Nuuly__. For $88, you get 6 pieces ($14.67 per item) + reusable bag + prepaid return envelope so you can send it all back in a month (or decide you love one/all of them and pay full price). The founder's son is running Nuuly, and he [expects](https://www.wsj.com/articles/urban-outfitters-to-start-renting-its-clothes-11558436401) to hit 50K subscribers and $50M in revenues by this time next year.

__Rent The Runway without the fancy...__ Urban's copying the model of clothing rental pioneer RTR, whose core biz is making glam gowns you can't afford (nice [$650 Solani](https://www.renttherunway.com/shop/designers/saloni/bella_dress)) yours for the weekend. Urban's focused on the un-ironed options stuffed in your drawer, starting this summer.

- __Anthropologie & Free People:__ Urban owns both boho-chic brands, so they're included in the rental wardrobe.
- __Random new partners:__ Reebok, Gal Meets Glam, and Levi's are also involved.
- __Flea markets:__ Yep. The Urban team is hitting stands to curate pre-worn classics. Which you can rent. And then Urban dry-cleans and re-rents.

Wear

__But will it cannibilize sales?...__ Unlike Rent The Runway, which *only* rents, Urban has to sell you clothing too... hopefully after you've rented. And the CEO thinks renting is just "trying before you're buying." With Urban stock down 19% this year, it's trying the clothing-sharing/closet-renting industry that's *growing* 20% annually. 

*PS: Urban also [announced](https://markets.businessinsider.com/news/stocks/urban-outfitters-stock-price-earnings-q1-results-2019-5-1028219463) quarterly earnings after markets closed yesterday, and the results sent shares down 6%.*

Urban Outfitters launches a clothing rental biz

__The mall is closed...__ Your go-to childhood "run errands with mom" shopping options all released earnings Tuesday. And the combo of __[JCPenney](https://robinhood.com/stocks/jcp)__ and __[Kohl's](https://robinhood.com/stocks/kss)__ dragged down the rest of their department store siblings:

- __JCPenney (-7%):__ The stock dropped to $1 as sales fell 5.5% and its quarterly loss doubled. Plus, it's got a problem with "shrinkage" (aka shoplifting).
- __Kohl's (-12%):__ Sales dropped 3.4%.
- __Nordstrom (-9%):__ Bad timing. It reports earnings later this week, so it fell along with the rest of the crew because investors are dreading it.

__Which aisle for "turnaround plans?"...__ None. JCPenney doesn't have one. And it says its turnaround strategy will arrive "in the coming months." Meanwhile, Kohl's is making creative moves: 

- __Embrace the space:__ It's [subleasing](https://www.chicagotribune.com/business/ct-biz-kohls-stores-planet-fitness-gym-20190305-story.html) its unused space for gyms and grocery stores. 
- __Embrace the Amazon:__ It's [becoming](https://www.bloomberg.com/news/articles/2019-05-21/department-store-woes-worsen-as-kohl-s-j-c-penney-sales-miss) Amazon's doormat partner, taking Amazon return items and installing Amazon lockers in 200 stores.


Retail-pocalypse

__One OG retailer got the retail-pocalypse right...__ __[Walmart](https://robinhood.com/stocks/wmt)__. Earth's biggest retail chain invested big in ecommerce, acquiring Amazon competitor Jet.com and online-savvy Bonobos. Then it kicked things up last week with Prime-killing 1-day delivery just before we [learned](https://www.wsj.com/articles/terrible-tuesday-for-department-stores-11558456351) sales rose 3.4% last quarter. JCPenney simply never made those investments.

Almost every department store just had a horrible day

_Regina George doesn't rent dresses_

Urban Outfitters tries on Rent The Runway

__Smile...__ You're being filmed by the smartglasses on the early-adopting human staring at you. __[Google](https://robinhood.com/stocks/goog)__ is graduating its Google Glass from experiment to [official](https://www.blog.google/products/hardware/glass-enterprise-edition-2/) Google product as the $999 Glass Enterprise Edition 2. They're like smartwatches. But for your eyes. And they're packed with buzzwords:

- __Fancy optics:__ The lenses are by Smith, the brand behind your ski goggles.
- __Augmented & virtual reality:__ They're designed with new chips to handle both.
- __Easy apping:__ Using Google's Android operating system makes it easier for developers to pop out new glass apps (picture potential "blink to pay" features).

__Universally hated...__ The [original](https://www.pcmag.com/review/322649/google-glass-explorer-edition-version-2-0) Google Glass arrived in 2013. It was swiftly panned for violating the privacy of everyone in eyesight. But this new version isn't for you. It's for business:

- Google [retargeted](https://www.theverge.com/2015/3/27/8299529/robot-surgery-google-johnson-johnson-ethicon-platform) the specs to be worn by __factory workers and surgeons__. Support and data on the job = higher productivity and fewer mistakes.
- The value prop, in one sentence: This [gives](https://www.fastcompany.com/90352249/google-says-the-new-google-glass-gives-workers-superpowers) workers "__superpowers__"


Unveil

__Pivot — Don't kill it...__ Glass originated in Google's [X-department](https://x.company/), aka "The Moonshot Factory" where they "create radical new technologies to solve some of the world's hardest problems." And instead of shelving version 1.0 of Google Glass, the team found a new customer segment to target.

