__Tired of living in Sephora's (eye)shadow...__ __[Ulta Beauty](https://robinhood.com/stocks/ULTA)__ needs a place to crash  this pandemic cuffing season — so it's [moving in](https://www.wsj.com/articles/ulta-beauty-to-get-shops-inside-target-stores-11605021435?mod=business_lead_pos3) with __[Target](https://robinhood.com/stocks/TGT)__. But Target's offering more than a blow-up mattress: it'll set aside 1K square-foot sections in over 100 Target stores for Ulta mini-shops starting in 2021. Tarjay's planning to expand the beauty chain to hundreds more stores over time. Ulta stock got a 7% glow-up on the partnership.

__"In the red"...__ every company's lipstick shade nightmare. Ulta narrowly avoided a loss last quarter as profit plunged nearly 95%. Most of its sales come from its 1K+ stores, which were forced to close for most of the quarter. But the tide could turn with this key partnership: 

- __Ulta's getting an "Essential Shield."__ Even if lockdowns get reimposed, grocery-slinging Target will get to stay open.
- __Ulta's getting unintentional exposure.__ You’re not likely to hit up Ulta for lipliner (masks and Zoom killed that). But you might pick up face serum on your way to buy hummus.
- __It's getting featured on Target’s website and app__ — prime real-estate for a company that badly needs to up its digital game.


_When they move you from Aisle 5 Bread to the Ulta store_

Blend

__Inception Retail could be the future...__ This store-within-a-store model sounds a lot like department stores. But malls and department stores are [filing](https://www.wsj.com/articles/malls-file-for-bankruptcy-or-shut-their-doors-as-pandemic-pain-spreads-11605013664?mod=business_lead_pos4) for bankruptcy and shuttering in droves. Meanwhile, __[Amazon](https://robinhood.com/stocks/AMZN)__ is [toying](https://www.cnbc.com/2020/08/09/amazon-wants-to-use-jc-penney-stores-as-fulfillment-centers---report.html) with the idea of turning bankrupt __JC Penney__ and __Sears__ into fulfillment centers. To fill this void, pandemic winners Target and __[Walmart](https://robinhood.com/stocks/WMT)__ have expanded their clothes and cosmetics offerings. Inception Retail is the next push into malls' territory.

Ulta Beauty stores move into Target with the "Inception Retail" model 

__Serious pod head...__ __[Spotify](https://robinhood.com/stocks/SPOT)__ is majorly pod addicted. In the past few years, the Swedish streamer has sealed deals for shows from big names like Joe Rogan, Michelle Obama, and Kim K. Spotify also [shelled](https://snacks.robinhood.com/newsletters/2NAQjqWOY8CUQ4E7cSgLSV/articles/ib1obLuM7DcHI0MDKjbms/) out over $500M to buy companies like The Ringer (pod network), Gimlet (pod producer), Parcast (original shows), and Anchor (pod recording software). Now...

- __Spotify is buying Megaphone for $235M.__ The pod-tech firm helps podcasters with production, ads, and audience metrics. But its real selling point is...
- __"Targeted Marketplace"__ — this service lets advertisers target listeners by interest, demographics, and buying history. Like Facebook, for your ears.

__You're special...__  Not everyone got the same Function of Beauty ad mid-pod — Megaphone knows you're worried about split hairs. Advertisers buy slots targeting different audiences across the 5.5K+ shows that use Megaphone, instead of specific pods. With this acquisition, Spotify gains all of Megaphone's customers. It can also use Megaphone's tech to improve/expand its *own* ad tech.

Podiction

__Podcasting is still going through puberty...__ It grew three feet over the past two years, and now its old basketball shorts look like  Speedos (awkward). Podcasting now has over [100M](https://www.wsj.com/articles/spotify-buys-podcast-tech-firm-megaphone-11605016803?mod=business_lead_pos12) monthly listeners, but less than $1B/year is spent on pod ads. Targeting/measurement on pods is way less precise than social media targeting, so advertisers aren't shelling out as much $$$. Spotify's hoping to change that with this deal.


Spotify drops a quarter billion on a pod-cquistion to help it grow out of puberty

Dow Jones

S&P 500

Nasdaq

Bitcoin

💄 Ulta moves into Target

__Biggest vax flex yet...__ Big pharma __[Pfizer](https://robinhood.com/stocks/PFE)__ and German biotech __[BioNTech](https://robinhood.com/stocks/BNTX)__ [said](https://www.cnbc.com/2020/11/09/covid-vaccine-pfizer-drug-is-more-than-90percent-effective-in-preventing-infection.html) their jointly developed COVID-19 vaccine was more than *90%* effective in Phase 3 trials — that's huge. For reference:

- __50% to 60% effectiveness:__ Dr. Fauci has said this rate would be acceptable to approve a vaccine (the flu vaccine [is](https://www.cdc.gov/flu/vaccines-work/vaccineeffect.htm) only 40% to 60% effective).
- __60% to 70%:__ Health experts say this rating would be a big win. Pfizer's 90%+ would be a wild success — but results are preliminary and haven't been peer-reviewed. 

__Please get it mRN-ASAP...__ If Pfizer's vax gets FDA-approval, it would be the 1st mRNA vaccine *ever* approved for human use. Unlike OG vaccines (which use a weakened virus to generate an immune response), mRNA ones *teach* cells to destroy the virus. 

- __[Moderna](https://robinhood.com/stocks/MRNA) stock popped__  too because it's *also* in final stage trials of an mRNA vaccine. __[AstraZeneca](https://robinhood.com/stocks/AZN)__, which is in final trials for a traditional vax, dropped.  
- __Reopening stocks__ majorly soared: __[AMC](https://robinhood.com/stocks/AMC)__ was up 51%, __[Carnival](https://robinhood.com/stocks/CCL)__ was up 39%, and __[Delta](https://robinhood.com/stocks/DAL)__ spiked 17%. "Pandemic Winners" like __[Netflix](https://robinhood.com/stocks/NFLX)__, __[Peloton](https://robinhood.com/stocks/PTON)__, and __[Zoom](https://robinhood.com/stocks/ZM)__ all dropped big.
- __BTW:__ Vaccines usually take around 10 years from development to approval. This vax is on pace for a record-shattering timeframe.


