__Who didn't get corona-ghosted last quarter...__ __[Snap](https://robinhood.com/stocks/SNAP)__ stock soared ~30% to an all-time high after the little ghost [reported](https://www.cnbc.com/2020/10/20/snap-earnings-q3-2020.html) expectation-smashing earnings. You probably noticed more ads appearing every 5 seconds as you tried to watch “Kylie sizzles on Capri beach” and "Oddly Satisfying."

- __Sales shot up 52%__ as advertisers started spending again, compared to growth of 17% in the previous quarter. 
- __Daily users grew 18% to 249M__ — that's equivalent to 75% of the US population.
- __Snap's loss shrank 12%__, but the 9-year-old company still isn't profitable. 

__Zucking revenge...__ Snap's growth slowed big time after Facebook's Instagram copied its game-changing Stories back in 2016. But last quarter, Snap profited off FB's misfortune: earnings were boosted by the FB ad boycott, as marketers shifted spend to Snap. Also: since TikTok was banned in India, Snap more than [*doubled*](https://www.theinformation.com/articles/snapchats-indian-users-rise-150-as-growth-stalls-in-home-market?utm_campaign=%5Brtsu%5D+Automated+RTS&utm_content=1002702&utm_medium=email&utm_source=cio&utm_term=1000266) its users in the world's 2nd most populous country.

- __Snap has done a lot this year,__ [launching](https://snacks.robinhood.com/newsletters/2FFx07PkihITcdXy20oUUt/articles/f5oNMz0Gj22IuOs59hqQ3) new features from Mini apps to TikTok rivaling Sounds to the (in)famous anime filter.
- __There’s a lot you can do on Snap__ now besides sending double chin pics, from meditating with Headspace to Shazaming songs to identifying plant species.

_Snap getting freaky with the filters_

NSFW

__Snap got lucky...__ with the FB boycott and the TikTok ban saga. Now the question is: can it keep up the growth and users it gained last quarter? Snap's CFO said that it's not clear whether pumped-up ad demand will stick. But investors ignored that, boosting the stock on the surprising growth.


Snap hits a record on a wow-worthy quarter (it got its Facebook revenge)

__Just like *Emily in Paris*...__ __[Netflix](https://robinhood.com/stocks/NFLX)__'s quarter didn't go as planned. Netflix [added](https://variety.com/2020/digital/news/netflix-q3-2020-earnings-subscriber-miss-1234811242/) just 2.2M subscribers in its third quarter, less than the 2.5M it forecast and waaay less than the 3.6M analysts expected. Netflix stock dropped 7% because in the markets, everything is relative: 

- __Netflix added nearly 16M subscribers__ in the 1st quarter of this year, and over 10M in Q2, making its latest quarter look even worse.
- __It's forecasting just 6M new subs this quarter__, and expects paid subscriber additions to be *down* for the first half of 2021.

__The boom is over...__ Netflix saw explosive growth during the first half of the year, as we hibernated with our laptops and instant ramen. It became a utility (gas, electric, and Flix) — but that also led to more *subscripturation* (aka: subscription saturation). 

- __Netflix already takes up [72%](https://www.theverge.com/2020/4/21/21229587/netflix-earnings-coronavirus-pandemic-streaming-entertainment) of US home streaming time__. Plus, consumers are now spoilt for choice with newbie streamers like Disney+ (RIP Quibi). That's why...
- __Netflix added only 180K subscribers in the US and Canada__. Subscribers in the Asia-Pacific region were the largest growth contributors, making up [46%](https://www.cnbc.com/2020/10/20/netflix-nflx-earnings-q3-2020.html) of all newbie additions.

Flix

__Netflix needs to get creative to reach non-streamers...__ It has 200M paying subscribers, but its *next 100M* will probably be streaming virgins — everyone else is over-subscribed. That's why Netflix is looking to emerging markets like India and Brazil for future growth. It's even [offering ](https://www.protocol.com/after-discontinuing-free-trials-netflix-plans-streamfest-promotion) a free, 48-hour streaming event in India — and it probably won’t even ask for payment info.

Netflix stock slumps on slowing subscriber growth and subscripturation

__Are We There Yet?...__ Like the 2005 Ice Cube family classic, the mid-2000s were filled with gas-guzzling cars that could fit entire football teams (RIP Lincoln Navigator). Now __[GM](https://robinhood.com/stocks/GM)__ is bringing bulky back by reviving the Hummer, which it discontinued in 2009 when it went bankrupt. But now it's the opposite of a gas-guzzler:

- __The world's first all-electric supertruck:__ What GM unveiled in a (mildly terrifying) [commercial](https://twitter.com/KingJames/status/1317168024709853185) during the World Series on Tuesday.
- __GM's Hummer EV__ will be an electric pickup beast with 1K horsepower that goes zero to 60 in three seconds. BTW: LeBron is repping.

__Smells Musky...__ GM has made big moves in the EV world, and is now competing against __[Tesla](https://robinhood.com/stocks/TSLA)__ with the Hummer.  It's set to go on sale in a year – likely ahead of Elon’s Cybertruck.

- __$20B:__ How much GM plans to invest in autonomous and all-electric vehicles through 2025, led by the Hummer pickup.
- __$2B:__ How much GM just [said](https://www.businessinsider.com/general-motors-2-billion-build-cadillac-lyriq-spring-hill-tennessee-2020-10) it's pouring into factories to build its Cadillac EV. It plans to launch 22 new electrified vehicles by 2023.
- __$2B:__ How much GM was going to [hand over](https://snacks.robinhood.com/newsletters/7FZzguUiD8aLKkREx4vy4F/articles/7CfZXV2CbwDk29abnMj5hQ/) to produce cars for e-truck startup Nikola. That's on ice after fraud allegations against the startup.

Electrify

__This is a mainstream milestone for EVs...__ Everyone's talking about Tesla, but EVs [were](https://www.iea.org/reports/global-ev-outlook-2020) just 2.6% of global car sales in 2019. GM's sustainable version of its nostalgic, ultra-*un*sustainable car could lure more non-EV people to the electric side.

