__*Furious with you, I am*...__ When the CEO of toy company __[Hasbro](https://robinhood.com/stocks/has)__ snuggled into his sofa to watch __[Disney+'s](https://robinhood.com/stocks/dis)__ Star Wars-ish *The Mandalorian* series, he wondered what that adorable miniature Yoda thing was. It was hundreds of millions of should-be dollars for his company.

- __"Baby Yoda"__ is 50-years-old (diaper-age for yoda's species) and the cult star of the series.
- But Disney __kept him a secret__ until the show launched in November — it didn't even tell top toy-making partner Hasbro.
- So parents ended up __searching for "Baby Yoda" toys on Amazon over [90K](https://www.dailymail.co.uk/news/article-7776337/Disney-missed-2-7-million-revenue-lack-Baby-Yoda-toys.html) times__ this past month (and ordered $100K worth of fake/unofficial ones).
- Now Hasbro's unveiled a gaggle of Baby Yoda toys... but __they won't arrive until May 2020__.

__This is "Tickle Me Elmo" money...__ The master of all holiday toys [quintupled](https://www.businessinsider.com/marketing-lessons-tickle-me-elmo-2011-12) 1996 sales for its company (Tyco). The current popularity and undeniable cuteness of Baby Yoda could've driven similar holiday pandemonium, but Disney's stealthy self-serving moves were Hasbro's loss.

_Baby Yoda missing the train to Holiday Season 2019_

Play

__Hasbro is pretty much a Disney toy store...__ Hasbro paid big for the rights to be the official toymaker of Disney franchises Star Wars, Marvel, and Frozen. Now those toys are a huge part of its biz — 27% of Hasbro sales last quarter came from "partner brands." That's corporate-speak for Disney's billion-dollar character franchises, from Elsa to the Skywalkers.

Hasbro misses huge holiday toy opportunity with Disney's "Baby Yoda"

__Lyft or rent? Now, you can sorta do both...__ __[Lyft](https://robinhood.com/stocks/LYFT)__ already changed taxis. Yesterday it [launched](https://www.theverge.com/2019/12/12/21013185/lyft-car-rental-service-pricing-los-angeles-san-francisco-mileage) a rental car service starting in LA and SF. As little as $35 a day gets you wheels for a weekend getaway, right through the app. Here's how Lyft is competing with rental OGs like __Enterprise__ and [Hertz](https://robinhood.com/stocks/HTZ):

- __Car-to-Car service:__ Lyft will actually __pay for your rides__ (up to $20 each) to and from the rental car lot.
- __Lower age:__ You have to be 25 to rent a car in the US (or pay extra) — Lyft is ok with 22-year-olds and up.
- __Tank-friendly:__ You don't have to give away your firstborn child to fill up your tank. Lyft will top-off your tank post-Napa weekend, charging just the local gas price (no fee).
- __Clean machine:__ Lyft also has a leg up over car-share startups like __Getaround__ and __Turo__, since you're not getting someone else's car (and forced to endure their BO).






Ride

__If it sounds too good to be true, it probably is...__ With all these perks at low costs, we're guessing this car rental scheme won't be profitable. Long-term, if they successfully snag your loyalty from Avis or Hertz, Lyft can increase prices to turn a profit. That's also the general plan for its core rides business... which is still unprofitable.

Lyft is launching a car rental service (it's a tough day for Avis stock)

__All remaining passengers may now board...__ It's a pretty un-exclusive group that gets to show up at __[Delta's](https://robinhood.com/stocks/dal)__ Investor Day: Any Delta shareholder. The airline uses the opportunity to humble-brag its most impressive company highlights. Here are some stats investors are proud of:

- __Your legs get less room:__ Average seats per aircraft jumped from 97 to 127 over the last decade. And probably not just because the planes got bigger.
- __At least the planes are more environmentally efficient:__ The company emits 11% fewer C02 emissions overall than it did in 2005.

__Flight update: *Delta is really a credit card company*...__ We couldn't stop staring at [slide #24](https://s2.q4cdn.com/181345880/files/doc_presentations/2019/12/Investor-Day-2019-Presentation.pdf) in the Investor Day deck — Delta's co-branded credit card with __[American Express](https://robinhood.com/stocks/AXP)__ is the airline's true profit puppy:

- __8%__ of all Amex spending in 2018 was on Delta.
- That Delta/AmEx card earned Delta $1.4B in 2010 — and a whopping __$4B this year__.
- *__Now the AmEx card is [estimated](https://thepointsguy.com/news/delta-amex-relationship-profitable/) to bring in 35% of Delta's profits.__*

_Toss it on the ol' Delta AmEx_

Charged

__Delta is a perfect card candidate...__ because its customers spend lots on it. If you splurge on a few LAX-JFK flights home every year, you'd prefer to use the airline card that's boosting your points situation. Delta owns a big chunk of its close to 200M customers' wallets — and the credit card is where it makes money off them.

Delta's Investor Day reveals it's really a credit card company

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

Hasbro's Baby Yoda toy nightmare

__Feel free to go back to child's pose anytime...__ Investors aggressively dropped shares of __[Lululemon](https://robinhood.com/stocks/LULU)__ after Wednesday's earnings report — they're blaming the future, not the peaceful past:

- __The 3rd quarter:__ Sales rose 17% at existing stores, and 23% overall because it added 53 new Lulus over the past year. All that, plus its profits, beat expectations.
- __This quarter, aka this holiday season:__ Lulu gave investors a heads-up that it's expecting fewer sales than they do: $1.3B.
- __The unhelpful clarification:__ The CEO blamed a late Thanksgiving, awkwardly reminding us that there are 6 fewer holiday shopping days this year than last.

