__Joltin' Joe is impressed...__ In June of 2009, America's economy hit the low-point of the financial crisis. For the 120 months since, it's been growing. And starting this week, it's officially America's [longest](https://www.nbcnews.com/business/economy/we-re-longest-economic-expansion-ever-it-s-rich-who-n1025611) stretch of economic growth without a recession since World War II. 

__In honor of Independence Day...__ we're jumping into this streak, Snacks style. Here's how the economy has changed since the depths of the Great Recession, which was triggered by the financial crisis, which was triggered by the subprime real estate bubble:

- 🔧 __21M jobs have been created:__ And unemployment is at a modern record low of 3.8%.
- 📈 __Stocks have more than tripled:__ The S&P 500's 230% gain in the past 10 years was powered by low interest rates and ballooning profits. 
- 😬 __We're in a trade war now:__ It's concerning. But at least the economy's in a good enough position to endure the pain.
- 🎭 __The number of billionaires has almost tripled:__ But a divided American recovery has left behind those outside of major jobs hubs.

Expand

__Does an economic expansion die of old age?...__ Every recession in history — except this one — has been followed at some point by another. Many analysts are looking for signs of another economic downturn... which can have the effect of hurting confidence... and actually contributing to the economic downturn (it's a freaky self-fulfilling prophecy). We'll learn more as 2nd quarter earnings reports hit this month.

America's economic expansion is 10-years-old 

__95,200...__ That's the number of __[Tesla](https://robinhood.com/stocks/TSLA)__ cars that were delivered to affluent, environmentally-conscious, and/or tech-obsessed new owners from April-June. That's more than double the number of deliveries in 2018's 2nd quarter, and the positive result popped shares up 7% Tuesday.

__This isn't some earnings report...__ It's the "[Vehicle Production & Deliveries](https://www.globenewswire.com/news-release/2019/07/02/1877581/0/en/Tesla-Q2-2019-Vehicle-Production-Deliveries.html)" report — car companies preview their financial results with this crude, raw, meaty, production count. But Tesla's had worries about "weak demand" from the beginning of the year. That's when deliveries fell 31% from the quarter before, and flocks of Tesla doubters started chirping that customers just weren't that into Elon's cars. 

Produce

__If Tesla's *not* setting records, then something's wrong...__ Tesla produces a tiny fraction of the number of cars __[General Motors](https://robinhood.com/stocks/GM)__ makes, but its stock by [market value](https://learn.robinhood.com/articles/GByCbiOluG2kcWs1AF6m5/what-is-market-capitalization/) is about 80% of GM. It's like a kid measuring her height with a marker against the wall — Tesla better be setting records each quarter. This report signal's Tesla's master plan is more on track.

Tesla's 2nd quarter record deliveries quiet the skeptics

__Turn up the chill...__ Meditation app  __Calm__ evolved into a unicorn in February, raising $80M to hit a $1B valuation — now $27M has been tossed in from another venture capital firm. The leader of that firm [made clear](https://medium.com/lightspeed-venture-partners/calm-is-creating-quite-a-storm-5917185e8920) that she's a power-user — Calm helped her falling-asleep time drop from 30 minutes on average to less than 5 (that's 150 hours more zzzzs per year).

__The moment of zen...__ occurred last year. Calm charges $60/year (or $400 for "[Calm for Life](https://www.calm.com/freetrial/plans)") to access its meditative relaxation content. But with competition flowing into mindful apps (think Headspace, Aura, and [others](https://thewirecutter.com/reviews/best-meditation-apps/)), it had to transition from a weekly resolution to a daily habit. So it launched "Sleep Stories" to help you get to your dreams. That's when engagement and retention surged.

- __Celeb strategy:__ Sleep Stories [features](https://techcrunch.com/2019/07/01/calm-sleep-stories/) Matthew McConaughey coaxing you into slumber ("*How often do we ponder depth of the present moment*") or John McEnroe reading tennis rules to your pillow.
- __It became a ritual:__ The feature led to 150M listens from 2M paid subscribers since the feature launched last year.
- __Revenues popped:__ They're on pace to double this year to $150M.

Raised

__You selling a vitamin or aspirin?...__ It's the key question some VCs ask before they invest. A "vitamin" is nice to have, but not critical. An "aspirin" is something customers need. Now. Both have benefits, but the daily need-to-have option drives engagement and growth. Calm's sleep pivot may have turned it into aspirin, and that's why Lightspeed Ventures says it invested.

Meditation app Calm raises another $27M as a mindful McConaughey  unicorn

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

_Sailing into the 4th at record highs_

Happy 10-year growth-versary, America

__Technically...__ __[Nike](https://robinhood.com/stocks/nke)__ reported its earnings last week. Technically it missed analysts' expectations for the 1st time in 7 years. But we're more focused on CEO Mark Parker's call with investors *after* the earnings report. Just in time for today's USA vs. England World Cup match, he thinks 2019 is a "true [tipping point](https://www.businessoffashion.com/articles/news-analysis/nike-misses-earnings-estimates-for-first-time-in-seven-years)" for women's sports.

__Women are winning Nike...__ 14 of the 24 Women’s World Cup teams enjoy a Nike swoosh across the chest. And the combo of Nike spending big on [this ad](https://www.youtube.com/watch?time_continue=4&v=hOVkEHADCg4), covering almost 2/3 of the jerseys, and [record](https://www.hollywoodreporter.com/news/womens-2019-soccer-world-cup-smashes-global-ratings-records-1221957) TV ratings are doing it. These Nike stats just arrived:
- The US Women's National Team jersey is  __the #1 selling soccer jersey__ — *men's or women's* — ever sold on Nike.com.
- And enthusiasm for women's apparel has extended to bras — Parker [announced](https://www.highsnobiety.com/p/nike-team-usa-womens-world-cup/) Nike's now __the biggest seller of bras__ across North America.

Kicks

__Nike vs. Lululemon...__ That's the biggest matchup worth watching right now. Both are focusing on the opposite genders in the same (non-US) places. It's a fight worth watching.
- __Lulu’s 5-year plan:__ Double men’s sales and quadruple international sales (especially in China) since the majority are sold to North American women.
- __Nike’s focus:__ Sell more to women and to China — 75% of its apparel sold is to men, and China is its fastest-growing market with nearly 20% of all sales.


The Women's World Cup is handing Nike (multiple) records

__Don't sing along with the peasants...__ If you have a 5-digit budget for T-Swift or GNR concerts, then you're qualified for StubHub Beyond, the new loyalty club for event go-ers who spend $10K/year on the ticket platform. __StubHub__ is owned by __[eBay](https://robinhood.com/stocks/EBAY)__, and its parent company wants high-rollers to feel special with "[Beyond](https://www.stubhub.com/beyond)."