Google whips out $999 "superpower" smartglasses

__Huawei drama: part deux...__ Last week we told you about the executive order blacklisting Chinese telecom company __Huawei__ — we focused on companies *that buy from Huawei* (aka wireless phone icons like Verizon). On Monday, stocks of companies *that sell to Huawei* dropped because orders from Huawei are over.

__Chip and dip...__ "Semiconductor" is the technical term for smartphone engines. __NVIDIA__, __Advanced Micro Devices__, __Qualcomm__, __Intel__, and other American tech leaders power Apple, Samsung, and Huawei smartphones.

- __Going global:__ As developing countries started adopting smartphones, chip sales surged. __[Nvidia](https://www.robinhood.com/stocks/NVDA)__ and __[AMD](https://www.robinhood.com/stocks/AMD)__ shares increased by 10 times from 2016 to 2018.
- __The trade war:__ Orders from China's 1.5B swipe-hungry consumers are frozen thanks to this cold-ish trade war. 
- __Insult to injury:__ China expected this, so it [stockpiled](https://gizmodo.com/major-hardware-companies-to-stop-supplying-huawei-after-1834886298) at least 3-months-worth of chips. So China's lack of orders will be particularly noticeable since previous orders were packed with extras. 

Banned

__Customer #2 is gone...__ Samsung's been the world-[leading](https://www.theverge.com/circuitbreaker/2019/5/1/18525034/huawei-apple-samsung-smartphone-market-share-idc-2019) smartphone company (Apple is usually runner-up). But Huawei's cheaper-but-still-iPhone-ish phones now make up 19% of all smartphones sold. This executive order hurts China, but semiconductor stocks take it personally, too.

*Breaking: Trump is planning a [90-day pause](https://techcrunch.com/2019/05/20/u-s-mitigates-huawei-ban-by-offering-temporary-reprieve/) on the banning on worries it could hurt US jobs.*

US chip companies just lost their #2 customer

__Black tie or boho chic. DJ or Band. Vows or no vows...__ __[Sprint](https://www.robinhood.com/stocks/S)__ and __[T-Mobile](https://www.robinhood.com/stocks/TMUS)__ aren't having typical pre-wedding pillow talk. They're still trying to convince the government to bless the nuptials. Then two surprise developments Monday messed with both stocks in the $26B merger:

- First, __the chairman of the Federal Communications Commission said he was on board__ for the deal, popping T-Mobile up 6% and Sprint up 27%.
- Then Bloomberg reported that __the Dep't of Justice still isn't feeling it__, cutting both stocks' gains in half on the uncertainty (Sprint trading had to be halted).
- __*Quick clarification:*__ The Justice Dep't gets final say since its role is to protect consumers from a lack of competition.

__T-Mobile knows this looks bad...__ The #3 and #4 biggest companies in an industry aren't typically allowed to merge. So here's what T-Mobile/Sprint [promised](https://venturebeat.com/2019/05/20/fcc-chair-backs-merger-after-t-mobile-and-sprint-pledge-97-u-s-5g-coverage-in-3-years/) the FCC if it's approved.

1. No price hikes for 3 years (pinky swear).
2. It'll build out 5G coverage for 97% of the US population, into areas telecom companies usually ignore.
3. It can sell off Boost Mobile, its prepaid wireless service, so there's still a 4th competitor.

Decide

__With fewer competitors, consumers tend to lose...__ Competition among providers is key so that you don't get ripped off. That's why the Justice Dep't blocked AT&T's attempt to buy T-Mobile in 2011. And while T-Mobile promised to not take advantage of its increased power for three years... what about years 4? And 5? And forever?

Sprint shares halted on merger mixed messages

"_I see through walls and set my alarm with these things_"

Google's "Superhero" Glass 2.0

__Thanks for nothing...__ __[Snap](https://www.robinhood.com/stocks/SNAP)__ shares rose 14% last week even though the company made zero announcements. __[Facebook](https://www.robinhood.com/stocks/FB)__ already copied Snapchat's Stories feature, making the app's user growth almost disappear. But Zuck *also* [cloned](https://ca.finance.yahoo.com/news/snap-rallies-as-instagram-kills-off-snapchat-competitor-182733467.html) Snapchat entirely, calling it "Instagram Direct." Fortunately for Snap, that was shut down last week since Direct never caught on.

__Mandarin for "Venti"?...__ In just 2 years, upstart Chinese  chain __[Luckin Coffee](https://www.robinhood.com/stocks/LK)__ built 2,400 stores. It's still behind __[Starbucks](https://www.robinhood.com/stocks/SBUX)__ in China, but cravings for its tech-savvy, app-driven, pick-up-style grab-and-go stores [emboldened](https://techcrunch.com/2019/05/17/chinas-luckin-coffee-raises-up-to-651m-in-upsized-us-ipo/) it to IPO — aka list shares publicly so they're accessible to regular investors like you and us. On Day #1 of trading, the stock popped 18%.

__Because you need Tide to Go ASAP...__ __[Walmart](https://www.robinhood.com/stocks/WMT)__ became the 1st to [offer](https://www.cnbc.com/2019/05/13/walmart-announces-next-day-delivery-firing-back-at-amazon.html) free 1-day shipping on orders $35 or more (beginning in Vegas and Phoenix). Now Walmart's shares are creeping up to a record high after announcing quarterly ecommerce sales surged 37% from last year.  

Highs

Who's up...