__Pfizer has a big leg up...__ if others have to compete with a 90% efficacy rate — that's highly attractive to vax-buying countries, even though Pfizer's vax [comes](https://www.statnews.com/2020/11/09/four-reasons-for-encouragement-based-on-pfizers-covid-19-vaccine-results/) with more rollout challenges. Moderna seems the most likely to get similar results (because: #mRNAlife). Pfizer's planning to request FDA emergency use authorization in late November. With approval, Pfizer says it can make 50M doses in 2020 and 1.3B in 2021.


Pfizer and BioNTech say their COVID-19 vaccine is more than 90% effective (whoa)

__Well, this is awkward...__ *or is it just savage*? Yesterday, plant-based icon __[Beyond Meat](https://robinhood.com/stocks/BYND)__ served up a surprising loss and disappointing quarterly sales. *On the same day*, __[McDonald's](https://robinhood.com/stocks/MCD)__ delivered expectation-beating growth and unleashed this on the world: "the McPlant." 

- __The McPlant__ is a (wait for it) plant-based burger [crafted](https://corporate.mcdonalds.com/corpmcd/en-us/our-stories/article/ourstories.menu-items.html) "for McDonald’s, by McDonald’s." Mickey D’s plans to test it in several countries next year. 
- __Beyond Meat__ [says](https://www.cnbc.com/2020/11/09/mcdonalds-to-test-mcplant-which-includes-its-own-meat-free-burger-next-year-beyond-meat-shares-fall.html) it co-created the McPlant patty, but McDonald's made zero mention of Beyond in its announcement. Awkward...

__Not feelin' McLovin'...__ Beyond might be feeling a bit used. Last year, McDonald’s began testing a meatless burger ("PLT") in Canada that used Beyond patties. While McDonald's ended that pilot, it clearly saw potential in the meatless, McPlant-based market. Mickey D’s hasn't yet confirmed the supplier, but it won't be making it itself. 


_McDonald's = the Regina George of fast food_

__McDonald's wants all the attention...__ If Beyond is supplying, that could mean a lucrative long-term partnership with America's largest restaurant by sales — would be nice, considering Beyond lost $19M last quarter. But McDonald's clearly isn't showcasing Beyond's brand with McPlant — unlike __[Dunkin'](https://robinhood.com/stocks/DNKN)__ with the Beyond Breakfast sandwich. Beyond might be willing to go anonymous and trade brand recognition for cash recognition.

McDonald's drops "the McPlant" on the same day that Beyond face plants

__Soulless name...__ *soulful brand*. __[VF Corp](https://robinhood.com/stocks/VFC)__ is the unfortunately-named company which owns Vans, North Face, Dickies, and soon... *Supreme*. The popular streetwear/skater brand is best known for its iconic red logo that appears everywhere. Now:

- __Supreme is getting [bought](https://www.bloomberg.com/news/articles/2020-11-09/vf-to-buy-supreme-for-2-1-billion-to-boost-apparel-brands?sref=q3KSFp38) for $2.1B__ and will become part of VF's publicly-traded stock. It's VF's largest acquisition since it snatched up Timberland in 2011 for $2.3B.
- __VF stock jumped as much as 17%__ yesterday on the news — the most in over 30 years. But it's still down over 20% this year.

__Googling "how to be cool"...__ Slap a Supreme sticker on it. Supreme reeks with "cool factor" — that's something VF needs badly, since most of its brands are past their early 2000s Avril Lavigne peak. Vans and Timbs sales are slowing, and VF has already sold off some of its "declining cool" and industrial workwear brands: Wrangler, Lee, and 7 For All Mankind. 


Beanie

__This is a learn-cquisition...__ Supreme is a master at generating hype, with everything from weekly product releases to buzzy collabs — VF wants to learn its ways. It'll also leverage Supreme's digital strategy and social media prowess to expand its ecommerce channels (#linkinbio). But Supreme's biggest appeal is scarcity. If VF scales it up too much, it might lose that "special" factor — then they'd *both* lose.


Supreme gets bought for $2.1B by Vans-owner VF Corp 

💉 Pfizer's COVID-19 vaccine breakthrough

__Refilling the minibar Fiji bottles...__ *with sink water*. __[Marriott](https://robinhood.com/stocks/MAR)__ miraculously [turned](https://www.wsj.com/articles/marriott-international-posts-3q-profit-11604665677?mod=business_lead_pos3) a profit last quarter by being extra thrifty. It's the world’s largest hotel operator  with over 7K properties across 130+ countries — usually something to brag about, not so much during a world-halting pandemic. Room occupancy went the way of the "wake up call" (near-extinct):

- __Just over a third of rooms__ in North America were booked. European Marriotts were even emptier, at just 1 in 5. BTW: Marriott also owns The Ritz, W, and Sheraton. 
- __RevPAR:__ A metric hotel people are *obsessed* with. It's the average daily room price multiplied by occupancy rate. Marriot's fell nearly 70% from last year. *And yet somehow...*
-  __*Marriott checked in a $100M profit*__ from July to September, compared to a $230M loss in the previous quarter. 

__Continental Breakfast = 1 Eggo waffle...__ __[Hilton](https://robinhood.com/stocks/HLT)__ and __[Hyatt](https://robinhood.com/stocks/H)__ had similar RevPAR plunges as Marriott, but *they* posted losses. How? Travel demand improved a bit from the previous quarter (especially in China), but it's really about cost-slashing...

- __Marriott cut costs by 57%__ — that's almost exactly the same percentage that total sales *fell* from last year. Marriot made 57% less, but spent 57.2% less. That 0.2% extra = profit.


