__"Amazon of Africa"...__ The continent's first tech IPO on the New York Stock Exchange is __[Jumia](https://robinhood.com/stocks/jmia)__. Shoppers in 14 African countries (which represent 74% of the continent's consumer spending) can hit the ecommerce site to buy a dress. Or get Lagos' finest *suya* skewers delivered. Or book flights to Cairo. Or rent a Nairobi 1-BR flat. It's a mashup of plenty of US apps and is still plenty unprofitable, but the stock still surged 75% on Day #1.

[*More on Jumia in today's Snacks pod*](https://podcasts.apple.com/us/podcast/marketsnacks-daily/id1386234384?mt=2).

__Suit up...__ Big banks kicked off earnings season, and __[JPMorgan](https://robinhood.com/stocks/jpm)__ set the tone with record revenues and profits. As interest rates rise, so has its lending biz, which helped profits at its "Main Street" divisions surge 19%. Then CEO Jamie Dimon added some flair: The current economic expansion "[could](https://www.nytimes.com/2019/04/12/business/wall-street-bank-earnings-economy.html) go on for years."

__Extra legroom for all...__ First __[JetBlue](https://www.robinhood.com/stocks/jblu)__ rose after [revealing](http://otp.investis.com/clients/us/jetblue_airways/usn/usnews-story.aspx?cid=981&newsid=60609) its first transatlantic flights land in London by 2021. Then __[Delta's](https://www.robinhood.com/stocks/dal)__ profits [surged](https://www.cnbc.com/2019/04/10/delta-q1-2019-earnings.html) 31% last quarter. We broke down the two key reasons for Delta's jump (aka, its "Profit Puppies"):

1. __Biz/1st class:__ Fancy bookings rose 8% — And even though they're just about 1/3 of the seats, they make up about half the ticket revenue. Strong economy ==> more upgrade splurges.
2. __The credit card:__ Delta's plastic partnership with __[Amex](https://www.robinhood.com/stocks/axp)__ was extended another 11 years — That card's expected to bring in $7B annually for Delta, and [reportedly](https://thepointsguy.com/news/delta-amex-relationship-profitable/) makes up 35% of profits. 


Highs

Who's up...

__New vs. Nostalgia...__  __[Netflix](https://robinhood.com/stocks/nflx)__  fell 4.5% Friday after __[Disney's](https://robinhood.com/stocks/dis)__ Netflix-killer was revealed: Disney+ (Mickey's shares hit a record high the same day). Disney's strength is its library of timeless hits: *Star Wars*, *The Simpsons*, *Toy Story*, and other OG titles. And just as Netflix raises the price for its most popular plan to $13/month, D+ arrives at a binge-able $6.99.

__Fashion beat function...__ __[Under Armour](https://robinhood.com/stocks/uaa)__ dropped 4% on a single day after an annual survey showed people just aren't into it: UA's [ranking](https://www.barrons.com/articles/under-armour-stock-falls-because-consumers-like-other-brands-51554828676) dropped to 5th place in the basketball category and 7th in "casual." The report slammed UA for lacking innovation (too much *ath*, not enough *leisure*), just as [__Adidas__](https://www.robinhood.com/stocks/ADDYY) signed [Beyoncé](https://www.hollywoodreporter.com/news/beyonce-joins-adidas-as-creative-design-partner-1199522) as its creative partner.

__Out of battery...__ __[Panasonic](https://robinhood.com/stocks/PCRFY)__ may [pause](https://www.theverge.com/2019/4/11/18305976/tesla-panasonic-gigafactory-batteries-model-3) plans to expand battery production at __[Tesla's](https://robinhood.com/stocks/tsla)__ Nevada "Gigafactory 1." Its investment in Elon's China-based "Gigafactory 2" could be off too. Tesla dropped 4% as investors worry the joint venture drama's a sign of uninspiring car sales.

Lows

...And who's down

__Millennials broke Wall Street...__ Big corporate names made big moves to cater to cord-cut and car-less customers last week. Investors appreciated __[Disney](https://www.robinhood.com/stocks/DIS)__ acting like a tech company but punished __[Lyft](https://www.robinhood.com/stocks/LYFT)__ for acting too much like one. 

