__Weird consistency...__ Four quarters in a row __[Amazon](https://www.robinhood.com/stocks/AMZN)__ has set record profits and slowed its revenue growth — Having already *Primed* most Americans and lots of Europeans, growth is bound to slow. Investors were glad it's wringing more profit juice from every eBuck. Here's how the money math worked out last quarter:

- __Revenues__ rose 19%
- __Costs__ only rose 13% 
- __Profits__ more than *doubled* to $3.6B 

__Strengths, weaknesses, and teases...__  Investors weren't overly impressed or upset. So they nudged shares up half a percent higher. 

- 👨‍🦳 __Old bets:__ Amazon.com ecommerce sales rose 10%, while Whole Foods and Amazon Go physical sales crept up 1%. 
- 👧 __New bets:__ Advertising is big now for Amazon, but it rose just 34% after almost doubling last quarter.
- 🇨🇳 __China rewind:__ Amazon failed in China by ending its 3rd party marketplace because nobody was using it (__[Alibaba](https://www.robinhood.com/stocks/BABA)__ and __[JD.com](https://www.robinhood.com/stocks/JD)__ already won there). International sales rose just 9% overall.
- 😍 __*OMG-OMG-OMG*:__ The CFO said Amazon's [working](https://www.theverge.com/2019/4/25/18516795/amazon-prime-free-one-day-shipping-update-earnings) on cutting free delivery time in half from 2 days to 1 day for Prime members. 

Ecomm

__AWS is still profit puppy #1...__ Amazon started building cloud services (aka renting out computer storage/power) back in '06. Few companies today don't use cloud, and most use Amazon Web Services (Apple pays Amazon $30M per month on it). AWS profit just hit $2.2B — Almost 2/3 of Amazon's total. Microsoft and Google are slowly catching up, but Bezos should promote the palm reader who helped him greenlight AWS 13 years ago.

Amazon scores 4th-straight record profit

__No room for milk...__ __[Starbucks](https://robinhood.com/stocks/sbux)__ shares overflowed to a record high after its earnings report. We were most interested in potential drama behind its latest loyalty program changes. But Starbucks first [shared](https://investor.starbucks.com/press-releases/financial-releases/press-release-details/2019/Starbucks-Reports-Q2-Fiscal-2019-Results/default.aspx) some personal updates:

- It's bringing back the __S'mores Frappuccino__.
- The __30,000th Starbucks__ just opened (in Shenzhen, China).
- And it's __investing $100M__ into a food/packaging-focused venture capital fund, probably to find the elusive spill-proof lid.
- The "Starbucks Rewards" loyalty program __now accounts for 40% of all transactions__, so we jumped into its details...

__Remember February 2016?...__ We do. Starbucks tweaked its reward points from per-visit to per-dollar-spent perks. People vented. [*Aggressively*](http://fortune.com/2016/02/23/starbucks-rewards-program-changes/). This month, Starbucks tweaked the program again — Drama-free this time. Participation jumped 13% from last year to 17M members.


__The future of rewards programs is smaller perks but more often...__ Airlines are doing away with biz class upgrades, offering drink vouchers instead. Looking at Starbucks' new program, it's the same thing — Rewarding you more often with smaller gifts. Here's the [system](https://thepointsguy.com/news/starbucks-announces-changes-to-rewards-program-effective-april-16/) that keeps us *just* caffeinated enough:

- It now takes 150 Starbucks Stars (=$75) __to earn a free drink__, not 125 (=$62.50).
- But along the way, you now get __"flexibility benefits"__ of free vanilla or espresso shots.

*Smaller perks. More often.*

Starbucks hits record high (despite loyalty program change)

__No white fence, Golden Retriever, or Buick Skylark...__ __[Walmart's](https://www.robinhood.com/stocks/WMT)__ got something totally different going on in Long Island's Levittown ([literal](https://www.newsday.com/long-island/nassau/levittown-history-in-photos-1.13458781) home of the suburbs). Thursday, it revealed its "Intelligent Retail Lab," aka [IRL](https://news.walmart.com/2019/04/25/walmarts-new-intelligent-retail-lab-shows-a-glimpse-into-the-future-of-retail-irl). In real life, this is an artificial intelligence-powered superstore of the future.  

__If you don't like FaceTiming...__ you'll hate this place. It's a spinoff of Walmart's "Store Number 8," the top-secret innovation lab where it's been cooking up ways to stay competitive against Amazon. 

- __The size:__ IRL is 50K-square-feet huge with 30K items for sale and 100+ humans stocking shelves or working check-out.
- __The cameras:__ IRL stuck lenses and sensors everywhere. Walmart says data is deleted weekly, but you'll want to iron your shirt before arriving onto the stage/grocery store.  
- __The AI help:__ Those cameras watch shelves, informing human associates when something runs out, goes bad, or if there's a disturbance on aisle 6.

Experiment

__AI: Helping humans or replacing them?...__ Both. Amazon's taken a more openly *anti-human* approach with its person-free and cashier-less Amazon Go stores. Walmart claimed yesterday its AI *helps* humans operate more efficiently. That's a feel-good, PR-friendly take on how Walmart's handling the question of the century. 

Walmart unveils "Store of the Future"

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

_Every time you get free Starbucks anything_

One-day Prime is coming

__The FTC would like a word with Zuck...__ The social network is expecting a [gigantic fine](https://www.npr.org/2019/04/24/716886822/facebook-could-face-up-to-5-billion-fine-for-privacy-violations) ($3B-$5B) from the Federal Trade Commission for violating users' privacy by hooking up Cambridge Analytica with data. Facebook's profits fell 51% because it's prepping the legal splurge account with $3B right now.

__Zucks fly together...__ Investor bandwidth focused on a bunch of big tech earnings that all seemed to arrive together:

✍️ __[Facebook](https://www.robinhood.com/stocks/FB):__ Its core business of filling your newsfeed with shockingly on-point ads did well (sales rose 26%) and daily users rose 8%. Shares jumped 7% despite the huge looming fine. 

🦄 __[Microsoft](https://www.robinhood.com/stocks/MSFT):__ Welcome back to the *Platinum Platypus* club, Microsoft. The OG tech giant is [worth](https://www.businessinsider.com/microsoft-earnings-fiscal-q3-revenue-profit-2019-4) over $1T again courtesy of a 41% jump in cloud computing sales. Even throwback Windows was up 9%.  

⚡️ __[Tesla](https://www.robinhood.com/stocks/TSLA):__ We already knew its 1st quarter car deliveries struggled, but its loss was [twice](https://www.nytimes.com/2019/04/24/business/tesla-earnings-elon-musk.html) as big as analysts expected. Elon promises it will make money the next three quarters, but it's down to just $2.2B in cash in the bank. 

Earn

__Wall Street's winning percentage would lead the AL East...__ [72%](https://insight.factset.com/will-sp-500-report-an-actual-year-over-year-decline-in-earnings-in-q1-2019) of companies in the S&P 500 that reported earnings through Tuesday had beaten analysts' profit estimates. That percentage deserves an MVP. But Wednesday was a tad more mixed, with [__Caterpillar__](https://www.robinhood.com/stocks/CAT) and __[AT&T](https://www.robinhood.com/stocks/T)__ disappointing.

