__Like the CIA of processed sugar...__ The six-person team that comes up with limited-edition Oreo flavors has top secret security clearance (at its parent company, snack legend __[Mondelez International](https://robinhood.com/stocks/MDLZ)__). The team is so secretive, that Mondelez [refuses](https://www.nytimes.com/2020/12/16/style/oreo-flavors.html) to even say what it's called. 

- __Their job:__ Flavor innovation. Since 2012, they've launched 65 Oreo flavors including: Jelly Donut, Waffle & Syrup, Crispy Tiramisu, Pina Colada, and in China... *Hot Wings*.
- __Their mission:__ Excite love for the 108-year-old Oreo. A Wasabi Oreo might not be your go-to, but it's provocative – *it gets the people going*.

__The proof is in the (double) stuffing...__ The not-so-secret goal of Oreo's secret flavor team: drive shoppers back to the plain old Oreo (aka: milk's favorite cookie). Niche flavors and tweet-worthy collabs are meant to help people rediscover the OG favorite. And the strategy seems to be working: 

- __Sales of specialty Oreos__ have jumped more than 12% over the last three years. During that same time, sales of *classic* Oreos soared over 22%. 
- __~15% to 20% of Oreo sales__ came from shoppers who were new to the brand, according to estimates from Mondelez's CEO. 

_Creating the next Oreo flavor..._

Stuffed

__It's the LVH effect...__ The Limited Viral Hook. When Mondelez [launched](https://www.mashed.com/191068/the-real-reason-supreme-oreos-are-so-expensive/) limited-time only Supreme Oreos, Supreme fans bit (Supreme logo = automatically cool). Next up: salmon-colored, green-stuffed Oreos in honor of Lady Gaga's new album. Oreo uses brands, people, and flavors to generate buzz and expand its appeal beyond the usual customers — *then it hooks you with the OG profit puppies*. __[Dunkin'](https://robinhood.com/stocks/DNKN)__ and __[Starbucks](https://robinhood.com/stocks/SBUX)__ also [use](https://snacks.robinhood.com/newsletters/5mY5sSUetVsDU3TVYIRcys/articles/3C3YTFL9Q1NYRL0lkmUBiA/) the LVH strategy with their color-changing seasonal drink monstrosities, while __[Crocs](https://robinhood.com/stocks/CROX)__ does it with J. Bieber clogs.

The secret behind Oreo’s limited-edition flavor strategy 

__*Darth Bezos strikes again*...__ Global domination has taken a very literal turn: maps. __[Amazon](https://robinhood.com/stocks/AMZN)__'s omnipresent cloud service, AWS, just [launched](https://techcrunch.com/2020/12/16/aws-launches-amazon-location-a-new-mapping-service-for-developers/) "Amazon Location" (unfortunately, not a real-time package tracker). This mapping service lets developers add location-based features to their apps. 

__From the North Pole to the South...__ The supreme ruler of mapping is... Google Maps. Maps has 1B+ users, and is also used by a ton of map-reliant apps like __[Uber](https://robinhood.com/stocks/UBER)__ and __[DoorDash](https://robinhood.com/stocks/DASH)__. Without __[Google](https://robinhood.com/stocks/GOOG)__, Uber can't direct drivers, and DoorDash can't stop you from asking "where is my ramen." From 2016 to 2018, Uber paid Google $58M to use its Maps service. And...

- __Uber [signed](https://snacks.robinhood.com/newsletters/2FFx07PkihITcdXy20oUUt/articles/1uzYy1VFte7XNHCCgRnTDD/) a 4-year renewal deal with Maps__ in July because it's the only mapping solution "that can provide the global functionality  we require."
- __Amazon Location is not as all-encompassing as Maps__, but the Zon is making up for it in the best way it knows how: lower prices. 

__AWS is Amazon's silent (but deadly) superpower...__ It's a "silent server" for a *huuuge* swath of the digital economy,  powering the operations of millions of companies from __[Netflix](https://robinhood.com/stocks/NFLX)__, to __[Slack](https://robinhood.com/stocks/WORK)__, and __[Shell](https://robinhood.com/stocks/RDS.A)__. Last quarter it made up 12% of Amazon’s sales, bringing in a gnarly $11.6B — *and* it made up over half of Amazon's total profit. Since millions of large and small businesses use AWS to power their operations, Amazon has a major leg up when launching new  (cheaper) services like Location.


Amazon's new "Amazon Location" could unravel the Google Maps monopoly

Dow Jones

S&P 500

Nasdaq

Bitcoin

🌶 Oreo's flavor secret 

__Can you do the Can Can?__ Canadian cannabis icons __[Tilray](https://robinhood.com/stocks/TLRY)__ and __[Aphria](https://robinhood.com/stocks/APHA)__ are [combining](https://www.bloomberg.com/news/articles/2020-12-16/aphria-tilray-announce-deal-to-create-biggest-cannabis-company?sref=q3KSFp38) to form Earth's largest pot company by sales. The new company will keep Tilray’s name (heated marriage decision) and will trade on the Nasdaq. Fun fact: it's basically impossible for *American* cannabis stocks to trade on US exchanges, since marijuana is illegal at the federal level.