_When you find out there's no more mini shampoo to steal_

Shampoo

__Budgeting is a skill...__ that can be used to make the best of worst-case scenarios. Marriott has fixed costs like rent and insurance (just like us) — but it showed budgeting prowess by precisely cutting everywhere it *could* to turn a profit. Sadly, that [included](https://skift.com/2020/09/08/marriott-to-lay-off-17-percent-of-corporate-headquarters-staff-in-october/) tens of thousands of furloughs in March and corporate layoffs in October.

Marriott turns a surprise profit despite near-empty hotels (it's a budgeting pro)

__Saved by the ballot...__ Gig driving companies [scored](https://snacks.robinhood.com/newsletters/7jMUu1TK8PviqbKCFjQhjC/articles/f06IOakKwXbXOcwTVNbjX) big after California voters passed Prop 22, exempting them from CA's AB5 law. __[Uber](https://robinhood.com/stocks/UBER)__ and __[Lyft](https://robinhood.com/stocks/LYFT)__ stock soared more than 30% for the week, since they won't have to reclassify drivers as employees (think: healthcare, PTO). Also exempted: __DoorDash__, __Postmates__, and __Instacart__. AB5 would've made hiring drivers more expensive, making these chronically unprofitable apps lose even more money. 

__Drunk ordered a couch...__ *from the couch*. Millennial furniture favorite __[Wayfair](https://robinhood.com/stocks/W)__ just proved that the pandemic "House Hype" is still strong. Quarterly sales shot up 67%, and Wayfair even made a comfy profit (after *losing* ~$300M during the same three months last year). It's using techy data to find out what's most popular, then crank out 10,000 versions of it. The stock popped 21% for the week, and has more than 3X'd this year.

Highs

Who's up...

__Missing the movie magic...__ __[AMC](https://robinhood.com/stocks/AMC)__ is desperate for a happy ending. The world’s largest movie theater chain lost nearly $1B last quarter. Sales plunged *91%* from last year as theaters were shut for most of the quarter. Now 80% of its US theaters are open, but limited capacity and blockbuster delays are choking sales. The cash-starved chain is looking to raise up to $50M by [selling](https://www.cnbc.com/2020/11/02/amc-seeks-stock-sale-to-raise-50-million-to-stave-off-bankruptcy.html) 20M shares to stave off bankruptcy. Happy ending = survival.

__Surprise squashing...__ Chinese fintech giant __Ant Group__ was *supposed* to go public last week in the world's biggest IPO. Its mega-app Alipay has over 1B users and offers every money-related service imaginable. Problem? Ant's founder Jack Ma made a (poorly-timed) speech [criticizing](https://www.reuters.com/article/ant-group-ipo-suspension-regulators/how-billionaire-jack-ma-fell-to-earth-and-took-ants-mega-ipo-with-him-idUSKBN27L2GX) China for stifling innovation. Chinese regulators [squashed](https://snacks.robinhood.com/newsletters/3Y16VU6wsQpOaP5bwzUgFf/articles/10lyNbTzg1HbB3563ygUqe) the historic IPO just two days before it was scheduled. Ma's other company __[Alibaba](https://robinhood.com/stocks/BABA)__ — aka: the "Amazon of China" — owns 33% of Ant, so the stock dropped on the news. 


Lows

...and who's down

🏨 Marriott's shocking pandemic profit

__Swipe Night is the new Date Night...__ Forget a five-course meal at Catch — the biggest date nights this summer were happening on Tinder. __[Match Group](https://robinhood.com/stocks/MTCH)__ (aka: the Godfather of online dating) grew sales 18% last quarter as social distancing turned into social swiping.

- __Average subscribers jumped 12%__ to nearly 11M, as the possibility of meet-cutes vanished. People shelled out more $$$ for premium swipey perks.
- __Tinder's sales grew 15%__ thanks to Tinder Premium and virtual events like Swipe Night, which reeled in 15M viewers and record engagement. 
- __As the flirtiest of all stocks,__ Match is getting popular— shares are up 60% in 2020. But Tinder isn't its only asset...

__Tell me about yourself...__  Over half of Match's sales come from Tinder, but *non*-Tinder brands saw the biggest growth last quarter. The shining star was Hinge, which more than [tripled](https://s22.q4cdn.com/279430125/files/doc_financials/2020/q3/Earnings-Letter-Q3-2020-vF.pdf) sales from last year and nearly 2X'd downloads. Before Match invested in 2018, Hinge downloads were dropping. Since Match took Hinge under its Cupid wings, downloads have consistently grown. Clever marketing campaigns like "Designed to Be Deleted" were [key](https://redantler.com/work/case-study/hinge-campaign) to that.


"_What about Hinge? Have you tried Hinge?_"

Date

__The focus is variety...__ To successfully penetrate the TAM (total addressable market) of singles around the globe, Match is going both broad *and* narrow. It's targeting specific markets with “demographic dating apps” like Chispa for Latinos/Latinas and BLK for Black singles. Given their success, it followed on with Upward for Christian singles. With variety, Match can attract users who want a more tailored experience (or don't like the sound of Tinder).

Tinder-owner Match gets high on pandemic loneliness and remote romance

__Bank of Nook just got a fat deposit...__ __[Nintendo](https://robinhood.com/stocks/NTDOY)__ released its financials for the six months ended September 30th, and things are looking super good for old Mario.

- __Profit more than tripled__ as Nintendo sold 14M+ copies of hit game *Animal Crossing: New Horizons* — apparently, fictional island utopias fare well during pandemics. 
- __Sales jumped 73%__ as *Animal Crossing* and Mario drove big software *and* hardware sales. Nintendo [sold](https://www.engadget.com/nintendo-switch-lite-sales-paper-mario-3d-all-stars-earnings-082905737.html) nearly 7M Switch consoles in just the last 3-month quarter.