__Return to the top of your mats...__ where Lululemon's stock was enjoying a record high earlier this week. The brunch-worthy athleisure industry is fiercely competitive, but sizing up Lulu to Nike has begun (investment bank Cowen [compares](https://www.cnbc.com/2019/12/03/nikes-valuation-provides-a-map-for-lululemons-future-cowen-says.html) Lulu's growth to Nike's) — and since __[Nike](https://robinhood.com/stocks/NKE)__ is currently 5x as valuable as Lulu, shareholders appreciate the aspirational side-by-side. 

_Lulu's earnings report working on its Warrior 3_

Sweat

__Here's the secret to becoming the next Nike...__ *Be a lifestyle brand.* Lulu [patented](https://www.stites.com/resources/trademarkology/lululemon-a-warrior-in-protecting-its-intellectual-property) "Luon" and "Luxtreme," the technical fabrics that make yoga pants stretchy and sweat-proof. Now it's focusing on some serious lifestyle moves to differentiate itself:

- Stores with __built-in yoga studios__ (like this 20K-square-foot giant in [Chicago](https://shop.lululemon.com/stores/us/chicago/lincoln-park)).
- __Personal care products__ from deoderant to shampoo for post-shavasana shower routines.
- More focus on __including guys__, whose sales jumped 38% last quarter.
- And it calls its customers __"guests"__ — seriously, CTLR + F [this earnings report](http://investor.lululemon.com/news-releases/news-release-details/lululemon-athletica-inc-announces-third-quarter-fiscal-2019-0) to prove it.


Lululemon isn't expecting a peaceful holiday shopping season

__More 200-pound Great Dane than puppy...__ If oil is king, then __Saudi Aramco__ is the king of oil — and the most valuable company to IPO, ever. It [went public](https://www.pbs.org/newshour/economy/making-sense/what-americans-should-know-about-saudi-aramcos-ipo) Wednesday on Saudi Arabia's stock exchange (not the NYSE or Nasdaq) and shares jumped 10% on Day #1 of trading. Let's peep the key numbers:

- __$1.9T:__ That's Trillion with a "T." It's Saudi Aramco's record-breaking valuation after that surge in its stock price (__Apple__, the most valuable US company, enjoys a $1.2T valuation).
- __1.5%:__ The tiny-ish percentage of Aramco shares that were actually publicly listed — the Saudi government is keeping the other 98.5% (at least for now).
- __$111B:__ Aramco's profit last year, making it the most profitable company in the world, by far. 

__Keeping it gassy (at a low-cost)...__ Saudi Aramco squeezes so much profit out of every oil barrel because the [cost](http://graphics.wsj.com/oil-barrel-breakdown/) of producing each one is relatively small. It's not just the oil reserve real estate Saudi Arabia sits on — it also extracts the fossil fuel at a super low cost. 

- As of 2016, the __UK__ has to drop $44 to produce a single barrel of oil. 
- The __US__ shells out $23 per barrel.
- __Saudi Arabia__ spends less than $9. That's less than a Sweetgreen salad. And today oil is selling for $58 per barrel (that's some thick profit margin).

Gassy

__Aramco is a unique combo of risks and rewards...__  Saudi oil is close to home — they don't have to dig deep into the earth as the US does, or go to ocean depths like the UK. But this natural competitive advantage doesn't mean there's no risk... The world's pivot to sustainable energy could speed up, depriving Aramco of oil sales sooner than expected. Or political instability could mess with its largest shareholder: The Saudi government. Bigger isn't perfect.

Saudi Arabia’s profit puppy (finally) goes public: Saudi Aramco

_Guys are getting into Lulu (but still working on Warrior 3)_

Lululemon wants you to be its 'guest'

__6am Shred Report...__ It's actually an earnings report from __[Vail Resorts](https://robinhood.com/stocks/mtn)__, which owns 37 ski resorts that Tom & Gisele would feel comfortable Après-ing at. Plus, another 42 resorts are included in its "Epic" ski pass. Vail shares rose on word it's [sold](https://www.vaildaily.com/news/vail-resorts-reports-pass-sales-are-up-in-its-first-quarter-earnings-report/) 22% more season passes than at this time last year, but we hit ice while running over those numbers.

- *Pro move: Read Vail Resorts' [actual](http://investors.vailresorts.com/news-releases/news-release-details/vail-resorts-reports-fiscal-2020-first-quarter-and-season-pass) earnings report before your next trip — it's subtly packed with intel on your go-to mountains (there's a 6-person chairlift coming to Okemo).*

__Pizza vs French fries. Boarders vs Skiers...__ *Epic Pass vs Ikon Pass*. Society is increasingly divided between the 2 imperial ski passes that all the resorts band together under. Global warming forces them to team up — and that forces skiers and boarders to pick a side early in the season. 

- __The passes:__ Vail's __Epic Pass__ covers 79 resorts. Alterra's __Ikon Pass__ offers 41. Your friend group this winter will be the humans who also have your pass.
- __The reality for resorts:__ Just 1 degree warmer could turn a blizzard into rain. Less dependable snow makes owning an independent resort tougher.
- __The insurance policy:__ By joining an alliance like the Epic or Ikon pass, mountains can protect themselves from a lame winter — fellow alliance-members with better weather can provide soft snow cover to fall back on. 