After 10 years, GM resurrects the gas-guzzling Hummer as an EV monster

Dow Jones

S&P 500

Nasdaq

Bitcoin

👻 Snap's storied revenge

__Googling Google...__ That's concerning. The Justice Department [filed](https://www.wsj.com/articles/justice-department-to-file-long-awaited-antitrust-suit-against-google-11603195203) an antitrust lawsuit against __[Google](https://robinhood.com/stocks/GOOG)__ yesterday, more than a year after its investigation started. The DoJ claims Google uses anti-competitive tactics to keep its search biz monopoly. It's the biggest US legal challenge to a tech company's reign since __[Microsoft](https://robinhood.com/stocks/MSFT)__ got served in 1998.

- __Google controls 90% of global search__ and 92% of smartphone search in the US, research finds. That's partly thanks to key deals with phone-makers.
- __Android:__ Google has agreements to make sure its preloaded search app can’t be deleted from phones running its Android OS.
- __Apple:__ Google pays Apple ~$10B a year to feed it search traffic and make itself the default on Safari.

__Anything but Bing...__ Dominating market share isn't illegal — Google can't be punished for its success. Buuut: exclusionary moves that shut out competitors *are* illegal. That's why the lawsuit [focuses](https://www.wsj.com/articles/googles-exclusive-search-deals-with-apple-at-heart-of-u-s-lawsuit-11603221146?mod=hp_lead_pos1) on Google's exclusive deals with Apple. Losing that search pipeline would be so crushing that Googlers referred to it as "Code Red." If Google loses the suit, it could be forced to end deals or break up parts of its biz.

_When you accidentally set off the Code Red_

Search

__Google's monopoly doesn't hurt us...__ At least, not as clearly as  traditional monopolies. The DoJ says Google's anticompetitiveness means less choice/innovation for consumers, and pricier ads for companies. Google's case: people *choose* to use its tools, from Search to YouTube to Gmail, for the value they provide — plus, Google's services are mostly free. That undercuts typical antitrust arguments anchored on price. The harm to consumers isn't as obvious.


Google gets hit with the biggest tech anti-monopoly lawsuit since the '90s

__*Charmin, Crest, Vicks, and Tide*...__ Your pandemic grocery list is also __[Procter & Gamble](https://robinhood.com/stocks/PG)__'s pandemic *winners* list. The consumer goods giant had its [biggest](https://www.wsj.com/articles/p-g-cleans-up-on-pandemic-driven-hygiene-11603191600?mod=hp_lista_pos1) quarterly global sales increase in *15 years* as we compulsively cleaned our homes (and ourselves). 

- __Sales jumped 9%__, and profit soared 20% compared to last year. 
- __That's impressive growth__ for a 182-year-old company whose most exciting product is scented laundry beads.

__It's the Hygiene Revolution...__ The pandemic has caused us to splurge on brand-name hygiene products instead of $15 craft cocktails and 2 a.m. Uber rides. People are spending more time at home, and they also have more money to spend *on* their home.

- __P&G's home-care sales jumped 30%__, outsparkling every other unit.  Swiffer, Febreze, and Mr. Clean were the sanitized stars of the earnings.
- __Lysol-maker [Reckitt Benckiser](https://robinhood.com/stocks/RBGLY)__ just had its biggest quarterly sales growth *ever* thanks to its hygiene unit. It's also doing "[hygiene consulting](https://snacks.robinhood.com/newsletters/4yRCnrt1kOAxQVj9ebbA6A/articles/17bESValg79x7WOrMhvHQq)" for companies like __[Delta](https://robinhood.com/stocks/DAL)__ and __Airbnb__.


Scrub

__The hygiene bar has been (permanently) raised...__ Hygiene isn’t just a corona-trend like sourdough starters and tie dye. Early in the pandemic, cleaning sales gains were driven by hoarding and shortages. But recent demand appears to be fueled by our sustained obsession with sanitizing — and big-brand names are benefiting over generics. P&G raised its financial forecast for the quarter since it's expecting growth to get shinier.

P&G sees its shiniest growth in 15 years thanks to the "Hygiene Revolution"

🌎  Google's big monopoly lawsuit 

__The app-iest place on Earth...__ could be your local __[Walmart](https://robinhood.com/stocks/WMT)__. Walmart is [redesigning](https://www.cnn.com/2020/09/30/business/walmart-store-redesign/index.html) its stores to look like *its app*, so that shoppers can easily navigate aisles. The redesign will roll out to 200 US stores this year and 1K more by the end of 2021. Walmart's seriously pushing to make its app the main attraction (the store is just there to complement your tappy-taps). It wants you to:

- __Download__ the app before entering (and ideally, delete __[Amazon](https://robinhood.com/stocks/AMZN)__'s).
- __Use__ it to navigate the store (don't even *think* about asking Sheryl where the toilet seats are). 
- __Pay__ in-app with "Scan & Go" (and/or search for more options).

__Having Duty Free flashbacks...__ Walmart's makeover was inspired by airports since they're "best-in-class" at shepherding large groups of overwhelmed people. Except instead of flying from Paris to Bangkok, you're walking from pears to Instant Pot (Aisle 12). But this is really about Amazon (aka: Walmart's #1 nemesis)...

-  __More than half of Walmart’s top-spending families__ [are](https://snacks.robinhood.com/newsletters/7npBg6WCh7X1ssgq9cuRtt/articles/5KSLxwetQ3mOFHvXF6Jnl9/) Prime members. That's why the Mart started a $98/year subscription rival (Walmart+) in July.
- __Amazon is winning the corona-conomy__ thanks to its contactless service. Walmart's redesign is meant to get you in and out of stores quickly with minimal contact.


Tappy

__Walmart wants to go everywhere with you...__ The "app store" concept might help it do that. We rarely see Amazon stores, but we use Amazon to shop 24/7. Walmart wants you to associate it with 24/7 shopping, too. By incentivizing you to get its app for store browsing, Walmart is boosting  chances that you'll use it at home, too.