__Cool hardware needs cool software...__ to be worth anything. The Switch has been around for almost four years, but the  *Animal Crossing* frenzy turbocharged sales. Still, there are two Bowsers that could put a damper in Nintendo's 2020 glory...

- __Console Wars:__ Next week, two long-awaited consoles are dropping (*on the same day*): __[Sony](https://robinhood.com/stocks/SNE)__'s PS5 and __[Microsoft](https://robinhood.com/stocks/MSFT)__'s Xbox Series X. Switch will get some fresh hot competition.
- __Cloud Gaming:__ Games that you can play with just a laptop and WiFi are a threat to Nintendo. Sony has Playstation Now, Google has Stadia, and Microsoft [has](https://www.digitaltrends.com/gaming/microsoft-xbox-project-xcloud-really-is-a-netflix-for-games/) its "Netflix for games." Even __[Facebook](https://robinhood.com/stocks/FB)__ and __[Amazon](https://robinhood.com/stocks/AMZN)__ offer cloud gaming.


Switch

__Nintendo is family-friendly...__ It's the Apple MacBook to Microsoft's PS5 "PC." It's winning with wholesome, fun-for-all games like *Animal Crossing* and *Super Mario Origami King* — not *Assassin's Creed* and *GTA*. Since its Game Boy days, Nintendo has built a rep as the easy-to-use, less-hardcore gaming option. This mainstream appeal gives it a leg up over competitors.   

Nintendo levels up on Animal Crossing hype, but now the Console Wars are here

🔥 Tinder's flirtiest quarter 

__Saved by the ballot...__ App-based driving companies are majorly relieved after CA voters said "Yes" to Prop 22. That exempts them from CA's AB5 law, which would've forced them to reclassify gig drivers as employees (think: healthcare, PTO, paid sick leave). 

- __"The Ride Scare"...__ In August, __[Uber](https://robinhood.com/stocks/UBER)__ and __[Lyft](https://robinhood.com/stocks/LYFT)__ said they'd shut down in CA because it was forcing them to follow AB5 (cue: panic). Hours before the shutdown, regulators said they could wait until the Prop 22 vote.
- __$200M and 200M emails later...__ Uber, Lyft, __DoorDash__, __Postmates__, and __Instacart__ spent $200M to support the Prop (and spammed us with notifications). It was the [most](https://www.wsj.com/articles/california-voters-exempt-uber-lyft-doordash-from-having-to-reclassify-drivers-11604476276?mod=business_lead_pos1) expensive campaign for any ballot measure in CA history. 

__Deliver the deets...__ This law would've made hiring drivers more expensive, making these chronically unprofitable apps even *more* unprofitable. Now they'll [save](https://www.newsweek.com/california-voters-saved-gig-economy-workers-may-pay-heavy-price-1544863) billions of $$$ in a key market. Uber and Lyft shares soared more than 10% yesterday. 

- __Drivers get:__ New benefits like health insurance if you work 15 hours or more per week and at least 120% of minimum wage. They also retain flexibility to work when they want.
- __Riders avoid:__ Up to 2X price increases and fewer available drivers. Uber would likely have dramatically reduced drivers if the Prop failed.


_Christmas came early for Uber and Lyft_

Deliver

__It's a massive blow to AB5...__ Gig companies were the main target of this law. Now that they're exempt, that just leaves other independent contractors like freelancers. But AB5 has caused some companies to *stop* hiring CA freelancers to avoid paying them as employees. Vox [cut](https://www.nytimes.com/2019/12/16/business/media/vox-media-california-job-cuts.html) 200 freelance writers to comply with AB5. That's why CA has been handing out exemptions and loosening requirements.


Uber, Lyft, and DoorDash score a gigantic win as CA voters save the gig economy

__*2,000 years later*...__ (in SpongeBob voice). As Americans watched election results slowly trickle in yesterday, only one thing seemed clear: the likelihood of a divided Congress (the sequel). This Democrat-controlled House and  Republican-controlled Senate excited one sector: Big Tech. 

- __A divided Congress makes it harder__ to pass legislation against tech giants. Both sides have major beef with Big Tech, but their grievances are *different* (sometimes, opposite).
- __A Blue Wave in Congress__ could've brought big changes to Big Tech. That doesn't seem to be happening, reducing the chance of major reform.
- __So investors boosted Big Tech.__ The Nasdaq surged yesterday as __[Facebook](https://robinhood.com/stocks/FB)__ stock jumped 8% and __[Google](https://robinhood.com/stocks/GOOGL)__ and __[Amazon](https://robinhood.com/stocks/AMZN)__ spiked 6%.

__Big Gambling...__ also made some election-related moves. Voters in Maryland, Louisiana, and South Dakota said "Yes" to legalized sports betting, sending __[DraftKings](https://robinhood.com/stocks/DKNG)__ and __[Penn National Gaming](https://robinhood.com/stocks/PENN)__ shares up over 5%. Also making waves:

- __Big Weed:__ Arizona, New Jersey, Montana, and South Dakota [voted](https://www.forbes.com/sites/brucelee/2020/11/04/4-states-vote-to-legalize-recreational-marijuana-use-arizona-montana-nj-south-dakota/?sh=542ad771558f) to legalize recreational marijuana. Oregon took it a step further, becoming the 1st to [legalize](https://www.cnbc.com/2020/11/04/oregon-becomes-first-state-to-legalize-magic-mushrooms-as-more-states-ease-drug-laws.html) magic shrooms for medical treatment. 
- __Buuut...__ Big Pot stocks __[Canopy](https://robinhood.com/stocks/CGC)__, __[Aurora](https://robinhood.com/stocks/ACB)__, and __[Tilray](https://robinhood.com/stocks/TLRY)__ actually *dropped* because they [want](https://snacks.robinhood.com/newsletters/2WSPzJTYnHk30wYwZxmDQO/articles/46Vmobj3VwyQorpkAl0ghs) legalization at the *federal* level. A Republican Senate makes that unlikely.

