__ETA ASAP...__ 10 years ago, someone watched a car approach via a smartphone map app. Now it's time for __Uber's__ IPO. The OG ride-hailer set a price of $45 for shares to open for trading today (that's a bit on the lower end of the range they expected, which was up to $50 a share). Total company value = $82B.

__The "S-1": do it...__ This [tell-all document](https://www.sec.gov/Archives/edgar/data/1543151/000119312519103850/d647752ds1.htm) is required of all companies going public (and should be required reading for anyone thinking of investing). It's like a dating profile for pre-IPO companies. Unlike Tinder, it's not just your top pics with puppies — it's required to be honest and balanced: 

- __The good:__ Uber wants to own food and freight delivery, too – Its Uber Eats app has more 5-star ratings on the App Store than Uber (1.4M vs. 888K). And all those tractor-trailer big rigs might get an Uber sticker and start offering you water.
- __The bad:__ Competition. From lots of places. In "personal mobility" alone (ride-hailing, bikes, and scooters), Uber lists 20 competitors, including planned robo-taxi fleets from __GM__, __Tesla__, and Google's __Waymo__. #NotJustLyft 

IPOing

__This is 1-star timing...__ IPOs give us wedding-like vibes — you plan it in advance, and hope anything "beyond your control" won't ruin it. Instead of rain, Uber had to worry about a trade war. New tariffs on China hit last night. And Lyft's poor stock performance (down 37% since its high) doesn't help. There's no "IPO timing" insurance.

Uber IPOs today: Here's what you need to know

__Two brewmasters walk into a bar...__ and they merge operations. Sam Adams-owner __[Boston Beer Co.](https://robinhood.com/stocks/sam)__ is the nation's 2nd biggest craft brewer. IPA-legend Dogfish Head is #13 (the pride o' Delaware). Now they're merging in a $300M deal: The Dogfish husband and wife co-founders earn $127M in Boston Beer stock, while other Dogfish investors get $173M in cash.

__Let's just mix them...__ The brew-mance actually began in February when the two CEOs [met](https://www.boston.com/food/beer/2019/05/09/boston-beer-company-dogfish-head-300-million-merger) at a beer fest in Boston (we approve: one of your Snacks Managing Editors met his fiancée at a VT brew fest). Then they realized how "beautifully complementary" their portfolios are. Adorable. Now they've got two goals:

1. __"High-end" anything:__ The duo will keep things artisan, but not necessarily beer — Boston Beer's Angry Orchard cider is a top-performer.
2. __But stay "legally craft":__ They'll keep their status as craft, even after they're merged — As long as no more than 25% of either label is owned by a non-craft company.

__This is how you take on Big Beer...__ __[AB InBev](https://www.robinhood.com/stocks/BUD)__, __[Diageo](https://www.robinhood.com/stocks/DEO)__, __[Molson Coors](https://www.robinhood.com/stocks/TAP)__, and other brew-glomerates have bought up craft beers for years ([here's where](https://vinepair.com/booze-news/craft-brewery-ownership-chart/)). Corona's __[Constellation Brands](https://www.robinhood.com/stocks/STZ)__ dropped $1B for Ballast Point microbrew in 2015. Two-packed craft beer can fight for shelf space. And it's why Boston Beer's CEO [expects](https://www.cnn.com/2019/05/09/business/boston-beer-company-dogfish-head-merger/index.html) "more consolidation in the craft beer industry."

A couple craft beer legends merge in $300M deal

__This is awkward...__ __[Edgewell Personal Care](https://www.robinhood.com/stocks/EPC)__ just [paid](https://ir.edgewell.com/news-and-events/press-releases/2019/05-09-2019-110141903?sc_lang=en) $1.37B for __Harry's__, the direct-to-consumer guy-and-gal shave company. Investors hated it. Shares of Edgewell fell 16% Monday for a couple other reasons, too:

- Edgewell also reported earnings, and __sales fell 10% in the 1st quarter__. Edgewell owns your parents' bathroom cabinet: Schick razors, Playtex, Banana Boat, and Wet Ones, among other brands.
- Edgewell's value by market capitalization is just $2.1B. So its acquisition of Harry's was __wildly huge__ considering its size. It'll take on debt and issue new shares to pay for the "combination."

__The disrupted just ate the disrupters...__ Gillette and Schick owned a comfortable, high-profit razor duopoly. Now they kind of do again after acquiring up the companies that disrupted their coziness:
1. __[Procter & Gamble](https://www.robinhood.com/stocks/PG)__ owns Gillette, and then bought __Walker & Company's__ razors for people of color.
2. __[Unilever](https://www.robinhood.com/stocks/UL)__ snatched up __Dollar Shave Club__ last year.
3. __Edgewell__ has Schick and __Wilkinson Sword__ (razors with British accents), and now Harry's.


Shave

__Time to subscript-ify. Everything...__ The Harry's co-founders impressively convinced a generation to buy a razor *and* sign up for regular blade/cream refills. It makes sense (most facial hair grows kinda consistently). Edgewell has other products ready for subscript-ify: Body wash, tampons, napkins. Time to Harry-ify them all. 

Harry's Shave acquired by Schick owner for $1.4B

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

_When Snacks gets to cover the hair removal industry_

Tariffs upstreamed Uber

__Above the fold news: Profits for the Times...__ The __[New York Times'](https://www.robinhood.com/stocks/NYT)__ quarterly earnings were politely reported in a totally fair way by crosstown [WSJ](https://www.wsj.com/articles/new-york-times-posts-higher-profit-adds-223-000-digital-subscribers-11557335720). Profits rose 38% to $30M, driven by higher subscription revenue and... *rental income from its giant headquarters building*. When people are getting news from Facebook, you make money where you can. 

__User metrics matter...__ 500K people pay NYT for just its crossword puzzles and cooking recipes. But NYT is a news institution, so let's look at how many humans get all the news that's fit to print:

- 💻 __3.6M__ pay for the Times digital. 
- 🗞 __0.9M__ still go old fashioned newspaper.
- 🏆 __10M__ total subscribers is the goal by 2025 (ambitious).
- 🎧 __Bonus episode:__ __2M__ people listen to the Times' podcast, "The Daily," daily.

Read

__What's black and white and dead all over...__ The Times' news*paper*. Emphasis on "paper." Revenues for digital advertising rose 19%, while ads on huge fold-out pages fell 12%. And it's spending a lot to continue printing those for a declining userbase. Maybe it's for symbolic/historic value — our grandkids should experience a lovely morning stroll through the Sunday Times in its original, unpleasant newsprint paper form.

