__Even Siri knows it...__ Sales on __[Amazon's](https://robinhood.com/stocks/amzn)__ Prime Day surpassed both its Black Friday and Cyber Monday. Combined. A record 175M items were snagged — up 75% from last year. Some of that's thanks to T-Swift's kick-off [concert](https://www.cnet.com/how-to/taylor-swift-prime-day-concert-how-to-watch-replay-dua-lipa-sza-becky-g/), most is from the 18 countries now taking part. Here are your worldwide best-selling items (straight from Amazon's [brag sheet](https://press.aboutamazon.com/news-releases/news-release-details/alexa-how-was-prime-day-prime-day-2019-surpassed-black-friday)):

- __US:__ Personal water filter straw, 23andMe ancestry kits.
- __UK:__ Sony PlayStation (FYI, Mexico loved Nintendo Switch, while Australia's top-seller was Mario Kart 8 Deluxe).
- __China:__ Dove exfoliating scrub.
- __Italy:__ Nescafé espresso (classic).
- __Germany:__ Some very, very practical stainless steel pans.

__Add "Halo Effect" to the shopping cart...__ That's the impact Amazon's mid-summer splurge-fest had on the rest of retail as everyone launched their own mini-sales.

- __The positive:__ Sales [surged](https://www.cnn.com/2019/07/17/business/amazon-prime-day-sales/index.html) 68% at big non-Amazon retailers and 28% at small ones.
- __The negative:__ *Discounts* drove those sales — retailers desperately race to the bottom on prices on Prime Day. Great for us, not really great for the companies.

Vcommerce

__"Flywheel effect" is bigger than "halo effect"...__ The flywheel is what Amazon biographer Brad Stone called the company's "[secret sauce](https://www.forbes.com/sites/jonbird1/2018/07/22/feeding-the-flywheel-why-amazon-prime-day-is-so-much-more-than-a-sale/#3614b81842db)" — the self-reinforcing wheel that Prime Day is now a spoke in. Here's the cycle: Prime members shop big on Prime Day (to justify the $119/yr membership) and they bought Alexa products for their homes — Echo Dot and other voice assistant products were the top sellers this week. Now those primers will do even more with Amazon, thanks to Alexa's help.

Amazon's (record) Prime Day highlights its defining strategy: the "flywheel"

__The matchmaking master is IAC...__ The internet beast that already owns most of __Match Group__ (Tinder, Hinge, and more than 25 other dating apps) just invested $250M in __Turo__, Earth's leading car-sharing marketplace. In the [announcement](https://www.iac.com/media-room/press-releases/iac-invest-250-million-turo), InterActiveCorp (__[IAC](https://robinhood.com/stocks/IAC)__) opened with "We like marketplaces." Concise. Here's the marketplace Turo has created:

- __10M people need short-term wheels:__ And they've downloaded Turo's app, which lets them rent somebody else's car for 1 day or several.
- __400K people have a car that's available:__ So they're putting their car (which on average sits idle 95% of the time) to work by renting it out.
- __It has 1 big rival:__ __Getaround__, which has tech heavyweight SoftBank as an investor.

__The business model is so simple...__ Turo acts as the middleman, connecting a supply of cars with demand, then taking a cut of the transaction (exactly how Airbnb works). One detail is crucial: Turo offers insurance so that the "#LastCallForMoll" backseat bachelorette road trip shenanigans don't leave the car owner with a mess. 

Share

__Economics drive it, tech enables it...__ Our generation has student debt and jobs that aren't as secure as our parents'. We also need to set a high glamour bar on social media. Those are the conditions that let Airbnb unleash short-term apartment rentals, so we can travel cheaper than a hotel, and make money on our own place back home while we're at it. 

- [Airbnb](https://www.airbnb.com/)__:__ Homes are sharable.
- [Outdoorsy](https://www.outdoorsy.com/)__:__ RVs, campers, and trailers are sharable.
- [Turo](https://turo.com/en-us)__:__ Cars are sharable.
- *What's next?*


Turo, the new $1B unicorn, lets you Airbnb your car

__The MoviePass for living rooms...__ __[Netflix](https://robinhood.com/stocks/NFLX)__ announced it only added 2.7M new subscribers last quarter, way below the 5M it expected — That's its biggest miss ever, by far. But this stat was the most shocking: In the US, Netflix actually *lost* 300K subscribers (it was hoping to gain 200K). America is post-peak Netflix.

__2 key problems drove the disappointment...__ And neither was *Friends* or *The Office*, the two most popular Netflix shows that'll get pulled in 2020 and 2021, respectively.

- __The price increase:__ Last quarter, the price of a standard account rose from $11 to $13.
- __The un-inspiring content:__ Netflix execs said the "content slate" didn't drive as many users to sign up. Meanwhile, *Big Little Lies*, *GoT*, and *Chernobyl* won eyeballs at HBO. But don't worry — CEO Reed Hastings predicts that *Stranger Things 3*, *The Crown*, and *Orange Is the New Black's* final season __will drive 7M new subscribers in the 3rd quarter.__ 

Shrink

__It's harder to win new customers than keep existing ones...__ Netflix will have to spend [$22B annually by 2024](https://www.jpmorgan.com/global/research/streaming-wars?source=cib_os_tw_Streaming0619) on original, new content, according to JP Morgan, to keep winning new users. It spent big last quarter, but money doesn't always buy great content. 

Netflix loses subscribers in the US (we've never seen that before)

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

_Ignoring Prime Day like a boss_

Netflix actually *shrank* in the US

__Emphasis on the "no's"...__ Shares of Michigan-based __[Domino's](https://robinhood.com/stocks/DPZ)__ (mozzarella is stretchier in the Midwest) fell 9% on word that sales growth slowed to just 3% for restaurants in the US (it was even worse internationally). Domino's tech-savviness helped it get pizza to people faster and shot the stock up over 3,300% in just 10 years. But now new technology is attacking it.

__"Aggressive activity from 3rd-party delivery aggregators"...__ The Domino's CEO gave __DoorDash__, __Postmates__, __[Uber Eats](https://robinhood.com/stocks/UBER)__, and __[GrubHub](https://robinhood.com/stocks/GRUB)__ the Voldemort treatment — He dropped "3rd-party aggregators" 19 times in the earnings call with analysts yesterday. Instead of even mentioning the Big Four food delivery apps, he [bemoaned](https://www.cnbc.com/2019/07/16/dominos-ceo-delivery-apps-like-grubhub-are-subsidized-by-investors.html) the promotions they're all giving away to entice orders.