_Should have got the Ikon pass_

__Don't let Vail's acquisitions distract you...__ The number of Epic Season Passes sold jumped 22%. Sounds awesome. But that's because the pass added 17 new resorts this year. *If you had a Mount Snow pass, now you've probably got an Epic one (because Vail [acquired](https://vermontbiz.com/news/2019/september/23/mount-snow-now-part-vail-group-ski-resorts) it and many others).* Sales grew in part because Vail literally absorbed new mountains — that doesn't make its existing biz more profitable. In fact, it lost money last quarter (snowmaking = expensive).

Vail Resorts stock is powered by 17 new ski resorts 

__A Democrat, a Republican, and President Trump walk into a bar...__ and actually agree on something. Nancy Pelosi [announced](https://www.npr.org/2019/12/10/786659436/house-democrats-support-updated-trade-deal-with-mexico-and-canada) that her House of Reps would support the USMCA: The consonant-heavy trade treaty between the US, Mexico, and Canada that the President signed in November last year. It takes awhile, but this bill should become law by January (quick reminder on [how that works](https://www.youtube.com/watch?v=l6MinvU93kI)).

__Stick one of those huge red bows on this car deal...__ Markets celebrated the kumbaya progress on trade cooperation. If you're CEO'ing a company, now you've got certainty on how much cross-border business will cost you (at least within North America). But the USMCA [majored](https://www.washingtonpost.com/business/2019/12/10/winners-losers-final-usmca-deal/) in cars (and it's obsessed with them):

- It requires that 30% of workers on a car sold in the US be __paid at least $16/hour__. That means more work for higher-paid US & Canadian workers and less for lower-wage Mexican ones. 
- That also means the __price of cars will rise__, especially adorable sedans that are mainly made in Mexico (they'll be tariffed unless they achieve that minimum wage requirement).
- In non-car news, __US farmers producing dairy, eggs, and turkeys__ can finally sell up north into Canada now. Great, eh?

Negotiated

__Trade is good, when done right...__ Econ 101 = *Trade benefits consumers and businesses.* Countries should produce whatever they've got a competitive advantage in. From cars to microwaves, Mexico and China have been winning more factories and jobs — American consumers benefited from lower prices and American companies benefited from higher profits. The failure has been in government policy, which hasn't helped US workers who lost manufacturing jobs as a result. This USMCA deal focuses on supporting them (and it does).

A Trade Peace: the USMCA is about to replace NAFTA for the US, Canada, & Mexico

_Should have done Ikon Pass_

Vail buys 17 mountains (then hits Après)

__Bezos pulled a Belichick...__ tossing the ol' red flag and demanding that the ref review the play. The Trump administration granted __[Microsoft](https://robinhood.com/stocks/MSFT)__ an aggressively lucrative contract to manage the Defense Department's critical digital data in the cloud. Big loss for __[Amazon](https://robinhood.com/stocks/AMZN)__:

- __Huge:__ The US Department of Defense is __America's largest employer__, with over 3M employees/contractors handling enourmous amounts of computer files.
- __Sensitive:__ Storing sensitive military data is high-stakes stuff (think secret docs outlining strike targets or secret dinner menus for military mess halls). 
- __Lucrative:__ $10B over 10 years. That's a lot, even for Amazon (its AWS cloud computing division made $26B in revenue last year).

__Unfair call?...__ Analysts expected Amazon Web Services to win the deal because it boasts the biggest cloud in cloud computing — what Kleenex is to tissues, AWS is to fancy digital storage. But it didn't.

- Amazon [claims](https://www.axios.com/amazon-web-services-trump-pentagon-jedi-contract-filing-4b5dddd0-a86c-4d6b-9218-4a628a443814.html) that President Trump sabotaged its bid because he doesn't like __The Washington Post__, which Amazon CEO Jeff Bezos happens to own.
- Amazon's asking a judge to rule the contract unlawful, since military spending shouldn't be influenced by personal beef. 
- __Best-case scenario for Amazon:__ The judge forces the administration to reconsider the contract.


_When you really, really want that JEDI military contract_

Appeal

__Let's talk about business ethics, baby...__ From insider trading to condoning sexual harrassmant, the answer is no to all (always). Those aren't *ethical* dilemmas — there's no gray area. But Amazon's situation smacks personal values against legal profit opportunities. It's the type of ethical challenge that dominates Big Tech right now.

- Should __Google__ — the leader in information transparency — let China block search results that its government doesn’t want its citizens to see?
- Should __Amazon__ — if its employees [oppose](https://www.ft.com/content/b38c5cf6-198a-11ea-97df-cc63de1d73f4) drone strikes — let the government use its servers for controversial military attacks?

Amazon appeals the Trump administration's $10B "JEDI" contract (which Microsoft won) 

*__Slayer of inflation. Protector of the consumer...__ Chairman of the Fed.* From 1979 to 1987, Paul Volcker ruled America's central bank. When he saw inflation winter was coming (prices across the economy rose 13% in 1979) he fought back by jacking up interest rates (to a whopping 19%). Inflation hasn't been a worry since the '08 financial crisis, but the Jersey native left us another [legacy](https://www.npr.org/2019/12/09/659908267/former-fed-chairman-paul-volcker-dies-at-92):

__Banks shouldn't gamble with your $$$...__ That cash in your bank account? Your bank makes money with it. Thankfully, account balances in American banks are protected by the Federal Deposit Insurance Corporation (FDIC) — the government agency that insures your money. If your bank goes bankrupt, you get up to $250K of your cash back, thanks to FDIC's taxpayer-funded program. That's where __"The Volcker Rule"__ comes in:

- It prevents banks from __aggressively playing__ with customers' FDIC-insured cash.
- Banks __can't invest customer funds in Netflix stock for their own benefit__ or __make risky hedge fund bets__ with your savings.
- It __wouldn't be fair__ for banks to benefit from the upside of risky investments with your cacsh, but then ask taxpayers to bail them out through FDIC insurance if those bets go wrong.