Facebook's $3B fine, Microsoft's $1T value, Tesla's $2B cash

__No time for *shavasana*...__ __[Lululemon](https://robinhood.com/stocks/lulu)__ was busy revealing its 5-year strategic plan, heroically christened “The Power of Three.” It began with a humble brag ("*we've [already delivered](http://investor.lululemon.com/news-releases/news-release-details/lululemon-unveils-power-three-strategic-plan-accelerate-growth) on several 2020 goals*") and then focused on three big new ones — two are huge, one is surprising:

1. __"Product innovation":__ Lulu's [designing](https://www.businessinsider.com/lululemon-sneakers-take-on-nike-adidas-2019-4) its own sneakers this year and expanding its khaki-infused office/travel/commute wear.
2. __"Market expansion":__ Double its men's business (see khaki reference above), double online sales, and quadruple international sales. Ambitious.
3. __"Omniguest experience":__ This one intrigued us. More below.


__"Sweatlife" is why you athleisure...__ Lulu's calling us "guests" instead of customers. The omniguest element of its master plan is about transforming beyond stretchy cloth into “an experiential brand for people living the sweatlife.” Sweatlife looks like this:
- Lulu shampoo, deodorant, moisturizer, and __other self-care bathroom shelf-stuffers__ through partnerships (SoulCyle is partner #1).
- A new __25K-square-foot mega-store__ in Chicago with meditation space, yoga studios, and a juice bar. It's so big you'll lose yourself (and then find yourself).

Sweat

__It all comes down to sales channels...__ Lululemon owns them. Yes, you can find its high-rise yoga leggings on Amazon. But Lulu mainly sells directly through its own website and stores. No retail middleman means more profits namastaying with Lulu.

Lululemon reveals 5-year plan: sneakers, shampoo, "sweatlife"

__Extra cheese...__ Despite vicious competition, __[Domino's](https://www.robinhood.com/stocks/DPZ)__ quarterly sales still rose 4%. But the highlight was new CEO Ritch Allison [defending](https://www.cnbc.com/2019/04/24/dominos-ceo-some-random-third-party-wont-deliver-our-pizza.html) the chain's contrarian delivery strategy: Domino's handles its own deliveries instead of using those flashy new apps. And it's proud of it. 

__Dough-to-door delivery happens under the Domino's brand...__ Meanwhile, __[McDonald's](https://robinhood.com/stocks/mcd)__, __[Starbucks](https://robinhood.com/stocks/sbux)__, and __[Chipotle](https://robinhood.com/stocks/cmg)__ use third-party delivery apps __DoorDash__, __Uber Eats__, or __Postmates__, with aggressive discounts to lure new eaters. That delivery outsourcing can cut costs and boost sales. But Ritch has problems with it:

- __Quality:__ DoorDash's gig workers won't treat the pizza with the same love and care as Domino's faithful deliverers would.
- __Fees:__ Uber Eats would snag 15%-30% of each order, and that adds up.
- __Data:__ Postmates won't share key info about the orderer with Domino's. So Ritch won't give up data to "some third party who will ultimately use it against us." 

Deliver

__Domino's has an obsession for the customer (data)...__ Acting like a tech company, Domino's has converted tons of phone call deliveries into app-ordered ones. Not only does Domino's keep the entire pizza bill by delivering on its own — It also understands eaters' eating habits. Knowing your Saturday late-night order helps it better sell you pizza midweek. 

Domino's jumps 5% as CEO defends in-house delivery

_Facebook finally terminates Cambridge Analytica_

Lulu unveils sneakers, shampoo, "sweatlife"

__Snap back...__ First, CEO Evan Spiegel changed his office uniform from t-shirt to nicer t-shirt. Then [__Snap__](https://www.robinhood.com/stocks/SNAP) rolled out its [Games](https://www.snap.com/en-US/news/post/snap-partner-summit-introducing-snap-games/) initiative last month. Now the mojo's officially returned after its 1st quarter earnings beat expectations. Our highlights:

- __Revenues rose__ 39% to $320M.
- The number of Snapchat __daily users rose__ 2% to 190M — That's more than Twitter.
- A [new Android app upgrade](https://www.theverge.com/2019/4/8/18300720/snapchat-android-app-rebuilt-release-speed-bugs-features) is finally done that's less derpy. It's already __increased snaps sent__ by 6% in the first week because the app simply opens faster.  
- It spent more cash on the biz than it made (aka "negative cash flow") but that __deficit shrank__ from $232M to just $66M.

__World War Gen Z...__ This report was a reminder of how incredibly [engaged](https://www.theverge.com/2019/4/23/18513016/snapchat-snap-earnings-call-release-users-android-app) the youngest generation of adults (and future adults) in America is with Snap:

- 75% of 13-34 year-olds snap daily.
- 90% of 13-24 year-olds do.
- And they're all still the "[most coveted demographic](https://www.marketplace.org/2017/12/08/business/coveted-18-34-year-old-demographic)" for advertisers.

Chat

__But are they taking ads from Facebook?...__ Both [__Twitter__](https://www.robinhood.com/stocks/TWTR) and Snap's earnings delighted Tuesday (Twitter stock rose 16%, Snap gained 7%). Both grew ad revenues — But where were those ads before switching to Twitter & Snap? They could've taken ads away from Google or Facebook. Zuck will reveal some answers when his baby releases earnings later today. 

Snapchat's big comeback step

__Schedule more playdates...__ with the Pawtucket, RI-based team over at [__Hasbro__](https://robinhood.com/stocks/has). The 2018 Toys 'R' Us bankruptcy dropped toy sales nationwide 2% last year. But Hasbro stock jumped 14% Tuesday on signs it survived the play-pocalypse.

- __February 2019:__ Hasbro [revealed](https://www.wsj.com/articles/mattel-hasbro-stung-by-collapse-of-toys-r-us-11549634019) its toy sales fell 13% over the holidays (blames Toys 'R' Us).
- __Yesterday:__ Hasbro's 1st quarter sales *rose* 2% — Their first gain in six quarters.

__Dust off the top-bunk play box...__ Hasbro has found new retail shelf-space in grocery and drug stores to replace losses at Toys 'R' Us. But here are the toys heroically [headlining](https://www.reuters.com/article/us-hasbro-results/transformers-toys-demand-helps-hasbro-beat-revenue-estimates-idUSKCN1RZ0ZC?il=0) its comeback:

- __Classics:__ Play-Doh and Monopoly sales rebounded hard.
- __Hollywood:__ *Transformers* got another movie (*BumbleBee* made $470M @ the box office) and an action figure with big sales.
- __Virtual:__ Forget cards. "Magic: The Gathering" now has a very real e-sports competition called "Arena" (and Hasbro's monetized it).