__We want to be on this list...__ To get frequent and big-spending customers even more frequent and liberal with their wallets, StubHub's [hooking them up](https://www.sportsbusinessdaily.com/Journal/Issues/2019/06/24/Marketing-and-Sponsorship/StubHub.aspx) three ways:

- __Exclusive events:__ Think private tour and batting cage experience at Yankee Stadium (it's event #1, starting Thursday). Or VIP tailgate at the Masters golf tournament.
- __Cancellation forgiveness:__ If you can't make the 3rd day of Lollapalooza, you'll get 1 full refund per year, no questions asked. None.
- __Exclusive support line:__ Because, of course.
- __*The Key is exclusive loyalty*:__ With so many secondary market ticket sellers, Beyond could incentivize loyalty to StubHub.

Elite

__This is a classic 80/20 situation...__ Surprised StubHub's doing so much for such a tiny fraction of customers? Don't be. It's not uncommon in business for 80% of profits to come from 20% of users. That's why companies spend an outsize amount of resources keeping high-spenders happy. So expect the VIP-ification (TSA "Clear" > TSA "Pre-check" > TSA "please remove your shoes and prepare for pat down") of corporate America to continue.

StubHub creates VIP status for your buddy who drops $10K/year on tickets

__Aiming for that 9-to-1 job?...__ According to Bloomberg, __[Deutsche Bank's](https://robinhood.com/stocks/DB)__ NYC-based workers are [leaving](https://www.bloomberg.com/news/articles/2019-07-01/empty-desks-and-early-beers-life-at-deutsche-bank-in-new-york) the office post-lunch for beers nearby. According to other sources, the big German bank expects the CEO to announce [layoffs](https://www.americanbanker.com/articles/deutsche-bank-plans-to-cut-as-many-as-20-000-jobs-in-revamp) of up to 20K of its 91.5K workers. Now that Deutsche's savior mega-merger with Commerzbank [is off](https://www.cnn.com/2019/04/25/business/deutsche-bank-commerzbank-merger/index.html), it's taking out the axe.

__1 number says it all...__ The stock has fallen 80% in the past 4 years, and is down almost 95% from its pre-financial crisis highs. One crucial financial metric shows just how little confidence investors have in management to make money: 

- __Book Value = *value of a company on paper*:__ Deutsche Bank's balance sheet says it's got $71B of net worth.
- __Market Value = *value of a company according to its stock price*:__ Wall Street investors think Deutsche is worth just $16B based on where the shares are trading.
- __Price/Book ratio:__ Divide those two. The resulting Price/Book ratio helps us realize that investors are only giving the bank 22 cents of credit for each dollar of paper value. *Investors think Deutsche Bank is worth less than the bank does.*

Downsize

__It's a vicious cycle...__ After the financial crisis almost destroyed European economies, the continent responded with tough banking regulations. Sadly, the banks responded by making fewer loans, which slowed economic growth, which hurt corporate profits, which hurt the banks. That cycle has just been on repeat over the past decade — Now Deutsche's a shadow of its pre-'08 self.

Deutsche Bank is reportedly planning to lay off over 20% of its workers

_"How do you sell so many jerseys?"_

Nike's Year of the Woman

__Pre-used Gucci has found its home...__ __[The RealReal](https://robinhood.com/stocks/real)__ is your verified 2nd-hand luxury online mall — it's got 100 real-life human experts checking that the Chanel bag is 100% Chanel, giving Millennials guilt-free, lower-cost, and high-end all in one place. The fashion *re*seller's shares [jumped](https://www.cnn.com/2019/06/28/business/the-realreal-ipo-luxury-resale/index.html) 45% on its IPO as investors hope a fancy e-thrift-store concept can scale. 

__Friends ➡️ frenemies ➡️ enemies...__ A report about __[Amazon](https://robinhood.com/stocks/AMZN)__ shipping blew our minds — the percentage of packages it ships itself has grown from 17% just 2.5 years ago to [48% today](https://www.axios.com/amazon-shipping-chart-fedex-ups-usps-0dc6bab1-2169-42a8-9e56-0e85c590eb89.html). And it will continue taking more business away from __[UPS](https://robinhood.com/stocks/UPS)__, __[FedEx](https://robinhood.com/stocks/FDX)__, and the US Postal Service since it ships faster: Thanks to its superior data, Amazon-delivered packages arrive in 3.2 days vs. the competition's 6 days.

__Bitcoin rally part II...__ Attention's been on the cryptocurrency's price jump to nearly $14K last week before settling closer to $11K. And chip-maker __[AMD](https://robinhood.com/stocks/amd)__ has been along for the ride. Late last year, AMD [unveiled](https://www.amd.com/en/technologies/blockchain) fresh new products and services for Bitcoin miners and blockchain-thusiasts. If the latest Bitcoin jump feels like a gold rush, then AMD is selling shovels — making money whether the miners find gold or not.

Highs

Who's up...

__iProblems...__ __[Apple](https://robinhood.com/stocks/aapl)__ shares dipped 2% on word that Chief Design Officer Jony Ive (the man behind the look/feel of the iPhone, iPad, iPod, OG MacBook, and new Apple HQ) is leaving to start his own company. Then we [learned](https://www.engadget.com/2019/06/29/apple-to-improve-news-plus/) that the new Apple News+ subscription service isn't delivering for the participating magazines and news sites — one publisher said it's getting "one-twentieth" the revenue they expected.

__Driving off into the sunset...__ __[Tesla's](https://robinhood.com/stocks/TSLA)__ head of production reportedly [left](https://electrek.co/2019/06/26/tesla-loses-head-of-production/) the company, with brutal timing — this week Tesla announces its production and delivery numbers for the 2nd quarter. It needs to quiet skeptics who wonder if demand for the Model 3 is slowing. PS: There was another [report](https://www.cnbc.com/2019/06/26/tesla-secret-lab-building-battery-cells-to-reduce-panasonic-dependency.html) that Musk's building a secret battery lab.

__Pets > People...__ Lucky Charms pioneer __[General Mills](https://robinhood.com/stocks/gis)__ revealed that its snacks biz is suffering, with sales falling 2% last quarter (the CFO admitted that Fiber One bars "fell out of step" with diet trends). Good thing humans are [spending](https://www.cnn.com/2019/06/26/investing/general-mills-earnings/index.html) more on their pets than on themselves — GMills' pet food sales surged 38% because it acquired __Blue Buffalo__ last year, along with its fancy meal options for Fido (bison, rabbit, halibut, and alligator are go-to ingredients).

Lows

...And who's down

__Omg...__ Budweiser-owner __[AB InBev](https://robinhood.com/stocks/BUD)__ just made its biggest wine [acquisition](https://www.brewbound.com/news/anheuser-busch-buys-wine-company-co-founded-by-the-fat-jew) ever: Babe Wine. Josh Ostrovsky — aka comedian [The Fat Jewish](https://www.instagram.com/thefatjewish/?hl=en) — launched White Girl Rosé in 2015 during the infamous Hamptons rosé shortage of 2015. His goal was to become "the Bud Light of wine." Now it's official.