Walmart revamps stores to look like its app (of course, this is about Amazon)

__When you need that quick serotonin hit...__ and then find yourself three hours deep into baby penguin compilations. The Dodo cranks out feel-good videos like “Tiny Piglet Meets Baby Cow” (6M views) and "Big Dog Loves Baby" (14M views). It has [90M](https://www.wsj.com/articles/the-dodo-group-nines-animal-brand-is-getting-into-pet-insurance-11603101600?mod=markets_featst_pos2) followers across social sites and is owned by __Group Nine Media__, which also owns PopSugar and Thrillist. Now:

- __The Dodo is getting into pet insurance__. Group Nine, which is  backed by __[Discovery](https://robinhood.com/stocks/DISCA)__, has taken a minority stake in pet insurer __Petplan__.  
- __“Fetch by the Dodo”__: Petplan's new name (sounds like a subtle Means Girls reference). The Dodo will be paid to promote Petplan’s offerings on its channels.

__"Profit puppy" takes a literal turn...__ The Dodo has been getting creative with ways to monetize its massive audience. It  launched a Netflix Kids series and [partnered](https://www.thedodo.com/destination-animals) with Airbnb Experiences (no BLTs at the Piggie Picnic). Now it's capitalizing on the corona pet-palooza:

- __Pet adoption soared 60% in March and April__ as housebound Americans took in furry friends. Pet goodies company __[Chewy](https://robinhood.com/stocks/CHWY)__ saw sales surge [47%](https://investor.chewy.com/financials/quarterly-results/default.aspx) last quarter. 
- __Insurance startup [Lemonade](https://robinhood.com/stocks/LMND)__ added pet coverage after [realizing](https://snacks.robinhood.com/newsletters/1YSfPrq3GpLOGVYKoLdjDA/articles/6m4AJWOiYEXEmoCaz6USHv/) 70% of its customers have furry friends. The Dodo wants to cash in on the puppy love, too.


_Next up in the pet-palooza: pup-tails_

__Ads aren’t cutting it for media companies anymore...__ __[Google](https://robinhood.com/stocks/GOOG)__ and __[Facebook](https://robinhood.com/stocks/FB)__ have devoured  ad sales like pitbulls crushing a T-bone steak. Now that only scraps are left for the Pomeranians (media companies), they have to find other sustenance. The Dodo did this by leveraging its animal-loving following for a stake in insurance.

The Dodo is famous for viral animal videos— now it's getting into pet insurance

🛒 Walmart's app-tastic stores

__The article that has Twitter trending…__ isn’t trending on Twitter.  It all started on Wednesday with an unconfirmed *New York Post* article [showing](https://www.wsj.com/articles/senate-to-subpoena-twitter-ceo-over-blocking-of-new-york-post-articles-on-bidens-11602777128?mod=business_lead_pos1) allegedly hacked emails from Joe Biden’s son, Hunter. TLDR: the emails are unverified, but unflattering to both Bidens — and they were provided to the NYP by Trump's lawyer Rudy Giuliani (read: political agenda). Twitter and Facebook limited the article’s distribution with two very different approaches…

- __[Facebook](https://robinhood.com/stocks/FB)__ limited its visibility — FB algorithms didn’t place posts linking to the story as highly in people’s feeds, curbing sharing.
- __[Twitter](https://robinhood.com/stocks/TWTR)__ full-on blocked people from posting links to the story and emails, citing rules against sharing hacked content.

__Think fast…__ Social giants usually get heat for lagging on moderation, so their swift reaction raised eyebrows. Now, they’re getting criticized for lack of transparency and consistency in how/when they intervene. The moves backfired:

- __Twitter CEO Jack Dorsey will likely get subpoenaed__ by the Senate tomorrow. Dorsey was also *already* set to testify on Oct 28 along with Facebook’s Zuck (great timing).
- __The story got even more attention__. Biden/NYP was the #1 search on Google Trends on Wednesday with 1M+ hits.
- __Twitter apologized__. It [reversed](https://www.cnbc.com/2020/10/16/twitter-backtracks-allows-sharing-of-new-york-post-biden-story.html) its decision and said it’ll no longer remove hacked content unless it’s directly shared by hackers.


_Wondering why the Twitter drama isn't #trending on Twitter_

Drama

__This could be the breaking point on Section 230…__ That Congressional legislation [protects](https://snacks.robinhood.com/newsletters/6gEsMVqlGxt5w2dRl1MD3H/articles/6DJORdl1tbZXO3RABAheOP/) social media companies from being liable for what users post. They can’t be sued for posts, but also can’t be punished for “reasonable moderation.” This drama has [revived](https://www.vox.com/recode/21519337/section-230-trump-fcc-twitter-facebook-social-media-ajit-pai) calls for repealing 230, including from President Trump. The case: if social networks act like editors, then they should be accountable for *all* content on their platforms. Losing 230 immunity would be world-shattering for them — imagine if Facebook got sued every time someone shared something offensive or false.


Twitter and Facebook's latest moderation moves could cost them their immunity

__Ignoring that weird thing on your toe…__  __[UnitedHealth](https://robinhood.com/stocks/UNH)__ thrives on it. Shares of the largest US health insurer surged last week after it [reported](https://www.cnbc.com/2020/10/14/unh-earnings-q3-2020.html) expectation-smashing profit and raised its yearly forecast. Apparently, people are still avoiding the doctors’ office (has a germy ring to it). This slower-than-expected rebound in deferred care means United was spending less on covering your bills (while still pocketing your premiums). But United shelled out more than in the *previous* quarter, signaling an uptick in demand.

__What would Elon do?...__ __[Nio](https://robinhood.com/stocks/NIO)__, sometimes called "the Tesla of China," has had a glow up in 2020 (unlike the rest of us). Nio kicked off the year desperate for cash after burning through $6B. But the EV stock has [soared](https://snacks.robinhood.com/newsletters/5yCl3flQRU7NxuNd5MNLKO/articles/5k2cbOnhf9iVnaLn8flkLT) ~700% since April 29, when it got a $1B cash injection from Chinese government-backed investors. The stock soared 30% just last  week thanks to analyst upgrades on growth momentum. In 2019, Nio delivered just ~20K cars compared to Tesla's ~367K — but its battery-swapping service is an interesting differentiator.


Highs

Who's up...