- The Big Four have __democratized access to delivery__ from McDonald's to Chipotle to Sweetgreen to Shake Shack to a bodega.
- Domino's is trying to be __more like the Silicon Valley darlings__ — it just added "[track my pizza](https://www.engadget.com/2019/07/16/dominos-pizza-gps-delivery-tracking/)" with GPS.


Deliver

__Domino's isn't a pizza company — it's a delivery company...__ And the delivery competition is on its A-game. In the past, we were typically limited to pizza or Chinese when it came to staying in and ordering delivery. Now, the Big Four delivery apps have deconstructed that, and Domino's faces delivery competition from any place with a stove and plastic to-go containers.

Domino's earnings reveal cracks in its delivery dominance

__Pause...__ __[Apple](https://robinhood.com/stocks/aapl)__ is actually getting serious about podcasting after years of complacency. *Bloomberg* [reported](https://www.bloomberg.com/news/articles/2019-07-16/apple-plans-to-bankroll-original-podcasts-to-fend-off-rivals) that the original home of the podcast is switching its strategy from reactive to proactive — it's contacting podcast producers, asking them to go exclusive with Apple: *Shows only for Apple Music subscribers*.

__50%-70%...__ That's the share of podcast listens that happens in Apple's podcast app. The rest are divvied up between platforms (Stitcher, Google Music), so Apple got complacent. It didn't give creators much data about their listeners, and it didn't give listeners a great interface for audio enjoyment. Then __[Spotify](https://robinhood.com/stocks/spot)__ started to catch up. Fast. Here's how:

- __Big goals:__ CEO/Founder Daniel Ek announced he wanted 20% of listening on the streaming platform to be non-music content.
- __Big acquisitions:__ So Spotify bought podcast producer Gimlet and its 29 original podcasts in February, followed by 2 other [pod-cquisitions](https://venturebeat.com/2019/04/29/spotify-confirms-it-paid-56-million-for-parcast-taking-its-total-podcast-acquisition-value-to-400-million/). It's committed $500M to the initiative.
- __Big results:__ Spotify is now 2nd to Apple, jumping from near nothing to 10%-20% of listens.
- *Spotify shares fell 2% Tuesday on word of Apple's moves.*

__Apple used to create, now it follows...__ With iPod, iPhone, iPad, and Siri, Apple built entirely new product categories. Now it's playing catch-up. Here are its recent 2nd-mover moves:
- Music streaming ➡️ Copied Spotify
- Apple TV+ streaming ➡️ Copied Netflix 
- Beats & HomePod speaker ➡️ Copied Bose *twice*
- Original podcasts ➡️ It might just be copying Spotify *again*

Apple may be deep-diving into podcasts — because Spotify caught up (fast)

__1 four-pack of shade...__ coming right up for Silicon Valley. The main event yesterday was David Marcus, __[Facebook's](https://robinhood.com/stocks/FB)__ head of cryptocurrency, who suffered a grilling by the Senate (he hits the House tomorrow). But all 4 of America's tech-powered giants sent lambs to get questioned and criticized by elected officials.   

- __Facebook:__ Defending Zuck's new cryptocurrency, Marcus promised Libra wouldn't launch until it "fully addressed regulatory concerns." Politicians from both sides [didn't like](https://www.bbc.com/news/business-49008298) Facebook's crypto-moves given its marred privacy record. PS: Bitcoin dropped 10% on DC's overall [anti-crypto](https://www.forbes.com/sites/billybambrough/2019/07/16/bitcoin-and-crypto-suddenly-branded-a-national-security-issue/#420f18c21a59) tone.
- __Google:__ President Trump said he would [investigate](https://www.forbes.com/sites/kennethcorbin/2019/07/16/trump-vows-google-probe-over-china-ties/#2e346dad45a9) whether __[Google](https://robinhood.com/stocks/GOOG)__ has been infiltrated by the Chinese military. That's based on a claim from Peter Thiel (Facebook board member) that Google is an unpatriotic company engaged in treason. 
- __FB, Google, Apple, and Amazon:__ Execs from all four faced a different set of lawmakers who accused them of breaking rules set up to protect consumers from monopolies as well as for having a [bias](https://www.npr.org/2019/07/16/742308833/googles-search-bias-on-trial-in-washington) against conservatives in search results. 

Shout

__Despite the politi-hate, record highs...__ The stocks of all these companies are close to their record highs. They've scaled their business models across the world and kept growing as people in developing countries adopt smartphones and the internet. And 2+ years of tech as a political punching bag hasn't resulted in laws or policies to rein in profits. 

3 Congressional hearings. 4 scrutinized tech giants

_Domino's thinks we've got delivery overload_

Delivery democratizes, Domino's loses

__*Excuse me, good sir, what's this "resort fee?"*...__ You were enjoying that early summer trip until an ambiguous fee at checkout rips a $100 hole in your soul. Now the Attorney General of Washington, DC has sued __[Marriott](https://robinhood.com/stocks/MAR)__ over it, accusing the chain of deceiving consumers on prices. The AG is [demanding](https://docs.google.com/viewerng/viewer?url=https://skift.com/wp-content/uploads/2019/07/DC-lawsuit.pdf&hl=en_US) two forms of justice:

- __Transparency:__ Marriott must add "resort fees," "destination fees," or "amenity fees" to the nightly price of the room *like an honest multi-national corporation should*. 
- __Restitution:__ Marriott should refund all the customers whose trips got buzzkilled by the surprise fee.

__These are pure profit puppies for hotels...__ At first, resort fees were only at resorts, paying for things like your afternoon at the rock climbing wall. But the fees [spiked 400%](https://skift.com/2019/07/15/marriott-resort-fee-lawsuit-puts-new-target-on-longheld-hotel-industry-practice/) last year as hotels realized they could sneak them into almost any bill. Here's how: 

- __Hidden costs:__ Marriott highlights the __$219/night__, but obscures the "$30 daily destination fee added to room rate."
- __Ambiguous labels:__ Bundling the resort fee into the "Taxes & Fees" line gives the impression it's a government tax (it's not — it's for the hotel).
- __Make it mandatory:__ The CEO of Marriott [defended](https://www.linkedin.com/feed/update/urn%3Ali%3Aactivity%3A6555561330697359360/?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosmarkets&stream=business) the resort fee, comparing it to an airline baggage fee. But baggage fees can be avoided — resort fees cannot.