__Bud's been around forever. Keep it that way...__ ZX Ventures is Bud's in-house venture capital arm that buys stakes in innovative alcohol ventures since that's cheaper than having to innovate itself. It already had a stake in Babe, and just slurped up the very last of it to become the 100% owner. Here's why it made sense:

- __Sales of rosé in America rose 8%__ last year while beer sales have been slowly declining. *White Girl Rosé* has that trend covered. 
- __Sales of canned wine jumped 69%__ — *Babe* brand's convenient 12 oz cans of wine "with bubbles" are a big reason for that growth. 
- __*Babe* aggressively targets the bachelorette crowd__ (hello "[Party Box](https://www.drinkbabe.net/)") with social media marketing that Bud wants to hang with — model Emily Ratajkowski (23M Insta followers) is Babe's Chief Taste Officer.

Cork

__Bud needs a better summer drink...__ Your local 7/11 is likely out of non-beer options labeled "spiked," "hard," and "bubbly." The same trend that's got us hooked on LaCroix over soda has consumers wanting lighter, fruitier summer drinks over beer. Bud rival __[Constellation Brands](https://robinhood.com/stocks/stz)__ was [showing off](https://www.cnbc.com/2019/06/28/constellation-brands-q1-2020.html) its new non-beer Corona sparkling spin-offs in its earnings report Friday. Now Bud needs some bubbles.   

AB-InBev acquires Insta-famous White Girl Rosé to get into canned wine

_Budweiser shows up just in time for Rosé season_

Budweiser goes rosé all day

__When you track every Amazon package for 2.5 years...__ you learn juicy details. Data-obsessed company Rakuten [found](https://www.axios.com/amazon-shipping-chart-fedex-ups-usps-0dc6bab1-2169-42a8-9e56-0e85c590eb89.html) that the percent of __[Amazon](https://robinhood.com/stocks/amzn)__ packages delivered *by Amazon* rose from 16% in 2017 to 48% today — The US Postal Service ships 33%, UPS has 17%, and FedEx covers under 2%. All of Amazon's gains over that span were at the expense of the Postal Service (just as Trump started [demanding](https://www.ttnews.com/articles/trump-targets-amazon-call-higher-postal-shipping-rates) Amazon pay more for mail).  

__How'd it happen so fast?...__ A combo of strategic under-the-radar and high-profile shipping fleets:

- __Amazon Flex:__ Lets gig workers deliver packages in their own Honda Civic delivery coupe à la Uber/Lyft, making [$18-$25/hour](https://flex.amazon.com/).
- __Amazon Delivery Partners:__ Amazon entices local entrepreneurs to start micro-delivery companies to handle last-mile delivery of packages to stoops across their hometowns.
- __Amazon Now:__ Those Amazon-branded [vans](https://money.cnn.com/2018/09/06/technology/amazon-van-mercedes/index.html) that can deliver to a bar within an hour.
- __Amazon Locker, Amazon Counter:__ Deliver a bunch of things to 1 spot, like a student center or a __[Rite Aid](https://robinhood.com/stocks/RAD)__ (that partnership was announced yesterday), letting customers [carry their stuff](http://fortune.com/2019/06/27/amazons-counter-pickup-orders-rite-aid/) home. 
- __Planes__ (Amazon just leased 15 at the Paris Air Show), __drones__ (arriving "within months"), and a $1.5B __air hub__ in Kentucky.

Ship

__Let the competition give you data, then beat them with it...__ Amazon's relationship with a bunch of partners shifted from friends to frenemies to enemies — It partnered up at first, but eventually used partnership data to do it better itself. Amazon's done that with physical stores (Amazon Go) and even video (Amazon Original films). And according to Rakuten, Amazon-delivered packages take 3.2 days on average. Everyone else takes 6.

Data shows Amazon ships almost half its packages ITSELF

__Bitcoin is having (another) moment...__ The price of the OG cryptocurrency rose from under $4K in March to over $13K this week (but [fell](https://www.cnbc.com/video/2019/06/27/bitcoin-prices-plunge-after-surging-heres-what-five-experts-say-about-the-digital-currency.html) to $10K Thursday). As the price surges, so does incentive to mine Bitcoin — New coins generated by people crunching numbers on high-powered, [energy-devouring](https://www.technologyreview.com/s/613658/bitcoin-mining-may-be-pumping-out-as-much-cosub2-sub-per-year-as-kansas-city/) computers. That just gives __[Advanced Micro Devices](https://robinhood.com/stocks/AMD)__ __(AMD)__ another something to smile about. 

__AMD stock has doubled over the past year...__ The computer chips it's become famous for are getting love from diverse places:

- __Microsoft:__ The tech company is [reportedly](https://www.techradar.com/news/microsoft-could-make-amd-powered-surface-devices-after-falling-out-with-intel) considering swapping out Intel chips for AMD ones in its next litter of Surface tablets. 
- __Video games:__ PlayStation 5 and the next Xbox are both [contracted](https://www.axios.com/amd-bitcoin-stock-market-rise-ee401a13-c1ad-4529-a42a-4641a0625434.html) to use AMD chips.
- __*Bitcoin:*__ Those miners want AMD in their Bitcoin-digging computers. If the price of Bitcoin stays up, it may boost sales of AMD processors from techies who want to turn newly-minted Bitcoin into cash.

Mining

__AMD is the shovel to Bitcoin's gold...__ Like the gold rush spurred demand for literal shovels, the 2nd Bitcoin boom is hungry for AMD chips. Back in November when Bitcoin hype was hibernating, AMD [unveiled](https://www.amd.com/en/technologies/blockchain) a bunch of services for Bitcoin miners and blockchain developers. That bet could be paying off now. 

AMD is loving Bitcoin-mania Part II

__Chief Design Officer...__ Apologies — Make that *Sir* Chief Design Officer. British-born, fully-[knighted](https://www.wired.com/story/a-reminiscence-of-jony-ives-design-legacy/) Jony Ive is leaving Apple after 27 years to start his own design company (it'll be called "LoveFrom," inspired by [this](https://www.fastcompany.com/90370726/the-name-of-jony-ives-new-company-comes-from-this-steve-jobs-quote) Steve Jobs quote). Apple [assured us](https://www.apple.com/newsroom/2019/06/jony-ive-to-form-independent-design-company-with-apple-as-client/) in its press release that Jony will keep working with Apple — Shares only dipped 1% after the news because it'll be one of his first clients.

__Something you're touching today...__ was probably touched by Ive and his Bauhaus-inspired commitment to "less is more." When Jobs returned to __[Apple](https://robinhood.com/stocks/aapl)__ in 1997, the company was just clicks away from bankruptcy. That's when Jony became Apple's spirit animal by designing these masterpiece devices:

- __iMac desktop (1998):__ The OG-Starburst colored ones that took over your school's computer lab. He also did more recent MacBook Airs.
- __iPod (2001):__ The circular scrolling was a game-changer. He also did the (adorable) iPod Mini.
- __iPhone (2007):__ Apple's greatest commercial success. He also led the teams on the iPad and [AirPods](https://9to5mac.com/2019/03/22/jony-ive-airpods-design-gq/). 
- __A smooth voice:__ He's known for divine British [narration](https://www.youtube.com/watch?v=e1KD7DdnRb8&feature=youtu.be).
- __Apple's "neo-futurist" campus (2017):__ Ive stepped away from product innovations to design the [spaceship-ish](https://www.youtube.com/watch?v=dnC_dxKc6bk) new Apple HQ building.


iOut

__Apple needs to schedule a Genius Bar appointment for itself...__ 2019's been rough and shares are only up 8% over the last year. Slowing iPhone sales and the trade war with key manufacturing partner China have been a problem. The [departure](https://www.ft.com/content/947e557a-98a8-11e9-8cfb-30c211dcd229?shareType=nongift) of its Apple Store retail chief and now its Chief Designer don't help. 

