__Please Purell the AUX cord...__ __[Uber](https://robinhood.com/stocks/UBER)__'s sales fell [29%](https://investor.uber.com/news-events/news/press-release-details/2020/Uber-Announces-Results-for-Second-Quarter-2020/default.aspx) last quarter because ride-sharing has a germy ring to it. Uber was operating under full corona-conomy lockdowns. Virus fears kept riders away, and the bars/restaurants you would normally Uber to were closed, anyway. But Uber's sales were still better than expected, because it's a tale of two businesses:

- __Ride-share bookings plunged 73%__, significantly worse than expected. Uber did 737M trips, less than half the 1.7B from the same quarter last year. But...
- __Delivery bookings surged 113%__ on demand for Eats. Uber made more than double from Eats than it did from Rides. Food delivery was the perfect yin to ride-sharing's pandemic yang.

__Hungry for acquisitions...__ Uber lost $1.8B last quarter, which sounds pretty bad — but it's better than the *$5.2B* it lost during Q2 of last year. Uber slashed costs by sadly laying off 14% of its workforce (~3.7K employees). It also transferred its uber-unprofitable Jump line of e-scooters/bikes to __Lime__, which it majorly [invested](https://snacks.robinhood.com/newsletters/S1Y2OuCckkh8TtunS8W8Z/articles/5Ds7Jd716NHZc7o5G5Sicf/) in. But Uber has been on a shopping spree since July.

- __Postmates:__ Uber [acquired](https://snacks.robinhood.com/newsletters/q4J6y6mMs3jtkXwdTmJlG/articles/4C8Nmudmpz9QsUYbnLD5Hr/) it for $2.6B to decrease competition in the heated food-delivery market.
- __Routematch:__ Uber bought the public transit software company to connect you to public transport in-app.
- __Autocab:__ Yesterday, Uber announced it's acquiring the UK-based taxi software company to connect you to rides where Uber doesn't operate.

_Uber's still living at its parents'_

Ride

__How many pivots does it take to profit?...__ 11-year-old Uber has yet to turn a profit. Investors are getting impatient: Uber stock has plunged 16% since its May 2019 IPO price. With the pandemic hurting ride-share and CA regulators requiring gig workers to be treated like full-time employees, Uber's trying to lose the "gig" rep. Its latest acquisitions show it's positioning itself as a pure software platform. Uber's goal: turn an (adjusted) quarterly profit by this year — TBD if it'll happen. 





Uber rides out a sales plunge as Eats bookings double (still no profit)

__The favorite child wins again...__  __[Restaurant Brands International](https://robinhood.com/stocks/QSR)__ is the parent of Burger King, Popeyes, and Canadian coffee chain Tim Hortons. RBI's sales plunged 25% last quarter on pandemic-pummeled foot traffic, even though online sales more than doubled. Once [*again*](https://snacks.robinhood.com/newsletters/7DiobMh6pvFOwBiAXdpRIf/articles/w05eTHu5Eu47PHjL36zlx/), RBI's favorite child brought home a stellar report card (the other siblings are jealous):

- __Tim Hortons'__ same-store sales plunged 29%. Timmy usually makes up 60% of RBI's sales, and is the third thing people associate with Canada besides poutine and ice hockey. 
- __Burger King's__ same-store sales fell a Whoppering 13%. The Impossible Whopper wasn't enough to save it.
- __Popeyes__ sales *jumped* nearly 25%. The chicken icon soared on the wings of its viral fried Chicken Sandwich, which RBI calls a "game changer in every way" (#ProudSandwichParent).

__Blame the homemade avo toast...__ The pandemic has us WFH'ing, which means fewer mid-morning breakfast runs. That's why java-brewing, donut-cranking Tim Hortons got hit especially hard. __[Starbucks](https://robinhood.com/stocks/SBUX)__ and Taco Bell also noted drops in breakfast sales. Even though 93% of RBI's locations have reopened, we're still in WFH mode. That's why Timmy's sales were *still* down by the end of July, while BK's recovered and Popeyes' soared.



_Popeyes walking out of the RBI earnings like_

Grub

__Being a one-hit wonder isn't enough...__ RBI can't ride on the back of its poster child Popeyes forever. Even in the quarter *before* lockdowns, BK's sales were barely up 3% and Tim Hortons' were *down* 4%. That trend is concerning, especially given that Timmy usually accounts for over half of RBI's sales. To grow in the future, RBI will have to revitalize BK and Timmy, just as it revitalized Popeyes with the Chicken Sandwich.

Restaurant Brands' sales plunge, but Popeyes soars against all odds

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

🚘 Uber's tale of two earnings

__Surprise quintuplets...__ __[Moderna](https://robinhood.com/stocks/MRNA)__ smashed sales expectations for its 2nd quarter, bringing in 5X more than it did during last year's Q2. Moderna is the biotech startup that wants to [hack](https://snacks.robinhood.com/newsletters/79biJunQ8AVseCaSA7jDwV/articles/3Kiqd7olgKIOuHwvy3lMeJ/) COVID with mRNA. Unlike OG vaccines (which use a weakened virus), mRNA ones teach cells to destroy the virus. No mRNA vax has ever been approved for human use, but that hasn't stopped funding from pouring in:

- __$955M:__ What Moderna has received from the US government to support its vaccine development (and secure doses for Americans).
- __$66M:__ Moderna's sales for the quarter, up 407%. Those extra sales [came](https://investors.modernatx.com/news-releases/news-release-details/moderna-reports-second-quarter-2020-financial-results-and) from collaborations and grants related to COVID vaccine development.
- __$29B:__ Moderna's market value, despite never having sold a product. Its COVID vaccine is already in the final phase of testing, making it a vax race leader.

__It's the COVID vax premium...__ The US government has handed out [over $6B](https://snacks.robinhood.com/newsletters/2yiQjAPUMFj1LAGzjjtiR0/) to companies working on vaccines, while the stocks of these companies have soared. This outpouring of cash and interest isn't surprising, given that: *a vaccine would solve the [worst](https://www.voanews.com/science-health/coronavirus-outbreak/un-chief-coronavirus-biggest-global-crisis-wwii) global crisis since WWII*. 

- __[Novavax](https://robinhood.com/stocks/NVAX)__ stock [soared](https://www.cnbc.com/2020/08/04/novavaxs-coronavirus-vaccine-shows-promise-in-early-stage-trial.html) 16% yesterday on promising results from its early-stage vax trial.
- __[Johnson & Johnson](https://robinhood.com/stocks/JNJ)__ just [announced](https://www.cnbc.com/2020/08/05/jj-reaches-deal-with-us-for-100-million-doses-of-coronavirus-vaccine-at-more-than-1-billion.html) a $1B+ deal to make 100M vaccine doses for the US gov.