- __Geographic FOMO:__ Canna companies don't know where legalization will strike next, so they're trying to plant their weeds wherever the green light seems likely.
- __Ameri-canna:__ Aphria needs to expand outside of Canada. Tilray's US biz gives it nice exposure to the American market as more states are [legalizing](https://snacks.robinhood.com/newsletters/2WSPzJTYnHk30wYwZxmDQO/articles/46Vmobj3VwyQorpkAl0ghs). 
- __Euro-canna:__ As more European countries legalize medical marijuana, Tilray and Aphria can combine their European production facilities to scale and distribute faster.

__THC sippin'...__  Tilray and Aphria are also combining their bev businesses. Aphria acquired SweetWater Brewing Company for cannabis-infused beers like "420 Strain IPA" — Tilray partnered with Bud-maker __[AB InBev](https://robinhood.com/stocks/BUD)__ for CBD *and* THC drinks. These "beyond the leaf" products could be gateway goodies for weed to go mainstream. 


_The engagement party_

Puff

__Cannabis is freshman year Harry Potter...__ Hasn't really done much, but gets all the attention. Even after their stocks jumped on the news, Tilray and Aphria's combined [market value](https://learn.robinhood.com/articles/GByCbiOluG2kcWs1AF6m5/what-is-market-capitalization/) is just ~$3.6B  — for reference: Sam Adams-maker __[Boston Beer](https://robinhood.com/stocks/SAM)__ is worth over 3X that. Combined, Aphria and Tilray make less than $700M in sales per year — that's less than __Juul__'s sales in 2018. So canna companies have to consolidate while they wait for more legalization.

Tilray and Aphria merge to create the world's biggest cannabis company

__So, *did you do it Carole*?...__ __Cameo__ is the startup that lets you request personalized videos from celebs. For $1.2K, you can get a happy birthday shoutout from Snoop Dogg — for $300, you can get Carole Baskin to [sing](https://www.youtube.com/watch?v=JzV5k3cJ-2g) "In Da Club" by 50 Cent (major cringe warning). For more context: Kevin from *The Office* is Cameo's [top ](https://www.bosshunting.com.au/hustle/the-office-kevin-malone-brian-baumgartner-cameo-top-earner-2020/) earner for 2020.  

- __Cameo might be getting Zucked:__ __[Facebook](https://robinhood.com/stocks/FB)__ is reportedly [building](https://www.bloomberg.com/news/articles/2020-12-15/facebook-building-tool-to-let-fans-pay-celebrities-for-face-time?sref=q3KSFp38) a new Cameo-inspired tool called "Super" to let fans pay celebs for live face time. Think: live streams and Q&As.

__Zuck Team 6...__ Super is being developed by Facebook’s "New Product Experimentation" team, which builds apps outside of FB. Their creations [include](https://npe.fb.com/page/2/): a couples app, a music collaboration app, and a meme app. None of these have broken out as a popular, standalone product. But Super could capitalize on the demand for digital celeb events.


Zuck

__NPE is like a mini-incubator....__ It's FB's version of startup accelerator Y Combinator. Facebook's [getting](https://snacks.robinhood.com/newsletters/3W2qDBQC1zd66GBLGKcPH5/articles/btPa9ZLG0TKdCGgtFoeSA/) major heat for its Instagram and WhatsApp acquisitions — creating new products internally might be a less risky route for growth than buying competitors. With this dedicated team, Facebook is basically throwing app spaghetti at the wall to see what sticks. If it lands, FB will probably integrate it into its main app.

Facebook's mini-incubator team is working on a Cameo-style app 

__Flexing the AF1 display on Zoom...__ Level 3 Flex. __StockX__ is an online marketplace for sneakerheads and fashion aficionados. The five-year-old Detroit-based startup launched with rare kicks, then expanded to streetwear, bags, and even collectible Pokemon cards ([this](https://stockx.com/ninetales-holo-1999-pokemon-base-set-1st-edition-12-102) one's a steal at $5.2K). Now it's almost a triple unicorn:

- __StockX just raised $275M at a $2.8B valuation__, more than [double](https://www.wsj.com/articles/stockx-snags-2-8-billion-valuation-in-latest-funding-round-11608123604) its 2019 valuation. Celeb investors include Steve Aoki and Eminem.
- __It was profitable for the first time__ last quarter, when sales soared 75% from a year earlier. Wild stat: [50%](https://techcrunch.com/2020/12/16/stockx-raises-275m-series-e-valuing-the-retailer-at-2-8b/) of its transactions since 2016 happened over the last 12 months.

__New York Sneaker Exchange...__ StockX calls itself "the world's first stock market for things." Makes sense, since its CEO is a former NYSE and eBay exec.  

- __On a stock market__ (like the NYSE and the Nasdaq), supply and demand  determines prices by matching buyers and sellers of a company's stock. 
- __StockX mimics the stock market__ by posting sellers' minimum asking prices and buyers' highest bidding prices. When a bid meets the ask, the sale automatically happens.


Sneak

__Trust is the most valuable commodity....__ and StockX gained it through verification and pricing transparency. You won't spend $700 on rare Yeezys if they could be knockoffs: StockX authenticates all products before shipping them, and only sells unworn items (except for watches). It also provides market data for listed products, including the 52-week high and low prices they sold at. That way, buyers and sellers can know if they're getting a relatively fair price, or if they should wait.