The designer of the iPhone, Jony Ive, just left Apple

_Apple's spirit animal is leaving_

Amazon already ships 48% of Amazon

__If you have a shopping problem...__ __[Shopify's](https://robinhood.com/stocks/shop)__ complicit in the crime. *And you don't even know it*. That's because Shopify does ecommerce's dirty work — It's the back-end, logistics-coordinating, sales-organizing software for any retailer that may sell something online. And according to [Engadget](https://www.engadget.com/2019/06/26/apple-business-chat-shopify/), it's making online shopping even easier with Apple's Business Chat.  

- *FYI: __Chubbies__ (shorts), __Bombas__ (socks), __MVMT__ (watches), __TB12__ (Tom Brady gear), and hundreds of thousands more all sell with Shopify as their wingman.* 

__Now you can track your Tom Brady hat (🤢) via iMessage...__ *Text*-based customer support puts help in your pocket. It's easier than lame email, time-destroying phone calls, or annoying chat windows. And it's all part of Shopify's strategy to manage the busy-work of ecommerce so brands like Bombas can focus on sock-knitting:

- __Merchants:__ Those are Shopify's customers (aka businesses that sell products). It specializes in small biz brands, but it's also added big-time companies like Unilever.
- __Pro services:__ Shopify's got tools for web design, bookkeeping, package tracking, customer support, and even Search Engine Optimization (so you show up on the top page of Google search).
- __Insta:__ If you can whip up a t-shirt and post it to Instagram, you can sell it with Shopify's plug-in.

Purchase

__"Ecommerce as a service"...__ The makers of S'well water bottles are focused on making good water bottles. But they've got to be online. Instead of building their own ecommerce situation (which costs huge $$$), they can pay Shopify a monthly fee. That simple value prop has pushed Shopify's valuation to $30B, and its stock up almost 10x since its 2015 IPO.  

Shopify's new iMessage feature for 820K merchants is a customer service game-changer

__The Leprechaun should be ashamed...__ Lucky Charms, Cheerios, and Yoplait icon __[General Mills](https://robinhood.com/stocks/gis)__ fell 4% after an earnings report with two [dominating](https://www.cnn.com/2019/06/26/investing/general-mills-earnings/index.html) themes — Human snacks were down, animal snacks were up. PS: Cereal sales were flat.

__Snack sales fell 2%...__ *Feels meta talking about this.* GMills' Fiber One, Nature Valley, Gushers, and lunchbox throwback Fruit by the Foot.
- Its Fiber One branded foods __"fell out of step"__ (their words) with US diet trends.
- Even the CFO's confused about the direction of its snacks biz: "*We need to __get snacks back on track__*."

__Pet food sales jumped 38%...__ mainly because of General Mills' $8B acquisition of Blue Buffalo last year.
- Blue Buffalo is munching the "pet humanization" trend that Chewy rode to its pet supply IPO this month — It's because __Millennials spend big on labradoodles__ since few of us have kids.
- 90% of dog-owners say Fido is __"part of the family"__ (86% for cat-owners) — And that means paying for Blue Buffalo's premium duck, halibut, and even alligator ([it's true](https://bluebuffalo.com/natural-cat-food/blue-natural-veterinary-diet/np-dry-food-for-cats/)) based pet foods.

Eating

__Pet food and snacks target the same Millennial customer...__ But General Mills is still getting to know us. It missed with snacks, but nailed it with pet food through a strategic acquisition. That's why its CFO also added this: "You'll see us invest behind some really good ideas on bars and snacks." Translation: *GMills is planning to buy the trendy snacks this generation actually eats.*


General Mills drops 4% because it only half understands Millennials (aka their pets)

__"I lost my access card"...__ Companies basically have an entire division to support that issue. So __Waltz__ turned the access card into a QR Code in a free app on your phone, and __WeWork__ just bought it. We're seeing a trend from the $47B valued private co-working pioneer that's expected to IPO this year or next. 

__It's called "The We Company" technically...__ but it's popping out its credit card to acquire office tech startups. Here are two of the 10+ acquisitions The We Company has made since 2017:

- __Teem:__ The [software](https://www.teem.com/) companies stick in an iPad to greet visitors (and capture your NDA signature) and to book conference rooms.  
- __Euclid:__ Named after the founder of geometry, Euclid offers ["workplace insights"](https://techcrunch.com/2019/02/07/wework-just-acquired-spatial-analytics-platform-euclid-to-bolster-its-software-offerings/). It basically watches how worker bees move around the office and it offers productivity-boosting office layout tweaks.

Work

__WeWork two different ways...__ People spend about a quarter of their life hacking away in an office. So WeWork is getting ready to show public investors its 2 money-making work strategies:

1. __Its own office buildings:__ WeWork leases gigantic towers, WeWork-ifies them with standing desks, snacks, and colorful lounge areas, and rakes in rent from tenants.
2. __Clients' office buildings:__ WeWork's also a consultant, using Teem, Euclid, and Waltz to WeWork-ify your company's space, then collect consulting fees. 


WeWork buys another "office tech" company

_General Mills gets the dog. Doesn't get the Millennial_

WeWork-ify your office

__Treat yo' self...__ A pair of coffee stocks are enjoying record highs — __[Dunkin'](https://robinhood.com/stocks/dnkn)__ is up 29% this year and __[Starbucks](https://robinhood.com/stocks/sbux)__ has risen 30%. [An analyst](http://fortune.com/2019/06/25/stocks-coffee-starbucks-dunkin/) who doesn't even drink coffee (more of a "tea and hot chocolate" guy) just upgraded where he thinks Dunkin's shares can go thanks to a 4-part java strategy.

__"*I'll have what she's having*" — Starbucks...__ It looks like Dunkin's rival ordered the same 4-part coffee growth plan:
1. __Streamlined menus:__ The faster customers can figure out what obscure Arabica bean combo they want, "the happier they'll be" (according to one of Starbucks' [menu engineers](https://www.huffpost.com/entry/starbucks-menus-shorter_n_5bfc3673e4b0eb6d93126cd6)).
2. __More espresso-based drinks:__ For the [1st](https://www.qsrmagazine.com/fast-food/dunkins-espresso-game-changer-years-making) time ever, consumers under 35 drank more espresso drinks (like lattés) than hot drip coffee, in 2017.
3. __Super loyalty programs:__ We're talking "MCommerce." *Mobile* commerce. The ability to see a full menu, order ahead, and gamify buying with rewards leads to orders that are bigger and more frequent.
4. __Tech delivery partnerships:__ Both coffee brands signed delivery deals with Grubhub.