__Haven’t seen a Biscoff cookie since March…__ Instead of dropping dough on a Mykonos trip this summer, you were making sourdough starters. Hence: __[Delta](https://robinhood.com/stocks/DAL)__’s passenger sales plunged 83% last quarter and it [lost](https://snacks.robinhood.com/newsletters/7t1UgZJunF0zHmtua93z83/articles/2OYnjiOKlT2IpgrVhvTOmr/) $5.4B (compared to a $1.5B *profit* for the same quarter last year). Delta avoided involuntary job cuts — but __[United](https://robinhood.com/stocks/UNH)__ and __[American](https://robinhood.com/stocks/AAL)__ are slashing 32K employees since federal aid expired. And stimulus help doesn’t look like it’s landing soon.

__Waiting for the happy ending...__ __[AMC](https://robinhood.com/stocks/AMC)__, the world's largest movie theater chain, said it'll run out of cash by late 2020 or early 2021 without  financial rescuing. 83% of AMC's US theaters have reopened at limited capacity, but attendance is [down](https://www.wsj.com/articles/theater-chain-amc-says-it-could-run-out-of-cash-by-year-end-11602593301) ~85% from last year. To make a bad situation worse, studios have been delaying blockbuster debuts. __[Disney](https://robinhood.com/stocks/DIS)__ postponed almost all its movies slated for 2020 release, including Marvel's “Black Widow." Now AMC's focused on raising fresh cash to survive until things normalize.

Lows

...and who's down

📰 Twitter's Biden article problem

__Red pill or blue pill, Nio?...__ This six-year-old luxury EV maker is on both. __[Nio](https://robinhood.com/stocks/NIO)__, sometimes called "the Tesla of China," has been on a wild ride this year. Kicking off 2020, Nio had a bad rap as a cash-bleeder: 

- __Red pill:__ In December 2019, Nio stock had plunged more than 70% since going public in 2018. The company had lost $6B since its launch and was almost out of cash. Now...
- __Blue pill:__ *Nio stock has soared ~700%* since April 29, when it got a $1B cash injection from Chinese government-backed investors.
- __New pill:__ The stock is up 30% this week thanks to analyst [upgrades](https://www.cnn.com/2020/10/15/investing/nio-stock-intl-hnk/index.html) on "strong order backlogs" and growth momentum.

__Not quite Musky...__ Unlike Tesla, which recently [reported](https://snacks.robinhood.com/newsletters/6511HaDUMXpAxjp2bEBL6w/articles/30QY0VGpvgwP9J9BKSTkLB) four-straight profitable quarters, Nio has never notched a profit. In 2019, it delivered just [~20K](https://www.forbes.com/sites/greatspeculations/2020/10/14/should-you-pick-nio-over-tesla/#31a28b0e767b) cars compared to Tesla's ~367K.  But Nio has a cool differentiator:

- __Battery Swapping:__ Nio's Battery-as-a-Service lets you swap your EV battery for a freshly charged one at one of its 130+ stations (instead of waiting for it to juice up).
- __The subscription costs ~$145/month,__ but you get $10K off the price of the actual car (since the battery is the most expensive part).  


Swap

__The lifestyle brand factor is a huge part of it...__ Like Tesla, Nio has built a cult following. Before it ever sold a car, it spent millions on cranking out Nio hats and merch. It also created "Nio Houses," sleek showroom-clubhouses for Nio owners to chill in.  Nio and Tesla have both grown by fueling deep brand love. 


Nio stock has surged, but we’re more interested in its battery subscription

__Eat, sleep number, repeat...__ OG mattress company __[Sleep Number](https://robinhood.com/stocks/SNBR)__ just woke from a deep slumber. Sleep's quarterly profit nearly doubled from last year, and sales popped 12% as we all worked from bed. The stock soared yesterday on the news. But this is really a Health & Wellness story...

- __If you can track it, you can techify it.__ Sleep Number shifted to selling *only* snooze-tracking Smart Beds in 2018 and has been making a wellness play since. 
- __Sounds familiar.__ D2C mattress company __[Casper](https://robinhood.com/stocks/CSPR)__ called sleep the “3rd pillar of wellness” after nutrition and fitness. 
- __The OG is beating the newbie.__ Sleep Number is way ahead of millennial-friendly Casper on snooze-tech, and its stock is beating Casper's this year, too. 

__"Life-changing"...__ How Sleep's CEO [describes](https://www.fool.com/earnings/call-transcripts/2020/10/14/sleep-number-corp-snbr-q3-2020-earnings-call-trans/) the 360 Smart Beds. She says they've "improved nearly 13 million lives and counting" (that's deep). These beds make sure your Zzzs get on the WiFi:

- __Tracking:__ The bed tracks your heart rate, breathing, and sleep/wake cycles, stalking your every movement.
- __Temperature control:__ The bed creates your "personal microclimate," balancing surface temp while warming your feet. 
- __SleepIQ Score:__ You get  a SleepIQ score along with a monthly in-app wellness report (70 to 100 = siesta master).


_When your Sleep Number Score is worse than your ACT score_

Snooze

__Sleep Number embodies the Power of the Pivot...__  After going full-smart-bed in 2018, Sleep Number completed its transformation from declining old mattress company to techy growing "wellness" company. That's helped it [notch](https://www.bizjournals.com/twincities/news/2020/10/15/sleep-number-shares-surge-after-third-quarter.html) double-digit demand growth for the past three years.  


The power of the pivot: Sleep Number thrives on techy WiFi Smart Beds 

🚗  Nio's EV battery subscription

__In the criminal chicken world...__ everyone has a bone to pick. __[Pilgrim's Pride](https://robinhood.com/stocks/PPC)__, the US' 2nd largest chicken processor, has [reached](https://www.wsj.com/articles/pilgrim-s-pride-reaches-plea-agreement-with-justice-department-on-chicken-price-fixing-allegations-11602649655) a plea deal with the DoJ on poultry price-fixing charges. It'll have to pay a $110M fine, and is expected to plead guilty. Price fixing: an (illegal) agreement among competitors that raises or lowers prices to their benefit. 