__"That Beyonce record is tight"...__ Old school prep retailer __[Ralph Lauren](https://www.robinhood.com/stocks/RL)__ is urgently trying to convince Gen Z it gets them (the reliably polo-covered Baby Boomer crowd is slowing). But Ralph's stock dropped 7% on evidence its Instagram-friendly and "Family Is Who You Love" marketing campaigns [aren't connecting](https://finance.yahoo.com/news/ralph-lauren-rl-q4-earnings-150903668.html) in its home market of North America. 

__We take our sparkling water with a side of seltzer...__ That helped boost __[National Beverage Corp's](https://www.robinhood.com/stocks/FIZZ)__ stock seven times higher from 2014 to 2018, as its LaCroix was the only real option for soda-defiant Millennials. Now it's been downgraded by two analysts because LaCroix's mango-essence lifestyle faces [serious](https://www.thestreet.com/investing/stocks/fizz-falls-flat-on-analyst-downgrade-14959508) competition from Pepsi (Bubly) and Coca-Cola (sparkling Dasani and Smartwater).

__Trade, trade, go away...__ President Trump delayed tariffs on cars from allies in Europe and Japan and ended steel tariffs against allies Mexico and Canada. But one thing's clear: The trade war with China is here to stay. Here's who that hurts:

- __[John Deere](https://www.robinhood.com/stocks/DE)__ stock fell 10% because China's not buying as many American soybeans. Plus, the Chinese steel that makes the tractors run like a deer now costs more.
- __[Caterpillar](https://www.robinhood.com/stocks/CAT)__ dropped 4% because China is the biggest construction nation in the world (and Caterpillar's backhoes need a home).
- __[Tesla](https://www.robinhood.com/stocks/TSLA)__ dipped 10% to its lowest point in a year because China is its 2nd biggest market.

Lows

...And who's down

__A *Burn Book* hall of famer...__ Shares of __[Beyond Meat](https://www.robinhood.com/stocks/BYND)__ fell 4% Friday after getting the attention of famous hater __Citron Research__. The hedge fund's core business strategy is betting against a company's stock and making money if the price falls. Its latest [target](https://www.cnbc.com/2019/05/17/citrons-andrew-left-beyond-meat-hype-is-beyond-stupid.html) is the plant-based "meat" company that just IPO'd. The shade was summed up in Citron's [tweet](https://twitter.com/CitronResearch/status/1129444098589376513?ref_src=twsrc%5Etfw%7Ctwcamp%5Eembeddedtimeline%7Ctwterm%5Eprofile%3Acitronresearch%7Ctwcon%5Etimelinechrome&ref_url=https%3A%2F%2Fcitronresearch.com%2Fcitron-research-exposes-exact-sciences-proves-beyond-doubt-stock-will-soon-cut-half%2F):

"*Beyond Meat has become Beyond Stupid*" — @CitronResearch

__Fake meat, real blood...__ Citron thinks Beyond Meat is over-valued. So it borrowed stock of the company in order to sell it at today's high price. Then it hopes to buy it back cheaper when the price falls. The difference between those two prices = profit (that's called "*shorting* a stock"). Here's what Beyond Meat's stock has done so far:
- The IPO price on May 2 was __$25__.
- The pea-protein food-maker's stock surged 163% on Day #1 to __$65__.
- By Friday, shares had climbed all the way to __$87__.
- *Citron thinks they'll fall back to __$65__* after Beyond's first earnings report, as hype from meat-minimizing *reducetarian* Millennial investors dies off. 

Bitten

__It depends on how you define "competition"...__ By one measure, Beyond Meat has a monopoly. By others, it has thousands of competitors. The big question is if "fake meat" is a fad or the long-lasting future-Big-Mac it wants to be.

- 🏦 __Publicly traded meat alternatives:__ *No competition (yet).* Earth's 2nd biggest animal meat producer, __[Tyson Foods](https://www.robinhood.com/stocks/TSN)__, is working on plant-based foods to rival Beyond.
- 🚀 __Not-yet-public meat alternatives:__ __Impossible Foods__ (which just raised $300M last week and makes the Impossible Whopper), along with some other startups.
- 💯 __Non-meat proteins:__ Avocados, tofu, eggs, milk, beans, nuts, chickpeas, tempeh, seafood, yogurt, cauliflower, quinoa, peanut butter, chia seed, potatoes...

Beyond Meat's post-IPO boom earns its first big skeptic

_Tariffs going off like..._

Fake meat faces real Wall Street hate

__"Where to hide from investors"...__ We actually found a good Pinterest board for [exactly that](https://www.pinterest.com/search/pins/?q=places%20to%20hide%20things&rs=typed&term_meta[]=places%7Ctyped&term_meta[]=to%7Ctyped&term_meta[]=hide%7Ctyped&term_meta[]=things%7Ctyped). In its first-ever earnings report since last month's IPO, __[Pinterest](https://robinhood.com/stocks/pins)__ found a theme: slowing growth. Profits, revenues, user growth. All slowed. Then shares of the social-network-for-curating-nice-things dropped 15%. Here are 2 numbers to un-Pin.

- __3X:__ That's how many times larger the $41M loss was than analysts expected.
- __291M:__ That's how many Pinners there are out there showing off very nice/symmetrical pictures of anything.

__Fewer pins, more promos...__ Your Snacks team compared Pinterest's average revenue per user — aka *the number of ads users see as they scroll for the ideal guest bathroom wallpaper* — to Facebook's.