__Coffee *consumption* isn’t a commodity...__ Oil, copper, coffee — All commodities because they aren't differentiated (one bean's pretty much the same as another). But coffee-buying experiences are different. Through apps, delivery, and [Zombie Frappuccino](https://www.starbucks.com/menu/drinks/frappuccino-blended-beverages/zombie-frappuccino-), Starbucks and Dunkin' can charge a premium for coffee, thereby un-commodifying it.

Starbucks and Dunkin' hit record highs — And they're using the same 4-part strategy

__1 city + 1 tech company = Sidewalk Labs...__ Toronto solicited proposals from private companies to redevelop an empty waterfront neighborhood. Sidewalk Labs won. It's a sister company of Google, a subsidiary of __[Alphabet](https://robinhood.com/stocks/GOOG)__, and just unveiled a 1,500-page, multi-volume smart city plan. If Toronto approves, then one corner of the city gets elegantly coded.

__DWI = Driving While Incognito mode...__ This neighborhood ("super-hood?") will be built [from scratch](https://www.sidewalktoronto.ca/) with every detail optimized for internet-connectedness. Here are a few of them: 

- __Smarts:__ The sidewalks would expand into a lane of traffic before/after rush hour.
- __Reimagined:__ Nobody likes loud trucks, so freight delivery would happen underground.
- __Random:__ [This](https://www.dezeen.com/2019/03/11/building-raincoat-prototype-sidewalk-labs-toronto-smart-city/) "giant raincoat" is supposed to protect buildings from snow (it's basically just a big awning).
- __Earth-loving:__ Everything would be built with "[mass timber](https://www.thinkwood.com/news/4-things-to-know-about-mass-timber)," which is apparently better for the world than steel and concrete (and more [*hygge*](https://www.countryliving.com/life/a41187/what-is-hygge-things-to-know-about-the-danish-lifestyle-trend/)).
- __Money:__ Sidewalk Labs would invest $1B in housing (20% "affordable", 20% "middle class", and 60% probably very expensive), office space, retail stores, and community centers like parks.


Cities

__It's not trying to take your data...__ Sidewalk's PR got out ahead of privacy concerns: "*Sidewalk Labs does not share urban data, user data, or personal data with Google.*" Instead, Sidewalk will make money on rent in Toronto. And if other cities buy Sidewalk's plan, it'll charge for its smart-city tricks learned in Toronto. Picture real estate development meets tech. 

- __WeWork__ has perfected how to build __modern offices__.
- __Sidewalk Labs__ is perfecting how to build __modern neighborhoods__.


Alphabet's futuristic smart city division ("Sidewalk Labs") unveils its Toronto plan

__"He Who Must Not Be Named"...__ was dropped a lot at __[BMW's](https://robinhood.com/stocks/BMWYY)__ NEXTGen event in Munich, showing off its electric car progress. The hugely profitable German carmaker's stock has been down on trade war worries and tough new emission regulations in Europe. So it's accelerating plans to cut emissions out altogether with Tesla-killing electric cars. 

__The lead engineer's name means "Happy" auf Deutsch...__ and Mr. Klaus Fröhlich was 110% himself when he made these updates:

1. __The Vision M Next.__ It's basically an electric [batmobile](https://electrek.co/2019/06/25/bmw-unveils-electric-concept-that-looks-like-next-gen-i8-sports-car/). The concept car isn't for sale (it might never be), but it shows how BMW wants e-cars to be sexy.
2. __Vision DC Roadster.__ Also a concept vehicle, but a 2-wheeled electric motorcycle that looks like a [Transformer](https://www.motorauthority.com/news/1123784_bmw-motorrad-vision-dc-roadster-concept-charts-path-for-electric-motorcycles).
3. __The big corporate update.__ BMW will meet its goal of 25 electric models by 2023, two years [ahead of schedule](https://techcrunch.com/2019/06/25/bmw-says-its-running-ahead-of-its-electrification-goals/). Next year we get an all-electric X3 SUV. 

Drive

__How valuable is Tesla's head start?...__ Back when Americans obsessed over Chevy Suburbans and other SUVs in the mid-2000s, Elon launched an electric car company. Now, German luxury brands on the short list for the affluent Tesla-buying demographic are catching up. Tesla's a purebred. BMW, Audi, and Mercedes have adapted, Darwin-style.

BMW unveils new electric cars to hit 25 models by 2023

_"And we're putting the Google innovation center up here on the left"_

Google built a WeWork, but for entire cities

__Extra fries...__ Pairs with the 40M more "*fresh beef*" Quarter Pounder burgers that __[McDonald's](https://robinhood.com/stocks/mcd)__ pumped out last quarter compared to a year before. McD's [revealed](https://news.mcdonalds.com/news-releases/news-release-details/one-year-fresh-beef) that sales of Big Mac's new anti-frozen cousin are up 30% since it introduced the option in 2018 — And for the 1st time in 5 years, it gained market share in the obscurely delicious "informal burger category."

__Ronald deserves a Masters Degree...__ in smiles and supply chain management. The creation of a "fresh beef" option was a major investment by the McDonald's team — It took *4 years* to install a new process to go from cow-to-mouth faster and never frozen. Here's what that "[massive transformation](https://www.restaurantbusinessonline.com/financing/mcdonalds-has-sold-lot-fresh-beef-burgers)" included:

- __Designing new fridges__ to handle fresh beef at the right temperature.
- __Distributing new kitchen utensils__ (aka spatulas) to every participating franchise about to flip the softer burgers.
- __Training 3,000 restaurant operators__ to prepare the actual patties.

Crave

__This is why you invest in your growth...__ Just as McD's is spending on its supply chain to accommodate the new patties, it's pursuing another major overhaul: The $6B nationwide [renovation](https://www.qsrmagazine.com/fast-food/mcdonalds-spending-6-billion-nationwide-remodels) of the majority of its 14K US stores by 2020. Fresh beef is a case study on how investing big into your infrastructure can cook up major payoffs.

McDonald's burger market share rises for 1st time in 5 years

__"One + One = Five"...__ That's how Carl Icahn described the merger of __[Eldorado Resorts](https://robinhood.com/stocks/ERI)__ and __[Caesars Entertainment](https://robinhood.com/stocks/CZR)__, announced Monday. Teaming up creates the largest US casino operator, with 60 gambling spots across 16 states. Technically, Eldorado is buying Caesars (faux gondola [situation](https://www.venetian.com/resort/attractions/gondola-rides.html) included), but they'll share ownership 51%/49%. Here's the receipt:

- __Price:__ Eldorado's paying __$8.5B__ in cash and some stock to acquire 100% of Caesars' shares.
- __Debt:__ Caesars carries some baggage — __$8.8B__ of debt. That now belongs to Eldorado.
- __Total cost:__ The law of addition gets us to __$17.3B__ Eldorado is throwing on the table for all of Caesars' chips.