The New York Times is almost halfway to its 2025 10M subscriber goal

__Wasn't meant to be...__ __[Stamps.com](https://robinhood.com/stocks/stmp)__ dropped 45% after cutting its profit forecasts for the rest of the year by nearly half. Blame it on the big breakup between Stamps and the US Postal Service. News of the two moving on from each other was revealed in February, but now we know the financial [fallout](https://finance.yahoo.com/news/stamps-com-shares-collapse-2019-212723776.html). It's big.

__Wasn't meant to be...__ Stamps committed to an exclusive relationship with USPS back in 1996 to let you print postage at home with its software. It was good while it was good. But Amazon's 2-day shipping makes USPS 3-7 days look bad. Stamps apparently asked USPS to be more competitive, but USPS wasn't up for it. So Stamps wants to see other [people](https://www.cnn.com/2019/02/22/investing/stamps-com-postal-service-deal/index.html). Here's how it will rebound:

- __The good:__ It can finally print postage for customers shipping through FedEx, UPS, or DHL, who already deliver your ecommerce [everything](https://www.digitalcommerce360.com/article/us-ecommerce-sales/).
- __The bad:__ Stamps said yesterday its post-breakup pains are real — it expects sales to fall 8% this year. Analysts thought ending exclusivity with USPS would boost sales, *not shrink them.*

Partner

__The real victims here are FedEx/UPS/DHL...__ Stamps ended things with USPS because Amazon is making moves to become the future of delivery. Jeff Bezos' monster ecommerce platform is [leasing](https://techcrunch.com/2018/12/21/amazon-air-expands-with-10-more-cargo-aircraft-bringing-fleet-to-50-planes/) 50 cargo jets right now (expected to hit 100) and has capacity for 10,000 branded tractor-trailers. Stamps' affection reveals Amazon's ambitions.

Stamps.com plummets 45% because of a breakup

__Roku embraces the little guy mentality...__ It literally [subleases](https://www.businessinsider.com/netflix-is-the-leading-streaming-service-on-roku-tv-boxes-2017-9) office space from Netflix. But it tossed up big numbers Wednesday, with revenues up 51% and the number of active __[Roku](https://robinhood.com/stocks/roku)__ customers jumping 40% from last year to 29M. The best part — The CFO [welcomed](https://www.marketwatch.com/story/roku-stock-rises-after-revenue-outlook-top-expectations-2019-05-08) Disney and others to video streaming: "When they win, we win."

__Cord-cutters print money...__ Roku's direct competitors are Apple TV, Amazon Fire Stick, and Google Chromecast. Those all make TVs smart and streamable. Here's how Roku makes bank:

1. __Ads:__ Its Roku Channel streams movies and shows free, with ads.
2. __Subscription:__ The Roku dongle and its Smart TVs watch Netflix more than anything else. When you subscribe to Netflix (or HBO) through your Roku, the dongle takes a cut.
3. __Hardware:__ The infamous purple dongle and the software it licenses to TV companies.

Stream

__Roku owns top real estate: Your TV...__ Americans spend a shocking [4 hours](https://www.nielsen.com/us/en/insights/news/2018/time-flies-us-adults-now-spend-nearly-half-a-day-interacting-with-media.print.html) a day watching live TV. Anything that gets more people cord-cutting helps Roku shift that time from live TV to Roku TV that it can monetize. When Disney+ rolls out this fall with classics, Star Wars, Fox, and Marvel for $6.99/month, it could crank cord-cutting up a notch.

Roku reveals Disney+ is its cord-cutting buddy 

_Hogwarts professors appreciate the Times print edition_

Roku owns your living room

__We're decidedly pro-carpooling...__ and pro-Snacks story-pooling. Yesterday, one old school company, one new-ish school company, and one brand new company updated investors and customers on auto industry-changing moves:

- __[Lyft](https://www.robinhood.com/stocks/LYFT):__ The first gig-economy cab company to go public bragged that revenues almost doubled in the 1st quarter to $776M. But its loss [ballooned](https://www.cnn.com/2019/05/07/tech/lyft-first-earnings-report/index.html) to $1.1B. That loss was __mostly driven by new stock issued to employees because of the IPO__, so investors were impressed overall despite the loss.  
- __[Tesla](https://www.robinhood.com/stocks/TSLA):__ The e-car company [announced](https://jalopnik.com/tesla-plans-to-offer-owners-potentially-cheaper-insuran-1834554733) it is __offering its own car insurance__. It claims its cars are safer (thanks to self-driving car features) and it has more data on drivers (thanks to its techiness) so it can insure cars for less. 
- __[General Motors](https://www.robinhood.com/stocks/GM):__ Its acquisition of Cruise Automation for $1B in '16 was transformational. Cruise alone is now worth $19B after it received $1.15B of [new investment](https://news.crunchbase.com/news/cruise-drives-away-with-1-15b-in-funding-at-19b-valuation/) from Softbank, Honda, and T. Rowe Price. GM's tech division is testing self-driving cars so it can eventually __unveil its own Uber-like ride-hailing app of GM cars__ with no drivers.

Drive

__Uber's IPO is Friday...__ That adds another publicly traded company to the fight over your transit dollars. With the taxi and car industries nudged aside by West Coast tech, Uber/Lyft drivers in at least 10 US cities are [protesting](https://www.businessinsider.com/uber-lyft-strike-locations-where-drivers-are-protesting-new-york-los-angeles-london-2019-5) today. LA's Uberers will turn off their apps for 24 hours, while NYC's are skipping the 7am-9am rush hour.

Lyft, Tesla, and GM have big things to say

__Love has no boundaries...__ Neither does __[Match](https://robinhood.com/stocks/mtch)__, the dating company that powers dating apps — Tinder, OKCupid, OurTime, and any other warm-blooded potential connection. It enjoyed a 14% revenue jump last quarter driven by 23% growth outside the US. Dating biz abroad will likely surpass North America next quarter thanks to international [love trends](https://www.bloomberg.com/news/articles/2019-05-07/match-group-beats-estimates-as-tinder-popularity-grows-abroad). Here's what it highlighted:

- A decline in arranged marriages in __India__
- Online dating "stigma" is crumbling in __Japan__
- 1st-time smartphone adoption in __SE Asia__ 

__Tinder gets all the love...__ The swipe-right legend now has 4.7M users, with growth fueled by this fall's TinderU launch for college kids, and a few other changes.

- __384K:__ That's how many new Tinderers joined the platform — Its 3rd best quarterly jump ever.
- __Algorithm tweaks:__ The more accurately it matches you early on, the more likely you are to pay-up for the premium option.
- __Big new bets:__ Tinder now lets you start flirting pre-Bonnaroo with fellow music festival singles three weeks before the event. That feature was [inspired by](https://www.theverge.com/2019/5/2/18525993/tinder-music-festival-mode-swipe) the Spring Break one it launched months earlier.