__Disruption + Profits. It’s complicated...__ Video-streaming and ride-hailing were born to break things. Profits were an afterthought. But investors' feelings shift when the companies move from the pre-disrupt to post-disrupt era. 

- __Streaming:__ Disney blessed us with an insane library of throwbacks, blockbusters, and TV-ish shows for silly cheap ($6.99/month), and shares popped 11% Friday.  
- __Ride-hailing:__ Since the IPO rush to buy Lyft drove the stock to $88, shares fell last week to under $60. And __Uber’s__ IPO paperwork Thursday [didn't help](https://www.cnbc.com/2019/04/12/lyft-stock-plunges-as-investors-get-a-first-look-into-ubers-finances.html) — Uber lost nearly $2B last year, and (by certain complex measurements) its revenue growth slowed.

Disrupt

__Streaming's getting baby treatment. Ride-hailing has to grow up...__ Investors showed they’re still cool with one's unprofitability, but they're losing patience with the other. 

- Disney earned Simba-worthy respect for __its magically unprofitable pricing__ for video streaming (ESPN+ and Disney+ are expected to lose money until at least [2023](https://www.theinformation.com/articles/disneys-costly-streaming-plans-wins-approval-from-wall-street?utm_medium=email&utm_source=sg&utm_campaign=article_email)).
- But since Lyft and Uber (let's go with "LUber") have been replacing local taxis for a decade, investors are ready for them to __stop losing billions of dollars__.


Streaming video & ride-hailing just grew up

Dow Jones

S&P 500

Nasdaq

Bitcoin

10-Yr US Treasury

_When you're waiting for Pinterest and Zoom's IPOs_

Streaming and ride-hailing just grew up

__Tinkerbell trained two years for this...__ __[Disney](https://www.robinhood.com/stocks/DIS)__ finally announced details on "Disney+," its streaming video service to take on [__Netflix__](https://www.robinhood.com/stocks/NFLX). Disney blasted the audience at its Apple-esque unveil with its magical advantage: Its "[treasure trove](https://www.nytimes.com/2019/04/11/business/media/disney-plus-streaming.html)" of movies. Here are the details:

- __Price:__ [$6.99/month](https://variety.com/2019/digital/news/disney-plus-streaming-launch-date-pricing-1203187007/) or $69.99/year, nearly half of Netflix's comparable plan.
- __Launch:__ Nov 12, 2019, in the US.
- __Bundle:__ Disney+ is separate from Hulu and ESPN+, Disney's other streaming assets, but there will "likely" be a discount if you bundle them.

__Gold, silver, and bronze...__ Now that Disney's acquired 21st Century Fox, it owns the [top three](https://variety.com/2019/film/box-office/2018-domestic-box-office-1203102841/) box-office films from 2016 and 2018. And it had 2017's top two. Imagine the binge-worthiness of Disney+:

- __Adult:__ *Star Wars, Marvel, Bohemian Rhapsody*
- __Kids:__ *Toy Story, Frozen, Finding Nemo*
- __Classics:__ *The Sound of Music, Titanic, Lion King, The Simpsons*


Watch

__Nostalgia vs. New...__ Disney's fighting Netflix with all the old DVDs and classic titles that Netflix execs probably grew up loving. When D+ rolls out, Disney will remove all its content from Netflix. Then it's Disney's billion-dollar branded movies/series vs. Netflix's *never-heard-of-but-my-friends-say-it's-awesome* original content.

Disney unveils "Treasure Trove" to kill Netflix

__"We do the right thing. Period."...__ Bold opening pitch by Dara Khosrowshahi, CEO of __Uber__. The IPO paperwork filed Thursday revealed its financials, risks, opportunities, and a bunch of missions and values. These [420 pages](https://www.sec.gov/Archives/edgar/data/1543151/000119312519103850/d647752ds1.htm) are its most official step yet to become publicly traded, and the IPO ETA is early May. 