__"Sir, I strongly suggest you [hit](https://www.youtube.com/watch?v=HkzMA1jrm00)"...__ Carl Icahn [made](https://www.axios.com/carl-icahn-caesars-eldorado-resorts-acquisition-eac97058-8383-4131-8516-7b0f0ea4e4f7.html) this happen. Here's how:

- His hedge fund __Icahn Enterprises__ bought up 9.8% of Caesars' shares. Then he went public with it, and announced that __the company should sell itself__.
- Caesars' directors immediately __gave Carl 3 seats on the board__ and let him help choose the next CEO.
- Carl's ownership rose to nearly 16%, and he wielded his power to __push for the highest bid from Eldorado__.
- Carl's shares will now be bought for $13.01 — That's __a 51% return in just 4 months__ since he snagged the board seats. 


Gamble

__This is American-style investor activism...__ Carl Icahn helped create that term in 1985, when he famously took control of __TWA Airlines__, turned himself a nice profit, and then left (TWA ended up in bankruptcy 3 times). Here's that activist playbook:  

1. Buy a big chunk of a company's shares.
2. Publicly demand change (often insulting management's competence). 
3. Hope to sell after changes have boosted the stock.

As Carl likes to [put it](https://carlicahn.com/): "*A lot of people die fighting tyranny. The least I can do is vote against it.*"


The biggest US casino was just created — And Carl Icahn orchestrated the whole thing

__Guy sex problems generate billions of profits...__ Not so much for women. __AMAG__ is trying to change that with "Vyleesi," which just earned FDA approval to treat premenopausal Hypoactive Sexual Desire Disorder. That affects 5.8M American women, yet only 1 [other](https://www.nytimes.com/2019/06/21/health/vyleesi-libido-women.html) type of therapy is available on the market. But here's how it's different from Viagra:

- Viagra treats arousal problems. __When you want to have sex__.
- Vyleesi treats desire problems. __When you *want to* want to have sex__.  

__The 2nd problem is harder to cure...__ This isn't a pill. Vyleesi requires injection in the thigh or abdomen 45 minutes before sex. And it actually affects the brain (unlike Viagra, which affects one thing). Vyleesi's branding though looks strategically more like a new direct-to-consumer soap startup, brushed with hints of [Millennial pink](https://people.com/health/fda-approves-drug-improve-womens-sex-drive/).

Injection

__The news didn't go down as planned...__ Two key stocks are involved in this story: __[Palatin Technologies](https://robinhood.com/stocks/PTN)__ (which developed the drug) and __[AMAG](https://robinhood.com/stocks/AMAG)__ (the just-outside-of-Boston company licensing/marketing it). Their stocks were up as high as 39% and 12% after the news... until [this article](https://twitter.com/adamfeuerstein/status/1143114841764372480). A science reporter panned the drug for its brutally pill-less injection and unpleasant side effects. Wall Street is [concerned](https://seekingalpha.com/news/3473312-palatin-amag-give-gains-feuerstein-rains-vyleesi-parade). 

"The Viagra for women," Vyleesi, gets FDA approval (and then the stock drops)

_Cooking with the real thing_

Meat-full meats at McDonald's 

__"Searchable Log of All Conversation and Knowledge"...__ You know the [acronym](https://www.theverge.com/2016/9/28/13098164/slack-is-an-acronym) as __[Slack](https://robinhood.com/stocks/work)__, the office messaging tool whose CEO/founder [predicts](https://www.cnbc.com/2019/06/20/slack-ceo-predicts-end-of-company-email-as-we-know-it-in-7-years.html) the end of work email within 7 years. It boasts 10M daily active users, while the number of paying corporate accounts is growing (at 95K right now). Like plenty of other tech, it's losing money still as it spends to beat competition from Facebook ("Workplace") and Microsoft ("Teams"). Shares rose 49% on Day #1 of trading, even as Slack chose to go public via a "Direct Listing" — not an IPO. Here are 3 reasons why it did:

1. A direct offering __doesn't raise new money__ like an IPO would, (but it still gave early investors the chance to sell their stock in the public markets).
2. That's why it was __cheaper than an IPO__ (you don't pay the investment banking fees of issuing new shares).
3. And Slack's __got a big enough brand__ to list shares without needing an IPO-style promotional roadshow (Spotify pulled the same direct listing move last year).

__New crypto, who dis?...__ __[Facebook](https://robinhood.com/stocks/fb)__ revealed its blockchain-based cryptocurrency, "[Libra](https://calibra.com/)": its logo is three exotic-ish waves, it'll be ready to use by the world's 2.4B FBers by 2020, and it's a "stable-coin" (backed by real money like the US dollar so the price shouldn't swing as much). 27 other companies will share oversight of ZuckBucks along with Facebook. And with the new cryptocurrency, you can pay friends in Libra, then easily convert to whatever currency you want to send back to your old school bank account. It's also Facebook's plan B if regulators cut down on its ad biz.

__Shavasana smells great...__ because __[Lululemon's](https://robinhood.com/stocks/lulu)__ expanded from apparel to [introduce](https://finance.yahoo.com/news/lululemon-launches-selfcare-products-teams-140502809.html) its own selfcare products. The deodorant, shampoo, lip balm, and face moisturizer are strategically aluminum-free and marketed gender-neutral to cure "hot yoga face." It's Lulu's first step to lean into its new 5-year plan hard: “Become the experiential brand for people living the sweatlife.”

__A signal of how bad things have gotten...__ __[Blue Apron](https://robinhood.com/stocks/APRN)__ was forced to cook up a "reverse stock split." The stock price got so small ($0.55 heading into last week) that the meal kit pioneer is merging every 15 of its own shares into 1 to boost the price to a less embarrassing number (fractions aren't in season). Now a single serving of Blue Apron stock is around $7, but its logistics, competition, and customer loyalty challenges are the same. 

__Limited breadsticks...__ Olive Garden owner __[Darden Restaurants](https://robinhood.com/stocks/DRI)__ fell 4% Thursday on [word](https://www.cnbc.com/2019/06/20/darden-restaurants-q4-2019.html) the number of visitors at its top chain actually slowed (despite them being assured that they were family). Olive Garden makes up *half* its parent company's sales, but it wants more "quality" customers ([their words](https://www.investors.com/news/darden-restaurants-earnings-q4-2019-darden-restaurants-stock/)), so it's cutting back on "value meals." 

__I'm not feeling lucky...__ __[Google](https://robinhood.com/stocks/GOOG)__ faced a few more existential issues with the free internet last week:

- [Reports](https://www.wsj.com/articles/google-maps-littered-with-fake-business-listings-harming-consumers-and-competitors-11561042283) surfaced that Google Maps is being manipulated in order to drown competition in an ocean of fake business pins.  
- And Google Calendar was [down](https://www.theverge.com/2019/6/18/18683625/google-calendar-down-worldwide-outage-404-error) for three hours due to an outage. "Fashionably panicked."
- Then the FTC [opened](https://www.washingtonpost.com/technology/2019/06/19/facing-federal-investigation-youtube-is-considering-broad-changes-childrens-content/?utm_term=.59a113730d54) an investigation into Google-owned YouTube for the way it protects/exposes children's privacy. 