__That Volcker Rule could've helped prevent the last financial crisis...__ which is why we're happy the then-82-year-old Volcker pushed for it after Lehman Brothers collapsed in 2009. Preventing banks from engaging in "proprietary trading" with customers' cash is Paul's legacy — and it protects all of us daily without our even realizing it.

Former Fed Chairman Paul Volcker passed away — but his legendary "Volcker Rule" remains

No JEDI cloud deal left behind

__Excuse me driver, can you slow down on the ads?...__ Self-driving cars are the most-talked about things that don't exist yet since the "phase one" US-China trade deal. But __[Alphabet](https://www.theverge.com/2019/12/5/20995334/waymo-ride-hail-app-ios-apple-self-driving-car-robot-taxi-service-phoenix-arizona)__ geared up to  make robotaxis a reality last week by [launching](https://robinhood.com/stocks/GOOG) its Waymo app in Apple’s App Store (it's been chilling already in the Google Play store since April).

- __1 year ago:__ People in Phoenix (aka Phoenixians?) could become early adopters of Waymo, but they first had to sign Non-Disclosure Agreements. About 1,500 people have taken 100K+ rides so far, usually with a human safety driver behind the wheel (just in case).
- __Today:__ Both iPhone and Android users can download the Waymo app and join a waitlist. It's still only available in the Phoenix area, but they've started doing rides __with nobody behind the wheel at all__.

__Whoever offers Robotaxis first will probably win a ton of business...__ Our rough math estimates that *a $10 ride becomes a $5 ride* with self-driving cars:

- __$10:__ The fare of our simulated __Uber__ ride.
- __$7:__ The rough amount the driver gets to keep. 
- __$2:__ The amount needed to cover gas, insurance, and the car payment.
- __$5:__ The cost of the driver. This is the number that vanishes with robotaxis — *roro-rides could become __half the price__ of human-driven __[Lyft](https://robinhood.com/stocks/lyft)__ or __[Uber](https://robinhood.com/stocks/uber)__ rides*.

_Dodging Google's self-driving cars

Robo

__This could be Google's last moonshot...__ Waymo was born in Project X, which is a lab for Googlers to dream up "moonshot" projects that have nothing to do with Google’s core business of online search ads.

- __But Google's co-founders [retired](https://www.theverge.com/2019/12/4/20994361/google-alphabet-larry-page-sergey-brin-sundar-pichai-co-founders-ceo-timeline) last week__, and its new leaders could focus on profit-making businesses only — not the kumbaya projects that ex-leaders Larry Page and Sergey Brin championed.
- __Yet it looks like they raised a profit puppy with Waymo__ — the robotaxi service is estimated to be [worth](https://www.cnbc.com/2019/09/27/waymo-valuation-cut-40percent-by-morgan-stanley-to-105-billion.html) $105B. That's 8 times as much as Lyft.

Waymo's robotaxi app is now available to all (beware of the waitlist)

__Otis made skyscrapers possible...__ The 166-year-old elevator company is big enough to be its own Fortune 500 company, with $13B in revenue, 69K employees, and 2M elevators in service worldwide. In April, owner __[United Technologies](https://robinhood.com/stocks/utx)__ is [spinning off](https://fortune.com/2019/12/04/on-leading-otis-elevators-judy-marks/) Otis into its own publicly-traded company to unlock its value. __Otis__ makes serious bank in China, where all that new city construction needs vertical help, so it's praying the trade war doesn't get too bad.

__That partnership looks good on you...__ __[Marriott's](https://robinhood.com/stocks/mar)__ __W Hotel__ chain found a cost-effective, well-dressed marketing move — hook up with __Rent The Runway__ so that guests don't have to pack as many clothes. For an extra $69, your room could come with 4 wardrobe options to rent during your W stay. The brand move keeps the W relevant — and [snags](https://snacks.robinhood.com/newsletters/5LS2e4bEkOUDKVsAmvVZaO/articles/57CSSSJvOGEpnNKdVNHaLM) exposure for Marriott to Rent The Runway's younger customer base.

Highs

Who's up...

__*Buffering... Buffering...*__ Remember when __[Zoom](https://robinhood.com/stocks/zm)__ was the most profitable tech company to IPO in 2019, and its shares jumped over 50% on the first day of trading? The video conferencing leader's stock dropped 15% last week on word  that growth is slowing. Zoom’s CEO wants to “focus on [*existing*](https://www.cnbc.com/2019/12/05/zoom-zm-earnings-q3-2020.html) customers” — but shareholders crave new ones and some crystal-clear user growth.

__Any press = Good press...__ Debatable. __[Peloton's](https://robinhood.com/stocks/PTON)__ new [viral TV ad](https://www.thecut.com/2019/12/peloton-stock-drops-9-percent-following-widely-criticized-ad.html) is jacked with controversy. Sexist and elitist? *Arguably and most definitely.* But it also has everyone chatting Peloton during the at-home fitness company’s most important sales season. Peloton shares dropped 8% last week — then the ad’s actress owned the drama by jumping into [a commercial](https://www.adweek.com/brand-marketing/peloton-girl-stars-as-herself-in-the-greatest-sequel-ever-an-aviation-gin-ad/) for Ryan Reynolds' gin brand, drinking her cycling-induced worries away (new trend = post-controversy sequel ads).