StockX, the stock market of sneakers, steps into a $2.8B valuation

💨 Earth's biggest pot company

__Do you even lift?...__ __[Planet Fitness](https://robinhood.com/stocks/PLNT)__ makes money from your ~$10/month gym membership, *and* from selling equipment to its franchisee-owned gyms — [same](https://snacks.robinhood.com/newsletters/3W2qDBQC1zd66GBLGKcPH5/articles/6HVDpykBMdbjucEqIYnyUg/) idea as McDonald's franchise model, except PF sells purple ellipticals instead of McFlurry machines. 

- __Flex #1:__ While competitors like __24 Hour Fitness__, __Gold’s Gym__, and __Town Sports__ have filed for bankruptcy during the pandemic, Planet Fitness is in its own (non-bankrupt) orbit.
- __Flex #2:__ PF stock is down less than 3% this year, despite the pandemic's crushing effect on all things public sweating-related. Town Sports plunged 93% before getting delisted.

__Shoo fly...__ PF's monthly fees are generally small enough to live with, even if you're not using the membership. Like a fruit fly, they're annoying... but bearable. The fruit fly membership strategy: keep it cheap, but make it hard to get rid of. Even when PF gyms were closed, cancellations had to be in person or by letter.

- __PF's best customers:__ Those who barely ever show up but keep paying.
- __PF's second best customers:__ Those who didn't bother trying to cancel during lockdowns.

_What it takes to cancel the Planet Fitness membership_

Lift

__The 10-Q doesn't lie...__ That's the quarterly financial report public companies have to file with the SEC. While the fruit fly strategy may have helped pad third-quarter results, PF's overall sales still fell 37% — and equipment sales alone plunged 71%. Membership dropped from 15.5M people in March to 14M at the end of October. Even as gyms reopened, people probably got fed up with the brutal cancellation policy (fly = swatted).


Planet Fitness is still running in the corona-conomy — behold, the fruit fly strategy

__It's a bird, it's a plane, it's a...__ SPAC? NY-based helicopter taxi service __Blade__ is going public by [merging](https://www.nytimes.com/2020/12/15/business/dealbook/blade-helicopter-spac.html) with a SPAC, aka: "blank-check company." A SPAC is a company without a company, that goes public for the sole purpose of one day buying a *real* company (in this case, Blade). The deal values the helitaxi company at $825M, up from its $140M 2018 valuation.

__Channeling Blair Waldorf...__ Blade is like an aerial __[Uber](https://robinhood.com/stocks/UBER)__ for Manhattan's Elite (XOXO, Gossip Blade). The seven-year-old startup caters to wealthy city dwellers looking for a faster escape to Nantucket and the Hamptons (40-minute flight to East Hampton = $795/seat). It also offers seaplanes and private jets.

- __The biz model:__ Like Uber, Blade doesn't actually own any of its choppers or planes — it connects passengers with charter operators. 
- __The app model:__ Also like Uber, Blade has an app that lets you book flights in seconds and receive live updates on your Aspen-bound jet.
- __The perk model:__ *Not* like Uber, Blade offers luxury lounges to chill in pre-flight (free appetizers always justify lofty prices).


SPACial

__Blade could fly downmarket...__ __[Tesla](https://robinhood.com/stocks/TSLA)__'s first strategy was entering at the high end of the market — offering a pricey premium product for wealthy consumers — and then moving down (see: Elon's [Master Plan](https://www.tesla.com/blog/secret-tesla-motors-master-plan-just-between-you-and-me)). Similarly, Uber originally only allowed customers to hail a black luxury car that cost *more* than a cab. While these products still aren't cheap, they've become much more accessible over time. Blade could also end up cutting its costs in exchange for volume and scale.


Blade, the Uber Black of helicopters, is going public at an $825M valuation

🏋️‍♀️ Planet Fitness' fruit fly strategy

__Hey Google, hit me with a Word Clue...__ __[Zynga](https://robinhood.com/stocks/ZNGA)__ is the social gaming legend behind mobile hits like FarmVille and Words With Friends. Now, instead of *seeing* Zynga's blindingly colorful games, you'll be able to play them with your ears: Zynga's [launching](https://www.bloomberg.com/news/articles/2020-12-14/zynga-to-put-words-with-friends-style-game-on-google-nest-devices-in-bid-to-lure-nongamers?srnd=premium&sref=q3KSFp38) audio gaming on Google Nest Hub and other Google Assistant  devices. It's starting with a free, voice-based puzzle game called Daily Word Wheel (Zynga's *obsessed* with words). 

__Audio's "Golden Ear-a"...__ Radio and phone calls might be semi-dead, but audio definitely isn’t. We spend so much time staring at screens (especially in the WFH era) that audio-based entertainment is experiencing a major renaissance.

- __[Spotify](https://robinhood.com/stocks/SPOT)__ has spent more than $800M over the past two years on podcast-related acquisitions, as pod-pularity continues to skyrocket.
- __[Apple](https://robinhood.com/stocks/AAPL)__ is projected to sell ~$15B worth of AirPods in 2020, more than 2X what it sold in 2019 — and almost 9X __[Snap](https://robinhood.com/stocks/SNAP)__'s *total* 2019 sales.
- __Clubhouse__, the controversial audio-based social app, notched a $100M valuation with just 1.5K users.
- __[Twitter](https://robinhood.com/stocks/TWTR)__ launched voice tweets and is testing "Audio Spaces." 