Swipe

__"Hasn't seen any impact"...__ Match's CEO [boldly](https://www.marketwatch.com/story/match-group-earnings-top-estimates-as-tinder-membership-growth-picks-up-2019-05-07) said that about __[Facebook's](https://robinhood.com/stocks/FB)__ dating feature, which had rolled out in some of Tinder's markets already. Zuck's "Secret Crush" is brand new, and dating hits 14 more countries this year. Match is confident.

Match pops 8% in Facebook's face (powered by Tinder)

__Koi fish-painted clogs...__ That's the gem of a shoe [featured](https://s22.q4cdn.com/133460125/files/doc_financials/quarterly_results/2019/Q1/IR-Presentation-5-19.pdf) on page #1 of __Crocs'__ earnings report. The polarizing fashion icon's stock is up 75% over the last year. And even though quarterly sales only rose 4% (which dropped shares Tuesday), the CEO is still enthused about a "great start to 2019." He's into its "norm-core" marketing moves...

__Millennials are out...__ Gen-Z is in. Crocs used strategic marketing to boost its brand rep among Americans under 24. It [became](https://www.businessinsider.com/crocs-teen-popularity-surges-2018-10) the #13 most popular footwear brand for the post-Millennial crowd, up from #38 two years ago. Here's how:

- Absurdly viral products, like high-heeled Crocs last summer and the __new [fanny pack](https://www.cbsnews.com/news/fanny-pack-crocs-new-slip-on-shoes-beams-and-crocs-classic-clog-style-crocs-with-mini-backpacks/) Crocs__.
- __“Come as you are” ad campaign__ to get buyers comfortable with the inevitable public judgment of wearing Crocs.
- __A-minus list celebrity ambassadors__, like John Cena, Zoey Deschanel, and Drew Barrymore (Drew did an online [musical](https://www.youtube.com/watch?v=Pdev35HqCbE) for Crocs).
- __Local foreign ambassadors__ in China, Japan, and South Korea kept that celeb vibe going (now 30% of sales are in Asia Pacific).

Wear

__Crocs' comeback strategy: Do less...__ The brand was close to bankruptcy in ‘09, so it [streamlined](https://money.cnn.com/2018/08/09/news/companies/crocs-clogs-sandals/index.html) everything. It shut down locations, ended non-core product lines, and outsourced shoe production to 3rd parties. Going back to “Crocs' DNA” — Clogs and sandals — started its recovery. Now it's comfortable enough for fanny Crocs. 

*FYI, shaving cream in Crocs is [now a thing](https://www.kfdi.com/2019/05/07/the-new-viral-trend-is-putting-shaving-cream-in-your-crocs-but-in-a-fun-way/).*

Crocs' earnings show how far foam clogs have come

_"Car news. It's everywhere, baby"_

GM's own Uber app (but self-driving)

__nbd...__ In a weekend CNBC interview, __[Apple](https://robinhood.com/stocks/aapl)__ CEO Tim Cook casually [dropped](https://www.cnbc.com/2019/05/06/apple-ceo-tim-cook-interview-from-berkshire-hathaway-meeting.html) this: "*So we acquire a company on average, every two to three weeks.*" He went ahead and connected the mathematical dots for us — Apple has bought 20-25 companies since November by Cook's estimation. And only about 6 of them have been reported on.

__With great cheddar comes great responsibility ...__ Apple is only required to announce acquisitions that have a material impact on its business. None of these smaller ones apparently have. But investors aren't worried about the price, since Apple boasts $225B in cash as of last quarter's finish — There's pressure to spend it on things that will grow the business, or return it to investors as dividends.

Splurge

__Apple's using acquisitions to play catch up...__ Its iPod and iTunes changed music, but Apple fell behind in streaming — So it bought Beats in 2014 ($3B) and Shazam in 2018 ($400M) to catch up. The latest buying spree of tiny companies looks like subtle moves to beef up Siri (she trails Alexa and Google Home in some digital assistant rankings). These 3 specific [recent acquisitions](https://www.businessinsider.com/apple-14-or-more-mystery-acquisitions-6-months-2019-5) sound like Siri-enhancers:

1. __Laserlike__: Machine learning — *Teach Siri to understand humans better*
2. __Silk Labs__: AI software — *Improve Siri's brain*
3. __PullString__ Voice applications — *Improve Siri's hearing*

Apple bought over 20 companies in the last 6 months

__*You guys want some cookies?*...__ __[Google](https://www.robinhood.com/stocks/GOOG)__ is [expected](https://www.wsj.com/articles/googles-new-privacy-tools-to-make-cookies-crumble-competitors-stumble-11557151913?mod=hp_lead_pos6) to use today's developers conference to reveal its latest move: Strengthen its online ad dominance. That involves Chrome (its dominant web-browser) and a new button that lets users super-easily block tracking cookies.

- __Cookies (noun):__ Little bits of code that track what web pages you view and things you click/tap.

__They're why that sweater you clicked once follows you everywhere...__ Digital ad firms use cookie-delivered data to convince companies to buy online ads. Without cookies, these Google rivals could die...making Google's ad sales biz even stronger. Google is expected to frame the move as a user privacy thing, but it could also earn it more of the market.

__Beware the algorithm tweak...__ Like those little fish sucking on a shark's belly, some businesses depend completely on a bigger one. Google, Facebook, and Amazon have corporate habitats built around them. The big risk for minnows is that a flick of a switch cuts off their access to customers. 

- __Facebook__ did it with games and for online publishers.
- __Amazon__ could do it with __[Sonos](https://www.robinhood.com/stocks/SONO)__' Alexa-powered speakers.
- __Google__ just might do it with cookies and the ad companies that live off them.

Google might kill "tracking cookies," which could kill its competition

__It's a rare oil love triangle...__ Lust, greed, love, and drama included. The oil industry is watching the drawn-out romantic fight between Chevron and Occidental over Anadarko to acquire its "strategic real estate" (more on that to come). Here's the quick play-by-play of the bids and counter-bids to acquire __[Anadarko Petroleum](https://www.robinhood.com/stocks/APC)__ ("APC") so far:

- __April 12:__ __[Chevron](https://www.robinhood.com/stocks/CVX)__ offered $65/share ($33B total) to buy Anadarko. __APC shares jumped from $46 to $64__.
- __April 24:__ A new suitor, __[Occidental Petroleum](https://www.robinhood.com/stocks/OXY)__, offered $76/share ($38B) to win APC's on-shore drilling assets, __so APC stock popped from $64 to $72__ on the sweeter deal.
- __Yesterday:__ To seal the thing, Occidental upped its offer to include more cash and fewer Occidental shares (same price though overall). __APC shares rose to $75__ on expectations this one's happening.