Lows

...And who's down

_Hiding from Google's self-driving cars_

Google's robotaxi moonshot is worth 8 Lyfts

__Take the toiletries. Leave the blouse...__ __[Marriott's](https://robinhood.com/stocks/mar)__ W Hotels is partnering with subscription clothing pioneer __Rent The Runway__ to deliver vacay gear [straight](https://www.cnbc.com/2019/12/04/rent-the-runway-partners-with-w-hotels-so-you-can-pack-lighter.html) to your suite. For an extra $69, you get 4 Rent The Runway garments for the duration of your stay. And it's available at 4 W hotels: Aspen, South Beach, DC, Hollywood. Here's how "don't BYO clothes" goes down:

- __Ready-to-strut:__ A RTR romper is waiting for you on the Queen bed in room 207 after check-in. Wear it whenever, and leave it on the mattress when you check-out.
- __Location-appropriate:__ W's Aspen hotel offers sweaters for Après, while W's South Beach spot has cover-ups for poolside.
- __Size-insured:__ Medium too small? Rent The Runway stocked the Ws with "mini-closets" full of size options as backups (please add the elusive "marge").

__2019 didn't fit right...__ Good timing on the partnership, because this year challenged Rent The Runway. First, retailers __Urban Outfitters__, __Banana Republic__, and __Bloomingdale's__ launched their own subscription clothing services. Then, Rent The Runway's logistics systems [broke down](https://www.vox.com/recode/2019/9/27/20887017/rent-the-runway-new-customer-freeze-subscribers-delivery-delays-warehouse-issues), causing a freeze in the service and no new subscribers for weeks.

_When they tell you you didn't need to pack clothes for the trip_

Worn

__Partnerships are hacky marketing — and that’s smart...__ Facing all that fresh competition, Rent The Runway has pursued partnerships (aggressively): They've got drop-off boxes for your worn dresses at Nordstroms and WeWorks. Now add the W to the partnership mix. Partnerships are a hustling way to snag new customers:

- __TV ad__ = Spend big on televised ads to show potential customers your product.
- __Partnership__ = Spend less to cross-pollinate your user base with another company's.
- __W Hotels customers__ get an email about Rent The Runway's new hotel-outfit offering. __Rent The Runway customers__ get an email about W Hotels. *Symbiosis for the win.*

Rent The Runway partners up with W Hotels so you don't have to pack clothes

__Power Couple...__ __[General Motors'](https://robinhood.com/stocks/GM)__ new partnership with __LG__ isn't about sticking LG phones into GM sedans. We're talking batteries. The South Korean tech icon makes batteries too, and GM needs hundreds of thousands of them for its electric car fleet. This [partnership](https://www.reuters.com/article/us-gm-lg-chem-jv-exclusive/gm-lg-chem-to-build-2-3-billion-electric-vehicle-battery-plant-in-ohio-idUSKBN1Y90C6?feedType=RSS&feedName=businessNews&utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+reuters%2FbusinessNews+%28Business+News%29) is a win for the Midwest: 

- __Lordstown, OH:__ GM and LG will invest $1B each into a new battery factory that'll employ 1,100 workers.
- __Detroit, MI:__ GM is building its electric pickup there (Silverado and/or Sierra), and their batteries will come straight outta the Buckeye state.

__Batteries are what make electric cars expensive...__ Without gas, the horses need to be powered by batteries. Big ones. Thousands of times bigger than the battery in your iPhone. The price of those batteries is the main reason electric cars are about [50% more](https://qz.com/1695602/the-average-electric-vehicle-is-getting-cheaper-in-the-us/) expensive than gas ones.

- __In 2010,__ electric cars were so new that an average battery [cost](https://www.marketplace.org/2019/12/03/battery-prices-falling-good-for-evs/) __$110K__.
- __Today__, the price of batteries for electric vehicles has come way down, but is still __$15K__ (and still the most expensive part of the car, by far).
- GM wants to lock down its own battery source for the 20 electric cars it plans to introduce by 2023.


_GM and LG are targeting the high cost of batteries_

Charge

__Joint ventures are like workout buddies...__ They help you train better, keep you accountable, and push you to lift more (always have a spotter). GM brings the car expertise while LG owns the battery mastery — together, they each own 50% of the new company. JVs can help do more at lower costs, but only if the 2 companies overcome trust issues:

- __You lose control__ within a JV - both companies own half the new one, so decisions gotta be made (peacefully) together.
- __You need trust__ with your JV partner — you're now sharing biz secrets.

General Motors forms a $2B joint venture with LG to build electric car batteries

Rent The Runway hooks up with W Hotels

__Yoshi, you impress us...__ Founded 130 years ago in Kyoto, Japan, as a playing card company, __[Nintendo](https://robinhood.com/stocks/NTDOY)__ is still having fun. Its latest video game console "Switch" (which doubles as a Game Boy-type portable device and game played on your home TV) had its [best week of sales](https://www.theverge.com/2019/12/4/20995584/nintendo-switch-best-sales-week-black-friday) ever in the USA.

- 830K Switch and Switch Lite units were sold in the US in the 7 days around Thanksgiving.
- That brings the total number of Switches sold to 41M globally — that's just short of Super Nintendo's record of 49M (back when eating Gushers was a thing).