_The race to COVID-19 vaccine_

__Preparation is key...__ because 8B people can't be vaccinated overnight. Vaccines usually take 6+ years to greenlight. But given the severity of this situation, we could have one approved this year. The surging stock market seems prepared, but it's not clear if governments are. Lawmakers and companies need to work out the thorny [issue](https://www.cnbc.com/2020/08/01/who-should-get-the-coronavirus-vaccine-first-its-a-tricky-question.html) of how the vaccine is distributed. Organized planning is key to avoiding the resource allocation mess we had at the beginning of the pandemic.

Moderna's quarterly sales soar over 400% on COVID vaccine developments

__When Twitter is the side hustle...__ *Not too shabby*. __[Twitter](https://robinhood.com/stocks/TWTR)__ co-founder Jack Dorsey's (much more valuable) baby __[Square](https://robinhood.com/stocks/SQ)__ had a blowout quarter. The mobile payments company's sales [soared](https://www.cnbc.com/2020/08/04/square-sq-earnings-q2-2020.html) 64% as people ditched cash. Square makes most of its money from you swiping your card through one of its white tablets (or iPhone plug-in readers) at a craft coffee shop. But...

- __Since small businesses shuttered__ last quarter, Square’s sales from core sellers fell 9%. Square wasn't getting a cut of your carne asada card swipe at the local taco joint. 
- __The real star of the show was Cash App__, Square's peer-to-peer payment app — the amount of money customers stored in the app jumped 86% from the previous quarter.
- __Square stock surged 15%__ on the news and has more than doubled for the year.

__Haven't touched a $20 since 2019...__ Turns out that contactless payment options thrive during a pandemic. Last week, Venmo-owner __[Paypal](https://robinhood.com/stocks/PYPL)__ reported its [strongest](https://www.barrons.com/articles/paypal-reported-its-strongest-quarterly-earnings-ever-the-stock-is-up-3-6-51596059523) quarterly earnings *ever*. Profit surged 86% on lockdowns and germ-avoidance.  

- __70% of people "fear for their health"__ at the cash register, according to Paypal. That helped it add more users in 3 months than in all of 2016. 
- __"The death of cash"__ is accelerating thanks to the rise of digital payments. Credit cards hurt cash, but QR codes and digital transfers could kill it. 



"_What's that paper stuff?_"

__The "Death of Cash" has a dark side...__ There are no truly cashless societies (yet), but some are close — Only [2%](https://corecashless.com/the-worlds-top-3-cashless-countries/) of Sweden's transactions are cash and QR code payments are prevalent in China through apps like WeChat Pay. While a more cashless America could lower crime, it could also infringe on privacy and hurt lower-income segments. Going cashless increases the digital divide when [6%](https://www.forbes.com/advisor/banking/costs-of-being-unbanked-or-underbanked/) of American adults have no bank account and 16% are underbanked.


Square sales jump as virus fears accelerate "the death of cash"

💉 Moderna's sales smash

__Mickey had a lonely quarter...__ __[Disney](https://robinhood.com/stocks/DIS)__'s sales [plunged](https://www.cnbc.com/2020/08/04/disney-dis-q3-2020-earnings.html) 42% because Splash Mountain isn't corona-friendly. Disney lost an unhappy $5B, compared to a $1.4B *profit* last year. Disney's US parks, resorts, cruises, and Disneyland Paris were closed *for the entire quarter*. Turns out, 3 out of 4 of Disney's biz divisions are pandemic losers: 

- __Parks and Experiences sales plunged 85%__ on corona-closures, coming in at less than $1B. Disney lost $2B on parks (compared to a $1.7B *profit* last year).
- __Studio Entertainment sales sank 55%__, since Disney hasn't been able to release a new movie to theaters since mid-March. The big-budget *Mulan* remake got its theatrical release postponed a million times — now it'll skip theaters for [$30 online rentals](https://www.cnet.com/news/disney-will-release-mulan-online-via-disney-plus-sept-4-for-30-in-us/) starting September 4th.
- __TV channel sales dropped 2%__ — Disney-owned channels like ABC, ESPN, and Nat Geo suffered from the acceleration of cord-cutting.
- __Streaming was the only winner__ — sales jumped 2%. Disney now has 100M paying subscribers across its streamers (including Disney+, Hulu, ESPN+). Disney+ alone has over *60M paid subscribers*, less than a year after launching (Netflix has 193M).

__A tale of two business ecosystems...__ The more techy an ecosystem, the better it likely performed last quarter. Case in point: __[Amazon](https://robinhood.com/stocks/AMZN)__ sales soared 40% and it *doubled* its quarterly profit (basically, opposite of Disney). That's because all of Amazon's biz lines directly [benefited](https://snacks.robinhood.com/newsletters/vPYyhZjwPeLib6Fug0rQx/articles/3SxcY0oHCVNQIany8gnyc9) from the corona-conomy: ecommerce, cloud computing, streaming video, and grocery delivery — all highly corona-friendly.

_It's a complicated ecosystem_

Entertain

__COVID helped the digital economy...__ *But hurt nearly everything else*. It's simple, but true: the more a product can be enjoyed with a few taps on a screen, the better it likely performed in the corona-conomy. 

- __Having a "hybrid" ecosystem like Disney's isn't beneficial__ during times like these. That's why the tech-heavy [Nasdaq](https://learn.robinhood.com/articles/1GXPrecRfkSNp0aBblBSsL/what-is-the-nasdaq/) index keeps hitting record highs. 
- __Now Disney is looking to double down on its techier side:__ CEO Bob Chapek Chapek said it'll launch a [new](https://www.theverge.com/2020/8/4/21354712/disney-star-streaming-service-international-expansion-hulu-plus-abc-fx-fox) streaming service in 2021. The less it involves leaving home, the better. 

Disney's sales plunge 42% because hybrid ecosystems don't help in a pandemic

__If I could escape...__ I would, but first of all, GTA. *Grand Theft Auto* might not be Gwen Stefani's version of escape, but it is for millions in the corona-conomy. Digital fantasy worlds apparently  thrive in a pandemic/recession: video game publisher __[Take Two](https://robinhood.com/stocks/TTWO)__ nearly *doubled* its profit last quarter. Now T2's stock price is at a record high, up 35% from its pre-COVID highs.


- __+54%:__ How much T2's sales [soared](https://ir.take2games.com/news-releases/news-release-details/take-two-interactive-software-inc-reports-strong-results-15?field_nir_news_date_value[min]=) from March to June, a 1st fiscal quarter record. 
- __+127%:__ The spending surge from microtransactions in games like *NBA 2K* and *GTA*. 
- People were not only spending more on T2's games, but also spending more *in* T2's games.