Complain

__This could hurt sales or profits...__ Resort fees are being used to cover should-be essentials like a bottle of water and access to wifi. If Marriott loses this case it will have to fess up about the actual price of a room by including the fee, or just erase it. Either outcome is bad for the big hotel business.

Marriott gets sued for hiding "resort fees" until the last second

__The OG of Millennial lactose tolerance...__ Turkish entrepreneur Hamdi Ulukaya fed America's Greek yogurt cravings when he created __Chobani__ in '05. Now the strained yogurt pioneer is launching a new line featuring nut butters (almond, cashew, hazelnut) in 5 flavors nationwide this month. But when we looked [deeper](https://www.foodnavigator-usa.com/Article/2019/07/15/Chobani-unveils-new-nut-butter-line-as-US-yogurt-category-edges-back-into-growth) into Greek yogurt, we noticed it's having a problem.

- __All yogurt:__ Sales fell 2% last year (their 3rd straight annual decline).
- __Greek yogurt:__ Sales dropped 7% in 2018.
- __Chobani Greek yogurt:__ Sales rose 4% — It's the only major yogurt-churner with positive sales growth right now.

__If cows could talk...__ they'd tell you that Chobani products' successes and failures [reveal](https://www.cnn.com/2019/07/15/business/chobani-new-product-launch/index.html) its strategy — the Greek yogurt-based ones are thriving while its non-Greeks suffer:

- __What’s working at Chobani:__ Its "Less Sugar" version, Chobani "yogurt drink" (picture a yogurt milkshake), and the kids' version, "Gimmies," with cartoons on the box, launched last year.
- __What’s not working:__ Chobani Smooth — its *non*-Greek yogurt. After 2 years, it's getting shut down.

Spoon

__Chobani is pulling a Coca-Cola...__ It's using product spinoffs to save slowing growth. With soda sales shrinking, Coke's using Coke Zero, Coke Vanilla, and Cherry Coke to find growth with the same brand. It tweaked the product just enough to attract new customers without hurting the identity. Chobani is digging into the same playbook: Change the packaging and purpose, don't change the core ingredients or brand.

Chobani whips up a new spinoff as Greek Yogurt loses its mojo

__Do bankers still get company Blackberrys?...__ Asking for a recovering analyst. __[Citigroup](https://robinhood.com/stocks/C)__ kicked off a slew of earnings reports from big banks Monday — profits rose 7% to $4.8B, but revenues inched up by just 2%. At home, surprisingly stable financial markets hurt Citi's chances to make trading revenue. That trend is expected to affect __[JP Morgan](https://robinhood.com/stocks/JPM)__ and __[Goldman Sachs](https://robinhood.com/stocks/GS)__ when they report their April-June results today.

__Big corporations aren't playing in China anymore...__ For huge companies that do business all over the world, it's important to have a worldwide network of bankers — Citi's got that. Citi's huge corporate clients though aren't borrowing from Citi as much, especially in China. 

- __Related:__ [China's economic growth](https://www.npr.org/2019/07/15/741735791/chinas-economy-falters-slowest-growth-in-nearly-3-decades) __slowed to the lowest rate in 30 years__, hitting a 6.2% growth rate. The trade war between the #1 and #2 countries in the world has put a damper on foreign investment over there.

Lend

__Interest rates aren't helping, either...__ Most stocks ripped their tops off to bask in low interest rate rays expected to hit this summer. But banks actually benefit from high interest rates because they can make more money off customers' deposits and through lending. And the Fed's policy shift to cut interest rates (to boost the economy mid-trade-war) has pushed stocks of major banks down 12% over the past year (according to a big bank ETF). 

China trade war slows Citigroup's banking profits

_Deciding who to Venmo for that annoying hotel "resort fee"_

Marriott busted on sneaky "resort fees"

__$5B breaks records — not destinies...__ __[Facebook](https://robinhood.com/stocks/fb)__ is about to be smacked with a $5B fine by the FTC for years of being casual with users' privacy. Even though that would be a record-high fine, investors were (wait for it) happy with the news. Back in April, Facebook warned it [was expecting](https://www.businessinsider.com/facebook-stock-rose-news-5-billion-ftc-settlement-why-critics-2019-7) a penalty close to that amount. Besides, Facebook can pay off that fine with just 30 days of revenue (we did the math).

__Live your best life, Snap...__ Shares have more than tripled since December, thanks to __[Snap](https://robinhood.com/stocks/snap)__ flexing the two biceps of tech: growth and engagement. Its gender-swapping filter in May more than doubled the number of daily app downloads from 600K to over 1.5M, and the new Bitmoji-focused games (including Tennis, launched last week), keep more of those users in the app longer. Investment banks want to [friend it](https://www.barrons.com/articles/buy-snap-stock-app-downloads-goldman-51562947393).

__Namastay right here on the 2nd floor...__ of __[Lululemon's](https://robinhood.com/stocks/lulu)__ new everything-store for sweaty people. The 25K-square-foot flagship in Chicago has 1 boring level of merch, but the rest is an anti-ecommerce [playland](https://www.businessoffashion.com/articles/news-analysis/lululemon-opens-workout-studio-where-visitors-can-borrow-clothes): 3 studios (yoga, HIIT, and meditation), a chef-designed, influencer-influenced restaurant, and WeWork-worthy work space. Lulu wants 10% of its stores to look like this one by 2023.

Highs

Who's up...

__Stick it back in the fridge...__ Freaky fact: Budweiser-owner __[AB InBev](https://robinhood.com/stocks/bud)__ makes 1 of every 4 beers worldwide. It also just canceled the [biggest IPO](https://www.wsj.com/articles/anheuser-busch-inbev-calls-off-ipo-of-asia-unit-11562955994) of 2019. The brew-glomerate was planning to spin off its Asia business into a separate publicly traded company — the IPO for Bud Asia would've raised $10B cash that AB InBev could have used to pay off some debt. But Bud wasn't happy with the amount investors were willing to pay for shares, so it pulled out Friday, dropping Bud's stock 3%.

__There's a work-life imbalance...__ Turns out the email crushing office messenger __[Slack](https://robinhood.com/stocks/work)__ has aggressive competition. For the first time, __[Microsoft](https://robinhood.com/stocks/msft)__ revealed [how many](https://www.theverge.com/2019/7/11/20689143/microsoft-teams-active-daily-users-stats-slack-competition) people are using its work communicating rival "Teams": 13M. And that's just two years after it launched (Slack is at 10M). The next battle between the two is over integrations: Which will connect you to a Zoom conference call most seamlessly?