Play

__It's all about "The Disney Playbook"...__ *Turn your childhood characters into profit ecosystems*. __[Disney](https://robinhood.com/stocks/dis)__ pumps out Star Wars theme parks and toys to complement its films. Hasbro rival __[Mattel's](https://robinhood.com/stocks/mat)__ giving Barbie live-action big screen [treatment](https://variety.com/2019/film/news/warner-bros-closes-deal-with-matell-barbie-margot-robbie-1203102234/) this year. To keep up, Hasbro needs a movie/event/resort future for its Nerf/Twister/Furby past.


Hasbro's best day in 20 years is thanks to Play-Doh and Transformers

__Update: The trade war's still raging...__ The US reamins in tit-for-tat mode with China and Europe on international trade. And the  trade taxes slapped on each other (aka tariffs) oozed out of Tuesday's serving of earnings reports. 

🤬__The loser:__ __[Harley Davidson](https://www.robinhood.com/stocks/HOG)__ — Its profits dropped 27% and shares fell Tuesday.

- Europe and China targeted Harley for [retaliatory](https://qz.com/1602441/trump-threatens-tariffs-following-harley-davidsons-earnings/) tariffs because the brand is so tattoo-ably American. That made bikes more expensive to customers abroad, hurting sales.

💵__The winner:__ __[Whirlpool](https://www.robinhood.com/stocks/WHR)__  — Its profits rose 10% and shares jumped Tuesday.

- Whirlpool's American-made washing machines have an advantage on __Samsung__ and __LG's__ Korean-made ones. Those two had to raise prices because of US tariffs. Whirlpool didn't... [*but did anyway*](https://www.cnn.com/business/live-news/stock-market-news-today-042319/h_92a214ac0d4ab10fa6e446bffc07b7b1). So fewer Whirlpools were sold, but the sold ones were more profitable.


Trade

__Tariffs aren't equal opportunity impacters...__ Most of America's economy is service-related. Apps, software, billable hours, haircuts. None of that is affected by tariffs, which hit imports and exports only. That's mainly manufacturing companies, like Harley and Whirlpool — And the impact is amplified (positively or negatively).

Tariffs hurt (Harley) and helped (Whirlpool)

_Toys without movies < Toys with movies_

Play-Doh & Transformers save Hasbro

__Feels like home...__ But isn't. Online real estate platform __[Zillow](https://robinhood.com/stocks/z)__ [expanded](https://www.engadget.com/2019/04/22/zillow-3d-home-tours-available-across-north-america/) its virtual reality feature Monday so you can tour that cozy 1-bedroom without schlepping there. But shares fell 4% on a *WSJ* [report](https://www.wsj.com/articles/will-zillows-flip-flop-11555844401?mod=djemheard_t&utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosmarkets&stream=business) that its "iBuying" house-flipping strategy may "flop."

- __The iBuying concept:__ Zillow will buy your house, often without seeing it, based on the price its algorithm says it's worth. Then Zillow sells it so you don't have to.
- __Your benefit:__ Speed. Convenience. No dressing up your studio to let strangers in to judge it.
- __Your cost:__ You pay Zillow a higher selling fee for that service.

__iBuying is like an affordable 2-BR NYC apartment w/ washer/dryer & AMAZING view...__ Maybe too good to be true. Zillow stock jumped 25% in Feb. when the CEO announced it was doubling down on iBuying. But shares are back down now on word Zillow's not making as much off the higher fee — And on the increased risks of owning tons of homes.

- __2018:__ 4% of Zillow's revenue came from iBuying.
- __2019:__ The percentage of revenue from house-flipping is predicted to rise to 41%.

Home

__Not all middlewomen can be cut...__ It's worked for mattresses and razor blades. But home selling is a unique, life-changing, big-money event. People may just want the handholding of a real estate agent, even if it costs money and time, to make sure the sale goes down smooth. Zillow's betting against that.

Investors turn on Zillow's agent-cutting "iBuying" strategy

__Set your watch to Elon-time...__ which is typically 18 months late. That's critical context for __[Tesla's](https://www.robinhood.com/stocks/TSLA)__ big autonomous driving update — Just as other carmakers [push back](https://www.engadget.com/2019/04/10/ford-ceo-says-the-company-overestimated-self-driving-cars/?dlbk&te=1&nl=dealbook&emc=edit_dk_20190422) timetables for robotaxis, CEO Elon Musk said this Monday:

- __The surprise:__ “All Teslas produced today have everything necessary for full self-driving — All you need to do is improve the software.“
- __The bold claim:__ He's "very confident" Teslas will be fully self-drivable by next year. 

__Airbnb your Tesla in an Uber network for Teslas...__ Here's the vision revealed Monday: Once the Teslas can drive themselves, owners can add their cars to the Tesla Ride-Sharing App. Elon sees it like [this](https://techcrunch.com/2019/04/22/tesla-plans-to-launch-a-robotaxi-network-in-2020/):

1. Tesla owner doesn't need it for a few hours, so __switches to "share mode"__.
2. That Tesla gets __summoned__ by someone who needs a ride.
3. Self-driving system __handles entire ride__ (don't forget to rate the robodriver).
4. Tesla __returns__ to the parking spot to await its owner.
5. __The ride fare gets split__: Tesla keeps 25%-30%, Tesla owner keeps the rest.




Self-drive

__This announcement was sooo Tesla...__ Shares are down over 30% from their high on weak 1st quarter sales and endless legal/boardroom issues. But Musk wants investors to look past today's drama for tomorrow's moonshot ideas. 

- *If Tesla can* offer customers electric cars that can also earn them money Airbnb-style, that's powerful.
- *If Tesla can't*, Elon needs another trick/event.


Tesla details 2020 Robotaxi plans

__Cue the hazing ritual...__ __[Kraft Heinz](https://robinhood.com/stocks/khc)__ announced Monday it's replacing its CEO with Miguel Patricio. Shares barely budged on the switch, but they're still down 43% in the past 12 months. Some of that's caused by you not eating hot dogs and mac anymore. The [rest](https://www.reuters.com/article/us-kraft-heinz-ceo/kraft-heinz-hires-global-brand-expert-patricio-as-ceo-idUSKCN1RY0X7) is on the company:

1. Kraft Heinz revealed in Feb. that its Oscar Mayer and Kraft brands were __worth $15B less than expected__.
2. Then __it cut its quarterly dividend__ payout to shareholders by over a third because of smaller profits.
3. __And the SEC's investigating it__ over something in its accounting books.

__*An "obsession for cutting costs*"...__ That's been the un-fun, un-secret, unsuccessful formula baked into Kraft Heinz lately. It's [the business doctrine](https://www.reuters.com/article/us-kraft-heinz-ceo-strategy/kraft-heinzs-new-ceo-looks-beyond-cost-cutting-big-ma-idUSKCN1RZ007) of Brazilian private equity firm 3G, which teamed up with Warren Buffett to finance the $49B Kraft and Heinz merger back in 2015 (3G also bought Budweiser). Cutting company-wide budgets may have made some short term extra profits, but insiders say it's [hurting](https://www.reuters.com/article/us-kraft-heinz-ceo/kraft-heinz-hires-global-brand-expert-patricio-as-ceo-idUSKCN1RY0X7) long term sales.