__T2's not the only one...__ It's all connected in the gaming industry. US spending on video games [surged](https://www.cnbc.com/2020/08/04/take-two-interactive-software-ttwo-q1-2021-earnings.html) 26% in June, the highest for the month in over 10 years. That lifted the tide for all gaming players, both on the hardware and software side:

- __[Sony](https://robinhood.com/stocks/SNE)'s gaming sales surged 33%__, helping it [crush](https://www.bloomberg.com/news/articles/2020-08-04/sony-beats-profit-estimates-plans-100-billion-yen-buyback?sref=q3KSFp38) earnings estimates. Sony's PlayStation Plus subscription service added a best-recorded 3.4M users. Now Sony's gearing up to launch its next gen of PlayStation consoles just in time for the holidays.
- __[Microsoft](https://robinhood.com/stocks/MSFT)'s gaming sales soared 64%__ thanks to Xbox games and subscriptions. Microsoft is now working on [integrating](https://www.cnbc.com/2020/08/04/microsoft-reveals-more-details-about-its-xcloud-game-streaming-service.html) Xbox with its upcoming "Netflix for games" service, which lets you play from your smartphone or tablet. 





Game

__The big threat to gaming companies is democratization...__ For decades, a handful of video game publishers acted as gatekeepers of the gaming world. Take Two's console games sell for up to $60+, and the latest consoles they're played on (like Xbox) sell for ~$400. But now "cloud gaming" — like Microsoft's "Netflix for games" service — is threatening that exclusive biz model. When you can play high-quality games straight from a smartphone, that opens doors for developers, and for prices of Take Two's games to drop.

Take Two's sales soar as video games become the escape route of 2020

🏰 Disney's ecosystem error

__Lots to TikTok about...__ The video sharing phenom owned by Chinese __Bytedance__ has faced a torrent of [scrutiny](https://snacks.robinhood.com/newsletters/2woouVpp3T4E9DyQs4RPPc/articles/5Upme1v5FQZ3p9BaoiZdul) over its China ties. In June, India (aka the world's 2nd most populous country) fully banned __TikTok__ over national security concerns. In July, President Trump considered banning TikTok in the US on concerns that American data could be passed to the Chinese government.

- __On Friday,__ Trump said he *will* ban TikTok (the [Committee on Foreign Investment](https://techcrunch.com/2018/03/04/wtf-is-cfius/) has broad powers over foreign-owned companies). Out of TikTok's ~800M users, 100M are US-based.
- __On Sunday,__ __[Microsoft](https://robinhood.com/stocks/MSFT)__ confirmed its rumored talks to buy TikTok's US operations. Trump is [reportedly](https://www.reuters.com/article/us-usa-tiktok-trump-exclusive/exclusive-trump-gives-microsoft-45-days-to-clinch-tiktok-deal-idUSKBN24Y0UD?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosam&stream=top) on board, but with big stipulations.

__How to lose a country in 45 days...__ Microsoft is giving off Kate Hudson vibes. Trump reportedly gave Microsoft 45 days to secure a deal with Bytedance. By September 15, Microsoft has to prove that it can move American TikTok data to the US and separate TikTok from Bytedance's access (aka, cut China out). If the acquisition goes through, Microsoft would own and operate TikTok in the US, Canada, Australia, and New Zealand.

- __For Trump,__ letting Microsoft buy TikTok is better than igniting the wrath of 100M TikTokers with a ban ahead of the November elections.
- __Keeping TikTok could also mean more jobs.__ TikTok 3X'd its US employees this year, with plans to hire 10K more (it's also a [major](https://therealdeal.com/2020/05/28/the-biggest-new-tenant-in-new-york-city-is-tiktok/) NYC tenant). 

_Microsoft: "How to Lose a Global Superpower in 45 Days"_

Acquire

__It's not ideal, but there aren't many options...__ This deal would be making a Big Tech company even bigger. But Microsoft is one of the few with the knowhow and relationships to pull off a highly-regulated acquisition. It's also one of the only companies rich enough to afford the potentially $50B price tag. Besides Xbox and LinkedIn, MSFT hasn't ventured much into the social world. This deal would make the US digital ad market more competitive by creating a rival to __[Facebook](https://robinhood.com/stocks/FB)__ and __[Google](https://robinhood.com/stocks/GOOGL)__. 









Microsoft is trying to buy TikTok's US operations (with a 45-day deadline)

__Haven't felt a jean waistband since March...__ __[Levi's](https://robinhood.com/stocks/LEVI)__ sales plunged 62% last quarter because you've been wearing the same sweats for five months. As brick-and-mortar stores shuttered and social outings evaporated, the jean icon's sales went the way of the elephant pant leg. That forced Levi's to [accelerate](https://www.wsj.com/articles/covid-19-forces-levi-to-accelerate-its-consumer-strategy-shift-11596223224?mod=hp_minor_pos7) its consumer strategy shift. Our 2 highlights:

- __Same-day delivery:__ Levi's partnered with __Uber__ to drive your high-waisted shorts to your door, just in time for that last-minute picnic. Curbside pickup is also an option.  
- __Fancy ecommerce:__ Levi's new virtual concierge program lets you have a one-on-one chat with a store associate (from your couch).

__It's all about controlling "the experience"...__ Since Levi's can't control other stores' closures, it's focusing on selling directly through its own stores. That allows it to foster a more premium brand experience (and price up its products). 

- __2020 retail bankruptcies__ will likely be the [highest](https://www.cnbc.com/2020/08/03/with-pandemic-retail-bankruptcies-approach-highest-number-in-a-decade.html) in a decade: __Lord & Taylor__ is the latest to go bankrupt this year, joining __Neiman Marcus__, __J. Crew__, and 40 others.
- __"Experiential Retail"__ is key to drawing back customers, both virtually and in-store. A great example: __Burberry__'s [new](https://www.thecut.com/2020/07/burberry-shenzhen-store-wechat.html)  "social retail" store, which integrates social media and gaming with your shopping experience.

_When you pull out the jeans after 5 months_

Shop

__In an omnichannel world, physical stores are key...__ An omnichannel sales strategy means seamlessly blending the digital and physical worlds. And Levi's is all about that omnichannel life — that's why its CEO thinks physical stores are still "[critical](https://www.wsj.com/articles/covid-19-forces-levi-to-accelerate-its-consumer-strategy-shift-11596223224)" (Levi’s is opening 70 new ones this year). Levi's is also using its brick-and-mortar shops to quickly send products to consumers — 30% of its ecommerce shipments in May came from stores, not big distribution centers. 

Corona-conomy forces Levi's and other retailers to innovate (or perish)

🎵 Microsoft wants TikTok

__Ad-pocalypse 2020...__ *The period during which advertisers tightened their wallets due to a corona-halted economy*. The US economy had its worst quarter ever: [GDP](https://learn.robinhood.com/articles/29d9WQgPq119raQYS1Wm6H/what-is-gross-domestic-product-gdp/#:~:text=Robinhood%20Learn,a%20set%20period%20of%20time.) nosedived at a 33% annualized rate from April to June. So it comes as no surprise that:

- __Companies slashed spending on ads__, since you weren't buying anything besides hand sanitizer. That Kylie Lip Kit Insta ad does nothing when you're in sweats at home or in a mask at TJ's. 
- __US ad spend will decline by 25%__ this year, [according](https://www.nytimes.com/2020/07/28/business/media/coronavirus-pandemic-advertising-industry.html) to some forecasts. Small ad-reliant companies (like local newspapers) are suffering the most, but Big Tech is feeling it too.