__The best prescription: not lying...__ __[Johnson & Johnson](https://robinhood.com/stocks/jnj)__ fell 4% Friday on word the Department of Justice is investigating whether it's been truthful about cancer risks in its baby powder. The pharma legend denies it's done anything wrong, but investors are [thinking about](https://www.cnbc.com/2019/07/12/jj-drops-4percent-on-report-doj-investigating-allegations-company-lied-about-talc-cancer-risks.html) the 13K+ lawsuits it's facing over the talcum-based product. Plus, the 124-year-old icon is already losing Millennial moms to drama-free babycare startups with 'gram-worthy brands and packaging.

Lows

...and who's down

__If you can't beat 'em...__ spend an absurd amount of money with them. __[Ford](https://robinhood.com/stocks/f)__ and __[VW](https://robinhood.com/stocks/vwagy)__ just [agreed](https://www.nytimes.com/2019/07/12/business/ford-vw-self-driving-electric-cars.html) to "collaborate" globally on both autonomous vehicles ("AVs") and electric ones ("EVs"). VW is investing a hefty $2.6B  into self-driving  startup __Argo AI__ — the Pittsburgh-based tech company Ford already has a stake in. Now German VW and American Ford will use a bunch of Google translate to work in the Steel City together.

__Ford = VW...__ They go together like Big Gulps and cupholders. The pair of car giants share similar histories, but the present is different for both — and that could make this AV and EV pact work:

- __History: A car for the people.__ Henry Ford created that with the Model T. And it's the literal English translation of "Volkswagen."
- __Present: One's got trucks, the other's got cars.__ Ford makes virtually all its money on trucks and SUVs. VW is busy in sedans, coupes, wagons... *und Audis... und Porsche*. 

Teamwork

__You need 2 drivers to get to 0 drivers...__ Since neither plays on the other's turf, they'll be ok sharing secrets in pursuit of the common goal — racing to self-driving tech.

- __Alphabet__ leads the pack with Waymo, which is developing driving brains for cars and is [believed](https://www.cnbc.com/2018/12/06/ubs-analyst-estimate-on-alphabet-self-driving-car-waymo-revenue.html) to have a value over __$100B__.
- __General Motors__ owns most of Cruise Automation, which is worth __$19B__ and has investments from __Honda__ and __Softbank__.
- __Volvo__ & __Uber__, and __BMW__ & __Daimler__ are the other tag teams.  
- __*Keep in mind:*__ Valuations don't matter as much as results, which nobody's producing as quickly as hoped. 

VW and Ford are the newest self-driving and electric power couple

_Ford and VW hashing who has to sit in the middle_

Ford & VW: The new self-driving power couple

__Unfriend...__ The Chairman of America's central bank visited Congress this week. Most focused on his interest rate plans — Jerome Powell strongly hinted that the Fed would lower rates to support the economy during the trade war. But he also opined on Mark Zuckerberg's latest project, __[Facebook's](https://robinhood.com/stocks/FB)__ cryptocurrency "Libra." He's just not that into it.

__Regulators and politicians are anti-ZuckBucks...__ It's not just Powell. We've seen resistance to the idea of Facebook owning an alternative financial system from all over. And it runs deep.

- 🏛 __US Congress:__ The Financial Services Committee wants Facebook to "immediately cease implementation plans." One senator called it "Monopoly Money."
- 👔 __The 27 corporate partners:__ Uber, Mastercard, Spotify, and other companies that paid $10M to oversee the future stablecoin with Facebook are reportedly nervous about the whole thing.
- 🌍 __The world:__ Central bankers from China, Europe, and Singapore are all [concerned](https://www.nytimes.com/2019/06/25/technology/facebook-libra-cryptocurrency.html?module=inline). The Bank of England head won't let Facebook "learn on the job."


Regulate

__Facebook could actually get stopped...__ Since sophomore year, Zuckerberg's done what he's wanted to do. But now the Fed has set up a working group of regulators with broad political backing to investigate Facebook's financial plans. Here are Powell's concerns:

- __Money laundering:__ FB's non-regulated financial pipes could make it easier for drug deals to go down.
- __Privacy:__ No explanation needed.
- __Consumer protection:__ Fraudulent schemes could run as wild on Facebook as fake news did/does, out of reach of regulatory oversight.
- __Financial stability:__ What if Libra, the global currency, had an outage? That could spread to other markets. Worldwide. Fast.


Facebook's cryptocurrency faces big resistance — like from Fed Chairman Jerome Powell

__Swanky hotel + gym + Lululemon...__ (with a hint of WeWork). Execs at __[Lululemon](https://robinhood.com/stocks/LULU)__ said "yes" to any ideas that could be thrown into its new 25K-square-foot store in Chicago's Lincoln Park. [Opening day](https://www.cnbc.com/2019/07/10/a-look-inside-lululemons-massive-new-store-in-chicago-with-yoga-food.html) was yesterday (we were curious). The 1st floor's your standard retail merch (from her stretchy pants to his joggers). But on the 2nd floor, things get transcendental:

- __Work your body:__ There's a studio for yoga and another for HIITs (high intensity interval training). Plus, Equinox-quality locker rooms to un-sweat yourself. 
- __Work your soul:__ A 3rd studio (surprise) for meditation. 
- __Work your mind:__ Workspace to flip open your laptop when the post-workout endorphins kick in.
- __Fuel yourself:__ Then there's the clean-eating menu at the new chef-designed, influencer-consulted restaurant, called "Fuel". 

__Faux-industrial, succulent-infused, minimalist decor...__ But Lulu means business. There are 50 classes per week at $25 each. They're designed to generate sales — You can try on clothes through an entire yoga flow class, then not buy them. And it's planning to expand: by 2023, Lulu wants 10% of its locations to be this new breed of everything store. 

Sweat

__Offer something Amazon can't...__ That's been the strategy of retail companies thriving despite the retail-pocalypse around them. These physical dream-stores whipped up at Lulu's v2.0 spot are packed with an experience online shopping can't replicate. 

Lululemon opens 25K-square-foot everything store in Chicago for sweaty people

__Living their best lives...__ __[Cigna](https://robinhood.com/stocks/ci)__ popped 9%. __[UnitedHealth](https://robinhood.com/stocks/unh)__ rose 5.5%. __[CVS](https://robinhood.com/stocks/cvs)__ (which owns Aetna) jumped 5%.  Health insurance stocks have enjoyed the week after a couple key policy proposals — *aimed at clarifying drug pricing so you can actually stop paying so much* — were dropped or blocked.