- Pinterest made __$0.73__ of revenue per user last quarter.
- Facebook was almost 10-times that at __$6.42__.
- __The key to profits for Pinterest:__ Add more ads mid-scroll without overly annoying customers (80% of them are American moms between 18-64).

_"I just want to pin it"_

Debut

__This is the nicer social media company...__ It's nice [by not](https://www.nytimes.com/2019/05/16/technology/pinterest-earnings.html) showing users as many ads as other social networks do. And it's nice by not having as much misinformation/hateful news-focused content as Twitter, Facebook, Youtube, and other platforms do. One of those is nice for investors, the other not so much.  

Pinterest's inspiration-less first-ever earnings report

__Mutual hatred...__ is a powerful motivator #WhiteWalkers. Long-time enemies __[Sony](https://robinhood.com/stocks/sne)__ and __[Microsoft](https://robinhood.com/stocks/msft)__ battled admirably in the multi-phase Playstation vs. Xbox video game wars of our youth. Now they're truc-ing: An "[unusual](https://www.wsj.com/articles/microsoft-sony-to-partner-on-cloud-technology-for-gaming-services-11558036863)" partnership on cloud computing, the crucial engine that powers modern, online gaming. 

__It's hairy out there...__ A few major enemies forced this frenemy-ship:
- __"The tool kit":__ Amazon's [Lumberyard](https://aws.amazon.com/lumberyard/) lets anyone make their own games on its very-much-leading Amazon Web Services platform.
- __"The Holy Grail":__ That's what they're [calling](https://gizmodo.com/how-much-would-you-pay-for-a-holy-grail-google-stadia-s-1833413823) Stadia — It lets anyone, anywhere begin playing big games *sans* gaming console.

_Time for old enemies to play together_

Team

__Play anything on any device...__ That's [the future](https://www.wsj.com/articles/microsoft-sony-to-partner-on-cloud-technology-for-gaming-services-11558036863) of gaming, according to Microsoft. So if a surprise partnership with Sony can help it achieve that in the $130B video game market, Microsoft is down to team up.

The new era of video game wars: Sony and Microsoft shake hands

__Congratulations. It's a beautiful healthy...__ platform for securities trading. America just birthed its 14th stock exchange, the uncreatively named __[Long Term Stock Exchange](https://ltse.com/)__. LTSE is just as regulated as siblings New York Stock Exchange and Nasdaq (it was approved by the SEC Friday and expects to open this year), but it's [mission-oriented](https://qz.com/1616791/the-long-term-stock-exchange-gets-sec-approval-for-silicon-valley-friendly-platform/): It wants to fix "short-termism."

__Quarter's over. On to the next quarter...__ Currently, public companies must calculate, prep, and announce their earnings reports every three months. Focusing on short-term results only benefits short-term focused traders — Hedge funds and activist investors. Instead, LTSE introduces 3 rules to encourage long-term thinking:

1. __Seniority-based voting:__ Older shares get more voting power. So the more in it for the long haul you are = the more power you have as a shareholder. 
2. __Tie exec pay to long-term metrics:__ Limit CEOs from floating away on golden parachutes.
3. __No forecasts for quarterly earnings:__ None. Investors should care about 3 years, not 3 months.

_A stock exchange for these guys_

Born

__This is Silicon Valley's farm for unicorns...__ You've seen the volatility of recent tech IPOs Uber, Lyft, and  Pinterest. Long Term Stock Exchange wants to give companies the benefits of public markets (raise $$, trade your stock!), while cutting the negatives (no sacraficing long-term health for short-term profits). It's [crafted](https://www.axios.com/long-term-stock-exchange-ipo-silicon-valley-3eb1a818-ce6d-41f5-a9b1-906bdcaf76b7.html) for Silicon Valley's finest.

Silicon Valley just got a new stock exchange: The Long Term Stock Exchange

"_I just want to Pin it_"

The un-Pinnable stock

__Pamplemousse problems...__ Flavored sparkling water __LaCroix__ has become the spirit drink of youthfulness — Millennial-powered anti-soda consumption pushed parent __[National Beverage Corp's](https://robinhood.com/stocks/fizz)__ stock to an all-time high in 2017 (FYI, great stock ticker: “FIZZ”). It has lost half its value since then, summed up by this stat:

*Sales of sparkling water rose 16% in the US from Nov-Jan — but LaCroix’s sales fell 2%.*

__Pour some Pepsi on the wounds...__ Some banks decided to weigh in on issues the icon of calorie-free refreshment is facing. It's mainly competition. Lots more competition:
- __Bank #1:__ [Thinks](https://finance.yahoo.com/news/national-beverage-stock-bear-gap-160451535.html) sales will “significantly decelerate,” so it downgraded the stock.
- __Bank #2:__ [Thinks](https://www.marketwatch.com/story/national-beverage-stock-falls-after-data-shows-lacroix-sales-decline-2019-05-14) LaCroix’s getting bullied by soda — __[Pepsi's](https://robinhood.com/stocks/pep)__ sleek Bubly is [winning](https://www.bloomberg.com/news/articles/2019-04-16/pepsi-s-bubly-seltzer-brand-gains-ground-on-lacroix-perrier) market share, while __[Coke](https://robinhood.com/stocks/KO)__ is pumping out sparkling versions of Dasani and SmartWater.
- __Highlight:__ Texas-based Topo Chico is a fast-growing LaCroix-replacement that's gaining liquid ground.
- __*Side Note:*__ In March, National Beverage's colorful CEO [blamed](https://www.thestreet.com/investing/stocks/fizz-falls-flat-on-analyst-downgrade-14959508) its sales drop on "injustice."