Talent

__Kraft's pulling a 180...__ "I bring a very different profile" (Patricio's words, not ours). The former Budweiser exec focuses on more than just ruthless low-cost efficiency — He expanded beer brands abroad at Bud. Now Kraft Heinz wants him to pour the same marketing formula on its ketchup to revive sales.

Kraft Heinz hires new CEO to end stock dive

_When you wish your driver wasn't human_

Tesla's Ride-Sharing App Tease

__Get Yoshi a passport...__ For the first time, the Chinese government will allow __[Nintendo's](https://robinhood.com/stocks/NTDOY)__ Switch gaming console to be sold in China, along with a new Super Mario Brothers game. Shares of the Japanese legend jumped 12% to their highest point in 6 months as they enter Earth's [biggest](https://www.cnn.com/2019/04/19/tech/nintendo-switch-tencent-china/index.html) gaming market.

__Acquisition with an asterisk...__ Canadian cannabis icon __[Canopy Growth](https://robinhood.com/stocks/cgc)__ rose 4% for its 4/20 Eve "[complex](https://www.barrons.com/articles/marijuana-stocks-jump--deal-by-canopy-growth-acerage-holdings-51555599196) transaction with a simple objective": *Buy American pot producer __Acreage Holdings__*. The $3.4B deal only happens if the US government first legalizes cannabis nationwide. If it does, Canopy will own Acreage's 20-state head start. 

__Best week ever...__ First __[Qualcomm](https://robinhood.com/stocks/qcom)__ ended its patent dispute with __[Apple](https://robinhood.com/stocks/aapl)__. Then it rekindled the relationship — iPhones will be powered by Qualcomm chips for the next six years (at least). The cherry on top was the announcement from Qualcomm's only other real competitor in 5G phone chips — __[Intel](https://www.robinhood.com/stocks/INTC)__ — that it's [quitting](https://www.theverge.com/2019/4/16/18411332/intel-exiting-5g-smartphone-modem-market-apple-qualcomm-settle-dispute) that biz. Add it all up and Qualcomm stock rose 42% last week.  

Highs

Who's up...

__"Alexa, what happened to Spotify stock?"...__ It fell after __[Amazon](https://www.robinhood.com/stocks/AMZN)__ stealthily [launched](https://techcrunch.com/2019/04/18/amazon-music-echo-ads/) free music (with ads) for anyone with an Echo device (no Prime membership needed). Now __[Spotify's](https://www.robinhood.com/stocks/SPOT)__ not the only one offering *Adele* for free, streaming, and on-demand.

__If these two should not be joined in matrimony...__ speak now. The Justice Department might. The *WSJ* [reported](https://www.wsj.com/articles/t-mobile-sprint-deal-runs-into-resistance-from-doj-antitrust-staff-11555446461?mod=article_inline) that regulators plan to block the $26B merger of US telecom's #3 and #4 players because it would be an "unacceptable threat to competition." That dropped shares of __[Sprint](https://robinhood.com/stocks/s)__ and __[T-Mobile](https://robinhood.com/stocks/tmus)__.

*Bonus: T-Mobile also just launched a banking product — [More on that in our podcast](https://itunes.apple.com/us/podcast/marketsnacks-daily/id1386234384?mt=2)*.

__Describe your pain on a scale from 1 to 10...__ Healthcare investors are feeling it as the 2020 election oven preheats. "Medicare For All" from the left has health insurers __[Cigna](https://www.robinhood.com/stocks/CI)__, __[United Health](https://www.robinhood.com/stocks/UNH)__, and __[Anthem](https://www.robinhood.com/stocks/ANTM)__ down over 10% in just six trading days. And [momentum](https://www.axios.com/bipartisan-push-to-lower-drug-prices-efceecdf-efc4-4464-bfc5-5163ad24b5a7.html?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiossneakpeek&stream=top) in DC to stop drug price-gouging has pharmaceutical companies [__Pfizer__](https://www.robinhood.com/stocks/PFE) and __[Eli Lily](https://www.robinhood.com/stocks/LLY)__ off over 8%.

Lows

...And who's down

__Rookie report...__ IPO-Palooza continued with Pinterest and Zoom, which both debuted Thursday. Digital tackboard Pinterest jumped 25% on day #1 of trading, while the video conference pioneer surged 72%. Here are the scouting reports:

__[Zoom's](https://www.robinhood.com/stocks/ZM)__ mission: *“To make video communications frictionless.”*

- __Opportunities:__ This century's flexible work-from-home rules boost corporate needs for non-brutal video chat.
- __Challenges:__ Google, Microsoft (which owns Skype), and Cisco are resource-rich and have been doing this for years.
- __Fun fact:__ Uber likes to zoom — Its employees [clock](https://www.sec.gov/Archives/edgar/data/1585521/000119312519083351/d642624ds1.htm) 14M meeting minutes of Zoom per month.


__[Pinterest's](https://robinhood.com/stocks/pins)__ mission: “*To bring everyone the inspiration to create a life they love.*”  

- __Opportunities:__ 80% of US women age 18-64 who have children use it. So do over half of Millennials. That combo sets trends.
- __Challenges:__ Pinterest says it's a social network for positivity — But social networks are ad companies, which means competing with Facebook and Google. __[Snap's](https://www.robinhood.com/stocks/SNAP)__ a case study in trying to do that.
- __Fun fact:__ 88% of Pinners [purchase](https://izea.com/2016/11/02/pinterest-purchasing-power/) a product they pin.


__One's focused on the now, the other on the future...__ The Silicon Valley pair evolved from unicorn status by going public, and they're both worth similar amounts based on their share price ($13B for Pinterest, $16B for Zoom). But Zoom's already profitable ($7.5M in 2018) with 344 customers paying $100K or more per year. Pinterest isn't profitable ($63M loss) with its 250M users. Not all ex-unicorns are [alike](https://www.bloomberg.com/opinion/articles/2019-04-18/zoom-and-pinterest-ipos-a-choice-between-reality-and-dreams), so it's best to learn up on their pedigrees.

Pinterest and Zoom jumped on IPO Day — Here are the differences

_Unicorns are coming_

Zooming is the new Pinning

__In the era of extra virgin kale...__ __[Pepsi](https://robinhood.com/stocks/pep)__ has aggressively focused on healthier-anything. It recently acquired fruit/veggie innovator Bare Foods, dropped $3.2B to buy SodaStream, and launched LIFEWTR *water*. But shares jumped to a record high Wednesday thanks to the opposite: Salty snacks and soda — Growth was its fastest in three years:

- __Frito-Lay:__ Sales surged 5.5% last quarter — The new CEO called that "[extraordinary](https://www.pepsico.com/docs/album/investors/q1-2019/q1_2019_pep_transcript_6scyk0s61xvqpvwx.pdf)" and thanked Super Bowl stock-ups.
- __The Pepsi soda fam:__ Sales across Pepsi-branded drinks rose 3% after years of [not](https://www.wsj.com/articles/pepsico-beverage-sales-fall-in-home-market-1531219456) doing that.