Track

__The 1st reaction isn’t always the long-term one...__ Stocks react to news all the time — but long-term, there's a lot we still don't know. For example, it's possible that a divided House *could* pass laws that  significantly hurt Big Tech — or [green light](https://www.usatoday.com/story/news/politics/2020/09/04/marijuana-house-vote-federal-legalization-first-time/5678068002/) weed. 

Stocks react to election results: we break down sector moves, from Big Tech to pot

🚗 Uber & Lyft's Prop 22 victory

__Well, that was unexpected...__ __Ant Group__ is the Chinese fintech giant that was [*supposed*](https://www.cnbc.com/2020/11/03/ant-group-ipo-in-shanghai-suspended.html) to go public  tomorrow in Shanghai and Hong Kong. Think of Ant's Alipay app as a Financial Franken-App: it offers every money service imaginable — from payments to loans to insurance and investing (*all in one*).

- __Alipay has over 1B users__, making it the biggest financial app in the world. That's 3X the number of __[Paypal](https://robinhood.com/stocks/PYPL)__ users and 3X the US population.
- __Ant was on track to raise over $34B__ in its IPO, which would make it the largest ever. *Then things got weird...*
- __The IPO was suspended__ due to vague regulatory reasons that disqualified it from listing on the Chinese market.

__*Can I get a refund?*...__ Ant had already raised big money  from institutional investors who subscribed to its IPO. These VIPs — like mutual funds and brokerages — are the ones who actually *buy* the stock "initially" during its Initial Public Offering (before it's available to the rest of us). If the stock price goes up when shares hit the market, the VIPs make money. Ant [apologized](https://www.reuters.com/article/ant-group-ipo-int/china-slams-the-brakes-on-ant-groups-37-billion-listing-idUSKBN27J1MY) to investors and plans to return the $$$ it collected.

_Ant Group, you shall not pass_

Stop

__Politics is a market risk...__ We don't really know why regulators squashed Ant, but the Chinese government's controlling-ness is [likely](https://www.bloomberg.com/news/articles/2020-11-02/jack-ma-summoned-by-china-financial-regulators-on-eve-of-ant-ipo?sref=q3KSFp38) behind it.  __[Alibaba](https://robinhood.com/stocks/BABA)__ (aka: the Amazon of China) saw its stock drop 8% yesterday because it owns 33% of Ant. In its *own* IPO papers, Alibaba said that changes in the Chinese government's policies could hurt its biz. That seems to be proving true for Ant, too.


Ant, the biggest IPO ever, shockingly gets squashed last-minute

__Nailed it with the name change...__ A one-syllable word, and the VC cash comes flooding in. __Reef__, formerly called ParkJockey, just [raised](https://techcrunch.com/2020/11/02/reef-technology-raises-1-billion-from-softbank-and-others-to-remake-parking-lots/) an eye-popping $700M to turn underused parking lots into “neighborhood hubs.” Reef leases and manages lots, providing the hardware, software, and electricity needed to transform them into something... less boring.

- __Proximity-as-a-service:__ Reef wants to bring delivery-only kitchens, health clinics, and retail pop-ups to your neighborhood lot.
- __It's *kind of* like WeWork,__ minus the kombucha on tap and the controversy. Makes sense (or not at all) that WeWork investor __[SoftBank](https://robinhood.com/stocks/SFTBY)__ led this deal.

__If you can dream it...__ *you can disrupt it.* Reef [started](https://thespoon.tech/reef-technology-raises-700m-to-reinvent-the-neighborhood-including-ghost-kitchens/) as a "disruptor of parking lots" (whoa) with its management business. Now it's a real estate play with 4.8K locations, and plans to grow to 10K with the fresh $$$. Its big focus:

- __Ghost kitchens:__ Restaurants like BurgerFi are using trailers/shipping containers in Reef's lots to dole out deliveries faster.
- __Reef has over 100 kitchens__ in North America, and expects they'll make up “a significant part” of non-parking sales.


WePark

__Mobility is power...__ You've probably noticed more "For Lease" signs on Main Street. Brick-and-mortar shops are sadly shuttering because they can't afford rent when sales are barely coming in.  Over 100K restaurants have [closed](https://restaurant.org/news/pressroom/press-releases/100000-restaurants-closed-six-months-into-pandemic) since the first COVID shutdowns. Mobile rental units *could* give restaurants the flexibility to stay afloat and test digital concepts — without the burden of running a full-on storefront.

Reef, the WeWork of parking lots, raises $700M to dish out mobile kitchens 

 🐜  The biggest IPO ever: squashed

__*I'm a croc-star, not a doctor*...__ __[Crocs](https://robinhood.com/stocks/CROX)__ has evolved from "the ugly shoe" company to the celebrity shoe company. Since 2018, Crocs has collabed with stars like Post Malone, Luke Combs, and Korean rapper Psy (Gangnam Style). The KFC x Crocs partnership [proved](https://www.businessinsider.com/kfc-crocs-sold-out-less-than-half-an-hour-after-launch-2020-7) that the biggest star of all is a fried chicken wing. Now, Crocs is sticking even more celeb charms in its clog holes: 

- __Justin Bieber:__ Bieber's yellow clogs [reportedly](https://6abc.com/justin-bieber-crocs-shoes-fashion-launches-design/7018173/#:~:text=The%20popular%20crocs%20even%20crashed%20the%20website.&text=NEW%20YORK%20%2D%2D%20People%20put,appeared%20to%20crash%20the%20website) crashed the Crocs site when they dropped (still sold out). Crocs stock jumped 11% when Biebs teased the collab on IG.
- __Bad Bunny:__ The Puerto Rican rapper's $60 glow-in-the-dark Crocs [sold out](https://www.insider.com/bad-bunny-crocs-glow-in-the-dark-jibbitz-charms-2020-9) in less than 30 minutes. He Like It Like That. 