__It looks like Chevron will lose...__ But its thirst for more oil still isn't satiated. Investors speculate that one of the other, smaller Texas oil companies could get snatched as the consolation prize, so shares of __[Pioneer](https://www.robinhood.com/stocks/PXD)__, __[Concho](https://www.robinhood.com/stocks/CXO)__, and __[Diamondback](https://www.robinhood.com/stocks/FANG)__ [have all risen](https://www.wsj.com/articles/rivals-vie-for-mastery-over-americas-hottest-oil-field-11557135001).

Auction

__The prize is a bunch of West Texas land...__ that's fortunately got an ocean of oil beneath it. Natural resource extraction is a fascinating industry — *Who has the sharpest ax, deepest drills, or pumpiest pumps?* Anadarko has drilling rights to land in the 75K square mile "Permian Basin" where it's easiest/cheapest to produce oil. And Anadarko's oil straws can suck out millions of barrels of oil worth billions of dollars.

The $38B bidding war for Anadarko's West Texas oil jackpot

_When you have a 12-digit bank account balance_

Apple (casually) just bought 20+ startups

__Influencers + Thrones = Champion...__  __[Adidas](https://www.robinhood.com/stocks/ADDYY)__ stock hit an all-time high courtesy of a 1-2 punch of numbers: China sales jumped 16% and online sales popped 40%. Now Nike's German rival is [adding](http://fortune.com/2019/05/03/adidas-stock-q1/) to its influencer partnerships to kick up shoe sales — a "Game of Thrones" [collaboration](https://www.aiobot.com/adidas-game-of-thrones-collection/) is here, while the new Adidas athleisure partnership with Beyoncé gets launched this year.

__Zuck-Fest 2019...__ __[Facebook](https://robinhood.com/stocks/fb)__ announced that "[the future is private](https://techcrunch.com/2019/05/05/facebook-is-pivoting/)" at the social network's 2-day F8 developers conference. So he focused on FB5 — The new, less-public, blue-free Facebook redesign. It's pushing your posts to Groups and private DMs instead of the public newsfeed. Plus the dating feature "[Secret Crush](https://www.theverge.com/2019/4/30/18522924/facebook-f8-secret-crushes-dating-app-hinge-feature)" hits the US this year. 

__Will work for meat-less...__ Plant protein pioneer __[Beyond Meat](https://www.robinhood.com/stocks/BYND)__ became  first of its breed to hit public markets with the biggest IPO day performance of any company since 2000. Shares soared 167% in its first two trading days on hopes its pea-based recipe will become [menu standard](https://www.cnbc.com/2019/05/02/beyond-meat-is-being-valued-like-a-tech-company-but-it-makes-food.html) (Burger King already features Beyond rival "Impossible Burger" nationwide). But first it faces beef industry lawsuits that claim it's technically not a "meat."

Highs

Who's up...

__Blame the sun...__ __[Shake Shack's](https://robinhood.com/stocks/shak)__ sales jumped 3.6% in the first quarter and it popped out its first Shacks in China (and Rhode Island). But the CEO showed gratitude for the unusually "warm weather conditions" [responsible](https://www.wsj.com/articles/shake-shack-results-were-too-sunny-11556978400) for getting diners into Shacks. Investors weren't happy to hear a good quarter required Mother Nature's blessing.

__Sobering...__ The amount of beer sold by __[Molson Coors](https://robinhood.com/stocks/tap)__ fell nearly 5% last quarter. Amid shrinking beer sales (consumption fell 1% nationwide last year), the solo cup icon is trying to mature: It bought a kombucha company, invested in tea, and just [confirmed](https://www.cbc.ca/news/business/molson-coors-reports-weaker-1st-quarter-but-not-because-of-cannabis-legalization-1.5118712) its joint venture cannabis drinks will hit Canada by this fall (aka, when edibles are expected to be legalized).

__Front row view...__ to concert-booking platform __[Eventbrite](https://robinhood.com/stocks/eb)__ falling 20% last week (the stock is now below September's IPO price). The problem lies with headliner Ticketfly, which Eventbrite bought from Pandora for $200M. The two-year-old acquisition has become a "[complex](http://fortune.com/2019/05/02/eventbrite-stock-plunges/) and consuming integration process" that's still not over. And that drama affects Eventbrite growth.

Lows

...And who's down

__All quiet on the US-China trade front since December...__ Then this weekend happened. Yesterday, Trump [announced](https://twitter.com/realDonaldTrump/status/1125069835044573186) two fresh trade war attacks:

- __$200B:__ The president is increasing the tax we impose on $200B worth of annual imports from China from 10% to 25% this Friday.
- __$325B:__ The rest of the Made in China stuff we import is currently excluded. But Trump tweet-warned that all that would get punished too "shortly, at a rate of 25%." 

__Quick reminder: Tariffs hurt importers, exporters, and everyone else...__  

- __Corporate winners:__ Made in USA companies that compete with foreign firms for sales to Americans. With tariffs, __[Whirlpool](https://www.robinhood.com/stocks/WHR)__ washing machines snag an [advantage](https://www.npr.org/2019/04/09/711001915/tariffs-complex-ripple-effects-hit-appliance-shoppers-and-makers) because Chinese rivals become more expensive.
- __Corporate losers:__ American companies that export to China (think __[Caterpillar's](https://www.robinhood.com/stocks/CAT)__ big rigs) suffer from China's *retaliatory* tariffs. And US companies that import raw materials like steel (like __[Ford](https://www.robinhood.com/stocks/F)__) have to pay for steel + US tariffs now.
- __The next possible loser:__ Most __[Apple](https://www.robinhood.com/stocks/AAPL)__ products are assembeled in China, but fall into the "not tariffed yet" category. Trump's threatened expansion would include your whole drawer of iPhones, Macs, and AirPods. 
- __Everyone else (losers):__ You and us. US consumers [pay](https://www.reuters.com/article/us-usa-trade-tariffs-explainer/explainer-who-pays-trumps-tariffs-china-and-other-exporters-or-u-s-customers-idUSKCN1SB0UF) for tariffs through higher prices on what's imported from China. Picture a "25% off" sale, but in reverse. 

Bombs

__You thought trade spring was coming?...__ Bam. It's winter again. One reason this update hurts is because investors were expecting a peace deal this week, based on signals from DC and Beijing — It's a key reason markets are at a record high. Now investors have to re-calculate how continued trade war pain will affect company profits. 

- __Up next:__ A top Chinese trade negotiator was supposed to visit DC on Wednesday. Now he may [cancel](https://www.wsj.com/articles/trump-says-he-will-increase-tariffs-on-200-billion-of-chinese-goods-from-10-to-25-on-friday-11557075332)... 