__LaCroix's gone flat on the big stage...__ Before sparkling water became the avo toast of drinks, National Beverage shares grew 7-times larger from 2014 to 2018. Now LaCroix is struggling to distribute itself. Its Coke/Pepsi competitors are filling up convenience stores where LaCroixs aren't. If you're not on the shelf, you can't be bought.

LaCroix is down because sparkling water is having a moment

__"I'll have the Resy"...__ __[American Express](https://robinhood.com/stocks/axp)__ ordered itself the largest privately-held reservation platform in the US, acquiring __Resy__ (4K restaurants across 200 cities). Backed by Airbnb and Shake Shack co-founder Danny Meyer, Resy serves the dining industry two ways:
- __What you see:__ Restaurant pays Resy a fee to show its open tables. You snag last-minute 9pm for 2 (by the bar). You're a hero, the table gets filled, Resy gets paid. Win-win-win.
- __What you don't see:__ "[Hospitality Software](https://www.eater.com/2019/5/15/18624609/resy-american-express-opentable-online-reservations)" — Its Resy Fly business intelligence tools educate restaurateurs on the average time a table's used or how weather affects the number of fish orders. Valuable intel.


__Experiences > Points...__ That's Amex's strategy here. Instead of points for old school lounge access or TSA Pre✓, Amex wants to make its benefits more intimate, more personal, and (shocker) more Millennial. With Resy's network, it can now [access](https://techcrunch.com/2019/05/15/american-express-is-acquiring-resy/) special tables, restaurant openings, and fancy ticket-based reservations for its top swipers.

Acquired

__Follow the food that follows the money...__ Americans 22-37 years of age (Disclosure: Us) are spending a huge chunk of their paycheck on [dining out](https://www.cnbc.com/2018/08/20/how-much-millennials-spend-at-restaurants-each-month.html). Amex's latest acquisition spree shows it's focused on being everywhere its customers want to be: food. Here's who else in the fintech/foodtech space it recently bought:
- March: __Loungebuddy__ — Airport lounge access because, well, airports.
- January: __Pocket Concierge__ — The Resy of Japan.
- 2018: __Cake__ — Pay the restaurant bill without waiting for the bill.

Amex buys Resy to experienc-ify your reward points

__"I refuse to let you date him"...__ On concern that foreign governments could spy on, manipulate, or crank call Americans, President Trump just banned American phone/internet companies from using foreign-made telecom equipment. The [obvious target](https://www.nytimes.com/2019/05/15/business/huawei-ban-trump.html) is China's __Huawei__, and it's another escalation in the trade war. 

__Scandinavia is into it...__ __[Ericsson](https://www.robinhood.com/stocks/ERIC)__ (🇸🇪Sweden) and __[Nokia](https://www.robinhood.com/stocks/NOK)__ (🇫🇮Finland) are the two other big competitors of Huawei, and their stocks jumped on the US move. The ban only applies to American telecom companies and only to future purchases:

- __The majors:__ AT&T, Verizon, Sprint, and T-Mobile don't use Huawei.
- __The regionals:__ Some smaller internet and wireless providers do. 
- __Abroad:__ Trump's hoping foreign countries resist the temptation of Huawei's lower prices to stand strong with America's blacklisting (and buy Scandinavian instead). 

Blacklist

__Stop China from dominating 5G...__ That's the goal here. China's epic "[Made in China 2025](https://www.pbs.org/wgbh/frontline/article/made-in-china-2025-the-industrial-plan-that-china-doesnt-want-anyone-talking-about/)" plan gives American foreign policy hawks night terrors. So does its ambition to [lead in 5G](https://www.cnbc.com/2019/05/15/steve-bannon-no-chance-trump-is-going-to-back-down-in-the-china-trade-war.html), which will wirelessly connect phones, computers, appliances, and probably robo-pets to the web really, really and fast. But it could be too little, too late:

- __*Huawei is leading already*__ — It's making both phones and the network (think cell towers and satellites), courtesy of the Chinese government's assistance.

 The US bans Chinese wireless equipment (i.e. Huawei)

_Stop bullying the sparkling waterboy_

Amex reserves Resy. All of it.

__Tou-freaking-ché…__ A month after __[Amazon](https://www.robinhood.com/stocks/AMZN)__ announced it’ll cut shipping time in half for Prime members, __[Walmart](https://www.robinhood.com/stocks/WMT)__ countered: Free next-day delivery to anyone in Vegas or Phoenix on 220K items (as long as you spend $35). By next year, 75% of Americans will have access to 1-day shipping. Your move, @JeffBezos.