__Bipartisan-supported political issues do exist...__ Cutting prescription drug prices is one of them. One plan proposed by President Trump sought to end the practice of drug-makers giving discounts/rebates to middlemen representing health insurance firms that encouraged buying expensive drugs. That [was dropped](https://www.wsj.com/articles/trump-administration-drops-plan-to-curb-drug-rebates-11562845155) for political reasons. The other involved your TV.

- __The problem:__ Drug companies interrupt your TV bingeing with overwhelming details on what their little pill can do, but are silent on the absurd price.
- __The solution:__ The Trump administration pushed for a rule to require drugmakers to include the $$$ price [next to](https://www.wsj.com/articles/trump-rule-requiring-drug-prices-in-tv-ads-blocked-11562634281?mod=article_inline) that charming Cialis bathtub scene.
- __The outcome:__ A federal judge said no, ruling that forcing a price tag violates the drug companies' rights to free speech.

Vitals

__Pricing is healthcare's secret muscle...__ Obscure, mysterious, unclear pricing. The reality for consumers is not knowing the price of prescription medicine — A doctor prescribes, a health insurer pays. There's bipartisan support to allow the invisible hand of economics to force some competition with visible prices. But healthcare stocks surged because drug prices will remain complex (and very high) for now.

Healthcare stocks jumped after 2 big regulatory reforms failed

Bitcoin 

_Regulators reacting to Facebook's alt-financial system_

ZuckBucks has haters

__Your 2-year-old iPhone is ancient...__ __[Nintendo](https://robinhood.com/stocks/NTDOY)__ measures time differently — the 120-year-old Japanese electronics icon ([founded](https://www.nintendo.co.uk/Corporate/Career/About-Nintendo/About-Nintendo-825979.html) in 1899, originally making playing cards in Kyoto) is convincing customers it's still fresh with the Switch Lite. The stock rose 3% on word of the next version of its best-selling gaming device. 

__Smaller, cheaper, no TV...__ Although it sounds like a downgraded hotel room, we're talking about the [new Switch](https://www.theverge.com/circuitbreaker/2019/7/10/20687801/nintendo-switch-lite-price-release-date-size-battery-life-motion-control-games). The revolutionary design of the original Switch let you play on a handheld screen or on TV. This one's purely for the go (convenient, but limiting) — and $200, instead of $300. The yellow, gray, and turquoise options that this Game Boy descendant comes in are delightfully Pikachu-ish. 

Play

__Nintendo thrives on blockbuster consoles...__ Super Nintendo, Game Boy, N64, and Wii are different chapters of Nintendo's dynasty. But the Switch has sold a shocking 34.7M units in the two years since its launch, generating 85% of Nintendo's revenue over that time. And the stock's up 48% in those two years as it plays along with it.

Nintendo unveils "Switch Lite" — a portable-only version of the legendary gaming device

__Enter your passcode on the touchtone keypad...__ to listen to __[Zoom's](https://robinhood.com/stocks/ZM)__ brutal security flaw. What's given Zoom a cult corporate following is its easy-use video conference calling. On Monday, we learned about [the bug](https://www.vox.com/recode/2019/7/9/20687689/zoom-mac-vulnerability-medium-jonathan-leitschuh-camera): If an attacker sends you a malicious Zoom link, it opens your Mac webcam automatically — exposing your life. The flaw is bad. Zoom's response was worse.

__Enter Jonathan Leitschuh...__ The software engineer side-hustles as a security flaw hunter. Here are highlights of the awkward series of events he detailed on [his blog post](https://medium.com/bugbountywriteup/zoom-zero-day-4-million-webcams-maybe-an-rce-just-get-them-to-visit-your-website-ac75c83f4ef5) that exposed the Zoom issue.
- __March 8:__ Jon tweets at Zoom he found a problem (gets no response).
- __March 26:__ He emails Zoom, warning he’ll disclose the flaw in 90 days (he even offers a quick fix).
- __March 27:__ Jon is offered a "bug bounty" by Zoom (payment from Zoom for finding the problem), which he refuses to accept.
- __June 21:__ Zoom says the flaw is fixed!
- __July 7:__ The fix stops working!
- __July 8:__ So Jon tells the world.

Error

__Investors vote in real-time via Wall Street...__ Despite the security flaw, the flubbed fix, and a beloved CEO's belated apology, shares *didn't* drop (they've actually risen since Monday). The bug's most likely impact on Zoom would've been customers leaving or lawsuits arriving. The stock's reaction signals Wall Street may not be worried about either.

Zoom made a big mistake. And took 4 months to fess up about it.

__Your parole has been denied...__ __[SunTrust](https://robinhood.com/stocks/STI)__ bank just [announced](https://www.reuters.com/article/us-suntrust-banks-prison/suntrust-to-stop-financing-private-u-s-prison-operators-idUSKCN1U31WV) it will no longer do business with private prisons or migrant detention centers. It's following __JPMorgan__, __Wells Fargo__, and __Bank of America__, which have all boycotted the industry this year as well. The trigger? Reports of inhumane conditions in border prisons that are sheltering unaccompanied children.

*__PS:__ Georgia-based SunTrust is mid-merger with North Carolina-based __[BB&T](https://robinhood.com/stocks/BBT)__. Afterward it will awkwardly be called "Truist."*

__Let's look at the prisons affected...__ __[GEO Group](https://robinhood.com/stocks/GEO)__ and __[CoreCivic](https://robinhood.com/stocks/CXW)__ are the two biggest publicly-traded and for-profit prison companies. They get paid by the federal and state governments to incarcerate prisoners for them (about $24K per year, per prisoner). GEO Group and CoreCivic both think the banks are caving to political pressure. 

Clink

__Reputation and profits — it's a tradeoff...__ The banks are turning down potential profits to protect their reputation among the community and with their employees. Sometimes, it's the other way around, like __[HSBC](https://robinhood.com/stocks/HSBC)__, which became the [top bank](https://www.wsj.com/articles/hsbc-carves-special-role-as-banker-to-the-saudis-11560425106) of Saudi Arabia despite the nation's human rights abuses and recent murder of journalist Jamal Khashoggi.