__312...__ That's how many times we counted "ride-sharing" in the filing. It's technically "[ride-*hailing*](https://www.buzzfeednews.com/article/charliewarzel/lets-all-join-the-ap-stylebook-in-killing-the-term-ride-shar#.ksk27KmN0)" – And the word choice was a calculated (and not quite accurate) move. Here's what else we noticed:

- __Slowing (even negative) growth:__ Revenues grew 22x from 2014 to 2018, reaching $11B. But it's pumped the brakes — in mid-2017, one measure of its revenue was growing 22% per year. By the end of 2018 that was [actually negative](https://www.wsj.com/articles/uber-discloses-ipo-filing-11555015305?mod=hp_lead_pos2), at -0.04%.
- __Democracy:__ Unlike Lyft, Uber boasts a *one share, one vote* policy. Some Lyft investors are worried their two co-founders control 5% of shares but almost [50%](https://www.sfchronicle.com/business/networth/article/Lyft-wants-the-public-s-money-but-not-their-13701367.php) of voting power. 
- __Uber everything, everywhere:__ Uber has 91M users on 6 continents and 4 kids: ride-hailing, bikes/scooters, food delivery, and freight — with [autonomous](https://techcrunch.com/2019/04/11/uber-spent-457-million-on-self-driving-and-flying-car-rd-last-year/) driving/flying babies on the way.

__*Spoiler Alert:* "*We may not achieve profitability*"...__ Uber lost $10B in the past three years as it's fought viciously with Lyft for market share. For Uber to reach profits, it'll need to make some changes. 

- __Fewer promos:__ Each "refer-a-friend and get $10 off" code costs money. 
- __Fewer human drivers:__ Awkward, but if it can replace drivers with computer software, it'll keep more of the *78% of each ride fare* going to drivers.
- __More rent-taking:__ Eventually Uber's likely to raise prices for rides, spend less on lawsuits and acquisitions, and take its cut of the billions of Ubers happening every year.

Uber's IPO paperwork arrives (with a growth problem)


__All latte highs come to an end...__ That's the message from a Morgan Stanley analyst who downgraded K-Cup icon __[Keurig Dr. Pepper](https://robinhood.com/stocks/kdp)__. Shares fell 4% after he said the single-cup coffee's [explosive growth](https://www.barrons.com/articles/keurig-dr-pepper-stock-slips-morgan-stanley-downgrade-51554997515?mod=RTA) era is ending. Blame Keurig's patent expiration and competition from Nespresso.

__You take that mid-week cosmo shaken or stirred?...__ Cocktail mixing is now automated thanks to the recently-announced Keurig "Drinkworks" machine. It's a joint venture with Bud-owner __[AB-InBev](https://robinhood.com/stocks/bud)__, but the partnership is a result of both companies' insecurity: slowing growth.

- __The dream:__ If you already toss in Keurig coffee pods in the *morning*, a Drinkworks cocktail was strategically conceived as your Keurig product *in the evening*.
- __The reality:__ That $4 Moscow Mule pod may save you compared to $10 at the bar, but the $299 Drinkworks machine isn't cheap.
- __And the history:__ Keurig's had partnership problems before — Its "Keurig Kold" creation with __[Coca-Cola](https://robinhood.com/stocks/ko)__ was [shut down](https://www.businessinsider.com/why-keurig-kold-failed-2016-6) in 2016.

__The "razor and blades business model" isn't working here...__ That's when you sell one cheap item (razor) then make money off expensive refills (razor *blades*). Or your printer and its absurdly-priced ink. Keurig embraced the same model, but fresh competition makes its "cheap" entry pod machines too expensive to ever start.

Keurig Dr. Pepper downgraded despite cocktail K-Cups

Bitcoin Price

"_All of this content will be yours_"

Disney's Netflix-killer is born

__Over promise, under deliver...__ __[T-Mobile](https://www.robinhood.com/stocks/TMUS)__ followed that weak playbook by unveiling its "Un-Carrier TV" product — The wireless provider's attempt to "[replace cable](https://www.youtube.com/watch?v=hZJDAJDD-uw)." Society thought it would be big. It wasn't. But the number of TV announcements Wednesday was.