__The Adpocalypse 2020 results are in...__ Investors held their breath as 4 big ad-reliant platforms reported earnings. Some fared better than others in the digital adpocalypse. We're rounding them up from worst to best:

- __#4: [Twitter](https://robinhood.com/stocks/TWTR)__'s  ad sales [plunged](https://www.cnbc.com/2020/07/23/twitter-twtr-q2-2020-earnings.html) a disappointing 23%, despite strong user growth (aka more people to show ads to). Now it's looking at subscriptions and other non-ad ways to make money.
- __#3: [Google](https://robinhood.com/stocks/GOOGL)__, which makes [70%](https://www.visualcapitalist.com/how-big-tech-makes-their-billions-2020/) of its revenue from ads, had its 1st sales decline *ever*. Ad sales for its core Google search plopped 10%. Even Google itself [cut](https://www.cnbc.com/2020/04/23/google-to-cut-marketing-budgets-hiring-freeze-expected.html) marketing spending by half.
- __#2: [Snap](https://robinhood.com/stocks/SNAP)__ sales jumped a better-than-expected 17%, but the little ghost fell short on user growth. Compare that to the 44% sales growth it notched in its (non-corona) 1st quarter.
- __#1: [Facebook](https://robinhood.com/stocks/FB)__ sales [jumped](https://www.wsj.com/articles/facebook-fb-2q-earnings-report-2020-11596138406#:~:text=Facebook%20generated%20%2418.7%20billion%20in,for%20the%20preceding%20four%20quarters.) an expectation-beating 11%. While investors were pleasantly surprised, that's much slower than FB's average quarterly growth of 25%. The massive FB [ad boycott](https://snacks.robinhood.com/newsletters/53ExK4qFnO6TgaRpz8Ssnl/articles/6BImPvOi9lK0nl5oMKNwcO/) happened in July, so we'll see its impact in Q3 results come September.


__Who didn't make the leaderboard?...__ __[Microsoft](https://robinhood.com/stocks/MSFT)__. But it'll join the ranks of internet ad giants if it follows through on its [talks](https://www.npr.org/2020/08/02/898415881/microsoft-consults-with-trump-about-ongoing-talks-to-buy-tiktok-from-chinese-fir) to buy __TikTok__'s US operations. 

_Behold, the Ad-pocalypse Award_

Ad-pocalypse

__It's an awkward situation...__ While the pandemic has driven more social and digital engagement than ever, Big Tech can't capitalize on that surge unless advertisers are spending. Twitter grew its daily active users by a record breaking 34%, but ad sales still fell 23%. Facebook fared better — the pandemic forced small and medium-sized businesses to sell online, and Facebook was the go-to platform to reach consumers. Despite the major boycott, Zuck still predicts *growth* in ad sales for Q3.

Facebook, Google, Twitter, and Snap report Ad-pocalypse earnings 

__Hit 'em with the Venmo request...__ __[Paypal](https://robinhood.com/stocks/PYPL)__ shares hit an all-time high after its quarterly profit surged 86%. The OG fintech company and __Venmo__-owner added more users in 3 months than in all of 2016. Contactless payment options are thriving because [70%](https://fortune.com/2020/07/29/paypal-cites-death-of-cash-as-firm-posts-record-earnings/) of people "fear for their health" at the cash register, according to Paypal execs. Paypal thinks we're reaching the "death of cash." Now it wants to lead the cash-killing charge. Its deadly weapon: [QR codes](https://techcrunch.com/2020/07/30/paypal-and-venmo-qr-code-checkout-is-coming-to-8200-cvs-stores-in-q4/).



__How do you like them Apples?...__ First, __[Apple](https://robinhood.com/stocks/AAPL)__ announced its best fiscal 3rd quarter ever. Sales jumped 11% despite closed stores, and the Fruit took home $11B in profit (enough to buy the entire company __[Lyft](https://robinhood.com/stocks/LYFT)__ and leave a $2B tip). Apple *also* [announced](https://snacks.robinhood.com/newsletters/vPYyhZjwPeLib6Fug0rQx/articles/1ZCH362yffyTmdyQ6sXP1y) it's doing a 4-for-1 [stock split](https://learn.robinhood.com/articles/5Bc1M9bKsFQeJ317f9AqYO/what-is-a-stock-split/) (its 5th split to date — call it Banana). *Then* on Friday, Apple shares soared 10% to make it *the world's [most](https://www.cnbc.com/2020/07/31/apple-surpasses-saudi-aramco-to-become-worlds-most-valuable-company.html) valuable company*. Its fresh $1.84T market value put it past former #1 __Saudi Aramco__.

Highs

Who's up...

__When they're out of Cold Brew by 1pm...__ That's a bummer. __[Starbucks](https://robinhood.com/stocks/SBUX)__ thinks it lost a casual [$3.1B](https://www.cnbc.com/2020/07/28/starbucks-sbux-q3-2020-earnings.html) in sales while you were making 30-cent WFH iced coffees. From mid-March to mid-April, US Starbucks locations were corona-closed, eventually transitioning to drive-thru and delivery only. Your non-existent lunchbreak Starbucks run plunged sales by 40% for the quarter. But Starbs thinks the future is sweeter, so it raised its earnings outlook for this quarter. Caffeinated investors shrugged off the loss and bumped the stock.


__Back to Russian ping pong...__  __[DraftKings](https://robinhood.com/stocks/DKNG)__ stock plunged 11% for the week after the MLB postponed 2 games due to coronavirus. 12 players and 2 coaches for the Marlins tested COVID-positive, spooking investors on the future of live sports. The sports betting app's stock soared through July as the MLB, NBA, and NHL geared up to restart play. But postponed MLB games show just how fragile live events are in corona-times — not ideal when your whole biz relies on live sports betting.

Lows

...and who's down

📲  Big Tech's ad-pocalypse scoreboard

__The Empire strikes back...__ A day after Jeff Bezos got [grilled](https://snacks.robinhood.com/newsletters/6RFtJk3mnCKOO7aaL4NeV/articles/6e3Zax9vmlBIyYMmTNkROA) by Congress, his ginormous baby __[Amazon](https://robinhood.com/stocks/AMZN)__ reported expectation-smashing quarterly earnings. The Zon [delivered](https://ir.aboutamazon.com/news-release/news-release-details/2020/Amazon.com-Announces-Second-Quarter-Results/) big numbers: 

- __+100%:__ Amazon's quarterly profit *doubled* to $5.6B from last year. Even more impressive when you consider it spent __$4B__ on COVID-related costs.
- __+40%:__ Amazon's sales soared to a casual total of $89B. $50B came from products and $39B came from services (like AWS cloud computing and 3rd party seller plans).
- __175K:__ How many jobs Amazon created *since March*. That's almost double __Delta__'s *total* number of employees.