__Ariana, Selena, my Visa...__ These Bieber-faced collabs have paid off. Last quarter, Crocs' sales rose 16% from last year to a record $362M, and profit nearly *doubled*. The greatest growth was in the Americas  — but sales also spiked in Europe, the Croc-shaming capital of the world.


_He's a croc-star, not a doctor_

Biebs

__Functional is the new fashionable...__ during this COVID anti-fashion moment. From bulky sweats to fuzzy socks, whatever's comfy for Zoom'ing and grabbing the mail wins. That's why Crocs sales are up 48% this year, while US footwear sales are *down* 20%, [according](https://www.nytimes.com/2020/09/29/style/bad-bunny-crocs.html) to a research analyst. Crocs stock (fun to say) has nearly 5X'd in value since the market tanked in March. As far as we know, it's the only pure-play ugly shoe stock. 

Crocs is a thriving Belieber thanks to celebrity-studded collabs

__Nespress yourself...__ As America's largest food company, __[Nestlé](https://robinhood.com/stocks/NSRGY)__ makes everything from Hot Pockets to Kit Kats — and anything that begins with "Nes" (presso, tea, quik). Now, Nestlé's expressing its love for all things edible with a meal delivery purchase:

- __Nestlé USA is buying Freshly__ for up to $1.5B. The healthy meal subscription startup sends you buttered salmon and kale to heat up between Zoom calls. 
- __Freshly ships more than 1M meals per week__ across 48 states, and expects $430M in sales for 2020. But don't expect any Nesquik boxes...

__*Say it again*...__ Freshly’s CEO [wants](https://techcrunch.com/2020/10/30/nestle-acquires-freshly/) to make it *veryyy* clear that Nestlé *won't* be a cook in its kitchen: “Our meals will not be changing...there are no plans to change ingredients or integrate Nestlé products into Freshly meals” (burn). Freshly will run as a standalone biz, and pricing won't change.  

- __What Nestlé gets:__ A promising company in a fast-growing, pandemic-friendly industry.
- __What Freshly gets:__ $950M, with possibly $550M extra. Freshly can scale faster with Nestlé cash — it's already planning to triple its menu offerings with the fresh $$$. 


Heat

__Big shots can afford to be late...__ Nestlé was an early investor in Freshly — in 2017 it snatched a 16% stake to "evaluate" the up-and-coming meal delivery market. Now Nestlé has decided it's safe to go all in (you think?). Massive companies can afford to be late to trends because they can buy *already*-successful companies, skipping the time and risk needed to build from scratch.

Nestlé shows up late to buy meal delivery startup Freshly for up to $1.5B

🎵  Crocs' popstar moment 

__Thank you for your ad-tention...__ Tech giant’s ad sales bounced back  last quarter as things "normalized" (*by 2020 standards*). When lockdowns started, brands slashed spend because that Kylie Lip Kit ad is worthless when your biggest outing is taking out the trash (in a mask). This summer, brands slowed/paused spend in reaction to US civil unrest. But lately, they’ve unleashed an ad-avalanche:

- __[Google](https://robinhood.com/stocks/GOOG)__ got its redemption. After its 1st-ever sales decline in the previous quarter, ad sales jumped 10% from last year to *$37B*. YouTube was the star, with ads up 32% (more skipping for us).
- __[Facebook](https://robinhood.com/stocks/FB):__ The ad boycott didn't dent sales, which popped 22% from last year to *$21.4B*. 
- __[Twitter](https://robinhood.com/stocks/TWTR)__ crushed expectations. Ad sales grew 15% to $808M.

__Facebook's peanuts = Snap's dinner...__ Over 1K advertisers — including big shots like __Verizon__  — [paused](https://snacks.robinhood.com/newsletters/53ExK4qFnO6TgaRpz8Ssnl/articles/6BImPvOi9lK0nl5oMKNwcO/) ads on Facebook in July to protest  hate speech and misinformation policies. But FB now has 10M active advertisers, up from 9M in July. While the boycott didn't hurt Zuck, it fed the smaller networks:

- __[Pinterest](https://robinhood.com/stocks/PINS)__'s sales rose 58% to $443M as marketers shifted ad spend to the way more wholesome social network. That's still crumbs compared to FB's earnings cake.
- __[Snap](https://robinhood.com/stocks/SNAP)__'s sales shot up 52% to $679M as advertisers moved to the not-so-wholesome (but way less controversial) app. 

_Emerging post-ad-pocalypse like_

Ad-iction

__Always have a plan B...__ because plan A(d) is unpredictable. Uncertainty around the pandemic, the election, and intense Congressional scrutiny means spend could be unreliable. So ad Goliaths are looking to other $$ sources: Facebook will start [charging](https://www.cnbc.com/2020/10/22/facebook-to-charge-for-whatsapp-business-services.html) for WhatsApp Business. Twitter will begin testing other money-makers (possibly a paid subscription). And Google will have to do *something* since Apple's [building](https://www.businessinsider.com/apple-now-shows-its-own-search-results-threatening-google-ios14-2020-10) its own search engine.


Ad-pocalypse (not) Now: Facebook, Google, and Twitter rebound on more ads

__Darth Bezos rises...__ on __[Amazon](https://robinhood.com/stocks/AMZN)__'s insane quarter. In three months,  the Zon brought in *$96.1B* in sales, breaking its record high from the previous quarter as we 1-Click ordered rice cookers. Profit [*tripled*](https://snacks.robinhood.com/newsletters/64dl6Er3uOxlFSO2nPzcbo/articles/4TGtOEkORwmgedvXqBc3pk) from the same quarter last year to a ginormous $6.3B. But the stock fell because Amazon's weirdly expecting to rake in less profit during the holiday quarter than it did last quarter.  