Trade War shockingly escalates after months of talks

Dow Jones 

"_Mama always said, trade talks are like a box of chocolates_"

This week: Trade War's back

__Tasers are having a moment...__ Nationwide focus on police conduct has departments buying up Tasers, body cameras, and software to upload the footage. Taser inventor __[Axon Enterprises](https://robinhood.com/stocks/aaxn)__ makes all that, and just granted CEO/co-founder Patrick Smith [$246M in compensation](https://www.wsj.com/articles/taser-chief-gets-stunning-246-million-stock-option-award-11556817574?mod=hp_listb_pos4) — 20x the pay of a normal (still very rich) big company CEO. But read the [fine print](https://d18rn0p25nwr6d.cloudfront.net/CIK-0001069183/41e1ea87-f981-4193-a3a0-3311fac90a55.pdf)...  

__Dangling million dollar carrots...__ The board wants Smith to capitalize on the Taser era. So they've set up performance-based targets that will turn his stock options into real dollars:

- __Stock price:__ All the Axon shares out there are worth $3.8B total right now. There are __12 "market cap" milestones__ that will convert his options to cash money as it hits points on the way up to $13.5B.  
- __Revenues:__ They're currently at $400M. If it reaches $2B, Smith will score __8 separate stock option bonuses__.
- __Profits:__ Yup, there are __8 more prizes based on profitability targets__. 

Payday

__Smith's living on the edge...__ Although technically (based on accounting rules) he got "paid" $246M this month, it was all in stock options — Those have no value unless they "vest" (aka hit those goals above). *His current salary is just $24K.* He doesn't get rich unless his company does too. 

The Taser CEO gets paid $246M (only if his company does reeeeally well)

__Compliments to the chef...__ __[Beyond Meat](https://robinhood.com/stocks/bynd)__ enjoyed the biggest 1st day jump of any stock since 2000: +163%. Shares of the plant-based protein pioneer actually surged so fast they had to be halted by Nasdaq. Despite just $90M in annual revenues, Beyond is now worth twice as much as all of __[Shake Shack](https://www.robinhood.com/stocks/SHAK)__ ($3.8B vs. $1.8B).

__It's all about *reducetarians*...__ Not vegans. A Nielsen survey says just 6% of Americans are vegetarian, and half that are veganites. But 39% now [crave](https://www.nielsen.com/us/en/insights/news/2017/plant-based-proteins-are-gaining-dollar-share-among-north-americans.html) to eat more plant-based foods and less animal-based ones. Beyond's pea-based protein strategy is targeting those meat "reducetarians."

- __Grocery stores (58% of revenues):__ Beyond's sold in 15K so far — And 93% of Kroger customers who bought the Beyond Burger [also](https://www.forbes.com/sites/greatspeculations/2019/05/01/pre-ipo-coverage-beyond-meat-bynd/#39bd9bf95fd3) bought animal meat.
- __Restaurants (42%):__ Beyond Burger is served in 12K restaurants that also offer plenty of beef — Carl’s Jr., TGI Fridays, and BurgerFi.

Bleed

__A big IPO isn't necessarily a successful IPO...__ Beyond Meat issued 9.5M raw, new shares to brand new investors this week to raise  money to grow. Naturally, it aimed to sell at the highest price. Thursday's insane jump though shows it under-priced the shares and could have raised more money:

- __$25/share:__ That's the price at which Beyond Meat issued shares = __$238M raised__.
- __$68.70/share:__ That's the price after Day #1 of trading = __$653M potentially (but not) raised__.
- __$415M:__ that's how much money Beyond Meat "left on the table" by IPO-ing at a share price that seemed to be too low.


Beyond Meat surges 163% on record IPO day

__Free-to-play video games...__ are the arch-enemy of pay-to-play companies like __[Activision Blizzard](https://www.robinhood.com/stocks/ATVI)__. The gamer's 1st quarter revenues fell 8% from last year — And since gaming juggernaut __Fortnite__ (owned by private company Epic) took over social lives beginning July 25, 2017, Activision's stock is down 28%.

🎮 __Q1 Lowlight:__ *Monthly active gamers dropped to 345M from 374M last year.*

__Pwnd by Fortnite...__ Activision's new games [aren't impressing](https://www.barrons.com/articles/how-fortnite-spoiled-the-party-for-electronic-arts-and-activision-blizzard-51547858173), so it's trying out different ways to win: 

- __Make addicting games:__ Average time spent by customers on its games was *50 minutes per day* last quarter.
- __Learn to play their game:__ Fortnite trained a generation of players to pay money for extra, in-game features (virtual players need costumes) — But those sales actually fell for Fortnite from $1B to $800M. 
- __Build stadiums:__ *Overwatch* League (a pro e-sports tournament) depends on live-gaming with live fans of Activision's popular battle game. It's launching *Call of Duty* League soon, too.

Play

__Gamers need to stay focused...__ To deal with shrinking revenues, Activision already laid off [750](https://www.hollywoodreporter.com/news/activision-blizzard-revenue-slumps-massive-layoffs-1207007) employees this year to cut costs. The still-active Acti-visionaries (new nickname) are working on its top games only — *Call of Duty, Overwatch,* and *Warcraft* — which are on their last lives. Others are already Game Over (RIP, *Destiny*).

Activision Blizzard still can't beat Fortnite

_Good, gooder, "beyond"_

Beyond Meat. Hangry.

__Call a cab...__ __[Molson Coors'](https://robinhood.com/stocks/tap)__ night is over after shares fell 7% following its earnings report. The volume of alcohol it sold dropped 4.7% [worldwide](http://ir.molsoncoors.com/news/press-release-details/2019/Molson-Coors-Reports-2019-First-Quarter-Results/default.aspx) — That's its 6th-straight quarterly decline. One small piece of dignity salvaged: Coors light showed "improvement."

__Innovation cravings...__ Molson's feeling them. A highlight in the report was the brewer's [goal](http://www.molsoncoors.com/en/sustainability/responsibly-refreshing/drive-innovation) to introduce non/low-alcohol drinks to 100% of its markets by 2025. Here's who's making moves:

- __Alt-Beer:__ "Arnold Palmer Spiked" is its new 5% ABV drink that enjoyed “rapid growth” last quarter (no word on what this "malt beverage" is actually spiked with).
- __Tap Ventures:__ Molson's venture capital arm already [bought](https://www.brewbound.com/news/molson-coors-acquires-california-kombucha-maker) a California kombucha and invested in chai tea within the last year.
- __Cannabis drinks:__ Pot is legal in Canada, but the *edibles* laws are a bit hazy. So Molson [confirmed](https://www.cbc.ca/news/business/molson-coors-reports-weaker-1st-quarter-but-not-because-of-cannabis-legalization-1.5118712) its cannabis-infused drink lineup will arrive this fall once regulations get all cleared up.

__Beer is a shrinking market...__  Alcohol sales are slipping nationwide, but beer demand dropped the [most](https://www.wsj.com/articles/americans-are-drinking-less-alcohol-11547733600) (down 1.5% last year). Since the size of the liquid pie is shrinking, Molson's task of getting someone to drink their beer requires *converting* drinkers of the competition. Unfortunately, __[Bud](https://robinhood.com/stocks/bud)__ spends a ton on beer advertising, and __[Corona](https://robinhood.com/stocks/stz)__ has (almost) caught Coors in sales.