__Speed kills...__ Walmart's move is expensive (for Walmart), but it could stop Walmart-faithful from defecting to Amazon. Here's the expected bill:

- __Walmart:__ UBS analysts estimate __$215M in incremental costs__ to prep its warehouses for 1-day shipping (plus Walmart's promised that each order will arrive in 1 box).
- __Amazon:__ It's __investing $800M__ to give Primers their goods by “[EOD tomorrow](https://www.cnbc.com/2019/04/25/amazon-spending-800-mln-to-make-free-one-day-shipping-prime-default.html).” 
- *__Fun fact:__ One reason it’ll cost Amazon more to do the same thing is it ships way more packages than Walmart — Walmart's ecommerce biz [is just 7% as big](http://www.marketwatch.com/story/walmart-earnings-trying-to-match-amazons-one-day-shipping-could-cost-215-million-2019-05-13) as Amazon's.*

Overnight

__Thank competition...__ Amazon liberated the world from late-night toilet paper runs, earning it [47%](https://www.emarketer.com/content/digital-investments-pay-off-for-walmart-in-ecommerce-race) of all US online sales today. But Walmart has upped its ecommerce game — buying Jet.com for $3B, renovating its website, launching online grocery pickup, and (now) free 1-day shipping. That keeps Amazon honest. Bezos can't just jack up Prime prices and lie back on 2-day delivery. When Amazon and Walmart compete, lazy online shoppers win.

Walmart one-ups Amazon Prime: Free. One-day. Shipping. (boom)

__Top 10 lists are fun...__ This one isn't. A California jury awarded $2B from __[Bayer](https://www.robinhood.com/stocks/BAYRY)__ to two non-Hodgkin Lymphoma suffers. Blame Bayer's Roundup weedkiller for causing it (according to the verdict). It’s the [8th biggest](http://fortune.com/2019/05/14/bayer-stock-monsanto-verdict/) product-defect award ever, so Bayer’s appealing as its shares fell 2% Tuesday.

*FYI, the World Health Org. thinks Roundup probably causes cancer. America’s EPA doesn’t.*

__What’s the return policy on Monsanto?…__ Germany’s top chemical company was built through the humble [invention](https://en.wikipedia.org/wiki/Aspirin) of Aspirin in 1899. A century later, Bayer dabbled in high-finance by acquiring US-based __Monsanto__ last year for $66B. Here's what it's received from the St. Louis company:

- __Added profits:__ Bayer snagged Monsanto for the __$2B in annual profits__ it was generating on genetically-modified crop seeds, plant fertilizers, and other blasphemies to organic eating. 
- __Added lawsuits:__ It's lost three lawsuits connected to Monsanto's Roundup so far, with verdicts of __$2B, $289M, and $80M__. There are ~13K [more](https://psmag.com/news/monsanto-ordered-to-pay-2-billion-in-cancer-lawsuit-13000-more-plaintiffs) suing.
- *__The result:__ Bayer stock is down 44% since its Monsanto wedding day in June of ’18.*

__Look out for major baggage…__ The merger and acquisition process involves “due diligence” — pretty much a full corporate checkup to make sure there’s nothing unexpected in the company being acquired. Bayer [missed](https://www.barrons.com/articles/bayers-acquisition-of-monsanto-how-not-to-do-m-a-51553296373) this giant legal liability when it acquired Monsanto. Look out for weeds.

Victims get $2B from Bayer for cancerous weedkiller

__Unpop the collar...__ Ralph Lauren's latest quarterly earnings would [impress](https://investorplace.com/2019/05/ralph-lauren-earnings-drop-rl-stock/) Anna Wintour: Revenues beat analysts' expectations and profits hit $32M. It's even gift-bagging that all for __[Ralph Lauren](https://www.robinhood.com/stocks/RL)__ shareholders by increasing the [dividend](https://learn.robinhood.com/articles/6jGOO5O2YvyoZzlEUtIq0F/what-is-a-dividend/) they receive by 10%. Then shares fell 4% off the catwalk.

__Malloting a croquet ball while riding a purebred steed...__ Doesn't really work for post-Millennial Gen Z. Ralph knows it needs to replace aging customers with young blood. Here's its approach, which its CEO calls the "Next Great Chapter Plan":

- __Extra influencer marketing:__ It just signed 23-year-old model [Taylor Hill](https://www.instagram.com/p/BuZSzOSBI3L/) and her boyfriend to flaunt the polo horses on Insta. #powercouple
- __The "Drop":__ It markets limited edition streetwear stuff that can only be bought on the app. The kids these days love exclusivity and mobile shopping.
- __"Family is who you love":__ That's the name of the new ad campaign — [TV spots](https://www.youtube.com/watch?v=eAjq_y-U7jY) nudging perceptions of the brand to a new direction. Less country club prep, more modern families. 

__Not all sales are created equal...__ Although investors were impressed by two of the big items (sales and profits), they were bummed to see sales drop in Ralph's home closet. That's a sign that the fundamental changes the company's working on might not be working.

- 📉 Sales in __North America__ (which is 50% of total company sales) fell 7%.
- 📈 Sales in __Europe__ (31% of total) rose 4%.
- 📈 Sales in __Asia__ (19% of total) popped up 6%. 

Ralph Lauren drops 4% (its Gen Z pandering may not be working)

_Not-1-day shipping_

Walmart's free-shipping mic-drop

__Yanked a hammy...__ __Flywheel__, the 40-studio spinning chain launched by a SoulCycle founder, is walking out of the class — it's been taken over by its [biggest](https://www.bloomberg.com/news/articles/2019-05-12/flywheel-sports-taken-over-by-lender-and-is-said-to-explore-sale) investor/lender. And the new boss is looking to make 2 moves pronto:
- __Try selling (again):__ Flywheel stuck a $350M price tag on itself last year, but no one bought.
- __Switch products:__ Instead of studios you schlep to, sweat it out in the living room with their *at-home stationary bike*. 