_Audio-only version of Guitar Hero_

Eary

__Meet your non-users where they are...__ Zynga's betting it can lure in *non*-gamers by creatively meeting them where they are (and where the competition *isn't*): smart speakers. Roughly one in four American adults [owns](https://gabygoldberg.medium.com/the-state-of-sound-audio-in-2020-and-beyond-e68e61337e52) a smart speaker, and 62% use a voice-operated assistant. Zynga's hoping to leverage Google's ~68M Nests and Nest Hubs to hook people with its games while they're doing the dishes and cooking. In time, these casual audio gamers could become mobile gamers, too.


Audio's Golden Ear-a: Zynga launches "games for your ears" on Google Nest

__Niet good at all...__ __[FireEye](https://robinhood.com/stocks/FEYE)__, the go-to cybersecurity firm for government agencies, has [suffered](https://www.nytimes.com/2020/12/08/technology/fireeye-hacked-russians.html) a major hack from “a nation with top-tier offensive capabilities.” We don't know for sure yet, but all signs point to Russia. The hack itself came in through software offered by network-monitoring company __[SolarWinds](https://robinhood.com/stocks/SWI)__. Let's Putin perspective:

- __Problem:__ SolarWinds' software is [used](https://apnews.com/article/us-agencies-hacked-global-cyberspying-328b4936f2535418b27cb90afa858489) by hundreds of thousands of orgs, including multiple US federal agencies and most Fortune 500 companies. 
- __Big problem:__ The Treasury and Commerce departments were definitely breached, and the Department of Homeland Security might've been.
- __Bigger problem:__ The hackers hacked FireEye's hacking capabilities (say it three times fast). They basically stole FireEye's secret hacking toolkit.

__Drop it like it's hacked...__  FireEye stock has dropped 12% since the news broke, while SolarWinds shares plunged 17%. We don't know much about what was breached — but it could include anything from info on top-secret government operations to data on American citizens. The FBI is investigating.


Hack

__Counterintuitively, this boosted cybersecurity stocks...__ While FireEye shares are down, major cybersecurity companies like __[Palo Alto Networks](https://robinhood.com/stocks/PANW)__, __[Zscaler](https://robinhood.com/stocks/ZS)__, and __[Fortinet](https://robinhood.com/stocks/FTNT)__ are up. That could be because their competitor just suffered a major reputation hit. But it could *also* be that this hack highlights the importance of cybersecurity, especially in a remote world. No company is 100% hack-proof, including hack-fighting FireEye — that could drive even more cybersecurity spend.

The government's go-to anti-hacking agency gets majorly hacked

🎮  Zynga's game for your ears

__*It's hereee*...__ On Friday evening, the FDA authorized __[Pfizer](https://robinhood.com/stocks/PFE)__ and __[BioNTech](https://robinhood.com/stocks/BNTX)__'s Covid-19 vaccine for emergency use in the US. First, let's take a second to appreciate how fast this materialized: Vaccines usually take around 10 years to develop — *this took less than a year* (record-shattering). Also...

- __It's the first mRNA vaccine__ ever approved for human use. Unlike OG vaccines (which use a weakened virus), mRNA ones teach cells to destroy the virus.
- __Next up for authorization:__ __[Moderna](https://robinhood.com/stocks/MRNA)__'s vax, which is also mRNA-based (hence: ModeRNA). Both Moderna's and Pfizer's vaccines were 95% effective in trials (impressive).

__In motion...__ Trucks carrying vaccine doses at subzero temperatures started [rolling](https://www.wsj.com/articles/pfizer-biontech-covid-19-vaccines-are-prepped-for-shipment-11607792605) out of Pfizer's Michigan plant on Sunday. The CDC director also signed off on the vax, allowing shots to begin today.

- __Who:__ People 16 and older can get the vax. America's 21M health-care workers and 3M nursing-home residents will likely be the first to receive it.
- __How:__ Two shots taken three weeks apart. Pfizer plans to distribute ~25M doses in the US by the end of 2020, enough for 12.5M people.
- __When:__ Authorities don’t expect there'll be enough supply to vaccinate the broader population until spring or summer 2021. 

_9 months later..._

Arrived

__The profits are coming...__ Pfizer's vaccine will be free for Americans, but that doesn't mean Pfizer's not making $$$ from Uncle Sam — it's [projected](https://www.cnn.com/2020/12/11/business/pfizer-vaccine-covid-moderna-revenue/index.html) to haul in $19B in Covid-19 vaccine sales in 2021. But Pfizer's a huge company, which is perhaps partly  why its stock is up only 11% this year. Meanwhile, Moderna is a young biotech with 0 products on the market. It generated just $60M in sales last year, but is expected to make *$13.2B* in Covid vaccine sales next year. Its stock is up 716% this year. 