Molson Coors falls 8% despite kombucha/canna-beer bets

__Extra shrimp cocktail...__ __[Royal Caribbean's](https://www.robinhood.com/stocks/RCL)__ profits popped 14% from last year to $250M during "wave season" (official industry [jargon](https://www.cntraveler.com/story/what-is-wave-season-for-cruises) for Americans flocking south for winter). Tickets rose, on-board spending increased, and the share price closed in on a record high. 

__Man down...__ For the rest of the year, Royal's facing currents in both directions:

- __Bad & embarrassing:__ The "Grand Bahama Shipyard Incident of 2019." Two cranes [dropped](https://www.rclinvestor.com/press-releases/release/?id=1407) on docked ships during routine maintenance, canceling three "Oasis of the Seas" voyages.
- __Bad & out of its control:__ With the stronger US dollar, profits earned in euros (Royal runs German and Spanish cruisers) translate to fewer dollars. Plus, fuel prices rose.
- __Good & awesome:__ It's raising prices for beds on its ships (the ones with the folded towel origami animals) — Up 7.5%-9.5% across the board.

Cruise

__Pricing power is a rare muscle...__ Royal is swole with it. It raised prices 7.2% last quarter, but passengers kept coming. That vacation splurging signals a strong economy, consumer confidence, and demand for the Royal treatment. Competitors like __[Carnival Cruises](https://robinhood.com/stocks/ccl)__ also rose Wednesday as Royal captains capitalize on price hikes.

Royal Caribbean jumps 7% on its pricing superpower

__Square. A really sexy cash register...__ It looked more like a wad of street cash Wednesday. Shares fell 6% after __[Square](https://www.robinhood.com/stocks/SQ)__ [reported](https://techcrunch.com/2019/05/01/square-reports-q1-sales-of-489m-up-59-but-net-loss-widens-to-38m/) a big loss and slowing revenue growth. Tough combo.

__It's all over your money...__ Square launched with dongles to let farmers markets accept credit cards for beets. Then it evolved  into sleek iPad-connected credit card swipers for your morning latte routine. But it's blown up into a whole financial services beast for small business. Now it's even curious about consumer finance: 

- 🏦 __Square Capital:__ If your barbershop clippers broke so you need some cash, Square's there. It inked 70K loans last quarter worth $508M, up 50%.
- 💻 __Subscriptions:__ Its main money-maker. Barbershops can pay monthly for software to handle the accounting books.
- 🤪 __Cash App:__ Square Cash has been on top of Venmo in the App Store for a while, offering pretty much the same peer-to-peer payment app.
- 🍤 __Other bets:__ Well-bearded CEO Jack Dorsey (also CEO of Twitter) is hiring crypto engineers. And Square owns Caviar, the gourmet-endowed food delivery app.

__Square suddenly decided to do everything...__ Its stock rose from $12 at its 2015 IPO to $100 last fall, as it shockingly reached a profit (fast for a fast-growing tech company). But the stock has fallen as losses return. Those bets above show Square's big consumer and crypto ambitions. Reaching them costs $$$.

Square's many side-hustles killed profits

"_What do you mean, 'it's kombucha'?_"

The Molson Coors kombucha bet

__*Welcome to Zuckapalooza. Now please update your FB app*...__ Mark began __[Facebook's](https://robinhood.com/stocks/fb)__ F8 developer conference with a preview/tour of the redesigned Facebook: aka "[FB5](https://finance.yahoo.com/news/facebook-redesign-fb5-180931424.html)" (it's rolling out to users starting today). Facebook Dating is also expanding to the US later this year and 14 more countries right now — [Swipe right](https://techcrunch.com/2019/04/30/facebook-dating-secret-crush/) on any friend *or* indicate a friend-of-a-friend "Secret Crush."

__Operation FB5-star is a Group team effort...__ Go look at Facebook's app in the App Store — it has about as many 1-star as 5-star ratings. It's polarizing. This redesign is intended to improve that by focusing on Groups:

- __Better privacy:__ Worried those embarrassing freshmen year pics may go viral? Facebook's concerned, too. So it's emphasizing Groups and Messaging, which keep posts more contained.
- __Admins = Policemen:__ It doesn't have enough humans or AI to stop extreme content from reaching innocent eyes. So it's de-emphasizing the newsfeed, and letting your Group's Admin take down bad stuff.
- __*Potentially worse isolation:*__ Limiting chats to Group life means conspiracy theories, hate, and misinformation could potentially thrive even more.

Social

__This could hurt profits. It doesn't matter...__ It's not clear how this privacy focus will affect the Book's ad-tastic business model. But 18-29-year-olds are ditching Facebook [fastest](https://www.pewresearch.org/fact-tank/2018/09/05/americans-are-changing-their-relationship-with-facebook/) (usually for Insta, which Facebook also owns) because FB posting is too public. So it's disrupting itself with a more private version before a competitor does.

Facebook rolls out dating and one big redesign

__Pop the top-shelf McFlurry...__ __[McDonald's](https://robinhood.com/stocks/mcd)__ just notched its 15th-straight quarter of sales growth, jumping 5.4% globally. But McD's suffered two menu casualties: Its fancy burgers (the "Signature Crafted Recipes" lineup) is 86'd and its late-night menu is getting [trimmed](https://www.cnn.com/2019/04/18/business/mcdonalds-signature-craft-burgers/index.html).

__Ronald has settled into a 2-carb diet...__ And it's working. McDonald's [credited](https://news.mcdonalds.com/news-releases/news-release-details/mcdonalds-reports-first-quarter-2019-results) a pair of promotional foods for the strong 2019 start:

- __Donut Sticks:__ Added to the menu in February, the 280-calorie balanced breakfast headlined McD's new 2-for-$5 "Mix and Match" deal.
- __Bacon Day:__ The one-day event in January let you toss bacon on the side of any order. That delivered a single-day sales pop *and* an opportunity for diners to experience new menu options.

Chew

__The Breakfast Wars just got kicked up a notch...__ Fast food sales were flat last year overall, but breakfast sales rose 1%. Breakfast is now the last quick-serve food frontier because it's the meal you [most likely](https://www.cnn.com/2019/04/30/investing/mcdonalds-first-quarter-earnings/index.html) prepare at home. Donut Sticks were McD's latest Breakfast War attack — Here are the other recent battle moves:

- __[Burger King](https://www.robinhood.com/stocks/QSR)__ introduced a $5-a-month coffee [subscription](https://sprudge.com/burger-king-has-a-coffee-subscription-service-for-5-a-month-141811.html) in March.
- __Panera__ redesigned its morning menu in April.
- __[Dunkin'](https://robinhood.com/stocks/dnkn)__ launched two new sausage & egg-white breakfast bowls this week.