- __Example:__ If one toilet paper company charges $5/roll, we'll buy from a cheaper company (and the pricier one loses). If *every TP maker* decides to charge $5/roll, we have no choice (and the TP kings make bank).
- __Eggs-ample:__ That's basically what Pilgrim and other companies allegedly did with chicken, pushing up prices for chains like Popeyes, __[Walmart](https://robinhood.com/stocks/WMT)__, and other buyers (including us).

__That's clucked up...__ Right. And it's bigger than just Pilgrim's. From 2012 to 2019, multiple US chicken companies (including nugget legend __[Tyson](https://robinhood.com/stocks/TSN)__) allegedly coordinated to suppress competition. The DoJ says that chicken salespeople were calling each other across companies to talk price. Hypothetical eg: *"Hey Bob, with KFC we're going no less than 5 cents/wing, right?"*

_Can I fix you some chicken?_

Cluck

__This relates to Big Techies...__ Big Tech companies have been getting major heat from regulators over anti-competitive practices. The difference with tech staples like __[Amazon](https://robinhood.com/stocks/AMZN)__ and __[Facebook](https://robinhood.com/stocks/FB)__ is that they don't need to be in cahoots, because the competition basically doesn't exist.

This big chicken price-fixing scandal means a $110M fine for Pilgrim's Pride

__Don't ask for the AUX cord in this one...__ Uber Freight connects drivers (of massive semi-trucks) with high-volume riders (kegs of Heineken or your new furniture). In Silicon Valley speak, it's "the Uber of Logistics" — literally. Last year, __[Uber](https://robinhood.com/stocks/UBER)__ said Freight was its fastest-growing business. It looks like that momentum is still rolling...

- __$3.3B:__ How much Uber Freight is worth after [raising](https://www.cnbc.com/2020/10/02/uber-freight-raises-500-million-valuation-rises-to-3point3-billion.html) $500M this month. PE firm __Greenbriar Equity__ brought the cash, but Uber keeps majority ownership.
- __65K:__ How many carriers Freight [has](https://www.geekwire.com/2020/convoy-rival-uber-freight-raises-500m-valuing-trucking-logistics-business-3-3b/) in its network since launching in 2017. They work with big shippers like Bud-maker __[AB InBev](https://robinhood.com/stocks/BUD)__ and __[Nestle](https://robinhood.com/stocks/NSRGY)__.
- __+11.1%:__ How much job postings in __Indeed__'s driving category (including trucking) are [up](https://www.axios.com/newsletters/axios-markets-53c4a248-4e4e-4246-be38-c9e1a4082f4b.html?chunk=2&utm_term=twsocialshare#story2) since the start of February. 

__Not a truckload of options...__ Trucking is generally inflexible and expensive — companies need contracts and lead-time to make their shipments. With delivery booming during the pandemic, retailers have been struggling to expand their trucking operations quickly enough. Uber Freight makes that easier and faster (#techify): gig drivers can literally [book](https://www.youtube.com/watch?v=zHbm6YDOW_Y) a load and get paid right in the app.


Truckload

__Freight is Uber's dark horse...__ to offset losses and grow outside the complicated world of ride-hail. Uber's Ride bookings [plunged](https://snacks.robinhood.com/newsletters/3Gv0VpT4uNg7cUzDCeIsgl/articles/7guRHFjUJ23HYwesJ8IzAq) 73% last quarter on germ-avoidance and "everything is closed, anyway" syndrome. Now if Prop 22 doesn't pass in California, rides will [suffer](https://www.wsj.com/articles/uber-lyft-have-a-lot-riding-on-election-day-11602586800) even more. Logistics is a pandemic-friendly bet. 

Uber bets on Freight for the long-haul – it’s already worth $3.3B

__Check your 401(k) or brokerage account...__ Odds are high that you've got some $$$ in a __[BlackRock](https://robinhood.com/stocks/BLK)__ fund, since it's *the world's largest money manager* with $7.8T in assets under management ([AUM](https://learn.robinhood.com/articles/4l7spnri1tITVHbqyPZsON/what-are-assets-under-management-aum/)) — that's worth almost 4 stimulus packages. Much of that is dominated by index-tracking [ETFs](https://learn.robinhood.com/articles/QkpPOCYYd2fMe76837dvG/what-is-an-exchange-traded-fund/), aka "baskets" of stocks that can track an index like the S&P 500. But some funds are more startup-y:

- __Electric vehicle startup Arrival__ just raised $118M from BlackRock funds, [reportedly](https://www.wsj.com/articles/blackrock-bets-on-electric-vehicle-startup-arrival-with-118-million-investment-11602655201?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosgenerate&stream=top) giving the British EV maker a $3.5B valuation. __Hyundai__ and __[UPS](https://robinhood.com/stocks/UPS)__ also invested.
- __Green and lean:__ Arrival claims its electric-run city buses and vans can travel 300 miles without recharging and lower ownership costs by 50%. 

__*Not so green*...__ BlackRock is also [reportedly](https://www.reuters.com/article/saudi-aramco-blackrock-ma/saudi-aramco-and-blackrock-others-discussing-deal-worth-over-10-bln-sources-idINL8N2H412R) looking to invest in a $10B+ __Saudi Aramco__ oil pipeline deal. On the sustainability spectrum, BlackRock had a quinoa salad for lunch with Arrival and fried dough for dinner with Aramco fossil fuels.  


Diversify

__BlackRock wants to diversify (and hedge)...__ instead of depending only on one food group. Diversification is meant to reduce risk by spreading investments across sectors/companies that aren't correlated. With the oil investment, BlackRock would also be hedging against potential downturns in EVs. If the oil biz loses, the EV biz is probably doing well (and vice versa).


BlackRock looks to diversify with electric vehicles and Saudi pipelines 

🐔 The big chicken price scandal

__Life could be a screen...__ __[Apple](https://robinhood.com/stocks/AAPL)__'s seeing to it. The Fruit already killed the audio jack and the home button (RIP). Now, don't expect free headphones or even a charger to come with the *biggest iPhone screen ever* (FYI, Apple measures screen sizes [diagonally](https://www.apple.com/iphone-12/specs/)). The new iPhone 12 lineup:

- __Pro Max:__ Beats every iPhone with its big screen energy. At 6.7-in, it's larger than half an iPad. It's also the priciest of the 12s, starting at $1,099. 
- __Pro (no Max):__ For normal-sized hands, there's the $999+ 6.1-in screen Pro. 
- __Normie:__ The base model also has a 6.1-in screen and starts at $799.
- __Mini:__ This *adorable* $699 model has a 5.4-in screen for that back-pocket fit. 