__It's surprising, but it's not...__ Amazon's expenses were up a massive $4B, which should have eaten into profits. But it still managed to double its profit because: *almost every single one of Amazon's business lines directly benefited from the corona-conomy*. Lockdowns and germ-avoidance hugely favored the Zon's businesses.

- __Ecommerce:__ Amazon's 3rd party sales jumped 52% as sellers flocked online, and Amazon-owned sales popped 48%. 
- __Cloud:__ Amazon's AWS cloud brought in $11B on WFH cloud computing needs.
- __Grocery:__ Amazon revved up grocery delivery capacity by 160% and tripled pickup locations on soaring demand. 
- __Streaming:__ Prime Video launched its Watch Parties social feature, after 1st time viewers nearly [2X'd](https://variety.com/2020/tv/news/amazon-earnings-q2-2020-coronavirus-1234721317/) in the previous quarter.



_Apple loves its profit Pomeranians_

Deliver

__Amazon’s earnings just reinforce Congress’ argument...__ Wednesday, Jeff Bezos tried to convince Congress that Amazon faces real competition — in other words, that it's not a competitor-crushing monopoly. But its massive earnings suggest many Americans view it as a necessary platform, *especially* mid-pandemic. Many sellers see Amazon as their only option, since it controls ~40% of the US retail ecommerce market and reaches [82%](https://fortune.com/2020/07/29/jeff-bezos-amazon-tech-ceos-hearing-congress-questions-to-ask/) of US households.

Amazon crushes earnings and doubles its profit — it spent big, but it won bigger

__What 3 months can buy you...__ A __[Lyft](https://robinhood.com/stocks/LYFT)__ — the company, not the ride. __[Apple](https://robinhood.com/stocks/AAPL)__ took home over [$11B](https://www.apple.com/newsroom/pdfs/FY20-Q3_Consolidated_Financial_Statements.pdf) in profit last quarter, enough to buy Lyft and still have $2B left over for lunch. Despite having its stores closed and its operations slowed during the pandemic, the trillion-dollar fruit managed to post its best [fiscal](https://learn.robinhood.com/articles/3CYkRYtZcIO70KOJGRxhl8/what-is-a-fiscal-year/) 3rd quarter (2nd calendar quarter) *ever*:

- __+11%:__ Total sales jumped to __$60B__, the most Apple has ever made from April through June.
-  __$13B:__ Services sales (like the App Store, Apple Pay, and Apple Music) were up 15%. 
-  __$6.4B:__ Sales of Wearables like AirPods and Apple Watches were up 17%. 

__Now slice up the Apple...__ Apple also announced it's going to do a 4-for-1 [stock split](https://learn.robinhood.com/articles/5Bc1M9bKsFQeJ317f9AqYO/what-is-a-stock-split/#:~:text=A%20stock%20split%20cuts%20the,reducing%20the%20number%20of%20shares) at the end of August. Investors who own 1 Apple share will suddenly find themselves with 4 (example: if you own 1 share trading at $400, you'd soon have 4 $100 shares). 

- __Companies split their stock to lower its price__ so that more people can afford to invest — but the company's overall value doesn't change.
- __This is Apple's *5th* stock split to date__. Its last one was in 2014, when it did a 7-to-1 split. It did 2-1 splits in 2005, 2000, and 1987. Apple splits so much, it should be called Banana. 
- __Apple's stock price would be way higher__ if those splits had never happened. Splits are less relevant today though now that [fractional shares](https://learn.robinhood.com/articles/4EFqqbIXVM4mHEXqqlQAJe/what-is-a-fractional-share/#:~:text=Fractional%20shares%20are%20often%20the,that%20may%20generate%20fractional%20shares.) are more widely available to invest in.







Wear

__The bigger the profit puppy, the slower it grows...__ iPhone is a fully grown St. Bernard. It's undoubtedly Apple's main profit puppy, making up almost half of its sales. But iPhone sales grew less than 2%, even with the introduction of the cheaper $399 SE. Meanwhile, Pomeranian pups grew in the double-digits: iPad sales were up 31% and Mac sales jumped 21%. The WFH shift was like gourmet dog food for those smaller profit puppies' growth spurts.

Apple has its best 2nd quarter ever and announces it's chopping its stock in 4

🎁   Amazon delivers a double profit  

__Major plot twist...__ Three months ago, __[AMC](https://robinhood.com/stocks/AMC)__ banned all __Universal__ movies from its theaters after some  [*Trolls* drama](https://snacks.robinhood.com/newsletters/76jnSWZc6iKnCka8DwnCwj/articles/12pFjiFXKs4qKrpQFtdJav/). TLDR: Universal made bank releasing *Trolls World Tour* direct to streaming, and said it'll do both digital and theatrical releases going forward. AMC reacted by excommunicating Universal. Now the two have struck a game-changing truce:

- __They're slashing the theatrical window__ from 75 days to just 17 days for Universal films shown at AMC theaters.
- __Theatrical window:__ The period that a movie has to be exclusively in theaters before release for home viewing.

__An Oscar-worthy win for streamers...__ and a loss for theaters. The window has long been key to theaters' sales. Even though the first three weekends make up the bulk of those, slashing the window from 2.5 months to 2.5 *weeks* encourages people to wait for digital releases (manageable FOMO). 

- __Customers get:__ Savings. While digital rentals will likely cost ~$20, there's no "pay-per-butt" charge. The whole family can watch for the price of 1 (and skip the $17 popcorn). 
- __Universal gets:__ Money. Universal made more off 3 weeks of Trolls online rentals than 5 months of the original theater release. Big reason: streaming platforms take a smaller cut of sales than theaters do.
- __AMC gets:__ A lifeline. Theaters have been closed since March, and AMC could be looking at bankruptcy soon. Now it'll reportedly get a cut of Universal's sales from digital rentals and rights to release new Universal films on its own on-demand service.




_The thrill of the short-lived theatrical window_

Watch

__This could become the status quo...__ AMC is the world’s largest theater chain and Universal is a major studio. Others could follow their major league window-slashing. By the time the pandemic is over, homebound consumers might be used to saving money by watching new movies at home. Short windows might keep getting shorter (or even become non-existent).  


AMC and Universal will slash the theatrical window period in a historic agreement

__Grab the popcorn...__ The latest season of *Big Tech vs. Congress*  [dropped](https://www.npr.org/2020/07/29/894802424/watch-heads-of-amazon-apple-facebook-and-google-testify-on-big-techs-power) yesterday. Besides a few screaming matches and some technical difficulties, important questions were raised around anti-competitive activities of Big Tech companies. Highlights from the stars:

- __[Amazon](https://robinhood.com/stocks/AMZN) CEO Jeff Bezos__ made his Congressional debut. He got grilled on using data from 3rd party vendors to make competing (and cheaper) Amazon products.
- __[Google](https://robinhood.com/stocks/GOOG) CEO Sundar Pichai__ got hammered with questions around favoring Google products or paid ads over relevant search queries. 
- __[Facebook](https://robinhood.com/stocks/FB) CEO Mark Zuckerberg__ got grilled on copying features of successful competitors, or acquiring them to crush threats (especially RE: Instagram). 
- __[Apple](https://robinhood.com/stocks/AAPL) CEO Tim Cook__ got let off easy (the [fewest](https://www.nytimes.com/live/2020/07/29/technology/tech-ceos-hearing-testimony?action=click&module=Top%20Stories&pgtype=Homepage) questions), mainly around Apple playing favorites on its App Store and making things overly complicated for developers.