Bacon and Donut Sticks power McDonald's to a record high

__When a realtor brags about the house's plumbing...__ walk right out the door. Now __[Apple's](https://www.robinhood.com/stocks/AAPL)__ boasting in the [first paragraph](https://www.apple.com/newsroom/2019/04/apple-reports-second-quarter-results/) of its earnings about iPad and Watch sales — But they're just a sliver of company revenues. Overall, *Apple's profits fell* 16% because fewer people are upgrading to $1K iPhones (your $750 iBrick is still solid).

__Cash hookups are rising...__ as sales are falling. Apple's got a case of "lack-of-iPhone-growth," so it distracted shareholders with goodies:

- __The dividend is growing by 5%__ — Each quarter, Apple will wire almost $4B worth of company cash to stockholders based on the # of shares they own ($0.77 per share, to be exact).
- __It'll spend $75B to buy back some Apple shares__ — That increases the value of all the other shares out there by removing some from the market.
- *The result: __Apple stock rose 5% Tuesday__ because investors will get cash hookups.*

Trillions

__Apple's become a giant ATM...__ Even though business is shrinking, Apple has so much past and future profit that it's expected to surpass __[Microsoft](https://www.robinhood.com/stocks/MSFT)__ today to become the #1 most valuable company again.

- __The past:__ $225B in the [bank](https://www.cnbc.com/2019/04/30/apple-now-has-225-billion-cash-on-hand.html) from the good ol' iPhone days that it'll continue dishing out to shareholders as dividends + share buybacks.
- __The future:__ 900M people use iPhones right now. And Apple will make more money by mooching services off them like Apple TV+, Apple News+, Apple Music, Apple Pay.


Apple about to hit $1T valuation (again) as iPhone era fades

_Makeovers and Groups. Facebook's trying both_

Facebook's 5th makeover

__Off by a billion...__ Revenue growth for Google-parent __[Alphabet](https://www.robinhood.com/stocks/GOOG)__ decelerated hard in the 1st quarter to its [slowest](https://www.reuters.com/article/us-alphabet-results/google-parent-alphabets-revenue-misses-estimates-rises-at-slowest-pace-in-three-years-idUSKCN1S521N) pace since 2015. And the profit made off that *$1B-less-than-expected* revenue was also (you got it) less than expected. Shares tanked 7% after investors learned Google is ~~human~~ fallible. 
 
__"Hey Google: What is *competition*?"...__ It's Facebook, Twitter, Snapchat, and Amazon. All of them have surging advertising divisions and they're all bad for Google. Here's the ad growth scoreboard for Q1:

- __[Snap](https://www.robinhood.com/stocks/SNAP)__: +39%
- __[Amazon](https://www.robinhood.com/stocks/AMZN)__: +34%
- __[Facebook](https://www.robinhood.com/stocks/FB)__: +26%
- __[Twitter](https://www.robinhood.com/stocks/TWTR)__: +18%
- __*Google: +15%*__ 
- *Perspective: In fairness, Google's ad biz is the largest of all these by far — 2x bigger than Facebook's, and 100x bigger than Snap's*.


Search

__Google's monopoly game is over...__ For 15 years, its business model was to grow the internet (developed to developing nations, desktop to mobile), then reap more and more $$ off it with online ads. Now it's ad-dependent — Ads are 86% of its revenues. With today's real competition, Google needs to embrace a new skill or embrace less growth.

Google falls 7% because Big Tech stole its ads

__Hitting 100M app downloads deserves Adele's Grammy...__ Getting 100M humans to pay monthly for something is elite tech status — Netflix and Amazon have it, and now __[Spotify](https://www.robinhood.com/stocks/SPOT)__ has joined the band, too. Quarterly earnings showed 217M people logged into Spotify accounts at least once a month. Here's who they/you are:

- __100M *premium* users (twice as many as Apple Music):__ Family and student discounts have cut the average amount users pay to just $5.27/month. But that's okay because streaming customers are "[very sticky](https://www.wsj.com/articles/spotify-narrows-loss-hits-100-million-subscribers-11556532073)" — "Premium" revenue makes up 90% of Spotify's total.
- __117M *free* users:__ They can jam out on "Taylor Swift Radio" until *Love Story* gets buzz-killed by a mortgage ad. Spotify's goal is converting them to Premium via those free trials and discounts. 

__*A scrub is a guy that thinks he's fly*...__ but doesn't make profits. If you're surprised Spotify lost $158M last quarter, remember it pays [70%](https://www.investopedia.com/articles/investing/120314/spotify-makes-internet-music-make-money.asp) of revenue back to artists like TLC and their record labels. And it splurged $500M lately to buy podcast companies...

__Pods are Spotify's profit puppies...__ CEO Daniel Ek thinks 20% of listening on his platform won't be music — that's why he calls Spotify an "[audio](https://newsroom.spotify.com/2019-02-06/audio-first/)" company. And it's why he bought Gimlet's pod portfolio in February. Spotify doesn't have to share revenue with podcasts because they're financed by their *own* in-pod ads. Or Spotify already owns them.

Spotify's $158M loss highlights why it needs podcasts 

__Same architect?...__ __[Marriott International](https://www.robinhood.com/stocks/MAR)__ and __Airbnb__ both announced shiny new ventures Monday. But they look a lot alike: Airbnb is entering the hotel biz, while Marriott is jumping into home rentals:

- __Marriott__ unveiled "[Homes & Villas](https://mashable.com/article/marriott-airbnb-competitor-homes-and-villas/)" — A booking platform for __shared apartments and houses__ (sounds Airbnb-ish). The best part for Marriott's hardcore customers: It's reward-program eligible.
- __Airbnb__ unveiled... it's actually not named anything yet. But this "[new category](https://www.cnbc.com/2019/04/28/airbnb-is-partnering-with-rxr-realty-to-convert-new-york-city-commercial-properties-into-a-new-category-of-urban-lodging.html) of urban lodging" begins with 10-floors of curated, designer-designed __high-end hotel-like units__ in NYC's Rockefeller Center. Airbnb calls it "authentic." New Yorkers doubt that.

__That's not where the similarities end...__ Both will feel more *hotel*, less *Craigslist*. They'll be maintained and cleaned by 3rd party management companies so you're not guessing whether the sheets are supposed to be off-white.

Host

__Same product, but different target customers...__ As Airbnb preps to IPO soon, Marriott doesn't want to lose its old school business travelers. And Airbnb wants its Millennials to stop wasting money at old school hotels. They're each dipping into the other's playbook to hospitably keep their same core users.