__Throw some wheels on it...__ And you've got yourself a self-driving iPhone. Unlike the two-eyed Normie and Mini, the Pros have three cameras. But the Pros *also* have lidar sensors, which shine lasers at objects to measure their distances. 

- __It's the same tech that self-driving cars__ [use](https://snacks.robinhood.com/newsletters/29ds6WlAgMlOhg7Oijd1cN/articles/58NEUhYEwHV18PxKsFJgpz/) to build out 3D maps of environments (to avoid plowing into a tree). 
- __Apple's using it for augmented reality (AR),__ so that you can move digital furniture around in your new room, or put your friends' Snap filters to shame. 


_When Apple goes overboard with the Augmented Reality_

Drop

__This could be the biggest wave of iPhone upgrades...__ iPhones used to make up 70% of Apple’s revenue. Last quarter, they made up just ~44% of total sales. But now all four iPhone 12 models are 5G-enabled. That faster tech could convince millions to cave for better streaming, chatting, and browsing (which we're doing more than ever).


Apple's new iPhones include 5G, AR lasers, and no charger

__Diet Coke or OJ?...__ __[Delta](https://robinhood.com/stocks/DAL)__ CEO Ed Bastian will take a double whiskey neat with that earnings report. July to September is usually Delta's peak travel quarter, but instead of swimming in Mykonos you were streaming *My Octopus Teacher*. Do you want the bad news or good news first, Ed? 

- __Bad (terrible):__ Delta lost $5.4B last quarter, compared to a $1.5B profit for the same quarter *last* year. It [burned](https://www.cnbc.com/2020/10/13/delta-air-lines-dal-results-q3-2020.html) through $11B in the last two quarters. 
- __Good (better):__ Delta cut its cash burn to $18M/day last quarter from *$27M/day* in the previous one. It retired dozens of planes to trim costs.

__First to land...__ While Delta's passenger sales were down 83%, Bastian says there are signs that demand is picking up going into the holidays. Plus, its co-branded Amex card is doing [better](https://www.wsj.com/articles/what-is-bad-for-delta-is-worse-for-other-airlines-11602610356) than competitors, helping offset flight losses. Delta was the first airline to report — and it might go downhill from here:

- __Delta was more profitable than other airlines__ going into the crisis, so it has avoided involuntary job cuts (so far). 
- __American and United are cutting 32K jobs__ since federal airline aid expired on October 1st. 


__Reopening stocks fly together...__ These travel, hospitality, and movie theater stocks benefit disproportionately from murmurings of a return to normalcy. But when one falls, the others usually follow. American and United shares plopped on the Delta earnings. More anti-reopening news bruised other stocks yesterday, too: __[Carnival](https://robinhood.com/stocks/CCL)__, __[AMC](https://robinhood.com/stocks/AMC)__, and __[Marriott](https://robinhood.com/stocks/MAR)__. Like airlines, these companies are hoping stimulus medicine and/or a vaccine will come to the rescue (ASAP).

Delta loses big:  it could be an even bigger warning for other "Reopening Stocks"

📱 The iPhone-palooza wrap

__Forget ringing the NYSE bell...__ this IPO is more of a 1st-pitch type event. Boston Red Sox owner John Henry is [reportedly](https://www.wsj.com/articles/red-sox-owner-in-talks-for-deal-with-redball-acquisition-11602286661?mod=searchresults&page=1&pos=3) in talks to take the Sox public (SOX stock?) through an $8B deal. Henry's holding company __Fenway Sports Group__ also co-owns Liverpool, the English soccer team whose fans might be even more heated than Boston fanatics (intense). 

- __Meet [RedBall Acquisition Corp](https://robinhood.com/stocks/RBAC):__ That's the SPAC — aka, the public company without a company — that would merge with Fenway to take the Sox public. 
- __SPACs go public__ for the sole purpose of one day acquiring a *real* company and taking it public via marriage (romantic). 
- __RedBall raised $575M__ in August to buy sports-related businesses — based on its name, it probably always had eyes for the Sox.

__Paging Xander Bogaerts...__ A publicly-traded sports company is kind of like a Bogey monster — *very rare sighting*. Almost all 123 teams across the NBA, MLB, NFL, and NHL are privately held. Most have one very wealthy owner (or multiple ones). But the Sox could soon be owned by anyone with $1 to put in a brokerage account. Talks are still in early innings, though.


_Sox stock Opening Day_

Bogey

__Going public means pulling off the cloak...__ *of financial secrecy*. When a company becomes publicly traded, it's required to file reports with the SEC detailing its financial performance (plus other juicy info). Retail investors (like us) can access these deets for decision-making purposes. If the deal goes through, Sox fan-vestors will finally get a view into the team's ballin' (*or not*) finances.

The Red Sox could become a public stock in an $8B merger

__When DoorDash texts you more than your friends...__ Text "STOP." Cloud company __[Twilio](https://robinhood.com/stocks/TWLO)__ helps *other* companies communicate with customers — think: text notifications, emails, support calls. Twilio hides personal info so you can call your delivery driver without knowing their 617 area code. You don't *see* Twilio, but you definitely just used it. Its [customers](https://www.twilio.com/customers) include: 

- __Uber__: When you rush for that "Honda Civic is 2 minutes away" text.
-  __Instacart:__ When you call your shopper to say they got the wrong almond butter. 
- __DoorDash:__ When you get the play-by-play of taco's life journey. 

__Nailed it...__ ICYMI, it's a good time to be in remote communications. Twilio stock jumped last week after the company [raised](https://s21.q4cdn.com/963721274/files/doc_presentations/2020/10/2020-Twilio-Investor-Day-FINAL-WEBSITE.pdf) its sales expectations for the quarter, and has more than *tripled* in value this year on continued growth.