Private prisons lose another bank: SunTrust

_Pikachu slimming down to game on the go_

Nintendo's smaller, cheaper, handheld Switch

__[Pepsi's](https://robinhood.com/stocks/pep) earnings weren't shocking...__ Revenues inched up 2.2% and soda sales hardly grew. Then something happened in the press conference *after* the report's release — the CEO [couldn't stop talking](https://www.pepsico.com/docs/album/investors/q2-2019/q2-2019-pep_transcript_yj68o1p752vfolbb.pdf) about how much he's into Pepsi's new sparkling water brand, Bubly. Really into it.
- “*Could be one of our next __$1B brands__*”
- “*We're __super happy__, really, with this opportunity*”
- “*Huge opportunity ahead of us in Bubly in creating a __whole new category of beverages__*”

__It's all about the bubbles, baby...__ Over the past year, Bubly has more than [doubled](https://www.bloomberg.com/news/articles/2019-04-16/pepsi-s-bubly-seltzer-brand-gains-ground-on-lacroix-perrier) its share of the sparkling water market, from 2.3% last year to 6.5% now. Here's how Pepsi's drinking into __[LaCroix](https://robinhood.com/stocks/FIZZ)__ and __[Perrier's](https://robinhood.com/stocks/NSRGY)__ market:

- It acquired home-spritzing seltzer system __SodaStream for $3.2B__ last year.
- It launched Millennial-eye-candy-branded __sparkling water Bubly__, recently expanding to 12 flavors.
- It spoiled Bubly with __a Super Bowl [commercial](https://www.youtube.com/watch?v=I-_Uh-vZXgo)__ as a first birthday gift.

Fizz

__This is about Millennial moms...__ Pepsi's CEO described them as Bubly's true target. The [next generation](https://www.pewresearch.org/fact-tank/2019/05/08/facts-about-u-s-mothers/) of moms is more educated, more employed, and expected to spend more money than the last. Pepsi's [ditching](https://www.pepsico.com/news/press-release/pepsico-advances-circular-economy-for-plastics-announces-lifewtr-packaging-with-06272019) plastic bottles and putting Bubly in more environmentally-friendly cans, hoping Mom will buy it for herself *and* the kids. That's how you raise the next *next* generation of customers.

Pepsi's earnings report just showed us it's obsessed with sparkling water

__🚀🚀🚀🚀...__ Sir Richard Branson wants to be your interstellar concierge — his space travel startup __Virgin Galactic__ is going public. Technically it's not an IPO — a public company called __[Social Capital Hedosophia](https://robinhood.com/stocks/IPOA)__ already exists and will merge with VG (the name Virgin Galactic will stay when the deal closes this year). It's the [1st time](https://www.cnbc.com/2019/07/09/buy-virgin-galactic-stock-to-invest-in-the-billionaire-space-race.html) Earth-bound humans will be able to own stock in a space exploration company.

__Three very rich men are racing to space...__ But they're not all the same. The big difference is the cargo.  

- __[SpaceX](https://www.spacex.com/) = "FedEx for space":__ Elon Musk's space company sends rockets skyward, usually carrying satellites and space equipment for NASA and other space agencies. 
- __[Blue Origin](https://www.blueorigin.com/) = "Uber for space":__ Jeff Bezos' company plans to shuttle people out to space, and eventually bring natural resources from other planets back.
- __[Virgin Galactic](https://www.virgingalactic.com/) = "JetBlue for space":__ Unlike Jeff and Elon's rockets, which shoot straight up, Richard's is more airplane-ish, taking off and flying to an altitude of 50 miles. It's had two successful flights and plans to take tourists up soon.

Orbit

__Virgin Galactic's following Tesla's growth strategy...__ Tesla and VG both started by catering to the ultra wealthy, eventually hoping to lower costs and become mainstream. Virgin Galactic's also shockingly [bullish](https://learn.robinhood.com/articles/3i6hIwhY75uWjZUZiLFTFT/what-are-bull-and-bear-markets/), thinking it'll become profitable by 2021 as it collects $300K/flight from thrill-seeking millionaires who want to mid-orbit for the 'gram.

Virgin Galactic — the space company — is going public 

__"Storytelling" is the star...__ The word was dropped a disproportionate 4 times in the __[AT&T](https://robinhood.com/stocks/T)__ [press release](https://about.att.com/story/2019/hbo_max.html) about HBO Max, the new streaming service launching in the spring of 2020. The storytellers — including Nicole Kidman and Reese Witherspoon — will create original shows for HBO. But the real unspoken highlight is the *unoriginal*.

__Reruns are HBO Max's differentiator...__  AT&T acquired HBO's parent, Time Warner, last year. So it now owns (and will include in HBO Max) a wealth of "the-one-where-she-did-BLANK"-style episodes.
- __Time Warner icons:__ Warner Bros, TNT, TBS, Cartoon Network, Adult Swim, Looney Tunes.
- __HBO legends:__ *Game of Thrones, The Sopranos, The Wire, Sex and the City, Curb Your Enthusiasm*.


Streaming

__Reruns are Netflix's Achilles heel...__ Netflix has poured billions annually into original content, but this stat reveals a dramatic problem: [8 of the top 10](https://www.wsj.com/articles/friends-to-move-to-hbo-max-warnermedias-new-streaming-service-11562691481) shows on Netflix aren't Netflix originals. It's definitely losing its #1 and #2 most-streamed shows — *The Office* to NBC in 2021 and *Friends* to HBO Max in 2020 — just as HBO Max reruns itself.

AT&T releases "HBO Max," flexing Netflix's Achilles heel: reruns

_When Phoebe loses her HBO password_

HBO + Friends = HBO Max

__Disrupt the [1st person plural](https://www.we.co/)...__ The __We Company__ has visionary visions to turn real estate into utopias, starting with its WeWork office spaces. It's already stealthily filed to IPO, but the *WSJ* [just reported](https://www.wsj.com/articles/wework-to-raise-billions-selling-debt-ahead-of-ipo-11562524614) that it's first taking a pit stop with the banks to borrow $4B. Achieve [goal #1](https://learn.robinhood.com/articles/6UsdUrlnUvxiDpDT4D2bup/what-is-an-initial-public-offering-ipo/) of the IPO now so it's better ready for goal #2 later:

- __Goal #1: Raise money.__ With the IPO, We planned to create millions of new shares of itself to sell to the public for cash. 
- __Goal #2: Go public.__ All of We's investors (We founders, We venture capitalists, We employees) have We shares that are just pieces of paper. When it's a public company, it becomes easy to sell those shares for cash. 

__A $47B cash-burning machine...__ WeWork's biz model calls for a ton of spending. Right now, it's hugely unprofitable (it lost $1.9B last year — that's more than the $1.8B it generated in revenue). Here's how WeWork happens:

1. __It signs leases__ for huge office buildings.
2. __It WeWorkifies them__ by optimizing dead workspaces and cutting them into different sized, rentable pieces (small enough for one woman entrepreneurs, big enough for Amazon). Then it tosses in draft lager taps and ironic wallpaper.
3. __It collects rent__ from WeWork tenants.