__"I must not have done it right"...__ That's the uninspired reaction from investors after  __[Canopy Growth's](https://robinhood.com/stocks/CGC)__ earnings just before the weekend. Based in Canada, the world's largest cannabis corporation fell 8% based on these low-lights:

- __Revenue__ for its high-end dried weed jars, prescription-looking softgel canisters, and yoga-friendly vapes (check [these](https://www.canopygrowth.com/brands/) out) only rose 13% from last quarter to $94M (Canadian dollars).
- Good ol' __supply and demand__ was an issue, as Canopy sold 9.3K kilos of "product" and [expects](https://www.canopygrowth.com/wp-content/uploads/2019/06/190616-Q4-FY-2019-Earnings-Final.pdf) to grow 34K kilos this quarter. That surplus-y situation pushed the average price of pot sold down 11% to $7.49/gram.    

__Going from black market to white is tough...__ Hype for Canada's recreational weed legalization last October pushed Canopy's market value to $13B. Now it needs to convince cannabis buyers to switch from "their guy" to "the man," AKA Canopy's corporate-branded products. It also has to deal with regulation, taxes, and advertising rules that limit it to medical-style bland marketing. 

Awkward

__Canopy is the pot stock in global prep mode...__ Thanks in part to the [$4B](https://www.cnbc.com/2018/08/15/corona-maker-constellation-ups-bet-on-cannabis-with-4-billion-investm.html) investment it got from Corona-owner __[Constellation Brands](https://robinhood.com/stocks/STZ)__, Canopy has acquired production facilities, device companies, and retail stores — The value chain is Canopy's from plant to pipe. Now it's awkwardly waiting for growth catalysts: 

- __Ontario:__ The biggest province by population (40% of Canada's pop) just got marijuana retail stores in April, so first-time Canadians are trying it out.
- __US:__ Not legal yet nationwide, but when/if it is, Canopy's [acquisition](https://www.reuters.com/article/us-acreage-m-a-canopy-growth/canopy-growth-to-buy-acreage-in-3-4-billion-deal-idUSKCN1RU1K9) of pot producer __Acreage Holdings__ will be legally complete.
- __UK:__ Last month it [acquired](https://www.prnewswire.com/news-releases/canopy-growth-acquires-established-skincare-and-well-being-company-this-works-300855013.html) London-based This Works, a natural skincare developer with a CBD interest.
- __Gummies:__ Edibles are legalized in Canada this fall, and Canopy's new 197K square foot plant will be [ready](https://www.bloomberg.com/news/articles/2019-06-16/a-gummy-conundrum-for-canada-s-pot-producers-cannabis-weekly) to start cooking. 

Earth's biggest cannabis company falls 8% because investors are impatient

_"Just waiting for a bunch of legalization"_

Canopy (waiting for) Growth

__Seven years from now, office email will be dead...__ That's the [bold](https://www.cnbc.com/2019/06/20/slack-ceo-predicts-end-of-company-email-as-we-know-it-in-7-years.html) prediction from __[Slack](https://robinhood.com/stocks/WORK)__ CEO/founder Stewart Butterfield. His messaging platform for office ~~distraction~~ productivity states its purpose elegantly in its ["S-1"](https://sec.report/Document/0001628280-19-004786/), the required paperwork for a company to go public: Slack *“replaces the use of email inside the organization."* And the stock popped 49% Thursday, its first day as a public company. 

__#fun-facts__

- __Slack was an accident:__ Butterfield created an online game called Glitch — He realized the messaging feature in the game had potential, so he focused on what ultimately became Slack.
- __It's an acronym:__ Stands for "Searchable Log of All Conversation and Knowledge."

__#interesting-numbers__

- Slack boasts 10M daily users and 95K paying accounts.
- Its biggest customers pay $100K+ annually, and Slack's got 93% more of those whales than last year (645 as of April).
- Revenues almost doubled last year to $400M, but the biz generated a loss of $140M. 

__One big question...__ Why the "Direct Listing?" Slack didn't IPO to become public as most companies would. Following the path Spotify carved out last year, Slack listed shares directly. That's __cheaper__ (you don't pay banks fees to take you public) because you __don't raise new money__. It's a rare move that Spotify or Slack can pull off since they don't need new cash, and their brands are strong enough that they don't need a pre-IPO roadshow to get to know investors.

Listing

__Slack's all about "ROC"...__ That's "return on communication." Slack dropped that reference in the S-1 — its core pitch is that your company "feels empowered" by Slacking, which leads to  ➡️ more communication  ➡️ more productivity  ➡️ more business. Meanwhile, Microsoft (with "Teams") and Facebook (with "Workplace") want in on the conversation.

Slack jumps 49% on Day #1 of trading (after its not-IPO)

__So we’re cutting rates now?...__ Wednesday, America's central bank [set](https://www.npr.org/2019/06/19/734016930/fed-ponders-when-to-cut-interest-rates) the stage to reduce interest rates nationwide later this summer. It’s a sign those wise government bankers are concerned the trade war could hurt the economy, so they’re saying “we got your back” — Lower rates would support borrowing, potentially offsetting trade war pain. The Fed hasn’t cut interest rates yet, but markets are acting like they have...

- __Mortgage rates:__ A 30-year house loan had a 5% average interest rate in November. Now it’s down to [3.86%](https://www.cnbc.com/2019/06/20/falling-mortgage-rates-may-already-be-lifting-home-prices.html), *close to record low levels*.
- __10-Year US government bonds:__ The interest the government pays for 10-year loans dropped below 2% yesterday *for the first time since 2016*.

__We're talking supremely unsexy industries...__ Electric utilities, packaged goods, wireless — lower rates could change that. __[NextEra Energy](https://robinhood.com/stocks/NEE)__, __[Procter & Gamble](https://robinhood.com/stocks/PG)__, and __[Verizon](https://robinhood.com/stocks/VZ)__ don't have the cachet of self-driving meal kits startups these days. But they all boast profitable track records and hook up shareholders with cash [dividends](https://learn.robinhood.com/articles/6jGOO5O2YvyoZzlEUtIq0F/what-is-a-dividend/) every quarter. Most fast-growing companies don't pay dividends at all.

__Everything’s relative...__ The dividends of these companies haven’t changed much since December. But interest rates overall have. With lower rates today compared to December, these dividends look good to investors that just want reliable cash payments. That's why the Fed's words Wednesday are bringing sexy back.


Dividend stocks are living their best lives thanks to the Fed

__Less chill...__ __[Netflix](https://robinhood.com/stocks/nflx)__ whipped up a new comedy over the weekend featuring Adam Sandler and Jennifer Aniston — *Murder Mystery* was Netflix's biggest opening weekend original movie yet. Critics didn't love the story, but we loved the numbers Netflix [revealed](https://twitter.com/NetflixIsAJoke/status/1141088463934173189) (it rarely shares info like this). Here are the personal records Netflix [set](https://variety.com/2019/digital/news/netflix-murder-mystery-stats-1203246899/):

- 30,869,863 viewers in 3 days.
- That was 10% of all Netflix views.
- Over half were from outside the US (FYI -  getting through 70% of the movie counts as a "watch").