__Coincidence?...__ Nope. __Peloton__ pioneered the tech-enabled at-home bike in 2012. Since then, it's stolen customer butts from major gym chains through extreme convenience. First, it's [suing](https://www.businessinsider.com/peloton-sues-flywheel-over-home-fitness-bike-2018-9) Flywheel for copying its home spin bike. Second, it's planning to IPO this year at an $8B valuation. Here are the 3 keys to Peloton's soul:

1. __Hardware:__ A $2K bike that's just small enough to fit in a closet, but big enough to humble-brag visitors with. Over 400K have been sold, featuring instructors who yell/guide you via the mounted screen.
2. __Software:__ Thousands of live and on-demand streaming spin videos are available so you can tap it back for a 30-minute hip-hop ride anytime.
3. __Subscription:__ Once you've bought the bike, you're on the hook for $39/month to access those class videos.


Sweat

__Peloton is the Apple of sweating...__ Just as your iPhone generates $$ for Apple via services (think Apple Music), digital content drives the value of Peloton's bikes. Without the virtual class subscription, it's just hardware. So Peloton instructors are "treated like [pro athletes](https://www.wsj.com/articles/peloton-instructor-we-are-treated-like-professional-athletes-11557252001)" to produce better classes, while the new Peloton app offers yoga/lifting/walking videos for $19/month. Content is calorie-crushing king.

Peloton claims first fitness victim: Flywheel

__"No, *you* hang up"...__ (but with geopolitical tension instead of puppy love). One business day after President Trump hiked tariffs on Chinese-made imports from 10% to 25%, China announced higher tariffs on $60B in USA-made goods starting June 1st. That dropped stocks the moment Monday's markets opened.

*__"Americans' entire shopping cart will get more expensive"...__* Straight [talk](https://www.nytimes.com/2019/05/13/us/politics/us-china-trade-tariffs.html) from a Walmart/Target lobbyist. Since Friday, half of Chinese imports have a 25% tariff — The other half is full of goodies you're probably wearing/touching/tapping right now (electronics, t-shirts, [Silly Puddy](https://www.marketwatch.com/story/trumps-latest-tariff-hike-on-chinese-goods-will-hit-the-toy-industry-and-electronics-2019-05-10)). Here's what's surprisingly hit on both sides:

- __The next $300B of US tariffs on China:__ Purebred horses, 122 different kinds of footwear, coffee makers. Our highlight from the [super-detailed list](https://ustr.gov/sites/default/files/enforcement/301Investigations/May_2019_Proposed_Modification.pdf): "Footwear w/outer soles & uppers of rubber or plastics, nesoi, n/cov. ankle, nesoi, valued o/$6.50 but n/o $12/pair."
- __The next $60B of Chinese ones on the US:__ Honey, salted beef, "fine and coarse rice," tequila, gin, bricks, watches, chalk, canoes, and 5,000 [more](https://www.cnbc.com/2019/05/13/here-is-a-list-of-us-goods-china-is-targeting-with-a-25percent-tariff.html) things.
- *Fun fact: Both China and the US are tariff-ing shoes made by the other. But it doesn't cancel out.* 


Escalate

__Hold your breath until June 28/29...__ President Trump meets Chinese President Xi Jinping at the G-20 Summit in Japan. Trump said he could decide *not to impose* those new tariffs if they agree to something. But markets are bracing for the full-blown, tit-for-tat, back-and-forth trade war we're in. The impact of each tariff is higher prices and less profit.

China's retaliation tariffs hit tequila and 5,000 more things. Here's where it all stands.

__Lance Armstrong would be impressed...__ According to a [lawsuit](https://www.reuters.com/article/us-usa-drugs-lawsuit/us-states-accuse-teva-other-drugmakers-of-price-fixing-lawsuit-idUSKCN1SH0DP) filed in federal court by 44 state prosecutors, __[Teva Pharmaceuticals](https://www.robinhood.com/stocks/TEVA)__ is a criminal mastermind. The allegation: It corralled 19 other drug firms to keep generic drug prices high — 1,000% higher than they could/should be. That's anti-competitive, illegal, and just wrong. So it dropped Teva stock 15%.

__That's a lot of attorneys general...__ Here are a couple things we noticed from this lawsuit:

- __It's a shore thing:__ More than half of the 20 companies are based in New Jersey.
- __And it's a TV thing:__ President Trump just enacted [new rules](https://www.apnews.com/c58c22765603411781a30fa5ecff18b1) that require drug ads on TV to display the price if the medication costs more than $35/month.  

Gouging

__One thing Americans aren't polarized on...__ Drug prices. Successful lobbying and divisive politics allowed pharma firms to raise prices on life-or-death drugs for years. Now a Republican President, over a dozen Democratic presidential candidates, and 44 state prosecutors want it to stop. Investors have already left the stadium. This game's over. 

44 states sue big pharmaceutical companies

"_Do you know how expensive China just made this helmet?_"

Trade War Episode II: Tariffing tequila and canoes

__Happy conference season...__ __[Google's](https://robinhood.com/stocks/goog)__ Apple-ish I/O event (stands for "input/output") [revealed](https://venturebeat.com/2019/05/08/everything-google-announced-at-i-o-2019/) a voice assistant to screen robo-calls, "Incognito" Google Maps, and (the main event) a $399 Pixel smartphone. Unlike Apple, Google doesn't need an extra-profitable $1,000 smartphone — Its focus is making money off hoards of data from your internet use.