__But calories are complicated...__ Dive deeper into Pepsi's drink menu and you see its top-performers are specifically the anti-sugar crew — Healthy fizz is [making up](https://www.wsj.com/articles/pepsicos-sales-rise-on-boost-from-snacks-11555498324) for slowness in cavity-inducing sodas:

1. __Bubly:__ Pepsi's new Insta-friendly sparkling water earned its 1st Super Bowl ad and the 16% sales [jump](https://www.bloomberg.com/news/articles/2019-04-16/pepsi-s-bubly-seltzer-brand-gains-ground-on-lacroix-perrier) since last year scares your LaCroix pamplemousse.
2. __Pepsi Zero Sugar:__ The least unhealthy Pepsi option enjoyed a 29% sales surge thanks to a year-long marketing campaign.


__"*Advertising*...__ *is working*." [That's](https://www.reuters.com/article/us-pepsico-results/pepsico-results-beat-as-new-ceos-ad-push-lifts-sales-idUSKCN1RT133) the simple/literal message from Pepsi's CFO. Even though the company's still in battle mode (closing factories and laying off people), it upped its ad spending by double-digits. Steve Carell and Cardi B [together](https://www.youtube.com/watch?v=9sYElEbRzKA) are selling more soda. Innovation isn't.

Soda (not sugar) powers Pepsi to all-time high

__Your 1887-self telegrammed...__ It's so proud of what you've become, __[Kansas City Southern](https://www.robinhood.com/stocks/KSU)__. The historic freight train made the most of its 6,700 miles of track last quarter, hitting record revenues of $675M. Its specialty is US-Mexico trade, and it wouldn't trade that for anything right now. Shares just rose to a 3-year high.

__Monthly active thieves...__ The train biz has to deal with vandalism because its trains are 6K feet long on average. That's why "velocity" (train speed) is crucial — It inched up 12 mph for KC Southern last quarter. Faster trains can ship more of anything (cars, food, oil) with a fixed number of boxcars and locomotives. 

Move

__Geopolitics is the X-factor...__ KC Southern's 6% revenue jump was driven by cross-border biz with Mexico (it's got plenty of train track there). US-Mexico trade has boomed since 1995 — Cars built in Mexico have quadrupled over that period. But KC Southern's stock rides with politics:

- __On Trump's inauguration day,__ shares hit a low of __$67__ after he campaigned on fighting Mexican trade.
- __Today,__ the stock's risen to __$123__ as a new trade agreement has calmed cross-border econ tensions for now.

Kansas City Southern railroad is thriving with Mexico trade

__Not a VEEP episode...__ Real life DC intensity has hurt healthcare stocks all year. While the broader stock market (the S&P 500) is up 16% in 2019, healthcare stocks are [down](https://www.wsj.com/articles/washington-targets-health-care-investors-should-duck-11552476781?mod=article_inline) 1%. That lack of fun stretched from patient to pill the past five trading days:

- __Health insurance:__ [__Cigna__](https://www.robinhood.com/stocks/CI) (-14%), [__UnitedHealth__](https://www.robinhood.com/stocks/UNH) (-12%), and [__Anthem__](https://www.robinhood.com/stocks/ANTM) (-18%) 
- __Pharmaceuticals:__ __[Pfizer](https://www.robinhood.com/stocks/PFE)__ (-7%), __[Eli Lily](https://www.robinhood.com/stocks/LLY)__ (-8%)

__There's nowhere to hide...__ New business regulation usually gets pushed by *one* side of the political spectrum. But two very old, very different New Yorkers are trapping healthcare execs: 

- __The left:__ Bernie Sanders wants to eliminate private health insurance completely, [replacing](https://www.cbsnews.com/news/medicare-for-all-gives-health-care-industry-stocks-the-chills/) the health-care middlewoman with a government-run system.
- __The right:__ To shame pharma firms into lowering (often exorbitant) prices, President Trump's admin is [exploring](https://www.wsj.com/articles/trump-administration-weighs-publicizing-hospital-rates-negotiated-with-insurers-11551990505?mod=article_inline) new rules to stick drug prices clearly on labels and in commercials.

Sick

__US healthcare's been un-fixable so far...__ The cost to keep an American healthy is [double](https://www.vox.com/a/health-prices) the cost for humans in other developed economies. Health insurance makes customers oblivious to treatment prices. And competition-less, patent-protected drugs let pharma firms charge anything. But healthcare profits have always seemed to beat healthcare reform proposals.

Healthcare stocks fall, because, politics

"_We love KFC chicken zero sugar_"

"Zero Sugar" works for Pepsi

__The treaty of Vers-iPhone...__ __[Apple](https://www.robinhood.com/stocks/aapl)__ announced a legal truce Tuesday with __[Qualcomm](https://www.robinhood.com/stocks/QCOM)__. The patent lawsuit courtroom drama is over. Then it shockingly defined the relationship, announcing they're biz partners. Again. Qualcomm shares hulked out, surging 23% on news they'll supply iPhones [once again](https://www.nytimes.com/2019/04/16/technology/apple-qualcomm-settle.html). 

 __Designed in California. Made in China. Litigated everywhere...__ The relationship between Apple and Qualcomm is swinging back to love after previous love/hate chapters:

- __2007 - 2016:__ Qualcomm provided Apple bits of hardware that helped iPhones destroy BlackBerry, Motorola, Nokia, and a million other now-obsolete gadgets.
- __2016 - 2019:__ Apple ditched Qualcomm for Intel. Qualcomm went on a suing rampage, claiming Apple whispered its secrets into Intel's ear and profited off its patented tech.
- __Yesterday:__ Apple settled — It's paying Qualcomm an [undisclosed](https://www.apple.com/newsroom/2019/04/qualcomm-and-apple-agree-to-drop-all-litigation/) amount for past misdeeds. And it's switching back to Q for iPhone modems. Lawyers aren't thrilled.
- __The next six years (with option to extend for two more):__ Based on our rough calculations, that'll add $3B-$5B annually in sales for Qualcomm (that's a big, big deal). 

Settle

__Qualcomm's leverage = 5G...__ The San Diego-based chip-maker is one of just a few making chips needed for the new 5G network. Intel is reportedly behind (you can't round up from 4.5G), and China's __Huawei__ was labeled a national security threat. Apple needs Qualcomm.