__Grab the PR flashcards...__  All four CEOs took the stance that they *do* face real competition, and that everything they do is to improve products for their customers. Overall, it was mainly Congresspeople making their statements without actually listening to answers, and CEOs trying to waste as much time as possible by circumventing questions. Niiice. 

_Big Tech's Congressional Zoom sesh_

Testify

__Will anything actually come from these Congressional TV dramas?...__ The biggest thing would be a change in competition laws. Overall though, these hearings have rarely affected regulation. Buuut: a rare bipartisan unity clearly emerged around hostility to Big Tech (though the reasons varied). This hearing likely serves more as a slap on the hand than a game-changer.



Big Tech CEOs get grilled while trying to prove they're not monopolies

__Varsity Blues...__ Meal kit company __[Blue Apron](https://robinhood.com/stocks/APRN)__ has been sitting on the bench as its  rival __HelloFresh__ scores all the points. It was worth $2B when it IPO'd in 2017 — now it’s worth just $160M. Then the pandemic lifted the tide for all at-home-cooking ships, and Blue Apron finally got its shot in the game. It delivered:

- __Blue Apron turned a quarterly profit for the 1st time ever__, taking home [$1.1M](https://www.wsj.com/articles/blue-apron-swings-to-profit-amid-pandemic-11596034442?mod=business_lead_pos12) compared to a $7.7M loss during the same quarter last year. 
- __Thank the ARPU:__ Average Revenue Per User. Blue Apron's ARPU surged 25%, with the average customer spending $331 in the quarter (up from $265). Sales jumped 10%.

__But no one was cheering...__ *Sigh*. Despite the profit win, Blue Apron stock plunged 15% because:


- __Growth was underwhelming__, like a poorly seasoned Bok Choy. It added only 20K new customers, a 5% growth bump.
- __$18M will be lost *this* quarter__, according to Blue Apron's unappetizing forecast. Higher labor costs (like employee bonuses) are eating into profits.  

_Blue Apron: "Put me in, Coach"_

Cook

__Blue Apron still has a shrinkage problem...__ It didn't make a profit because it's growing — *it made a profit because the highly unusual pandemic made home-cooking spend surge*. Despite its higher ARPU, Blue Apron's customer count is actually getting *smaller*. It now has 396K customers, down from 449K last year. Investors think the profit was a one-hit pandemic wonder. Since investors are all about *future* growth, they plunged the stock. 



Blue Apron has its 1st-ever profitable quarter — but the stock still melted 15% 

🍿 AMC Theaters pulls a 180 

__Crank out the case interview books...__ __[Reckitt Benckiser](https://robinhood.com/stocks/RBGLY)__ is the consumer packaged goods company that makes __Lysol__. Now Lysol sales have surged a lemon-scented 70% during the pandemic. To expand on its success, Lysol's launching a new business line:

- __The Deloitte of Hygiene:__ Lysol is offering its cleaning products and sanitizing expertise to the travel and hospitality industries. It's positioning itself as a hygiene expert.
- __Case study:__ With its sanitizing know-how, Lysol tells the Bellagio that the mini bar needs to be sprayed down exactly 57 times.


__"Hygiene Consulting" could be big...__ Travel and hospitality have been decimated by the pandemic. Hotels and airlines know that the only way to get customers back is to make them feel safe. Instead of complimentary continental breakfast, hotels are touting obsessive cleanliness. Lysol has capitalized on that concern to bag some big corporate partners:

- __[Hilton](https://robinhood.com/stocks/HLT)__ is partnering with Lysol, leaving a sticker on your bed that shows the room was cleaned according to "Lysol standards." Also: Lysol wipes everywhere. 
- __[Delta](https://robinhood.com/stocks/DAL)__ is working with Lysol to research and develop new protocols and disinfectants for flights, starting with the airplane lavatory. The cleaning routines will be Lysol-certified. 
- __BTW:__ Lysol's not the only Hygiene Consultant. __[Clorox](https://robinhood.com/stocks/CLX)__ has been a hygiene [partner](https://simpleflying.com/united-airlines-clorox-partnership/) for __[United Airlines](https://robinhood.com/stocks/UAL)__ since May. 



_The Hygiene Consultants have arrived_

Sanitize

__The value of brand equity...__ AKA brand clout. Brand equity is the extra value companies can squeeze from our *perception* of their brand. It's the reason why people pay $160 for __[Apple](https://robinhood.com/stocks/AAPL)__ AirPods instead of $50 for generic wireless buds. Lysol and __[Clorox](https://robinhood.com/stocks/CLX)__ probably aren't more effective than a rando sanitizer that kills 99.99% of germs, but their *brands* allow them to capitalize on reputation. Hotels and airlines think they can piggy-back off that, too.

Lysol leverages its clean reputation to launch a hygiene consulting business 

__5th degree Zucking...__ __[Facebook](https://robinhood.com/stocks/FB)__'s perpetual MO to crush competitors: bring their most successful feature to Instagram. In 2016, FB essentially crushed __[Snap](https://robinhood.com/stocks/SNAP)__ Stories by launching Instagram Stories. In 2018, FB *tried* to take on YouTube by [intro'ing](https://snacks.robinhood.com/newsletters/712Ibsc2krjNf8bYFdUGZm/articles/5gQaNkwPYGtwKv3SL2WdnV) IGTV. In May 2020, FB threatened __[Amazon](https://robinhood.com/stocks/AMZN)__ by [shipping ](https://snacks.robinhood.com/newsletters/7Fl0kcKPHzNEVEVwnee0Zp/articles/7GbosmnxcsEDfjk2yPdKh6/) "Shops" for ecommerce on Insta. Then FB started obsessing over the fact that TikTok has been downloaded over 2B times. So...

- __FB will try to kill TikTok__ with its Reels feature on (you guessed it) Instagram. Reels, which is launching in the US in August, lets users make short vids with musical tracks (*sounds promising*). 
- __Double whammy:__ For Chinese-owned TikTok, which has  major trust issues. India just banned TikTok over security/spying concerns, and TikTok is [facing](https://snacks.robinhood.com/newsletters/2woouVpp3T4E9DyQs4RPPc/articles/5Upme1v5FQZ3p9BaoiZdul) political threats of the same fate in the US. 
- __*Triple* whammy:__ FB announced Reels back in November, so that's an old whammy. The new whammy: *FB is [reportedly](https://www.wsj.com/articles/facebook-seeks-to-reel-in-tiktok-creators-raising-stakes-in-social-media-rivalry-11595928600) paying popular TikTok stars to leave TikTok and post on Reels, instead*. 