Pfizer's vaccine gets FDA-authorized: we're talking timing, logistics, and $$$

__IPO or Hype-PO?....__  __[DoorDash](https://robinhood.com/stocks/DASH)__ and __[Airbnb](https://robinhood.com/stocks/ABNB)__ shares came in [hotter](https://snacks.robinhood.com/newsletters/3dRtKJ3pIUtnX1yDSLVTJY/articles/47zqImTPv4BiAjpmDbiqv4) than spicy pad thai in a Miami beach condo. By the time DoorDash stock hit the market, it had already soared 78% from its $102/share IPO price. It closed the week at $175, notching a $55B+ market value — more than 3X its June valuation. Airbnb IPO'd at $68, but opened for trading at more than double that. It closed on Friday with an $83B market value, more than __[Marriott](https://robinhood.com/stocks/MAR)__ and __[Hilton](https://robinhood.com/stocks/HLT)__ *combined* — and more than 4X its April valuation.

__Young Simba energy...__ __[Disney](https://robinhood.com/stocks/DIS)__ shares [soared](https://www.cnbc.com/2020/12/10/disney-investor-day-2020-announcements.html) 14% to an all-time high last week because intellectual property is king. Disney+ now has ~87M subscribers and expects 230M to 260M by 2024. If you include Hulu and ESPN+, Disney has 137M streaming subscribers (quickly catching up with Netflix's 195M). Disney unveiled an avalanche of upcoming content, from Marvel movies to a dozen Star Wars spinoffs. Aaaaand: Disney+ is getting $1 more expensive.


Highs

Who's up...

__Behold, "The UnZuckening"...__ __[Facebook](https://robinhood.com/stocks/FB)__'s "family of apps" is in trouble.  Last week, the FTC and 46 states [served](https://snacks.robinhood.com/newsletters/3W2qDBQC1zd66GBLGKcPH5/articles/btPa9ZLG0TKdCGgtFoeSA) up major lawsuits, accusing FB of illegally crushing competition by buying rising rivals. Refresher: FB bought Insta in 2012 for $1B, and WhatsApp in 2014 for $19B. Now the FTC wants FB to split from them (semi-awk, since the FTC greenlit the acquisitions). The lawsuits could take years to resolve, but losing WhatsApp and Insta would be brutal for FB.

__What would Elon do?...__  Luxury EV-maker __[Nio](https://robinhood.com/stocks/NIO)__ is sometimes called "the Tesla of China" (but it's way smaller): in 2019, it delivered ~20K cars compared to Tesla's ~367K. Last week, Nio announced it's issuing at least 60M fresh shares of its stock. New shares dilute the value of *existing* stock, so investors own less of the overall company — Nio stock dropped on the news.  Two days before that, __[Tesla](https://robinhood.com/stocks/TSLA)__ said it's issuing up to $5B in new shares (coincidence?). 


Lows

...who's down

💉 Pfizer's big vaccine rollout

__That escalated quickly...__ If the stock market was Hollywood, this week would've been its Sundance Film Festival. Two famous tech platforms delivered back-to-back blockbuster IPOs in their debuts on the public market. BTW: the IPO price is what institutional investors (like mutual funds) — not regular investors like us — get to pay per share.

- __[DoorDash](https://robinhood.com/stocks/DASH):__ The IPO was priced at $102 a share. By the time shares hit the NYSE, they were already trading at $182. Now Dash has a $59B market value, more than 3X its June valuation.
- __[Airbnb](https://robinhood.com/stocks/ABNB):__ It IPO'd at $68, but opened on the Nasdaq at $146. Its market value soared to over $100B, more than __Marriott__, __Hilton__, and __Hyatt__ *combined* — and more than 5X its valuation in April.

__Hungry for PDA ...__ Despite a  pandemic and an economic crisis, 2020 has been a blockbuster year for IPOs overall. We whipped up two explanations for the IPO-palooza:

- __Stock-timism:__ The stock market is at record highs, with tech stocks leading the charge. The Nasdaq Index is up 36% this year — tech companies want to strike while the market is hot.
- __Zoom life:__  Banks are able to execute IPOs faster — Zoom pitches have replaced physical roadshows.


_When the DoorDash arrives at the Airbnb_

IPOs

__Don't forget interest rates...__ Stocks have rallied to record highs partly because interest rates are at record *lows* (shout-out: the Fed). Super low interest rates can inflate the value of assets like stocks, because they make things like savings accounts seem less attractive. If the APY on your savings account is higher, you're less likely to invest in stocks, which carry risk. If the interest rate is nearly nothing, you're probably more likely to invest, driving up stock prices.  


IPO-Palooza: Airbnb and DoorDash soar on their first days as public stocks 

__Cold brew coming in hot...__ Most important update from __[Starbucks](https://robinhood.com/stocks/SBUX)__' investor day: Pumpkin Cream Cold Brew outsold the infamous Pumpkin Spice Latte. Second most important update: oat milk is going nationwide (expect a brown sugar + iced espress-oat concoction). The non-drinkable update: Starbs is planning to open 22K+ new stores in the next ten years, to hit 55K total by 2030. 

__Not all Starbs are created equal...__ For Starbucks, there's no such thing as a one-size-fits-all store approach. For an urban hotspot, your typical ~1K ft cafe might be too small. For other neighborhoods, a ballroom-sized Starbucks Reserve might be too big (only for Java snobs). So Starbucks is "canvassing," whipping up different cafes for different needs:

- __Drive-thrus:__ Expect more of these, especially in the burbs. Starbs sales have migrated outside of the city as people move home. 
- __"Walk-thrus":__ Order in-app, pay in advance, walk in, and grab. Expect these to pop up in dense city centers.