__A gassy surprise...__ __[Shell](https://robinhood.com/stocks/RDS.A)__ was one of the few stocks to jump while the market plunged last week. The oil giant surprisingly [decided](https://www.cnbc.com/2020/10/29/shell-earnings-q3-2020.html) to boost its [dividend](https://learn.robinhood.com/articles/6jGOO5O2YvyoZzlEUtIq0F/what-is-a-dividend/#:~:text=Dividends%20are%20when%20a%20company,to%20be%20issued%20in%20cash.) payout to shareholders, just 6 months after *reducing* it for the 1st time since WWII. Despite beating (low) expectations, Shell's quarterly earnings were just $955M, compared to $4.8B last year. That's still better than __[Chevron](https://robinhood.com/stocks/CVX)__, __[Exxon](https://robinhood.com/stocks/XOM)__, and __[BP](https://robinhood.com/stocks/BP)__, which each saw yet *another* quarter of losses as COVID continues to slam oil. 


__Doesn't taste ripe...__ __[Apple](https://robinhood.com/stocks/AAPL)__ stock dropped on news that iPhone sales were down 20% last quarter. That's unappetizing to investors, since phones make up a huge slice of the Fruit's business: iPhones generated 52% of total sales last year, but just 41% last quarter. Macs, iPads, Wearables, and Services all saw double-digit growth — but Apple's *overall* sales were barely [up](https://www.cnbc.com/2020/10/29/apple-aapl-earnings-q4-2020.html) from last year. We'll see if the new iPhone 12 helps in the *next* earnings (it wasn't on sale yet last quarter).

__*Why you always in a mood?*...__ __[Spotify](https://robinhood.com/stocks/SPOT)__ stock tanked 15% for the week after the Swedish streamer [missed](https://finance.yahoo.com/news/spotify-premium-revenue-misses-expectations-134450864.html) on Premium sales  expectations and posted a loss. But Spotify [outperformed](https://www.reuters.com/article/spotify-tech-results/spotify-adds-more-subscribers-as-music-streaming-gets-back-on-track-idUSKBN27E1NF) on subscriber *growth*: monthly listeners jumped 29% to 320M, and Premium subscribers were up 27%. Mid-pandemic, your lack of a commute meant Spotify lost hours of pod streaming and aggressive song switching. Now, Spotify's in-car listening has rebounded and overall streaming has *surpassed* pre-pandemic levels.


🛍  Facebook, Twitter, and Google's ad roundup 

__The only one having a good 2020...__  __[Amazon](https://robinhood.com/stocks/AMZN)__ brought in record-high sales last quarter, breaking its all-time high from the *previous* quarter. We lost count of how many fleece sweatpants we 1-click ordered, and Amazon probably would've lost count of how much $$$ it raked it (if it weren't required to report that to the SEC):

- __Profit *tripled*__ from the same quarter last year, coming in at a truly huge [$6.3B](https://www.cnbc.com/2020/10/29/amazon-amzn-earnings-q3-2020.html#:~:text=Analysts%20were%20expecting%20revenue%20of,billion%20on%20coronavirus%2Drelated%20measures.).
- __Sales jumped 37%__ to a record $96B, topping analysts' expectations.
- __But the stock *fell*__ after earnings because Amazon expects to see *less* profit during the holiday quarter than it did last quarter. Sounds... counter-intuitive. 

__Quick, create a diversion...__ Amazon knows that its mega sales were driven by a world-shattering pandemic, so it made sure to highlight all the good things it did for the world last quarter. It:

- __Is creating more than 200K new jobs__, half of which are permanent roles that pay at least $15/hour with benefits.
- __Donated millions__ to support educational efforts, COVID-19 relief charities, and wildfire-related causes. 
- __Expanded its Climate Pledge__ and ordered 100K electric delivery vans from __Rivian__ (expect to see them all on the road in 2030).

Whoa

__Amazon's future: cloudy with a chance of breakup?...__ Amazon's cloud computing unit AWS made up a whopping ~57% of its profit last quarter and ~12% of sales. As Congress continues to [grill](https://www.nytimes.com/2020/10/06/technology/congress-big-tech-monopoly-power.html) Big Tech on its monopoly-like ways, this question will probably come up: *why does the largest e-commerce service also own the largest cloud computing service?*

Amazon triples its profit in a record quarter (but it's feeling guilty)

__"*How are you feeling today, Pickles?*"...__ That's the vet talking to your dachshund over Zoom. Pet supplies deliverer __[Chewy](https://robinhood.com/stocks/CHWY)__ has been thriving on the pandemic puppy-palooza. Now it's [launching](https://www.cnbc.com/2020/10/28/chewy.html) a telehealth service to connect pet owners with licensed vets. 

- __It's free__ for customers who use Chewy's "Autoship Program" — sounds like a FedEx internship, actually a way to set up routine deliveries.
- __Consistent sales__ (aka: recurring revenue) from subscriptions like Autoship are growth engines, and this new perk could boost sign ups.
- __But it's pretty basic__ (for now). Vets help with issues like "my dog ate a sock" and can't prescribe meds. 

__Chewy's chewing on two major trends...__ First, the pet-palooza: adoptions have jumped on the "everything-from-home" life. One shelter [received](https://www.dailymail.co.uk/femail/article-8867545/Dog-charities-worried-dog-lovers-rushing-getting-rescue-dogs-lockdown.html) 1,000 requests for the same (painfully cute) bulldog puppy. Chewy has been [profiting](https://snacks.robinhood.com/newsletters/6PR0xbLSMdv6hGEyPZHPHD/articles/1qID0PIUvnfyK7kmL5mfVe/) off high demand for furry friends. The second trend: 

- __Virtual healthcare:__ Telehealth interactions could hit 1B by the end of the year. 
- __Telemedicine bigshot [Teladoc](https://robinhood.com/stocks/TDOC)__ just saw visits triple to 2.8M last quarter, and sales more than 2X’d. Teladoc stock is up 162% this year.  


Pickles

__Chewy is guarding its turf...__ and marking its territory in the pet industry. By bundling pet-related services, Chewy is trying to build loyalty and steal Milk-Bones orders from __[Amazon](https://robinhood.com/stocks/AMZN)__ (it's all about Amazon again). Chewy should add pet insurance to its "Barking Bundle," just like __[Lemonade](https://robinhood.com/stocks/LMND)__ recently wrapped it into its insurance package (@Chewy: feel free to accept our bundle name suggestion). 