- __200K+:__ How many customers Twilio had last quarter, 4X more than in 2017. 
- __$401M:__ Twilio's sales last quarter, up from $115M in the last quarter of 2017. Buuut: it's still not profitable. 
- __$3.2B:__ How much Twilio's [dropping](https://www.cnbc.com/2020/10/12/twilio-stock-jumps-in-premarket-on-3point2-billion-segment-acquisition.html) on customer data startup __Segment__. Twilio stock hit an all-time high on yesterday's news.


Stop

__Like selling shovels in a gold rush...__ Companies like __[Shopify](https://robinhood.com/stocks/SHOP)__ and Doordash are corona-conomy winners, but they're using *Twilio* to support their pandemic surges. That makes Twilio a winner (by the transitive property). Companies don't reinvent the wheel to build all their own tools — they tap *others* for help. But with great opportunity comes great competition: __Microsoft__ just [launched](https://techcrunch.com/2020/09/22/microsoft-challenges-twilio-with-the-launch-of-azure-communication-services/) a calling/messaging service that competes with Twilio head-on.


Twilio, the company that's secretly texting you, hits new highs on a $3B splurge

⚾️ The Red Sox IPO

__Defining the relationship...__ *with the law*. Marijuana stocks got high last week on two hits of legalization news (sorry, had to). __[Aurora Cannabis](https://robinhood.com/stocks/ACB)__ shares popped 9% while __[Canopy Growth](https://robinhood.com/stocks/CGC)__ and __[Tilray](https://robinhood.com/stocks/TLRY)__ surged over 24%. The pro-weed news:

- __Sen. Kamala Harris__ said Joe Biden would [decriminalize](https://www.reuters.com/article/us-cannabis-stocks-idUSKBN26T3IH) marijuana at the federal level (if elected) during the VP debate on Wednesday.  
- __Vermont Governor Phil Scott__ said he would let the [legalization](https://thehill.com/homenews/state-watch/520373-vermont-to-legalize-recreational-marijuana) of recreational marijuana move forward in his state. 

__Hash out the deets...__ While recreational pot use is legal in 11 US states, marijuana is still an illegal [Schedule I](https://www.dea.gov/drug-scheduling) drug at the federal level, along with LSD and heroin. That's why it's basically impossible for *American* cannabis stocks to trade on US exchanges. Aurora, Canopy, and Tilray (which trade on US exchanges) are Canadian. Expanding the legal pot market is key to their success — especially since the past two years have been a [buzz kill](https://snacks.robinhood.com/newsletters/3TPLYshPco821e473TlZwS/articles/3uw7AxyVGXLWeEmtpMqQbQ)...

- __The late 2018 "weed bubble" has popped.__ Demand for weed in legalized places hasn't met hyped hopes. Pot companies over-produced and lost billions.
- __Since the 2018 highs,__ Aurora and Tilray shares have lost ~95% of their  value and Canopy has dropped 65%.  

_The Vermont woods are looking green this fall_

__Investors feel uncomfy in the legal gray area…__  Since soaring on legalization in Canada, cannabis stocks have taken a hit partly because companies haven’t DTR’d with the US government. Their illegal federal status not only complicates costs and access to capital, but also limits the size of their market. Last week’s boost suggests weed needs to become federally legit for canna-companies to reach the next level. 


Cannabis stocks have their best day in months on legalization-friendly news

__Channeling Jimmy Neutron...__ with the jeanius energy. __[Levi's](https://robinhood.com/stocks/LEVI)__ offset corona-losses last quarter with a 52% surge in online sales. The jean legend's *total* sales fell 27% from last year, but it notched a profit and the stock popped on positive momentum. Also — Levi's just launched a "[recommerce](https://snacks.robinhood.com/newsletters/6CeTU6j7yjNpeG4NHlfTr/articles/NolZPqOkShbND9vp856qV/)" site to sell your old jeans. Denim-recycling is sustainable *and* bankable: Levi's can cash in on the same pair of hip-huggers five times (instead of Poshmark).  

__Not left on read...__ Cloud company __[Twilio](https://robinhood.com/stocks/TWLO)__ helps *other* companies talk to customers (think: text notifications, emails, support calls). Clearly, it's a good time to be in  remote communications: Twilio stock jumped last week after the company raised its sales expectations for the quarter, and has nearly *doubled* this year on growth. But __[Microsoft](https://robinhood.com/stocks/MSFT)__'s new calling/messaging service brings XL-sized competition. Twilio's [reported](https://www.forbes.com/sites/alexkonrad/2020/10/09/twilio-to-acquire-cloud-startup-segment-for-3-billion/#3d9f49ee2020) $3.2B acquisition of customer data startup __Segment__ could help it level up — just throw in a [burrito](https://www.forbes.com/sites/alexkonrad/2019/02/01/why-twilio-acquired-sendgrid/#568c7230624b) to seal the deal.


__Like the NBA Finals...__ __[DraftKings](https://robinhood.com/stocks/DKNG)__ brought the tension. The sports betting stock had soared since September as live sports (*besides* Russian ping-pong) returned. But the stock dunked 20% last week on news that DraftKings is [selling](https://www.nasdaq.com/articles/why-draftkings-is-down-7-today-2020-10-05) 16M new shares. These fresh shares [dilute](https://learn.robinhood.com/articles/5rlezLS4uMuf3cZTyEAo38/what-is-stock-dilution/) the value of *existing* stock, so stockholders will own less of the overall company. Also potential nail-biters: company insiders are cashing out on [$832M](https://www.fool.com/investing/2020/10/09/why-draftkings-shares-fell-56-on-friday/) of stock, and at least three NFL teams reported new COVID-19 cases last week. 

__Empty out the wine cellar...__ and throw on the "sad tunez" playlist. Santa Barbara-based __[Sonos](https://robinhood.com/stocks/SONO)__ got dumped by __[Apple](https://robinhood.com/stocks/AAPL)__. The Fruit is done selling headphones/speakers from "outsiders" like Sonos, __[Logitech](https://robinhood.com/stocks/LOGI)__, and __Bose__ — Apple's going 100% [DIY-audio](https://snacks.robinhood.com/newsletters/3wmLgc8fwRYPVg8wdct89J/articles/5TsQO3S2fw0jH3UFvBnFKn/). That kills speculation that Apple could acquire Sonos, like it snatched up Beats in 2014. Sonos stock dropped 11% last week on the breakup. Pssst: Apple's new speakers and over-the-ear headphones  could show up at its big hardware [event](https://techcrunch.com/2020/10/06/apple-will-announce-the-next-iphone-on-october-13/) *tomorrow*.