__Nintendo is like a fine Cabernet...__ It's weird that sales jumped to their highest level after almost 3 years since Switch went on the market. Most tech products lose popularity over time, but Nintendo's Switch vintage seems to get better with age. The latest models from the three-opoly of gaming help explain why: 

- __[Sony's](https://robinhood.com/stocks/SNE)__ __PlayStation 4__ debuted in 2013.
- __[Microsoft's](https://robinhood.com/stocks/MSFT)__ __XBox One__ also debuted in 2013. 
- __[Nintendo](https://robinhood.com/stocks/NTDOY)__ __Switch's__ greatest strength is its *relative* newness: it debuted in 2017.

_Even the grinch is shocked Nintendo sales are so high_

Restart

__This Christmas is easy for Nintendo. Next Christmas will be hard...__ Playstation 5 will be ready in time for the next holiday season, and the new XBox will be Santa-ready in 2020, too. Meanwhile, Nintendo's playing against 2 game controllers with nobody holding them. Next year, it'll face 2 fresh, young, gaming phenoms to battle against. 

Nintendo Switch had its best week of sales even though it's almost 3 years old now

__Surviving the quasi-cold of an Upper East Side autumn...__ requires __[Canada Goose's](https://robinhood.com/stocks/goos)__ $1,000 coyote fur-lined jackets. The Canadian coat-maker's stock has doubled since its 2017 IPO, but the next three months — which make up 40% of its sales — are critical. Cue: "[The Journey](https://www.cnbc.com/video/2019/12/04/inside-the-new-canada-goose-experience-store.html)."

__Sounds like a Christian Bale movie...__ "The Journey" is actually a new Canada Goose store in Toronto that's more Disney ride than fancy mall shop. Here's how the location's multisensory experience goes down:

- __"The Crevasse" (that's what the Goose calls it):__ You enter a narrow hallway surrounded by rock walls, hear Arctic sounds, and see images of ice cracking under your feet.
- __"The Elements Room":__ The only lame room — you watch nature videos and see some Canada Goose coats that cost more than your rent.
- __"The Gear Room":__ Modeled after Norway's apocalyptic vault housing all the world's seeds, The Gear Room is where you actually put on a Canada Goose coat.
- __"The Cold Room":__ Test-drive that Goose parka in a 10-degree room that actually snows, enjoying Arctic conditions while tucked within a thousand-dollar, down-stuffed coat.


_Canada Goose trying to make "Snow Fetch" happen_

Chill

__*Sensational* is the new *experiential*...__ This new Canada Goose spot doesn't even carry the product in-store — that's how focused it is on the experience. It's an Arctic theme park meant to awe. 

- __Experiential retail:__ The NYC __Allbirds__ store includes a human hamster wheel (so you can try the shoes), while __Casper's__ "The Dreamery" lounge sells $25 naps on its mattresses in futuristic sleeping pods.  
- __Sensational retail:__ Canada Goose puts you in a near-death situation, burning *I need this jacket to survive* into your psyche. Not to mention the Insta stories you'll tell.

__PS:__ If you order a parka by 2pm on the day of your visit, they'll mail it to you by the next day. Hopefully you'll have warmed up by then.

Canada Goose opens a store that will freeze your cash off

It's 10 degrees & snowing inside Canada Goose

__There's a battle in your living room...__ TV dominated family attention for the last 60+ years — now cord-cutters are moving in. __[Roku's](https://robinhood.com/stocks/roku)__ adorable dongle is the #1 streaming stick in the US, but its competition includes Amazon's Fire stick, Apple TV, and even Comcast (the cable OG offers a streaming box to all internet customers). They're the 700-channel bundles to Roku's single antenna.

__If you think *House of Cards* got boring...__ just watch Roku's stock instead. We noticed that shares dropped 15% Monday, but then bounced up 6% on Tuesday. That's because 2 analysts at 2 different banks had 2 completely opposite interpretations of where Roku shares are going:

- __Down?:__ A Morgan Stanley analyst [blamed](https://www.reuters.com/article/us-roku-stocks/roku-tumbles-15-as-morgan-stanley-warns-of-streaming-exuberance-idUSKBN1Y623K) "__overall exuberance__ over all things streaming” for his Roku stock downgrade. 
- __Up?:__ An analyst at Needham  [thinks](https://www.marketwatch.com/story/roku-stock-bounces-after-needham-gets-more-upbeat-2019-12-03) __Roku is the YouTube of streaming__ — just like YouTube became the default for homemade cat videos, Roku is cord-cutters' future go-to destination for *Chef's Table*.

_Investors are tugging both sides of little Roku_

Streamed

__Roku reveals the nuances of analyst ratings...__ One is a stock upgrade and one is a downgrade, but they're basically arguing whether Roku is great or incredible. Roku controls TV sets for 32M households and the stock has already quadrupled this year to $145. One analyst thinks it's worth $110/share, the other says $200/share — either way, it's a top stock of 2019.