*__PS:__ Right after the deal, __[Intel](https://robinhood.com/stocks/intc)__ [announced](https://newsroom.intel.com/news-releases/intel-modem-statement/#gs.63bj6t) it's done with 5G. That's one way to rebound from getting broken up with by Apple.*

Qualcomm wins estimated $3B/year from Apple

__Fancy new onesie...__ Got it from __[Walmart](https://robinhood.com/stocks/wmt)__, which just [partnered](https://news.walmart.com/2019/04/16/walmart-partners-with-kidbox-to-deliver-premium-personalized-kids-fashion-to-parents-front-doors) with KidBox to launch its 1st subscription box for clothes. But it's for kids and "borrows" [heavily](https://www.cnbc.com/2019/04/15/walmart-launches-its-first-subscription-box-for-apparel-with-kidbox.html) from __[Stitch Fix's](https://robinhood.com/stocks/sfix)__ core business model: *Fill out online personality/style quiz, then Walmart's human/algorithm stylists choose/send you clothing*.

- __The price:__ 4-5 items per box, $48 per box (Walmart says that's 1/2 the retail price of the bundle).
- __The "Kid Quiz":__ Awkwardly select if your toddler is "City Cool," "Modern Casual," or one of their other kid types. 

__Your kids' dept. was *this tall* the last time I saw you!...__ The $203B kids clothing industry is growing [faster](https://fashionista.com/2017/07/luxury-fancy-baby-kids-clothes-trend) than adult-wear. And the opportunity is even bigger because Gymboree and Toys 'R' Us recently went bankrupt, leaving toddlers with no fashion direction. It's not just Walmart jumping in:
- __[Target's](https://www.robinhood.com/stocks/TGT)__ new kids line did $2B in sales in its first year.
- __Rent-The-Runway__ announced a kids line [this](https://www.cnbc.com/2019/04/05/rent-the-runway-is-getting-into-the-kids-business.html) month, and Stitch Fix's began last year.
- __[Gap](https://www.robinhood.com/stocks/GPS)__ just tried a kids subscription box, but [failed](https://www.digitalcommerce360.com/2018/09/26/gap-suspends-its-subscription-kids-clothing-boxes/) 😰.

Subscribe

__"Subscription" isn't a defensible advantage...__ __Birchbox__ created the subscription box concept 9 years ago. __[Blue Apron](https://www.robinhood.com/stocks/APRN)__ ran with it in meal kits. Both are now struggling as competitors jump in because launching subscription services doesn't require a major investment. Now Walmart (and [even](https://www.marketwatch.com/articles/stitch-fix-stock-falls-amazon-prime-wardrobe-stylist-51555343917?mod=mw_latestnews) __[Amazon](https://www.robinhood.com/stocks/AMZN)__) boast algorithm-focused *fashion* subscriptions. Stitch Fix is on notice.

Walmart's first subscription box: it's for kids

__*You don't have my blessing*...__ That's the word from the Dept. of Justice regarding __T-Mobile__ and __Sprint's__ planned merger, which was announced almost 1 year ago. According to the [*Wall Street Journal*](https://www.wsj.com/articles/t-mobile-sprint-deal-runs-into-resistance-from-doj-antitrust-staff-11555446461), the reason it's likely to get blocked is that combining the #3 and #4 wireless companies would threaten competition.

__Like you and your S.O. post-move-in...__ Sprint and T-Mobile want to get on one plan to save costs. Merging would also pool resources so they could build out a 5G network (they've been [repeating](https://www.theverge.com/2019/2/12/18222545/t-mobile-sprint-merger-china-5g-john-legere) that argument to China-phobic politicians). But they'll also be *under less pressure to offer low prices* to customers. And antitrust laws aren't cool with that last part.   

Merge

__Wireless investors want this merger to happen...__ which is a reason why customers probably shouldn't. With less competition, big companies can set prices higher — Customers pay more, companies take more profits. And word that the deal's in jeopardy hit shares of the top four wireless companies, even though T-Mobile's  CEO called the report "[simply untrue](https://twitter.com/JohnLegere/status/1118265746453192704)":

1. [__Verizon__](https://www.robinhood.com/stocks/VZ) ⬇️1% 
2. __[AT&T](https://www.robinhood.com/stocks/T)__ ⬇️1%
3. __[T-Mobile](https://www.robinhood.com/stocks/TMUS)__ ⬇️4%
4. [__Sprint__](https://www.robinhood.com/stocks/S) ⬇️8%


That big T-Mobile & Sprint merger will reportedly be denied

_First-degree iPhone obsession. You're all guilty_

Apple & Qualcomm agree to disagree

__Let's get together...__ Shares of both __[Waste Management](https://www.robinhood.com/stocks/WM)__ and __[Advanced Disposal](https://www.robinhood.com/stocks/ADSW)__ jumped Monday on word the trash titans are merging. That crams the #1 and #4 solid waste companies under one lid. Investors like Houston-based Waste Management's new, polished look:

- __25M__ customers across just about every US state
- __50K__ employees
- __$17B__ annual revenue
- __310__ Landfills (!)

__*Consolidate trash into 1 can*...__ *Then save money*. That's basically why this happened. Waste Management thinks it can save $100M every year on "synergies" — Cutting redundant costs and using its bigger size to negotiate lower prices. Now regulators just have to stamp approval that this keeps the trash industry competitive.

__Managing waste is hard...__ Waste Management is on it. First, it hauls trash from residential, government, and corporate customers. Then it sorts recycling. Then it compacts. Then it packs landfills. That all requires humans and machines (lots). But it's not all dirty — Now Waste Management [renews](http://www.wm.com/sustainability/renewable-energy.jsp) gas from landfills into electric energy. Power move.

Waste Management is now #1 and #4 in trash

__Blame the new firm-wide "[flexible dress code](https://www.wsj.com/articles/how-to-dress-at-goldman-sachs-11552063215)"...__ Profits at __[Goldman Sachs](https://www.robinhood.com/stocks/GS)__ [fell](https://www.cnbc.com/2019/04/15/goldman-sachs-earnings-1q-2019.html) 21% last quarter, sending shares down 4% Monday. Wherever you look on Goldman's investment banking revenue menu, it was probably down:

- __Trading ⬇️ 18%:__ Markets were calm and steady last quarter. That makes it harder for Goldman to buy things low and sell them high. 
- __Underwriting ⬇️ 24%:__ Goldman's guidance to companies that want to issue stock or debt to raise money took a hit. You can partly blame the government shutdown that delayed some IPOs.
- __Mergers & acquisitions ⬆️ 51%:__ Goldman still gets to say it's #1 in advising companies getting hitched, but that makes up just 1/10th of its business.  

__Less harvest, less bacon...__ Slower business meant Goldman just [cut](https://www.cnbc.com/2019/04/15/goldman-sachs-slashes-compensation-for-employees-as-revenue-drops.html) comp. Salaries are generally fixed, but Goldman tightens its belt through bonuses — The average employees' pay fell to $91K in the 1st quarter of 2019 compared to $119K in last year's (that's 24% less $$$). 

Bank'd

__Time to pivot...__ Exotic/risky investment banking is Goldman's historic money-maker. Now management wants more reliable, steady, and boring businesses. At Goldman's age, it's trading in the Ferrari for the Buick. And the answer is "Marcus" (named for its founder):

- Marcus is __Goldman's "Main Street" bank__
- Its focus is __checking accounts and loans to normal folk__, not globo-corporates.
- And Marcus is __teaming up with Apple__ for a consumer credit card.