__Some hookups abroad...__ __[Match](https://robinhood.com/stocks/mtch)__ enjoyed a 14% revenue jump last quarter, courtesy of 23% user-growth internationally. Tinder is still its alpha app, totaling 4.7M active dating users. But shares jumped over 10% on one key stat: In places where [Facebook's dating feature](https://www.barrons.com/articles/facebook-dating-is-now-the-clear-underdog-to-tinder-51557533158) is already rolled out, Match hasn't seen any negative impact.

__Cars want all the attention...__ __[GM's](https://robinhood.com/stocks/gm)__ Cruise Automation (a self-driving car startup it bought in '16) [raised](https://www.businessinsider.com/gm-self-driving-cruise-business-worth-19-billion-after-new-funding-2019-5) $1.15B to push forward with robotaxis (planned for later this year). Then __[Tesla](https://robinhood.com/stocks/tsla)__ jumped into the car insurance biz, while __[Ferrari](https://robinhood.com/stocks/race)__ closed in on an all-time high stock price, powered by sales in China. 

__Angels out...__ __Victoria's Secret__ won't broadcast its aggressively costumed annual fashion show on TV [anymore](https://www.wsj.com/articles/victorias-secret-fashion-show-leaving-network-tv-11557512139) — falling viewers and a realization that the whole thing was outdated led to the decision. But parent company __[L Brands](https://robinhood.com/stocks/lb)__ dipped because the move highlights how out of touch the push-up brand became with our generation. Less catwalk, more bralette.

__Expensive shave...__ Direct-to-consumer razor startup __Harry's__ was acquired by the owner of Schick for a smooth $1.37B. But buyer __[Edgewell Personal Care](https://robinhood.com/stocks/epc)__ fell 20% last week on [word](https://www.nytimes.com/2019/05/09/business/dealbook/harrys-edgewell-acquisition.html) its own sales dropped 10% last quarter. Plus, the $2B cabinet-packing company (it also owns Playtex and Wet Ones) is barely worth more than the deal itself.

__Break up...__ After two years of __[Facebook](https://www.robinhood.com/stocks/FB)__ info scandals, we expected new tech regulation in the US. It hasn't come. But Zuck's co-founder Chris Hughes called out Facebook [to be split](https://www.nytimes.com/2019/05/09/opinion/sunday/chris-hughes-facebook-zuckerberg.html) into separate companies. Shares fell 2% last week as Hughes' words [joined](https://www.axios.com/2020-presidential-election-democrats-economic-fiscal-policy-5c4d16dc-53df-40e2-a810-fa9564ca20af.html) a Nobel Prizer (Joseph Stiglitz) and presidential candidate (Elizabeth Warren). Zuck's [response](https://www.nytimes.com/2019/05/09/business/facebook-response-chris-hughes.html): Breakup won't fix Facebook's problems.

__Anti-surge-pricing...__ __[Uber](https://robinhood.com/stocks/uber)__ stock [fell](https://www.wsj.com/articles/uber-stumbles-in-trading-debut-11557503554) 8% on Day #1 of trading. We were there for it, watching founder/ex-CEO Travis Kalanick roll up in an UberX. Uber Eats teammates handed out bagels/granola on the floor, while Employee #4 Austin Geidt [rang](https://www.businessinsider.com/austin-geidt-silicon-valley-legend-uber-exec-life-2019-5) the NYSE opening bell. Uber-style, the IPO already broke records:

- __$6 billion of Uber stock value was erased__ during the [worst](https://www.businessinsider.com/uber-had-the-worst-first-day-dollar-loss-of-a-us-ipo-2019-5) opening day loss of any US IPO.
- It was the __least profitable company ever to go public__ — Its loss the past 12 months was twice as big as the 2nd biggest IPO loser (ironically, that's Lyft). 

__"Bad IPO day" support groups...__ Wall Street needs one. Tech stocks tend to jump on IPO day — Over the last 24 years, they've [popped](https://www.nytimes.com/2019/05/10/technology/uber-stock-price-ipo.html) 41% on average. But Uber's not the only exception:

- __Facebook:__ Spent its first 15 months below its IPO price. Now it's Earth's #4 [most valuable](https://www.axios.com/ubers-ipo-perfect-storm-2a75a55a-adec-496b-bc23-02d99d02920f.html) company.
- __Snap and Lyft:__ Both lost a third of their stock value within a month.
- __Alibaba:__ Fell nearly 50% over its 1st year. Now it's nearly double its IPO price.
- __FYI, keep in mind:__ None of these past stock moves are signs of future ones — IPO stocks can be especially volatile. Always dive into a company's [S-1](https://www.sec.gov/Archives/edgar/data/1543151/000119312519103850/d647752ds1.htm) before jumping into its freshly-issued stock.

Fresh

__Venture capitalists were cool with Uber's losses...__ Maybe *public investors* aren't. Uber's epic '08 [pitch deck](https://techcrunch.com/gallery/here-is-ubers-first-pitch-deck/) convinced *private investors* to invest over $20B in Uber. After Friday's IPO, it's worth $76.5B — The same valuation as three years ago. New tariffs last week and a driver strike didn't help, but unprofitability is the fundamental worry for Uber (and Lyft). Robo-drivers could solve that (ETA is TBD). Will investors wait?