Iced

__Our 1st glimpse at "The Return of the Routine"...__ Starbucks' investor day was majorly focused on looking *beyond* the corona-conomy. The CEO believes caffeine lovers will flock back to cafes once the pandemic is over, and Starbs' investment in thousands of new stores shows he means it. Starbucks is banking on a return to routine.

Starbucks stock soars to an all-time high on the Return of the Routine

🍿 Airbnb & DoorDash's blockbuster IPOs  

__Blowing up the fambam chat...__ __[Facebook](https://robinhood.com/stocks/FB)__'s precious "family of apps" might have to split up. The FTC and 46 states just served up some major lawsuits, accusing FB of illegally crushing competition by buying rising rivals. It's one of the biggest tech antitrust cases in decades. 

- __2012:__ The term #influencer was barely a thing when the FTC approved Facebook's purchase of Instagram for $1B. 
- __2014:__ The FTC greenlit Facebook's $19B splurge on WhatsApp, your go-to for sending memes to your foreign cousin.
- __2020:__ The FTC, whose life goal is to target and destroy unfair business practices, wants FB to separate from Insta and WhatsApp.

__Losing the plug...__ While these lawsuits could take years to resolve, losing precious Instagram and WhatsApp could be an existential crisis for Facebook (Zuck's words). Partly, that's because WhatsApp and Insta users are growing [faster](https://investor.fb.com/investor-news/press-release-details/2020/Facebook-Reports-Third-Quarter-2020-Results/default.aspx) than Facebook and Messenger users. Here's what we dug up from FB's September earnings report:

- __Finding:__ Daily users on FB and Messenger grew 12% to 1.8B people. But the "Family" of apps' *total* daily users, including Insta and WhatsApp, grew *15%* to 2.5B. 
- __Conclusion:__ WhatsApp and Instagram clearly boosted overall user growth. Also: around 700M people use WhatsApp and/or Insta daily without touching Facebook.


Family

__This is partly why FB wants a mega app...__ Facebook has been [pushing](https://snacks.robinhood.com/newsletters/1kYmxcOR7aF1J3uKX3DUot/articles/1w4tRYiuvv24F8QXsGlwIg/) hard to integrate messaging and payments across its apps. The goal: create a connected WhatsInstaBook experience. The side-goal: make it way harder for regulators to break it up. Now those plans could be stalled — or aggressively fast-tracked.

Facebook might have to break up with Insta and WhatsApp— we break down the numbers

__"We got the Big Mick"...__ As Eddie Murphy learned in *Coming to America*: __[McDonald's](https://robinhood.com/stocks/MCD)__ may look corporate on the outside, but it's family on the inside. 93% of its 39K locations are franchised, aka: owned by independent people. Mickey D's sells the rights to use its brand and open shop — as long as  the McFlurrys are frosty, no one knows who owns it.

- __Franchisees are UnHappy__, after McDonald's [said](https://www.wsj.com/articles/some-mcdonalds-franchisees-plan-higher-happy-meal-prices-11607456510) it's ending the $300/month Happy Meal toy rebate it pays to its 14K US restaurants.
-  __Expect pricier Happy Meals.__ Some franchisees said they'd raise prices because they'll have to cover toy costs themselves. 

__When you get the Minion...__ but you wanted the mini Hot Wheels. Franchise owners have to pay McDonald's a percentage of their sales *and* buy ingredients and merch straight from corporate. But McDonald's wants to spend that toy money on tech, instead. And it wants franchisees to do the same.

Mick

__Aggressive tech prioritization = pandemic pattern...__ Food chains have been ruthlessly prioritizing tech investments. McDonald's says its new "smart" drive-throughs are boosting sales, so it's charging franchisees higher tech fees. __[Chipotle](https://robinhood.com/stocks/CMG)__ doubled down on its digital-order Chipotlanes. And __[Starbucks](https://robinhood.com/stocks/SBUX)__ just announced it's investing in digital order "walk-through" stores.


McDonald's starts a turf war with franchisees over Happy Meals

"_From now on, we're McDowell's_"

👥 Facebook's family breakup 

__*Boho chic or athleisure grunge?*...__ We're not so sure about the last one. __[Stitch Fix](https://robinhood.com/stocks/SFIX)__ uses human stylists and algorithms to send you curated boxes of outfits each month. It had a major glow-up last quarter, after posting a $45M loss in the *previous* quarter. The stock shot up 40% on these stats:

- __Sales jumped 10%__ from last year, and Stitch expects 20% to 25% growth for its full financial year (investors love to hear it).
- __"Active clients" grew 10%__ to nearly 3.8M, and it notched a surprise profit. 

__"The Fix" is back...__ When we last checked in on Stitch Fix in September, customers were increasingly dropping "the Fix" box and ordering single items à la carte (like getting one spicy tuna roll vs. omakase). Not a great sitch for Stitch, since the subscription box is its real profit puppy and main value prop. Last quarter...

- __The Fix made a comeback:__ First-time Fixes jumped 25%, while traditional retailers like Lord & Taylor and Francesca's filed for bankruptcy.
- __The Fix got smarter:__ The recommendatiom algorithm that picks your outfits improved, leading to higher satisfaction and fewer returns (#datascience). 