Roku may have just become the most polarizing stock on Wall Street

__End of an era...__ __[Alphabet](https://robinhood.com/stocks/GOOG)__ (aka Google's parent company) suddenly/shockingly announced that Google's co-founders will retire as CEO and President of Alphabet. ASAP. They're replaced by Sundar Pichai, an Indian-born, Wharton-educated 15-year Google vet who worked on the hugely important Chrome and Android divisions — then he became Google CEO in 2015. Here's Sergey and Larry's take on their new roles as mere board members and muggle shareholders:

- "*We believe it’s time to assume the role of proud parents — offering advice and love, but not daily nagging!*"

__DON'T BE EVIL...__ It's right there on [page 5](https://www.sec.gov/Archives/edgar/data/1288776/000119312504073639/ds1.htm) of Google's S-1 document from their 2004 IPO. Sergey and Larry founded Google to enable moonshot ideas to change the world (and to help people cheat at trivia). But Google's highly googleable motto conflicts with its recent controversial moves:

- [Project Maven](https://www.theverge.com/2018/6/1/17418406/google-maven-drone-imagery-ai-contract-expire) involved Google's artificial intelligence helping __military drones__.
- 4 Googlers were just [fired](https://www.buzzfeednews.com/article/ryanmac/fired-google-employees-nlrb-investigation-cbp), and they claim it was for trying to organize a __labor union__.
- Thousands of Googlers [protested](https://www.theguardian.com/technology/2018/nov/08/google-sexual-harassment-policy-overhaul-walkout-protest) the company's soft handling of __sexual harassers__ last year.
- [Project Dragonfly](https://www.forbes.com/sites/jeanbaptiste/2019/07/19/confirmed-google-terminated-project-dragonfly-its-censored-chinese-search-engine/#3ebd403c7e84) was Google's attempt to make a special __censored search engine__ for China.  

_Two top Googlers are done Googling_

Transition

__Alphabet needs 1 decisive leader...__ Larry and Sergey founded Google in 1998 under the religion of do-gooder-ness, collaboration, and trust falls. Today, it's picket lines, political scrutiny, and employee unrest. That recent chaos requires 1 leader, not the awkward trio it had until yesterday. Wall Street rewarded the fresh CEO by inching shares higher Tuesday night after news broke.


Alphabet loses Sergey Brin and Larry Page... the co-founders of Google

_Two famous Googlers are done Googling_

Google's co-founders go incognito

__"BFCM"...__ That's what __[Shopify](https://robinhood.com/stocks/SHOP)__ calls the hazy credit card memories of the past 4 days. Now that Black Friday/Cyber Monday is over, we want to highlight another winner (besides omnichannel commerce and shopping on your phone, which we covered [yesterday](https://snacks.robinhood.com/newsletters/57GuY5VfvJpyU672ion2le/articles/51xoRvzdEY4ZRuU8XeZ43W)): *Shopify*. 

- [$900M](https://twitter.com/Shopify/status/1200782747574374400) of online shopping went through its ecommerce pipes on Friday. Since $7.4B total was spent online on Black Friday, that means __Shopify handled 12% of all US online shopping__.

__The Force...__ *'An energy field created by all living things. It surrounds us, penetrates us, and binds the galaxy together.'* It's almost like Obi-Wan knew Shopify would empower brands to manage their own ecommerce. Companies that want to sell online have 2 key options:

- __Use a middleman, aka a platform__ like Amazon, eBay, Walmart, Target, Best Buy, or Dick's Sporting Goods. They'll take a cut of the transaction.
- __Do it yourself__. For Allbirds, Kylie Cosmetics, and — even Tesla until recently — Shopify invisibly handled their website, managing the behind-the-scenes of ecommerce from payments to order management.
- FYI, __[Adobe](https://robinhood.com/stocks/ADBE)__ and __[Salesforce](https://robinhood.com/stocks/CRM)__ do this back-end work too (also without you even noticing), snagging monthly software subscription fees for it.

_"Your six-digit activation code, please send"_

Splurge

__Wall Street sees what Shopify is doing, and likes it...__ Shopify isn't profitable — never has been. But when you own a growing share of a growing market, investors are usually happy. That's why the stock price has grown 8x bigger the past 3 years. The hope is that soon Shopify won't have to spend so much on marketing to grow — then it'll be able to sit back, charge companies monthly ecommerce fees, and get profitable. 

Shopify is the Force behind the record Cyber Monday

__McLate...__ A full 3 months after Popeye's faced a crispy chicken sandwich shortage (good problem to have), __[McDonald's](https://robinhood.com/stocks/mcd)__ wants in. Yesterday, the fast food chain started [testing](https://www.cnn.com/2019/12/02/business/mcdonalds-fried-chicken-sandwich/index.html) its own caloric version in its Houston and Knoxville restaurants. We know what you're thinking: Didn't fry-master McDonald's already do fried chicken?

- McNuggets and the McChicken Sandwich don't count — they're not "Southern" style.
- McD's has tried multiple other chicken sandwich options, but none came close to Big Mac fame.
- __Solution:__ *Steal Chick-Fil-A and Popeye's Southern-style crispy chicken concept, with butter and pickles.*

__The *other* other white meat...__ is worshipped nationwide right now. Southern-style fried chicken sandwiches became profit puppies for a pair of McD's rivals during last summer's Chicken Sandwich Wars:

- __Popeye’s:__ Feasted on its [best](https://www.cnbc.com/2019/12/02/mcdonalds-teases-test-of-a-chicken-sandwich.html) quarterly sales growth in nearly 20 years as its brioche bun-nestled fried chicken sandwich grew sales by 10%.
- __Chick-Fil-A:__ Now America's 3rd largest restaurant chain by sales — Chick-Fil-A has about [double](https://www.barrons.com/articles/mcdonalds-has-a-real-competitor-in-chick-fil-a-51560162600) the sales *per restaurant* as other fast food joints.