Goldman Sachs cuts bonuses and falls 4%

__Amazon-proof yourself...__ Since 2012, __[Best Buy](http://robinhood.com/stocks/bby)__ CEO Hubert Joly pulled that off. Now the turnaround magician from Minnesota is stepping down  as CEO, but will remain Chairman of the board — Current CFO Corie Barry takes over in June. While __Circuit City__ was dying, Joly did this with Best Buy:

- __The stock quadrupled__ during his reign.
- Stores enjoyed __5-straight years__ of sales growth.
- The chain rose from a $421M loss in 2013 to a __$1.5B profit in 2018__.

__Operation "Renew Blue"...__ That's the actual plan turnaround artist Joly [kicked](https://www.fool.com/investing/2019/04/15/the-end-of-an-era-for-best-buy.aspx) off in 2013. We ID'd his 4 strategic moves that transformed Best Buy into a retail phoenix:

1. __Price matching:__ Joly refused to let you test out Dance Dance Revolution at Best Buy before actually buying it on Amazon for cheaper.  
2. __Store-within-a-store:__ He turned Best Buys into showrooms, carving out mini-stores for brands like Apple to better show-off their goods.
3. __eGrandparent Tech:__ He bought Life Alert owner GreatCall ("[Help](https://www.youtube.com/watch?v=gh0Sslh9JKA), I've fallen and I can't get up!") along with its 900K [paying](https://www.theverge.com/2018/8/16/17697952/best-buy-greatcall-acquire-purchase-jitterbug) subscribers, and also invested more in Geek Squad for in-home installation.
4. __Dual/Purpose Stores:__ He combined warehouses with regular stores — Now 40% of online orders are picked up in-store, an Amazon-beating advantage.

Rebound

__"*There's no room for mediocrity in retail*"...__ We'll let Hubert's words take our takeaway today. He realized early that Amazon can't completely replace in-person shopping experiences — Ecommerce just raised expectations. As a leader, Hubert saw Best Buy's physical stories as a "[wonderful asset](https://www.cnn.com/2019/04/15/business/best-buy-ceo-hubert-joly-corie-barry/index.html)," so they became just that.

*FYI, just check out [these](https://www.glassdoor.com/Reviews/Employee-Review-Best-Buy-RVW24790846.htm) Glassdoor employee reviews of Hubert.*

Best Buy's stock-quadrupling CEO is out

"_You're priceless to me, Waste Management_"

The great garbage merger

__"Amazon of Africa"...__ The continent's first tech IPO on the New York Stock Exchange is __[Jumia](https://robinhood.com/stocks/jmia)__. Shoppers in 14 African countries (which represent 74% of the continent's consumer spending) can hit the ecommerce site to buy a dress. Or get Lagos' finest *suya* skewers delivered. Or book flights to Cairo. Or rent a Nairobi 1-BR flat. It's a mashup of plenty of US apps and is still plenty unprofitable, but the stock still surged 75% on Day #1.

[*More on Jumia in today's Snacks pod*](https://podcasts.apple.com/us/podcast/marketsnacks-daily/id1386234384?mt=2).

__Suit up...__ Big banks kicked off earnings season, and __[JPMorgan](https://robinhood.com/stocks/jpm)__ set the tone with record revenues and profits. As interest rates rise, so has its lending biz, which helped profits at its "Main Street" divisions surge 19%. Then CEO Jamie Dimon added some flair: The current economic expansion "[could](https://www.nytimes.com/2019/04/12/business/wall-street-bank-earnings-economy.html) go on for years."

__Extra legroom for all...__ First __[JetBlue](https://www.robinhood.com/stocks/jblu)__ rose after [revealing](http://otp.investis.com/clients/us/jetblue_airways/usn/usnews-story.aspx?cid=981&newsid=60609) its first transatlantic flights land in London by 2021. Then __[Delta's](https://www.robinhood.com/stocks/dal)__ profits [surged](https://www.cnbc.com/2019/04/10/delta-q1-2019-earnings.html) 31% last quarter. We broke down the two key reasons for Delta's jump (aka, its "Profit Puppies"):

1. __Biz/1st class:__ Fancy bookings rose 8% — And even though they're just about 1/3 of the seats, they make up about half the ticket revenue. Strong economy ==> more upgrade splurges.
2. __The credit card:__ Delta's plastic partnership with __[Amex](https://www.robinhood.com/stocks/axp)__ was extended another 11 years — That card's expected to bring in $7B annually for Delta, and [reportedly](https://thepointsguy.com/news/delta-amex-relationship-profitable/) makes up 35% of profits. 


__New vs. Nostalgia...__  __[Netflix](https://robinhood.com/stocks/nflx)__  fell 4.5% Friday after __[Disney's](https://robinhood.com/stocks/dis)__ Netflix-killer was revealed: Disney+ (Mickey's shares hit a record high the same day). Disney's strength is its library of timeless hits: *Star Wars*, *The Simpsons*, *Toy Story*, and other OG titles. And just as Netflix raises the price for its most popular plan to $13/month, D+ arrives at a binge-able $6.99.

__Fashion beat function...__ __[Under Armour](https://robinhood.com/stocks/uaa)__ dropped 4% on a single day after an annual survey showed people just aren't into it: UA's [ranking](https://www.barrons.com/articles/under-armour-stock-falls-because-consumers-like-other-brands-51554828676) dropped to 5th place in the basketball category and 7th in "casual." The report slammed UA for lacking innovation (too much *ath*, not enough *leisure*), just as [__Adidas__](https://www.robinhood.com/stocks/ADDYY) signed [Beyoncé](https://www.hollywoodreporter.com/news/beyonce-joins-adidas-as-creative-design-partner-1199522) as its creative partner.

__Out of battery...__ __[Panasonic](https://robinhood.com/stocks/PCRFY)__ may [pause](https://www.theverge.com/2019/4/11/18305976/tesla-panasonic-gigafactory-batteries-model-3) plans to expand battery production at __[Tesla's](https://robinhood.com/stocks/tsla)__ Nevada "Gigafactory 1." Its investment in Elon's China-based "Gigafactory 2" could be off too. Tesla dropped 4% as investors worry the joint venture drama's a sign of uninspiring car sales.

__Millennials broke Wall Street...__ Big corporate names made big moves to cater to cord-cut and car-less customers last week. Investors appreciated __[Disney](https://www.robinhood.com/stocks/DIS)__ acting like a tech company but punished __[Lyft](https://www.robinhood.com/stocks/LYFT)__ for acting too much like one. 

__Disruption + Profits. It’s complicated...__ Video-streaming and ride-hailing were born to break things. Profits were an afterthought. But investors' feelings shift when the companies move from the pre-disrupt to post-disrupt era. 