Wait

__Sometimes it's safe to wait...__ Going public is like going pro. If WeWork raises $4B in cash now by borrowing, it can afford to take another year playing in college to refine its profit skills before facing the judgemental eye of the public market. Look what happened to __[Uber](https://robinhood.com/stocks/UBER)__ and __[Lyft](https://robinhood.com/stocks/LYFT)__ — those money-losing companies both went pro this year, and their stocks are below where they began trading on IPO day.

WeWork is reportedly slow-playing its IPO, borrowing $4B first

__Something happened over Spring Break...__ Snapchat changed. Parent company __[Snap](https://robinhood.com/stocks/snap)__ shares have nearly tripled since February, driven by analysts upgrading their price targets for the stock. And *that's* been driven by Snapchat strengthening — and then flexing — the two biceps of tech apps: growth and engagement.

__Left Bicep = "Growth"...__ The last time Snap updated us in March it had 190M daily active users. To grow beyond that, it's made two key moves:

1. __Viral filters:__ That gender-swapping filter in May [more than doubled](https://onezero.medium.com/snapchats-gender-swap-and-baby-filters-doubled-downloads-of-the-app-40a633c02ff0) the number of daily app downloads from 600K to 1.5M.
2. __New app:__ Finally updating its glitchy Android app increased the number of people snapping by 6%.

__Right Bicep = "Engagement"...__ To enhance the time users spend in the app, Snapchat launched games in April:

- __Bitmoji Party:__ Snapchat's 1st original game was deeply multi-playered so you could spend time with your friends' digitally-better-looking avatar versions of themselves.
- __Bitmoji Tennis:__ Just launched last week, the new game [lets you](https://venturebeat.com/2019/07/01/why-snapchat-is-making-mobile-games-like-bitmoji-tennis/) hit a microphone button to yell at your opponent — without having to leave the app.


Rebound

__Snapchat is covering steps #1 and #2 (growth and engagement)...__ Now it's gotta focus on Step #3: making money. A shocking 90% of all Americans age 13-24 use Snapchat, so the app's trying to monetize them through ads — and its revenues impressively rose 39% in the 1st quarter. But investors eventually want profits, and that means nailing step #3 as it flexes its growth and engagement.

Snap stock has subtly/shockingly almost tripled since February

__A room full of brains and calculators...__ That's the Congressional Budget Office, a non-partisan government agency that takes proposed legislation and calculates the economic impact. Its newest [report](https://www.cbo.gov/publication/55410) dives into the "Raise the Wage Act" — which would increase the minimum wage nationwide to $15/hour by 2025. It'll likely pass in the Democrat-controlled House of Reps, but it’s unlikely to become law right now.

__Paying people more is a trend...__ Although the federal minimum wage ($7.25/hour) can't even buy a Chipotle burrito (*pre*-guac) after not being increased since 2009, [29 states](https://www.npr.org/2019/07/08/739607964/-15-minimum-wage-would-boost-17-million-workers-cut-1-3-million-jobs-cbo-says) plus DC have increased theirs during that period. Here's who'd win and lose with a nationwide livable wage.

- __Winners:__ 17M people would get their pay upped to $15. And 10M more would likely get raises because a rising tide lifts bigger boats, too. Plus, 1.3M working-poor would escape poverty.
- __Losers:__ The CBO predicts 1.3M Americans would lose their jobs, as managers don't think they're worth $15/hour, or decide to use machines instead of costlier humans. 
- __*One caveat*:__ These are just predictions based on economic theory and math. The CBO isn't Professor Dumbledore.

This is a test - do we see this image?

__Companies would lose, at first, for sure...__ Higher wages = higher costs = smaller profits. __McDonald's__ has been lobbying against an increased minimum wage for that reason (but actually [ended](https://www.washingtonpost.com/business/2019/03/27/mcdonalds-says-its-done-lobbying-against-raising-minimum-wage/?utm_term=.b5da0c20ad8b) its fight recently because wage hikes seemed inevitable). But longer term, the CBO tells us that 27M Americans will have more money... which they will spend... which could increase companies' profits. We'll know for sure when the theoretical becomes real. 

$15/hour minimum wage is getting debated: 27M winners, 1.3M jobless

_Snapchat’s got a scar for every day since Facebook copied it_

What if the minimum wage were $15/hour?

__By a really, really big margin...__ __[Roku](https://robinhood.com/stocks/roku)__ (little Roku) is America's most popular video streaming platform. A research report [revealed](https://news.strategyanalytics.com/press-release/intelligent-home/roku-stretches-lead-1-streaming-tv-platform-us-after-record-q1) that the binge-empowering dongle makes up 30% of all streaming devices sold in the US — that's double the share of #2 (Amazon Fire TV). Roku's edge: It sells its own dongle hardware device *and* it is pre-installed on many smart TVs. Dangerous combo.

__Like Gump's shrimping [boat](https://youtu.be/TjcK-LGgtLA?t=262)...__ It turns out __[Delta](https://robinhood.com/stocks/dal)__ is the only major US airline that [doesn't have](https://www.cnn.com/2019/07/02/business/delta-earnings/index.html) a single Boeing 737 MAX in its fleet. That means it's been gaining market share since March, when its rivals had to ground the troubled planes and cancel scheduled flights. It told investors last week that its revenues gained a more-than-expected 8% last quarter as a result.

__You may climb out from your Tesla bunkers...__ Electric car icon __[Tesla](https://robinhood.com/stocks/TSLA)__ doesn't report its 2nd quarter earnings for a couple more weeks. But it served up its quarterly "Vehicle Production & Deliveries" report. Good news for shareholders: Tesla is back to setting personal record numbers of cars sold, [like it's supposed to](https://snacks.robinhood.com/newsletters/I8ABCDal2o99W3TesGSBI/articles/1Ci0gzILhvqQaPCIuWhuMD) be doing. That pushed shares up 7% Wednesday.

__Liquor before weed...__ On Independence Day Eve, __[Canopy Growth](https://robinhood.com/stocks/cgc)__ (Earth's biggest cannabis company) announced the co-CEO was "stepping down," but the man himself clarified that he'd been "[terminated](https://www.cnbc.com/2019/07/03/canopy-growth-co-ceo-to-step-down.html)." The reason for the firing: Corona-owning liquor legend __[Constellation Brands](https://robinhood.com/stocks/stz)__ owns 37% of Canopy's shares and controls 4 of the 6 seats on Canopy's board. And Constellation wants Canopy to focus more on CBD-infused drinks, less on medical marijuana, so it [canned](https://snacks.robinhood.com/newsletters/53D5PZmVR86YJQknpYXKkL/articles/hhYUavVObsQAZQpRrRAZr) the Co-CEO to send a message.