__"Reel it in, I got a bag"...__ FB has the $$$ to not only nab TikTok's product, but also its *content*. According to the WSJ's infamous "people familiar with the matter" (#PFWTM):

- __Insta has made big offers to some of TikTok's top creators.__ The biggest $$$ goes to those who ditch the Tok completely and go Reels-exclusive. 
- __FB hopes__ that these influencers will bring their millions of followers over to Reels. That's why TikTok just announced a $200M fund of its own to counter Facebook's courting and keep stars on TikTok. 





Dance

__Success breeds copycats...__ But not all copycats are created equal. FB isn't the only one trying to replicate TikTok features, and TikTok-style apps like __Triller__ and __Dubsmash__ were launched years *before* TikTok. Since these product ideas aren't something companies can patent, they're up for grabs when they launch. Companies in similar industries are always incorporating each others' successes. But because of their huge-ness, FB and other Big Techies are facing intense [regulatory](https://www.washingtonpost.com/) scrutiny (including by Congress [today](https://www.politico.com/news/2020/07/28/congress-big-tech-hearing-385612)).

Facebook will pay TikTok stars to post on Instagram Reels (its new TikTok knock-off)

__Dust off the 5th grade field trip prints...__ __[Kodak](https://robinhood.com/stocks/KODK)__ is back, baby. You might remember Kodak as the company that supplied disposable cameras for your early 2000s "Kodak moments" (don't forget to scroll wheel). Then iPhones took over and Kodak filed for bankruptcy in 2012. Now the 131-year-old former photo leader is back with a flashy headline:

- __Kodak is getting a $765M loan from the US government__ under the Defense Production Act. The DPA lets the US prez [force](https://www.whitehouse.gov/briefings-statements/president-donald-j-trump-committed-ending-americas-reliance-foreign-countries-vital-supplies/) companies to prioritize production of necessary resources in a national emergency.
- __But Kodak won't be printing out pics.__ It'll be cranking out ingredients for medical drugs.
- __The goal:__ Reduce the US' reliance on foreigners for drugs. Kodak stock jumped a whopping 300% on the news. 

__Definitely frame-able...__ This is the 1st loan of its kind under the DPA, which was used earlier this year to speed up production of masks and ventilators. The US is heavily reliant on China for pharma drugs, so this domestic loan is a way to protect the supply chain in case something goes South (because, 2020). For Kodak, it's a big business pivot:

- __Kodak's factories__ manufacture chemicals used in photographic film, among other things — now they're ramping up to produce drug ingredients.
- __Kodak now says__ it expects pharma ingredients will make up 30%-40% of its biz in the future (funny, because it didn't say a word about pharma in its last earnings).





Defend

__To successfully pivot, companies need to zoom out...__ Kodak's walking away from its OG camera reputation to focus on the chemicals that underlie it. It doesn't want to be "the company that makes chemicals for camera stuff" — it wants to be "the company that makes chemicals for anything." When __[BlackBerry](https://robinhood.com/stocks/BB)__ realized its phones were doomed, it focused on the underlying software — Now it’s developing secure software for self-driving cars.

Kodak stock jumps 300% on a $765M loan from the US gov to make drugs

🧽 Lysol does "Hygiene Consulting" 

__Guess we're back to Spelling Bee re-runs...__ Or Russian ping pong. __[DraftKings](https://robinhood.com/stocks/DKNG)__ took its fantasy sports app public back in April via SPAC merger (ICYMI: yesterday's SPAC [rundown](https://snacks.robinhood.com/newsletters/2IlouyJBkMnca9pyPTVgEl/articles/22jXt0jb5fz7MVzts4f1gG)). In May, the sports betting company said it would live-stream sports events through its app. While live sports seemed as far away as an Arby's in a desert, DraftKings stock [soared](https://snacks.robinhood.com/newsletters/6gEsMVqlGxt5w2dRl1MD3H/articles/6aWS0cjwmJYjU6B4X4U3gD/) on the hope. Then it soared more when:

- __Sports were coming back:__ (minus the fans). The NBA is restarting play at the Disney bubble, the NHL is set to hit the ice in August, and the MLB took the field on July 23.
- __Bets were coming back:__ DraftKings had its 2nd-best day since March thanks to the MLB return. It was the #1 sport in its sportsbook this weekend (shocker).
- __Then COVID struck back:__ DraftKings stock [plunged](https://www.cnbc.com/2020/07/27/draftkings-stock-down-as-mlb-cancels-2-games-due-to-coronavirus.html) 8% after the MLB's announcement that two games were being postponed Monday because 12 players and 2 coaches tested positive for coronavirus. 

__What happens in one MLB team...__ probably doesn't stay in one MLB team. The MLB cancellations made investors realize just how fragile the whole live events situation is... and how quickly it can go south. Investors got hyped on reopenings, then plunged the stock when foreseeable setbacks emerged.

Sports

__DraftKings occupies a weird spot in the corona-conomy...__ because its biz is so closely tied to external events. While lockdown couch-boredom would have people flocking to the app for entertainment, the lack of live sports leaves DraftKings powerless. Streamers like __[Netflix](https://robinhood.com/stocks/NFLX)__, __HBO Max__ and __Hulu__ will be in the same awkward position if TV/film production doesn't resume soon (although [apparently](https://snacks.robinhood.com/newsletters/3VYgq4XRGydXCiWCpJd3rW/articles/1hRrTGpsrWf1HFMQNZopbk/) Netflix has content hoarded for *years*).



DraftKings soars on live sports re-starting, then falls on MLB cancellations

__Like Viagra in Allbirds packaging...__ 3-year-old telehealth startup __Ro__ (adorable) just [raised](https://www.cnbc.com/2020/07/27/ro-raises-200-million-at-1point5-billion-valuation-250-million-sales.html) a fresh $200M in funding, bringing its valuation to $1.5B (baby Unicorn). Ro started off selling men's hair loss supplements and erectile dysfunction meds. In typical startup fashion, Ro managed to make those things sexy by incorporating three major trends:

- __Direct-to-consumer:__ Everything delivered, so you don't have to pick up those Viagra or STD pills in person — they pounced on __[Pfizer's](https://robinhood.com/stocks/PFE)__ patents once they expired.
-  __Trendy packaging:__ Sleek colors and minimalist Millennial typeset make excessive-sweat medication look like a Kylie lipkit. It's discrete, so you can proudly leave out that eczema cream on the nightstand.
- __Tele-everything:__ Get prescriptions via online doctor consultation and follow-up with your M.D. via in-app text.