__Pressure is on...__ Netflix is showing off its latest win because everyone's jumping on the streaming couch. Amazon, Hulu, Comcast, and AT&T’s HBO — They're all pushing streaming options as you cut the cord. And Disney's pulling its own magical content from Netflix as it launches its own Disney+ in November.


Stream

__Netflix's homescreen is the most valuable billboard ever...__ As it jumps deeper into original content, it's also jumping into competition with Lionsgate, 20th Century Fox, and other movie producers. Netflix's new competitive advantage is that it owns its whole ecosystem. Instead of paying for ads and buying trailer spots, it just sticks *Murder Mystery* at the top of your screen — its homepage — to ease your viewing decision stress.

Netflix's Sandler/Aniston flick reveals some valuable numbers and intel

_"Join my handshake channel"_

Slack's ticker symbol says it all

__This is why babysitters need references...__ According to [WaPo](https://www.washingtonpost.com/technology/2019/06/19/facing-federal-investigation-youtube-is-considering-broad-changes-childrens-content/?utm_term=.c2ef47fe453b), the FTC is investigating YouTube (owned by __[Alphabet](https://robinhood.com/stocks/goog)__) for violating children's privacy. YouTube has a history of conduct parents wouldn't approve of — and the [WSJ](https://www.wsj.com/articles/youtube-under-fire-considers-major-changes-to-kids-content-11560953721?emailToken=91db9e70c797f22badc7f8eb03e60999jhQW4pHbe655ZEcMj/k8Amg2FiInFJ+Fn2EaNw2BR52k0panXgPhtNwtGdsw0Dki0eXCP+112mM/0Z/TqC0ZLV/lt2RdXPSw1ehsL1IujAJStvZqQ0wQtVSYTZK9B+pU&reflink=article_copyURL_share) reports that YouTube's considering two big changes to try to fix its kid problems:

- __"YouTube Kids":__ Pushing all kids content to a separate children's app, insulating them from vids that would keep you up at night. 
- __Kill "Auto-play":__ Parents can put on a wholesome "[Dude Perfect](https://www.youtube.com/watch?v=7y-hKLfeurY)" video for the twins, only to be smacked by something totally R-rated right after. YouTube could cut the risk by cutting its favorite feature.

__One of the best buys ever: YouTube...__ Google dropped $1.6B for a budding video website back in 2006 — Today, it's estimated to be worth between [$75B](https://www.cnbc.com/2017/07/25/top-google-analyst-says-youtube-is-worth-75-billion.html) and [$160B](https://www.businessinsider.com/morgan-stanley-values-youtube-160-billion-dollars-2018-5). YouTube says humans are watching 1B hours on it daily, generating billions worth of ad dollars. But it's also been used for [child exploitation](https://www.usatoday.com/story/tech/news/2019/02/22/at-t-disney-epic-games-pull-youtube-ads-child-exploitation-concerns-pedophiles/2948825002/) and can [radicalize](https://www.thedailybeast.com/how-youtube-pulled-these-men-down-a-vortex-of-far-right-hate) people.

Protect

__When kids need regulation, it actually happens...__ Paralysis in DC is constant. But children's safety is bipartisan. Google could be preempting future regulation by regulating itself for the kids. A couple fresh examples of kid-catalyzed business regulation:

- Since 2018, new cars are [required](https://www.autotrader.com/car-news/new-backup-camera-rule-cameras-will-be-mandatory-by-2018-223739) to __have backup cameras__. The reason? Protecting toddlers from backing-up cars. 
- This week, San Francisco [voted](https://www.sfgate.com/news/medical/article/San-Francisco-weighs-1st-US-city-ban-on-14010921.php) to __ban the sale of vape products__ and there's a growing push to raise the tobacco age to 21. The reason? Protect kids.

YouTube considers a major change for kids (because it's under investigation)

__We'll cover Slack tomorrow after Day #1 of trading...__ __Grocery Outlet__ earned your attention today. The 73-year-old chain is the nation's fastest-growing "extreme-value" grocery retailer. Picture Trader Joe's meets Dollar General — 300 independently-run stores generated $2.3B in sales with prices that are 40% under regular ol' "conventional" grocers. Here's how:

- __The secret sauce:__ Strong supplier relationships — 30-year average connections with 15 key suppliers (Grocery Outlet buys their foods when other grocers won't).
- __The not-so-secret risk:__ Relationships aren't permanent. They can end. And Walmart, Aldi, and Amazon's Whole Foods can build supplier relationships, too.

__One word: "WOW!"...__ We noticed the term 48 times in Grocery Outlet's pre-IPO paperwork (aka its [S-1](https://www.sec.gov/Archives/edgar/data/1771515/000119312519145450/d710724ds1.htm)) describing its values, business model, and risks. Turns out WOW! is how Grocery Outlet promotes its "Power Wall" (also a real thing) of top deals hitting you as soon as its automatic doors open. Here's how else it energizes your weekly guac run.

- “Deliver a __treasure hunt shopping__ experience” with extra-wide aisles and ceiling-high packs of anything.
- Then it makes its cashiers __circle the savings with a marker__ on your receipt.

Bagged

__This is the convergence of 2 major retail trends...__ *Extremification and experiences*. Society-wide income inequality is driving high-end luxury retailers and low-end dollar stores to record high stock prices. Meanwhile, stores that are actually fun to go to can get you off Amazon. Grocery Outlet covers both.


Grocery Outlet: The not-Slack stock listing to know today

__Hate TPS reports?...__ You'll hate this story. __[Adobe](https://robinhood.com/stocks/adbe)__, the digital design company that invented the PDF, has quietly grown to a $130B in value by [market cap](https://learn.robinhood.com/articles/GByCbiOluG2kcWs1AF6m5/what-is-market-capitalization/), after setting a record quarterly profit of $2.7B. Its mission statement is bold, but confusing:

*"Adobe...gives everyone — from emerging artists to global brands — everything they need to design and deliver exceptional digital experiences."*

__It makes money because digital things need to look good...__ Adobe's a SaaS company (software-as-a-service) that brings in monthly revenue for its software, mostly from businesses:

- __PDF:__ You use it and hope it's "ctrl+F"-able. Adobe invented it in '93.
- __Adobe Illustrator:__ For professional designers who choreographed the graphics in whatever app you were just on.
- __Adobe Photoshop:__ The photo filter from before Insta-filters.
- __Adobe Spark Post:__ This new-ish app was built with social media in mind, offering small businesses beautiful templates to easily turn into shareable biz posts.

Download

__Adobe's profit margins are why investors love software...__ Every buck Adobe earns in subscription revenue costs it only $0.15 to produce. That shows how software is way more scalable than a car — GM's costs are much higher (think equipment, factories) at $0.93 for each dollar of a sale. Profits come easier when adding a customer only requires a new username/password, instead of metal and four wheels.