- __Streaming:__ Disney blessed us with an insane library of throwbacks, blockbusters, and TV-ish shows for silly cheap ($6.99/month), and shares popped 11% Friday.  
- __Ride-hailing:__ Since the IPO rush to buy Lyft drove the stock to $88, shares fell last week to under $60. And __Uber’s__ IPO paperwork Thursday [didn't help](https://www.cnbc.com/2019/04/12/lyft-stock-plunges-as-investors-get-a-first-look-into-ubers-finances.html) — Uber lost nearly $2B last year, and (by certain complex measurements) its revenue growth slowed.

Disrupt

__Streaming's getting baby treatment. Ride-hailing has to grow up...__ Investors showed they’re still cool with one's unprofitability, but they're losing patience with the other. 

- Disney earned Simba-worthy respect for __its magically unprofitable pricing__ for video streaming (ESPN+ and Disney+ are expected to lose money until at least [2023](https://www.theinformation.com/articles/disneys-costly-streaming-plans-wins-approval-from-wall-street?utm_medium=email&utm_source=sg&utm_campaign=article_email)).
- But since Lyft and Uber (let's go with "LUber") have been replacing local taxis for a decade, investors are ready for them to __stop losing billions of dollars__.


Streaming video & ride-hailing just grew up

_When you're waiting for Pinterest and Zoom's IPOs_

Streaming and ride-hailing just grew up

__Tinkerbell trained two years for this...__ __[Disney](https://www.robinhood.com/stocks/DIS)__ finally announced details on "Disney+," its streaming video service to take on [__Netflix__](https://www.robinhood.com/stocks/NFLX). Disney blasted the audience at its Apple-esque unveil with its magical advantage: Its "[treasure trove](https://www.nytimes.com/2019/04/11/business/media/disney-plus-streaming.html)" of movies. Here are the details:

- __Price:__ [$6.99/month](https://variety.com/2019/digital/news/disney-plus-streaming-launch-date-pricing-1203187007/) or $69.99/year, nearly half of Netflix's comparable plan.
- __Launch:__ Nov 12, 2019, in the US.
- __Bundle:__ Disney+ is separate from Hulu and ESPN+, Disney's other streaming assets, but there will "likely" be a discount if you bundle them.

__Gold, silver, and bronze...__ Now that Disney's acquired 21st Century Fox, it owns the [top three](https://variety.com/2019/film/box-office/2018-domestic-box-office-1203102841/) box-office films from 2016 and 2018. And it had 2017's top two. Imagine the binge-worthiness of Disney+:

- __Adult:__ *Star Wars, Marvel, Bohemian Rhapsody*
- __Kids:__ *Toy Story, Frozen, Finding Nemo*
- __Classics:__ *The Sound of Music, Titanic, Lion King, The Simpsons*


Watch

__Nostalgia vs. New...__ Disney's fighting Netflix with all the old DVDs and classic titles that Netflix execs probably grew up loving. When D+ rolls out, Disney will remove all its content from Netflix. Then it's Disney's billion-dollar branded movies/series vs. Netflix's *never-heard-of-but-my-friends-say-it's-awesome* original content.

Disney unveils "Treasure Trove" to kill Netflix

__"We do the right thing. Period."...__ Bold opening pitch by Dara Khosrowshahi, CEO of __Uber__. The IPO paperwork filed Thursday revealed its financials, risks, opportunities, and a bunch of missions and values. These [420 pages](https://www.sec.gov/Archives/edgar/data/1543151/000119312519103850/d647752ds1.htm) are its most official step yet to become publicly traded, and the IPO ETA is early May. 

__312...__ That's how many times we counted "ride-sharing" in the filing. It's technically "[ride-*hailing*](https://www.buzzfeednews.com/article/charliewarzel/lets-all-join-the-ap-stylebook-in-killing-the-term-ride-shar#.ksk27KmN0)" – And the word choice was a calculated (and not quite accurate) move. Here's what else we noticed:

- __Slowing (even negative) growth:__ Revenues grew 22x from 2014 to 2018, reaching $11B. But it's pumped the brakes — in mid-2017, one measure of its revenue was growing 22% per year. By the end of 2018 that was [actually negative](https://www.wsj.com/articles/uber-discloses-ipo-filing-11555015305?mod=hp_lead_pos2), at -0.04%.
- __Democracy:__ Unlike Lyft, Uber boasts a *one share, one vote* policy. Some Lyft investors are worried their two co-founders control 5% of shares but almost [50%](https://www.sfchronicle.com/business/networth/article/Lyft-wants-the-public-s-money-but-not-their-13701367.php) of voting power. 
- __Uber everything, everywhere:__ Uber has 91M users on 6 continents and 4 kids: ride-hailing, bikes/scooters, food delivery, and freight — with [autonomous](https://techcrunch.com/2019/04/11/uber-spent-457-million-on-self-driving-and-flying-car-rd-last-year/) driving/flying babies on the way.

__*Spoiler Alert:* "*We may not achieve profitability*"...__ Uber lost $10B in the past three years as it's fought viciously with Lyft for market share. For Uber to reach profits, it'll need to make some changes. 

- __Fewer promos:__ Each "refer-a-friend and get $10 off" code costs money. 
- __Fewer human drivers:__ Awkward, but if it can replace drivers with computer software, it'll keep more of the *78% of each ride fare* going to drivers.
- __More rent-taking:__ Eventually Uber's likely to raise prices for rides, spend less on lawsuits and acquisitions, and take its cut of the billions of Ubers happening every year.

Uber's IPO paperwork arrives (with a growth problem)


__All latte highs come to an end...__ That's the message from a Morgan Stanley analyst who downgraded K-Cup icon __[Keurig Dr. Pepper](https://robinhood.com/stocks/kdp)__. Shares fell 4% after he said the single-cup coffee's [explosive growth](https://www.barrons.com/articles/keurig-dr-pepper-stock-slips-morgan-stanley-downgrade-51554997515?mod=RTA) era is ending. Blame Keurig's patent expiration and competition from Nespresso.

__You take that mid-week cosmo shaken or stirred?...__ Cocktail mixing is now automated thanks to the recently-announced Keurig "Drinkworks" machine. It's a joint venture with Bud-owner __[AB-InBev](https://robinhood.com/stocks/bud)__, but the partnership is a result of both companies' insecurity: slowing growth.

- __The dream:__ If you already toss in Keurig coffee pods in the *morning*, a Drinkworks cocktail was strategically conceived as your Keurig product *in the evening*.
- __The reality:__ That $4 Moscow Mule pod may save you compared to $10 at the bar, but the $299 Drinkworks machine isn't cheap.
- __And the history:__ Keurig's had partnership problems before — Its "Keurig Kold" creation with __[Coca-Cola](https://robinhood.com/stocks/ko)__ was [shut down](https://www.businessinsider.com/why-keurig-kold-failed-2016-6) in 2016.

__The "razor and blades business model" isn't working here...__ That's when you sell one cheap item (razor) then make money off expensive refills (razor *blades*). Or your printer and its absurdly-priced ink. Keurig embraced the same model, but fresh competition makes its "cheap" entry pod machines too expensive to ever start.