Marriott and Airbnb simultaneously unveil knock-offs (of each other)

_Googlers need to find a furry wall_

Spotify's 100M "Unprofitables"

__Scroll-worthy...__ __[Facebook](https://robinhood.com/stocks/fb)__ stashed aside $3B to prep for a big government [penalty](http://nymag.com/intelligencer/2019/04/facebook-sets-aside-usd3-billion-for-ftc-fine.html), but shares still hit 9-month highs — 500M people use Facebook Stories daily (aka Facebook's copy of Instagram Stories, which was copied from Snap). And __[Twitter](https://robinhood.com/stocks/twtr)__ enjoyed its 6th [straight](https://variety.com/2019/digital/news/twitter-q1-2019-earnings-1203195229/) profitable quarter in a row — Its user base isn't growing, but more people are using it *every day*. 

__Loyalty programs get VIP treatment...__ __[Starbucks](https://robinhood.com/stocks/sbux)__ rose on word membership in its Rewards [topped](https://www.cnbc.com/2019/04/25/starbucks-q2-2019-earnings.html) 17M, and it powers 40% of all transactions. __[Domino's](https://robinhood.com/stocks/dpz)__ sales rose 4% as its caloric commitment club [passed](https://www.cnbc.com/2019/04/24/dominos-ceo-some-random-third-party-wont-deliver-our-pizza.html) 20M members. And __[Chipotle](https://robinhood.com/stocks/cmg)__ boasted that its 1-month-old loyalty program already has 3M burrito faithful (but then the chain was [subpoenaed](https://www.cnn.com/2019/04/25/business/chipotle-illness-subpoena/index.html) over 2018 food illness issues).

__The cloud is making it rain...__ __[Amazon's](https://robinhood.com/stocks/amzn)__ profits [doubled](http://fortune.com/2019/04/25/amazon-quarterly-earnings-profits-cloud-computing/) even though its old school ecommerce sales slowed (so it's working to cut free Prime delivery down to one day). It's thanks to *Amazon Web Services,* which now powers 2/3 of total company profits. __[Microsoft](https://robinhood.com/stocks/msft)__ joined the $1T valuation [club](https://www.barrons.com/articles/can-microsoft-break-the-trillion-dollar-curse-51556330191) as cloud services now make up 1/3 of its revenues (plus, Windows software sales shockingly rose 9%).

__Set an intention...__ Like __[Lululemon's](https://robinhood.com/stocks/lulu)__ new 5-year plan to [evolve](https://www.cnbc.com/2019/04/24/lululemon-unveils-growth-plan-for-the-next-5-years.html) into a full-on lifestyle brand. It's releasing sneakers,  more deodorant, and fresh shampoo this year, and expanding travel/work khaki pants to double its men's biz. Then it goes experiential, with a 25K-square-foot Chicago store featuring meditation rooms, juice bars, and karma.

__Barbie carries the team...__ Her sales jumped 7% and Hot Wheels rose 4%. __[Mattel](https://robinhood.com/stocks/mat)__ has survived 2018's play-pocalypse (driven by the Toys 'R' Us bankruptcy), but it's also [recalling](https://www.latimes.com/business/la-fi-mattel-fisher-price-20190425-story.html) Fisher-Price sleepers linked to 30 infant deaths.

__Classic Tesla combo...__ First, Elon's Autonomy Investor Day [revealed](https://techcrunch.com/2019/04/22/tesla-plans-to-launch-a-robotaxi-network-in-2020/) his (aggressive) plan for 1 million robotaxis by 2020. Two days later, __[Tesla](https://robinhood.com/stocks/tsla)__ announced last quarter's loss was four times what analysts expected and it's down to just $2.2B in cash.

__Worst week of the year of the pig...__ for Chinese stocks. The Shanghai stock index dropped 6% even though the country's GDP growth beat economists' expectations. One big [worry](https://www.wsj.com/articles/chinas-new-gdp-data-shows-the-economys-biggest-vulnerability-is-growing-11555490553): That economic growth is increasingly driven by government-supported real estate development. It can't go on forever.

__Two big thermometers...__ Construction equipment can be a hefty measurement of the world's economic health — And __[Caterpillar](https://robinhood.com/stocks/cat)__ sales [slowed](https://markets.businessinsider.com/news/stocks/caterpillar-earnings-q1-earnings-send-shares-lower-2019-4-1028134452) in every region on Earth except North America. Meanwhile, __[Harley-Davidson's](https://robinhood.com/stocks/hog)__ weaknesses reflect trade war drama — Profits fell 27% last quarter for the bike victim of retaliatory tariffs.

__Venmo etiquette is [debatable](https://www.vox.com/the-goods/2018/10/12/17959636/venmo-etiquette)...__ Now __Venmo's__ numbers aren't. __[PayPal](https://robinhood.com/stocks/pypl)__ bought Venmo's parent company in 2013 for $800M. Last week, PayPal (finally) revealed Venmo's key info: Payments on the peer-to-peer payment platform jumped 73% to $21B in just the 1st quarter. But the big surprise was that total [*active digital users*](https://www.wsj.com/articles/venmo-has-40-million-users-outnumbering-most-big-banks-11556142906) is right up there with big banks:

- __[JPMorgan](https://robinhood.com/stocks/jpm):__ 51M
- __*Venmo: 40M*__
- __[Bank of America](https://robinhood.com/stocks/bac):__ 37M
- __[Wells Fargo](https://robinhood.com/stocks/wfc):__ 30M

🍳🚕☕ __= $$$...__ We also learned Venmo is expected to deliver PayPal $300M in revenues this year. So far, it has 4 main fees to make money off your endless friend-payback loop:
1. __Instant Transfers:__ 1% fee if you don't want to wait 48 hours to move that Venmo balance to your bank account.
2. __Credit vs Debit:__ A 3% fee to pay using your credit card instead of debit.
3. __Merchant fee:__ Venmo earns a small piece of the action when you pay Chipotle directly for a burrito bowl using the Venmo [app](https://www.businessinsider.com/venmo-chipotle-rewards-loyalty-program-launch-2019-3).
4. __Interchange fee:__ It also takes a slice when you swipe its prepaid physical debit card, just like credit card companies do.

Charge

__Emoji aren't a competitive advantage...__ PayPal's relying on your post-brunch venmoing game to protect its growth with Millennials and Gen Z. The CEO believes "the magic is its social experience." But __[Square's](https://robinhood.com/stocks/sq)__ Cash App with 15M monthly users now [outpaces](https://www.barrons.com/articles/squares-cash-app-downloads-outpace-venmo-again-analyst-says-51549384522) Venmo in app downloads. And while Venmo thinks users will jump at its own planned credit card, __[Apple](https://robinhood.com/stocks/aapl)__ and __[Goldman](https://robinhood.com/stocks/gs)__ just teamed up for one, too. 😥