_The Devil Wears Stitch Fix_

Algo

__Content is king, but personal curation is queen...__  From __[Netflix](https://robinhood.com/stocks/NFLX)__ with its show-surfacing algorithms to __[Facebook](https://robinhood.com/stocks/FB)__ with its freakishly well-targeted ads, personalization is key to driving sales and engagement (shoutout __TikTok__). This extends to physical products like Stitch's Fixes, too. More personalization = more engagement = less wasted resources = more $$$$.


Stitch Fix stock soars as "the Fix" makes a surprise comeback

__Self-driving yourself to the fridge...__ Or better yet: self-driving the fridge to *yourself*. __[Uber](https://robinhood.com/stocks/UBER)__ just [sold](https://techcrunch.com/2020/12/07/uber-sells-self-driving-unit-uber-atg-in-deal-that-will-push-auroras-valuation-to-10b/) off its self-driving car unit __ATG__ to autonomous vehicle competitor __Aurora Innovation__ (Aurora Carrabis?). But instead of receiving cash in exchange, Uber gets to invest $400M into the combined company. Let's reverse... 

- __ATG was Uber's precious big bet.__ Uber's *still* unprofitable because it pays out most of its bookings to drivers. Self-driving = basically $0 driver costs.
- __But it was losing money...__ Uber says ATG and “other technologies” (like air taxis) have burned through more than $300M this year.
- __....and it was a mess:__ That included a lawsuit for trade secret theft and a tragic autonomous vehicle test that killed a pedestrian. 

__Ride what you know...__ Uber has been doubling down on its core rides and delivery platform, while stepping away from risky moonshots. It just [ditched](https://techcrunch.com/2020/12/08/uber-sells-air-taxi-business-elevate-to-joby-aviation-shedding-its-last-moonshot/) Elevate, its air taxi division. Earlier this year, it offloaded its Jump e-scooters/bikes biz to __Lime__. Instead: it bought Postmates and launched Uber Reserve for rides. 


Auto

__We have to reset our self-driving expectations...__ Every year it seems we're just months away from a breakthrough. Last year, Elon Musk told the world that __[Tesla](https://robinhood.com/stocks/TSLA)__ planned to have 1M autonomous robotaxis on the road in 2020 — spoiler: didn't happen (still 22 days left though!). This week, __[Volkswagen](https://robinhood.com/stocks/VWAGY)__'s CEO said he expects autonomous vehicles to hit the market by 2025 to 2030. Either way, it'll be years before they're ready for primetime. 

Uber sells its self-driving car division because the hype was premature

🚗  Uber's self-driving "sale" 

__Remember the jingle?...__ *You'll love David's Bridaaaal*. The dress was picked, the ballroom was booked, and the overpriced peonies were arranged — and then the pandemic happened. That spelled doom for __David's Bridal__, America's largest wedding gown retailer (#flex). Surprisingly, DB's CEO says demand for wedding dresses has proven resilient. 

- __Yes to the Dress:__ While sales of prom dresses have fallen, DB's brides still spend an average of $600 on their gowns (same as pre-pandemic).  
- __"The Minimony":__ Instead of totally scrapping celebrations, many couples minimized. DB's semi-casual jumpsuits have been in high demand for backyard Zoom weddings. 

__You can't hurry love...__ No, you just have to wait (until you emerge from bankruptcy). DB exited bankruptcy in 2019 after  reducing its debt. But its struggles forced it to focus on building its digital presence, which has been key during the pandemic. Think: virtual stylist consultations, augmented-reality dresses, and an Instagram account that looks like a Pinterest inspo board.

Peony

__The Sequel Wedding is coming...__  More than 60% of American couples had to postpone their weddings, and the 36% that chose to have a minimony plan to have another reception. "Minimony" couples are already planning bigger, flashier round #2 celebrations. DB's also expecting pent-up demand next year as postponed weddings happen. That's why DB thinks it's a perfect time to launch its loyalty rewards program (not as divorce-related as it sounds).

David's Bridal cruises on "Minimonies" and grooms itself for Sequel Weddings

__Save it for the doggy bag...__  __[Cheesecake Factory](https://robinhood.com/stocks/CAKE)__ is the first company to serve plates as large as Manhattan studio apartments. It's *also* the first company to be [charged](https://www.cnbc.com/2020/12/04/cheesecake-factory-settles-with-sec-over-misleading-covid-risk-disclosures.html) by the SEC for misleading investors about the pandemic’s financial impact. Regulators think Cheesecake failed to bake some key info into its March and April financial filings. 

- __Cheesecake said it was "operating sustainably"__ during lockdowns, while internal docs showed it was burning through $6M per week (with just four months of cash left).
- __It also failed to mention__ that it had told landlords it would be skipping on April rent — for once, it left something off the plate.

__Could surf on that chicken parm...__ Cheesecake ended up getting financially saved by a $200M investment later in April, but it *wasn't* spared from regulatory consequences: it settled with the SEC for $125K and agreed to stop leaving things out. 


Cheese

__The SEC makes the stock market possible...__ It holds public companies  accountable for misleading investors — or even straight up lying (cough, __Luckin Coffee__). It was created to prevent everything from insider trading and accounting fraud, to this Cheesecake situation. If we didn't feel confident that financial reports were true, we probably wouldn't invest at all. And if we didn't invest, trillions of idle dollars would be laying around collecting dust – instead of fueling the economy.