🍃 Canopy's cannabis comeback 

__Outdoing everyone (10 times over)...__ Yesterday, __[JPMorgan Chase](https://robinhood.com/stocks/JPM)__ announced that it'll spend *$30B* over the next five years to help close the racial wealth gap. That's the [biggest](https://www.axios.com/jpmorgan-commits-30-billion-racial-wealth-gap-95186920-1949-4864-a11f-82a7d2cce057.html?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosam&stream=top) monetary commitment any company has made to advance racial equity *by far*.

- __~$1B:__ How much __[Citi](https://robinhood.com/stocks/C)__ and __[Bank of America](https://robinhood.com/stocks/BAC)__ each pledged to racial equity causes since George Floyd's death in May. 
- __$3.3B:__ How much the 100 largest US *combined* had pledged, including Citi, BoA, and 46 others (that was the biggest amount *in history* committed to these causes).  
- __$30B:__  Chase's pledge makes up ~90% of the $33.5B committed by Fortune 100 companies since May.

__Pull up the stats...__ In 2016, the net worth of a typical white family was [~10X](https://www.brookings.edu/blog/up-front/2020/02/27/examining-the-black-white-wealth-gap/) greater than that of a typical Black family ($171K vs. $17K). The legacy of slavery, discrimination and the [fact](https://www.cnbc.com/2020/08/19/lenders-deny-mortgages-for-blacks-at-a-rate-80percent-higher-than-whites.html) that Black families are more likely to be denied mortgages all contribute to this massive gap in generational wealth-building. So:

- __$14B:__ What Chase has earmarked for new housing loans to Black and Latino borrowers.
- __$8B:__ Dedicated to increasing affordable housing and homeownership in underserved communities.
- __$8B:__ The rest goes to mortgage refinancing, small biz lending, and philanthropy. 


Billions

__The purpose of the corporation has changed...__ For decades, public companies were all about returning value to shareholders through profits. Generally, more profit = more dividends and/or higher stock price. The $30B that Chase pledged to spend over the next 5 years represents ~83% of its total 2019 profit ($36B). But it might just be enough to change JPM’s image of "big bad corporation" into "big good corporation." That's strategic.

JPMorgan Chase pledges a massive $30B to fight the racial wealth gap

__Googling "how to be special"...__ First, change your name. __[Dollar General](https://robinhood.com/stocks/DG)__ is tired of selling you $2 necessities like Cool Whip and Drano. So the discount chain is launching "Popshelf" (*so fun, so fresh*) — a store aimed at higher-end shoppers who still love a good deal. Inside, it [looks](https://www.wsj.com/articles/dollar-general-to-open-stores-aimed-at-wealthier-shoppers-11602149401?mod=business_lead_pos4) like a mashup of Ulta Beauty and Blick Art Supplies. Hence...

- __The crowd:__ Popshelf is geared toward suburban women with household incomes of $50K-$125K/year, compared to *Dollar General's* core customers from $40K households. 
-  __The goods:__ Popshelf will feature "nice-to-have" goodies (think: home decor and beauty products), rather than showcasing 24-packs of TP at the entrance ("need-to-have"). 

__The thrill of the hunt...__ DG wants to cash in on the "affordable splurge" treasure hunt [experience](https://snacks.robinhood.com/newsletters/1FKKdbQjIpHVV86ywmUIjB/articles/6YscPrg1Mp9jGaNkCngApy) that  __[TJ Maxx](https://robinhood.com/stocks/TJX)__ thrives on. Most Popshelf items will cost less than $5 and will be changed out on the reg to surprise customers (*and encourage more  visits*). Instead of rushing out of one of DG's ~16K stores with Clorox, you're spending an hour in Popshelf browsing scented candles and charcuterie trays. The fun experience leads to more spending.

Drano

__Nail the target, *then expand it*...__ Dollar General is living its best life with its lower-income target customers. Wallets are corona-hurting, so DG's thrifty basics are winning. Sales jumped 19% last quarter and DG stock hit at an all-time high yesterday. This growth means it's a perfect time for DG to reach beyond its tapped-out customer base to  wealthier shoppers. 

Dollar General targets wealthier suburban women with "Popshelf" 

__The good kind of ghosted...__ Grocery hero __[Kroger](https://robinhood.com/stocks/KR)__ is getting into the Halloween spirit with the [debut](https://thespoon.tech/kroger-partners-with-clustertruck-for-in-store-ghost-kitchens/) of two "ghost kitchens" — aka, delivery-only restaurants. Kroger is pivoting from generic pasta and frozen pizza to e-nnovation with Casper-like kitchens.

__Left on red (cabbage)...__ Kroger's collabing with __ClusterTruck__ (lol), a ghost restaurant service that'll set up its kitchen in two Kroger stores. It's a smart, low-lift way for Kroger to test out the prepped meals delivery/pick-up concept. Meals have more profit-potential than groceries: Bread + avocado = $3. Avocado toast = $12. Womp.

- __What Cluster does:__ Basically, all the work. It makes the menu, orders ingredients, cooks the food, and delivers. Kroger shoppers get free delivery 
- __What Kroger does:__ It gives Cluster 1K sq ft of space in its 160K sq ft stores to make the morsel magic happen. Niiice.


_Casper the Friendly Ghost Kitchen_

Ghosted

__The lines between grocery and restaurant are getting hazy...__ Kroger is a grocery chain trying to get into prepped meal delivery. Ironically, restaurant delivery services like __Doordash__ are now getting into grocery delivery, too. We've seen this trend accelerate in the pandemic — restaurants closed for in-store dining, and started selling grocery items like olive oil and bread to survive. Now companies are seeing that the more food-related-anything you can drop at a doorstep, the better. 