_McDonald's chicken spies delivered their report late_

Serve

__McDonald’s franchisees are its secret sauce...__ 9 of 10 McD's restaurants worldwide aren't owned by Ronald, they're actually owned by a franchisee — an entrepreneur who McDonald's licenses its logo/recipes/supplies to in exchange for fees and a portion of their location's sales. Back in July, franchisees wrote a [joint letter](https://www.cnbc.com/2019/07/10/mcdonalds-us-franchisees-ask-for-a-chicken-sandwich-to-compete-with-chick-fil-a.html) to McD's asking for a chicken sandwich ASAP... before the Chicken Sandwich Wars. They were right. McDonald's finally admitted it.

After missing the first memo, McDonald's finally jumps into Fried Chicken Sandwich Wars

_"Your six-digit Shopify activation code, please send"_

Shopify is "The Force"

__We need to rename Black Friday...__ Odds are you weren't trampled this year by neighbors in pursuit of a *Frozen 2* doll. We already unwrapped Black Friday sales data — the era of aggressive in-store gift hunting post-Thanksgiving is over:

- __In store:__ Sales at physical stores [dropped](https://www.cnbc.com/2019/11/30/black-friday-shopping-at-brick-and-mortar-stores-dropped-by-6percent.html) __6.2%__ from last year *and* the number of shoppers in those stores fell by __2.1%__.
- __Online:__ Black Friday purchases made online [increased](https://techcrunch.com/2019/11/30/black-friday-sees-record-7-4b-in-online-sales-2-9b-spent-using-smartphones/) by __20%__ to hit a record $7.4B.

__Your phone won Black Friday...__ You're probably not shocked that ecommerce outpaced physical shopping — buying fresh pajamas online while in your pajamas isn't new. But the surprise this year was the domination of smartphone and pick-up orders that transformed Black Friday into "Mobile Cyber Pickup Week":

- __Mobile $$$:__ Too tired to open a laptop? 65% of Black Friday's online sales happened on [smartphones](https://www.forbes.com/sites/johnkoetsier/2019/11/30/record-black-friday-sales-14-growth-to-72b-in-digital-revenue/#1d6b12586aff) — that's the biggest day ever for mobile ecommerce transactions, up 35% from last year.
- __Pickup $$$:__ Annoyed waiting that agonizing 48 hours for shipping? *Yes, we are outrageously spoiled.* "Buy online, pickup in store" sales [jumped](https://www.cnn.com/2019/11/30/business/black-friday-sales-record/index.html) 43% from last year.

_Old school Black Friday reenactors_

__Omnichannel. It's taking over the way we shop...__ Omnichannel is the unnecessarily complicated retail term for making sure all sales channels work together like synchronized elves: Buy Spanx online or in-store, and get them delivered online or in-store. __[Target](https://robinhood.com/stocks/TGT)__ and __[Walmart](https://robinhood.com/stocks/WMT)__ invested heavily in software and logistics to make omnichannel possible... which could be the difference they need to finally slow Amazon's growing control of our shopping.

Black Friday is dead — long live "Mobile Cyber Pickup Week"

__We're getting Lannister vibes...__ from the *Game of Thrones*-worthy strategy behind __[Charles Schwab's](https://robinhood.com/stocks/schw)__ acquisition of __[TD Ameritrade](https://robinhood.com/stocks/amtd)__. First, the discount broker dropped the commission it charges on stock trading to $0 in September — that hurt both Schwab and TD, but damaged TD more since trading commissions made up 32% of its business and only 7% of Schwab's. Then, after injuring commissions-dependent TD, it was easier (and cheaper) for Schwab to acquire its rival for $26B.

__StubHub outgrew its eBay nest...__ So the go-to ecommerce option of the '90s  [sold](https://snacks.robinhood.com/newsletters/7HLuEmTA2m11YmvuEfOeT7/articles/3bc23LUzhXMzs2tvPUi5o7) its ticketing site __StubHub__ for $4B to European tival __Viagogo__. __[EBay's](https://robinhood.com/stocks/ebay)__ fallen way behind Amazon in online shopping, so activist investors pushed eBay to sell the distraction (no offense, StubHub). Now eBay can focus on growing its 6.1% share of US online sales (__Amazon's__ [got](https://www.emarketer.com/content/digital-investments-pay-off-for-walmart-in-ecommerce-race) 47%). At least eBay enjoyed an Antiques Roadshow-esque return: It bought up StubHub for only $310M in 2007.

__Here's the old news...__ __[Google](https://robinhood.com/stocks/goog)__ acquired __Fitbit__ for $2.1B. Here's the new news: *__[Facebook](https://robinhood.com/stocks/fb)__ wanted Fitbit too, and was just [$10M short](https://www.cnbc.com/2019/11/26/facebook-was-mystery-firm-bidding-against-google-to-buy-fitbit.html) of Google's winning bid*. The failed attempt shows that one of Big Tech's next battles is over your body's data. Apple has its Watch, Google has its own new wearable, and Facebook may have to build up from scratch.

__The tariff war hasn't felt real for us...__ but it's really real for __[Dollar Tree](https://robinhood.com/stocks/DLTR)__. Revenues rose last quarter for the 15K-store chain, but its costs grew faster because of [tariffs](https://www.axios.com/dollar-tree-us-china-trade-war-costs-a9dc23bb-bf29-4e76-ab40-3a5ff2fd3e76.html) it pays for the Made in China plastic-anything it sells — the stock plummeted 19% lower in 1 day on that news. On December 15th, a fresh round of tariffs is [scheduled](https://www.cnbc.com/2019/12/01/china-wants-tariffs-rollback-in-phase-one-trade-deal-with-us-says-chinese-media.html) — this time on the other half of things from China (which have so far been tariff-free) like electronics, shoes, and other stuff on your wishlist.