Cheesecake Factory is the first casualty of misleading Covid risk disclosures

_Here comes the bride (again)_

👰 Sequel Wedding Season

__If only BLS did a "Wrapped"...__ Instead, the Bureau of Labor Statistics just dropped "The Employment Situation" for November — aka: the final jobs report we'll see this year. We're wrapping up 2020 so far:

- __February:__ The unemployment rate was 3.5%, and social distancing meant flaking on plans to (voluntarily) watch Netflix all day.
- __March to April:__ Lockdowns hit, unemployment spiked to 14.7%, and the US economy lost a staggering ~22M jobs. 
- __May to October:__ Unemployment consecutively fell each month as businesses reopened, from 13.3% in May to 6.9% in October.

__*Drum roll for November*...__ The US [added](https://www.wsj.com/articles/november-jobs-report-unemployment-rate-2020-11607028480) just 245K new jobs, down from 638K in October. Unemployment fell slightly to 6.7%, but that's partly thanks to people dropping out of the labor force (not searching for work = not  unemployed).

- __The good:__ The US has added back more than 12M jobs since March, a promising vaccine is on its way, and stocks are at record highs. 
-  __The bad:__ The labor force is 2.2% smaller than pre-pandemic. That's [largely](https://www.wsj.com/articles/covid-shrinks-the-labor-market-pushing-out-women-and-baby-boomers-11607022074) due to women dropping out to cover childcare.
-  __The ugly:__ 10.7M Americans are still unemployed, the pace of recovery is significantly slowing, and Covid is surging. 


_When Santa arrives earlier than the second stimulus_

Recap

__This could be the tipping point...__ The $2.2T stimulus in March, coupled with reopenings, drove a swift recovery. But now the *rest* of jobs will be harder to bring back, especially with new business restrictions: California [imposed](https://www.cnbc.com/2020/12/03/california-to-impose-regional-stay-at-home-order-to-ease-covid-hospitalizations-governor-says.html) a regional stay-at-home order that closes bars, salons, and forbids outdoor restaurant dining. Centrists in Congress have [unveiled](https://www.washingtonpost.com/us-policy/2020/12/03/what-is-in-congressional-bailout-deal-stimulus-checks/) a $908B economic aid proposal — November's jobs report could be a wake-up call to pass something ASAP. 


The final jobs report of 2020: we're rounding up the good, the bad, and the ugly

__If you didn't post a "Wrapped" Insta story...__ *did you even listen to music this year?* __[Spotify](https://robinhood.com/stocks/SPOT)__ stock soared 15% last week, hitting a record high on "Wrapped" hype. Bad Bunny hopped to #1 for most streams, while Spotify [jumped](https://www.bloomberg.com/news/articles/2020-12-02/spotify-technology-soars-to-record-amid-2020wrapped-buzz) to #9 on the US app store on Wednesday. The Swedish streamer also got boosted by Joe Rogan's podcast, which became Spotify exclusive (ICYMI: Spotify is [obsessed](https://snacks.robinhood.com/newsletters/4lL77HNnzznybDiiMLIPMs/articles/6QKYpKI1836pYyUeFtTynA/) with pods).

__Freeing up parking space...__ __[Boeing](https://robinhood.com/stocks/BA)__'s 737 MAX jets are back in the air after nearly two years of sitting in lots. Last week, __[American Airlines](https://robinhood.com/stocks/AAL)__ flew the 1st public 737 MAX flight since March 2019, when the FAA grounded the troubled airliner after two fatal crashes. American filled the plane with journalists to [convince](https://snacks.robinhood.com/newsletters/5mY5sSUetVsDU3TVYIRcys/articles/7j5HzMMfRgxpGVto8ABkFg) the public that it's safe ahead of its commercial flight on December 29th. Another show of support: __[Ryanair](https://robinhood.com/stocks/RYAAY)__ ordered 75 more MAX jets. Boeing stock jumped 7% for the week.


__No-K, Zoomer...__  __[Zoom](https://robinhood.com/stocks/ZM)__'s sales soared 367% last quarter, nearly *quintupling* from the same quarter last year and [accelerating](https://snacks.robinhood.com/newsletters/2DV0K2wVHBmteYtKWPLFxf/articles/5skmEynReCRx5kvYHYay2X) for three straight quarters. Despite the insane momentum, investors weren't impressed because Zoom's expecting just 329% sales growth this quarter (yawn). Investors were also bummed about its shrinking profit margin, so the stock fell 13% for the week. Despite the tough crowd, Zoom shares have ~6X'd in value this year.

__*The Undoing*...__ of movie theaters, courtesy of HBO. Brad Pitt hit the fan on destructive [news](https://www.cnbc.com/2020/12/03/warnermedia-ceo-jason-kilar-doesnt-think-he-destroyed-movie-theaters.html) from __[AT&T](https://robinhood.com/stocks/T)__'s WarnerMedia last week: Warner Bros. will release all 17 of its 2021 movies on HBO Max *at the same time they hit theaters*. Dropping the entire slate of films directly to streaming = no exclusive theatrical window. __[AMC](https://robinhood.com/stocks/AMC)__, the world's largest theater chain, watched its stock plunge 21% for the week.