__Technically, the stock rose last week...__ But we're listing __[Deutsche Bank](https://robinhood.com/stocks/DB)__ as a clear debbie downer. It [announced](https://www.bbc.com/news/business-48901565)  yesterday that its turnaround plan is to lay off about 20% of its workers. The pain (18K jobs total) hits the London and New York investment banking divisions, but Wall Street is relieved that it's going back to its German roots.

__Stick it up on the fridge...__ Friday we [learned](https://www.npr.org/2019/07/05/738624184/rebound-in-job-growth-expected-in-june) that the US economy added 224K new jobs in June. We'll get to why stocks *fell* on the good news in a sec, but here are two interesting developments we noticed:

1. __Manufacturing is doing its thing:__ Even though it's the sector most-affected by the US/China trade war, 17K jobs got created in the biz of putting things together (the most since January).
2. __The ironic hiring issue:__ Since so many Americans are getting paychecks, there's a huge demand for *more* workers to serve them burrito bowls, teach them to shavasana, fit them into Allbirds, etc. But with the unemployment rate close to a record low at 3.7%, finding the right available talent is tough.

__Toss in a little context...__ and it helps understand each monthly jobs report a bit better.
- __Compare it to expectations ⬆️:__ Economists expected 162K new jobs. We got 40% more than that in June.
- __Compare it to last month ⬆️:__ Jobs growth plummeted in May to just 72K new jobs. We rebounded hard in June.
- __Compare it to last year ⬇️:__ The average number of jobs added monthly over the past 3 months was 171K — that's down from the 223K we were adding during the same 3-month stretch last year. It's a sign that expansion is [slowing](https://www.nytimes.com/2019/07/05/business/economy/june-jobs-report.html).


Hired

__It's all about the Fed's July get-together...__ America's central bank decides at next month's meeting what to do about interest rates — lower them to encourage borrowing and growth, or keep things put because the economy doesn't need any help (it could also increase rates, but that's not in the cards right now). Mid-trade war, investors have been expecting/hoping for the Fed to lower rates, which would be great for profits and stocks. But this strong jobs report may keep things in cruise control instead. *Good news for the economy was bad-ish news for the stock market*. 

The June jobs report dominated (but stocks fell) — Here's why

_“Does anyone know who’s setting record highs?”_

Jobs surged. But stocks fell. We look at why.

__The "Sam Walton College of Business"...__ That's where __[Walmart](https://robinhood.com/stocks/WMT)__ CEO Doug McMillon got his BA. It's named after Walmart's founder, and the dress code is *business pleated*, not *Silicon Valley untucked*. And deep reporting by [Recode](https://www.vox.com/recode/2019/7/3/18716431/walmart-jet-marc-lore-modcloth-amazon-ecommerce-losses-online-sales) has revealed that profit-focused retail types at Walmart are annoyed with its new ecommerce darlings.

__Jet.com got acquired in 2016 for $3.3B...__ and it's appeared to put up big results. But it turns out many at Walmart resent Jet.com and the new techies on the block.

- __The positive PR spin:__ Walmart's got its mojo back. It's putting up __a legit fight against Amazon__ and is even beating Bezos in some spots (it was first to offer free 1-day shipping). 
- __The stone cold sober truth:__ Walmart's ecommerce efforts __lose $1B per year__. And Walmart only owns 5% of total online shopping in the US, behind Amazon's 38% (according to Recode).
- __The latest:__ CEO McMillan is telling Jet.com's Marc Lore to __cut costs__. But Jet.com founder-turned-Walmart-ecommerce-guru says they must actually __increase spending__ if Walmart's serious about beating Amazon. 

Squabble

__Growth vs. Profit...__ With tech changing so many industries, you find situations where companies have old-and-profitable divisions squabbling with new-and-growing ones. Managers need the profits now to fuel growth for tomorrow. But the clash of culture can kill morale (and make the old guard feel un-loved). That tension is playing out in plenty of places:

- __Walmart:__ Its physical stores made nearly $7B in profit last year, but we all know the future is online and omni-channel commerce (a combo of online and in-store).
- __Automotive:__ Gas-guzzling trucks/SUVs are making all the money, but management loves to talk about self-driving tech and electric cars.
- __News:__ Fox News and CNN are making bank on TV (political ads are their profit puppies), but the growth is in digital and mobile.

Walmart vs. Jet.com: The old guard is now clashing with its ecommerce newbies

__Good thing he's Canadian, or this holiday would be sad...__ Bruce Linton, co-CEO of the world's largest cannabis company, __[Canopy Growth](https://robinhood.com/stocks/cgc)__, told the world Wednesday that he got fired. Correction: The Company said he “[stepped down](https://www.canopygrowth.com/investors/news-releases/canopy-growth-announces-leadership-transition/).” But he was fired. And it looks like liquor legend and Corona-owner __[Constellation Brands](https://robinhood.com/stocks/stz)__ was behind the big move.

__Modelo lager. High West whiskey. Robert Mondavi merlot...__ Now pot. Constellation has already got the bar covered, so in 2018 it expanded beyond alcohol by spending $4B to acquire 37% of Canopy. This was the strategic vision: CBD-infused drinks. Canopy brings the marijuana-know-how, Constellation brings the beverage creation/distribution expertise. Then strategies stopped aligning:

- __Linton:__ The co-CEO was busy forging A-list partnerships with Martha Stewart and Snoop.
- __Canopy:__ The cannabis company is focusing on medical marijuana, with plans in 30 countries since the legal situation is easier than recreational.
- __Constellation:__ The alcohol company wants CBD-infused and profit-making drinks ASAP — *but under Linton's leadership of Canopy, that wasn't priority #1*.

__It's all about the Board...__ The CEO may be boss, but he or she has to answer to the Board of Directors. Canopy has 6 seats on its Board, and 3 are execs at Constellation while a 4th is on Constellation's board, too (the alcohol empire managed to get board control with its $4B investment). Only 2 of Canopy's board members are independent from Constellation. Last week, Constellation's CEO was "not pleased with Canopy’s recent reported year-end results,” and it seems he and his board buddies did something about it.

Netflix actually shrank in the US