Chewy unleashes virtual vet visits to mark its online turf

__*Did you get a tan?*...__ Our old friend the US economy is looking much better than it did the last time we checked in on it. But it's not the Fenty concealer or the Maldives trip — it's the [GDP](https://learn.robinhood.com/articles/29d9WQgPq119raQYS1Wm6H/what-is-gross-domestic-product-gdp/#:~:text=Robinhood%20Learn,a%20set%20period%20of%20time.) (aka: the total value of all goods and services produced by a country over a period of time — aka: *the economy*). 

- __GDP grew at a 33.1% annualized rate__ in the 3rd quarter (July-September), the fastest *ever*. This rate shows how much GDP *would* grow over a year at the Q3 pace.
- __In the *previous* quarter__, GDP plunged at a *worst*-ever 31.4% annualized rate, shrinking 9% from Q1. So this is a serious rebound.

__But everything is relative...__ and context is key. While the quick quarterly spike *is* impressive, the economy is still around 3.5% smaller than it was at the end of last year. TLDR: better than last quarter — still *down* overall.


Rebound

__It's likely slowing down from here...__ The stimulus injection that fueled last quarter's rebound has expired. The enhanced unemployment and federal checks boom is over, airline aid is gone, and negotiations for a 2nd stimulus still haven't come together. Until more financial help arrives, we can buckle up for another slowdown.

The US economy grows at its fastest rate ever after a record plunge

_Christmas came early for Amazon_

📦 Amazon's quarter of insanity

__Heat up the eggplant casserole...__ Leftover legend __[Tupperware](https://robinhood.com/stocks/TUP)__ just saw its first quarterly sales growth since 2017. Tupperware [became](https://www.mentalfloss.com/article/59687/how-single-mom-created-plastic-food-storage-empire) the plastic empire it is today thanks to the sales prowess of Brownie Wise (perfect name), the entrepreneurial single mom who started "Tupperware Parties" in the 40s. 

- __Sales were up 14%__ last quarter. *North America* sales [popped](https://markets.businessinsider.com/news/stocks/tupperware-brands-stock-price-earnings-extends-rally-top-estimates-q3-2020-10-1029735650) 42% thanks to XL-sized spaghetti nights and way too much meal prep. 
- __Profit *quadrupled*__ compared to the same quarter last year. Tup cut costs by $120M to boost its bottom line. 

__Tastes better two days later...__ Tupperware stock jumped 35% on the news, and is up over 2,000% since hitting an all-time low in March. Last quarter's earnings are the most exciting thing to happen to Tup since Cheesecake Factory delivery. 

- __More cooking at home__ = more leftovers. Sunday's family chicken roast is Monday and Tuesday's mid-Zoom lunch (hide it from the sibs in a fridge drawer). 
- __Tupperware’s sales people nimbly adopted digital tools__ to seize the remote opportunity. Think: online Tupperware party with [12K](https://seekingalpha.com/article/4382118-tupperware-brands-corporation-tup-ceo-miguel-fernandez-on-q3-2020-results-earnings-call?page=3) participants. 


Save

__Time’s change, but brand staples last...__ Since Brownie was slinging Tupperware at parties 70 years ago, the core product hasn't changed much (still a plastic container). We have iPhones and self-driving cars now, but we're still packing rice in Tupperware. Other genericized trademarks that have stood the test of time: Vaseline, Kleenex, Band-Aid, and Clorox. Brand trust keeps them going.

Tupperware heats up on its first growth in 3 years (leftovers are having a moment)

__A Happy Gilmore wedding...__ Golf classic __[Callaway](https://robinhood.com/stocks/ELY)__, known for making fancy clubs and golf balls, is [buying](https://www.wsj.com/articles/callaway-nears-deal-to-buy-rest-of-topgolf-11603816074) the rest of "open-air entertainment" company __Topgolf__, known for Vegas bachelor parties and gram-able pics. Callaway already owns 14% of the party favorite. Now it's doubling down with an all-stock merger that values Topgolf at ~$2B – more than Callaway’s even worth. A Haiku on Topgolf stats:

- __$1.1B__ sales in 2019 
- __23M__ customers around the globe 
-  __63__ Topgolf-run entertainment centers 

__The Lazertag of golf...__ could be key to helping old-school Callaway (and golf in general) attract younger players — *especially* now that golf is having a mini-renaissance as one of the few socially distant sports. According to Callaway CEO Chip Brewer, “Topgolf is the best thing that happened to golf since Tiger Woods." That's because... 

-  __50% of Topgolf’s customers__ don't identify as golfers. Chip thinks it'll be the biggest breeder of newbies for the industry.
- __But Callaway stock fell 19% on the deal__. Callaway shareholders will own ~51.5% of the married company, but some don't think the debt and [dilution](https://learn.robinhood.com/articles/5rlezLS4uMuf3cZTyEAo38/what-is-stock-dilution/) involved is worth it. Also...


_Pre-gamed golf a bit too hard_

Hole

__Conversion isn't a sure-thing...__ Callaway is hoping that the people who show up in basketball shorts to pound seltzers at Topgolf will become the people who spend $700 on a golf set for a five-hour round. Topgolf could be the "gateway" for youngsters to develop a life-long love of golf — but investors aren't so sure.

💄 Ulta moves into Target

💉 Pfizer's COVID-19 vaccine breakthrough

🏨 Marriott's shocking pandemic profit

🔥 Tinder's flirtiest quarter

🚗 Uber & Lyft's Prop 22 victory

🐜 The biggest IPO ever: squashed

🎵 Crocs' popstar moment

🛍 Facebook, Twitter, and Google's ad roundup

📦 Amazon's quarter of insanity

🥘 Tupperware's filling quarter