__Build the brand model, then explode it...__ Just like __[Amazon](https://robinhood.com/stocks/AMZN)__ started with books, Ro started with 1 product — now it wants to conquer the digital health industry. Ro's big selling point: it doesn't want your health insurance info in exchange for prescription meds (direct payments only). Since launching men's meds, Ro evolved into a telehealth biz with 4 main verticals:

- __Roman:__  The flagship men's offering — from prostate health powder to hair loss drops. 
- __Rory:__ The female version of Roman — from eyelash care to menopause meds. 
- __Zero:__ Nicotine replacement treatments to quit smoking.
- __Ro Pharmacy:__ Delivers 500+ generic medications for a $5 flat fee.









Raise

__But can it differentiate enough to disrupt?...__  Ro has big competition in the "new-age" healthcare space: __[Walgreens](https://robinhood.com/stocks/WBA)__ just [dropped](https://snacks.robinhood.com/newsletters/6hhuCOY10qHk7z0tNQJNYE/articles/5aYSlp1wVeRDxLaMBqz3MY/) $1B to add easy-access doctors clinics in-store — it also offers prescription delivery and OTC delivery with __Postmates__. __[CVS](https://robinhood.com/stocks/CVS)__ is opening 1.5K HealthHUB clinics and doing OTC med delivery with __DoorDash__. TBD whether the 3 major trends Ro latched onto are enough to differentiate. If it's not enough to go mainstream, Ro will have to stay niche. 








Ro triples its valuation to $1.5B to disrupt healthcare, but is the trend-factor enough?

_Guess it's back to Russian ping pong_

⚾️ DraftKings' Major League Bust

__Up there with quarantinis...__ Another 2020 summer trend: SPACs, or Special Purpose Acquisition Companies. SPACs (fun to say) have been around for years, but gained popularity recently as a way for companies to go public. Private companies can take their stock public (and make it available to retail investors like you and us) in a few ways:  

- __Initial Public Offering:__ The company creates new shares of itself then hands things off to investment banks. They decide the stock's price, then sell shares to the 1st batch of public investors. Most companies go public the IPO route. 
- __Direct listing:__ No new shares are created (#nonewfriends). Existing shares held by the founders, early investors, and employees simply become public, with supply/demand on exchanges like NYSE or Nasdaq determining the price. __[Slack](https://robinhood.com/stocks/WORK)__ and __[Spotify](https://robinhood.com/stocks/SPOT)__ did this recently.
- __Acquisition:__ A private company gets eaten up by a public one, and becomes public by association. __Postmates__ just did this by selling to __[Uber](https://robinhood.com/stocks/UBER)__.

__And then there's the SPAC way...__ This falls under Acquisitions, but it's much edgier (you can tell by the name). SPACs go through an IPO, but have no commercial operations. Their sole purpose is to one day acquire a real company and voila, that acquired company becomes public. 

- __SPACs are AKA "blank check" companies:__ SPACs collect cash from new investors in the IPO, even though those investors don't know what they'll end up owning. The SPAC has 2 years to buy a real company, or the $$$ gets returned to the investors.
- __[Pershing Square Tontine](https://robinhood.com/stocks/PSTH=):__ Famous investor Bill Ackman just took this SPAC public in the [largest-ever](https://www.barrons.com/articles/bill-ackmans-blank-check-company-starts-trading-today-what-you-need-to-know-51595422200) blank-check IPO (it raised $4B). Ackman said Pershing might buy a “mature unicorn” 6 times in the filing. *So much detail*.



SPAC

__SPACs aren't real companies, but one day they could be...__ Investing in a SPAC is like outsourcing money to be invested by a manager and having no control over what they'll buy (FYI, __[Virgin Galactic](https://robinhood.com/stocks/SPCE)__ and __[Nikola](https://robinhood.com/stocks/NKLA)__ recently went public via-SPAC). But if nothing (or an underwhelming company) gets bought, the SPAC stock could fall in value. There's a risk that the Kinder Surprise egg could be empty — a risk with Ackman's new SPAC stock, too.

Bill Ackman's SPAC raises $4B for a company without a company

__Pour one out for Sam Adams...__ There's a new koozie favorite at the Pats tailgate. __[Boston Beer](https://robinhood.com/stocks/SAM)__ shares spiked 26% after [revealing](https://www.cnbc.com/2020/07/24/boston-beer-ceo-says-hard-seltzer-is-biggest-shift-since-light-beer-as-companys-stock-soars.html) that profits more than *doubled* from the same quarter last year. Sales soared 42% thanks to Twisted Tea and Truly Hard Seltzer, while OG Sam Adams dipped (no bars? No kegs). Based on its hard seltzer/tea/lemonade success (non-beers reportedly make up [3/4](https://www.bloomberg.com/news/articles/2019-07-22/boston-beer-s-spiked-seltzer-not-sam-adams-drives-sales-boom?sref=q3KSFp38) of the company's sales these days), Boston Beer should rebrand to 'Boston Booze.' 

__Ludicrous Mode gains stamina...__  For the 1st time ever, __[Tesla](https://robinhood.com/stocks/TSLA)__ has [posted](https://snacks.robinhood.com/newsletters/6511HaDUMXpAxjp2bEBL6w/articles/30QY0VGpvgwP9J9BKSTkLB) 4-straight profitable quarters in a row. Sales were slightly down this corona-conomy quarter, but Tesla managed to drive home a profit by selling $428M worth of environmental credits to non-EV carmakers. Also, the full-year profit means Tesla could now be invited into the prestigious S&P 500 club. Tesla has a tiny share of the global car market — but its stock has soared 230% this year, making it *the most valuable carmaker on Earth*. 




__Going the way of Blockbuster...__ 2020 summer blockbusters. __[AMC](https://robinhood.com/stocks/AMC)__  [pushed](https://www.cnbc.com/2020/07/23/amc-to-reopen-theaters-in-august-as-hollywood-continues-to-shift-slate.html) its US theaters reopening date (*again*) to mid-August. The world's largest movie theater chain didn't have much choice, after studios delayed releases of their biggest blockbusters:  __[Disney](https://robinhood.com/stocks/DIS)__ pushed *Mulan* indefinitely and delayed  *Star Wars* and *Avatar* by a year. Christopher Nolan's much-hyped *Tenet* was also pushed to TBD status. The longer theaters and studios stay closed, the closer AMC gets to bankruptcy.

__Getting ghosted...__ __[Snap](https://robinhood.com/stocks/SNAP)__ stock plunged 11% on [news](https://www.cnbc.com/2020/07/21/snap-earnings-q2-2020.html) that its quarterly loss grew 28% from a year ago. Investors screenshotted that big L, but it wasn't all bad news for the little ghost: sales popped 17% and daily active users jumped 4% from the April quarter to 238M. Snap blamed its loss partly on long-term investments. It recently [intro'd](https://snacks.robinhood.com/newsletters/2FFx07PkihITcdXy20oUUt/articles/f5oNMz0Gj22IuOs59hqQ3) "Mini" apps in Chat, headlined by a partnership with meditation app Headspace. If those succeed, Snap could boost engagement and ad bucks with its own (Mini) app store. 