__Glad we DVR'd this...__ It's a lot to take in:

- __[T-Mobile](https://www.robinhood.com/stocks/TMUS):__ Unveiled its new video package. But it looks just like cable — For [$100/month](https://www.engadget.com/2019/04/10/t-mobile-tvision-home/), 150 channels are powered by a remote-controlled box connected to your TV.
- __[Alphabet](https://www.robinhood.com/stocks/GOOG):__ Jacked up the price for its live YouTube TV offering from $40 to [$50](https://www.theverge.com/2019/4/10/18304871/youtube-tv-april-2019-price-increase-discovery-hgtv). 
- __[AT&T](https://www.robinhood.com/stocks/T):__ The not-so-proud owner of *Game of Thrones* is reportedly thinking of selling off HBO in Europe for cash to pay down its debt (although the company [denied](https://variety.com/2019/tv/news/warnermedia-denies-sale-hbo-europe-att-1203185554/) it was true).
- __[Disney](https://www.robinhood.com/stocks/DIS):__ The biggest Netflix competitor is Disney+. It launches soon with TV series and movies including *Star Wars* and *Marvel.* And it [announced](https://deadline.com/2019/04/disney-non-fiction-slate-supper-club-1202592504/) Wednesday non-fiction will be on the menu, like delightful cooking shows (*Be Our Chef*).


Tube

__Cable might have been better after all...__ The 3-digit price of T-Mobile's TV shocked us. But it shouldn't have. Hulu, Netflix, and other OG cord-cutters have raised prices over the past year. Add up all your cord-cut subscriptions and the bill looks a lot like cable did (just more passwords to memorize/mooch).

TV cord-cutting's big day 

__More peanuts...__ __[Delta's](https://robinhood.com/stocks/dal)__ quarterly profits just jumped by 31%. The stock's now up 14% this year thanks to its two profit puppies: business class and credit cards. The strong economy has flyers upgrading to the expensive seats, but we're more interested in Delta's Amex plastic partnership.

__Long-term commitment...__ Delta just signed an 11-year extension to its __[American Express](https://www.robinhood.com/stocks/AXP)__ partnership for co-branded credit cards. That SkyMiles card is big for the airline's wallet:

- Amex [pays](https://skift.com/2019/04/10/delta-expects-to-make-7-billion-from-its-amex-relationship-by-2023-but-how/) Delta __1.25-1.50 cents per mile__ for the points you earn swiping your credit card.
- That's expected to add up to __$7B annually__ with this new contract by 2023 — *That's [double](https://www.bloomberg.com/news/articles/2019-04-02/delta-renews-amex-co-brand-credit-card-partnership-for-11-years) what Delta made with the Amex deal last year.*
- Now analysts [estimate](https://thepointsguy.com/news/delta-amex-relationship-profitable/) that __35% of Delta's profits__ come courtesy of all those Delta Amex cards.

Flight

__"*Emerging High Value Customers*"...__ That's the Delta marketing team's over-thought term for top Millennial fliers. It wants you hooked on its loyalty program because frequent flyer programs are airlines' [most](https://skift.com/2017/12/15/delta-air-lines-is-going-after-future-business-travelers-while-still-in-college/) profitable service. The co-branded Amex card is how it gets young travelers committed ASAP.

Delta rises 2% thanks to its "profit puppies"

__4,268 (and counting)...__ That's the number of __[Amazon](https://www.robinhood.com/stocks/AMZN)__ employees asking CEO Jeff Bezos and the Board to be more woke. And they all signed [the letter](https://medium.com/@amazonemployeesclimatejustice/public-letter-to-jeff-bezos-and-the-amazon-board-of-directors-82a8405f5e38). Their demand: Amazon adopt a "company-wide climate plan" to make the ecommerce icon a better global citizen.

__Good timing...__ Tech comrades at competitors have successfully [forced](https://www.theguardian.com/us-news/2019/mar/28/tech-workers-silicon-valley-activism) their companies to change policies on sexual harassment and AI ethics. Here's what the Amazonians want:

- __100% renewable energy:__ Amazon's failed to set a date to achieve it. [__Facebook__](https://sustainability.fb.com/) and [__Google__](https://sustainability.google/environment/) have.
- __Cloud for Oil & Gas:__ Amazon Web Services (its cloud division) has special services to help energy companies slurp out more oil from the earth.
- __Political donations:__ The Amazonians list 68 members of Congress that get Amazon donations who are solidly against climate change action. 

Activism

__Sustainability is Amazon's liability...__ "The Everything Store" has stellar likeability ratings (2019's #2 best corporate [reputation](https://theharrispoll.com/axios-harrispoll-100/)). That's despite its business model's impact on Earth. With companies held more accountable for social issues, consumers could push back on ecommerce's carbon footprint: *Amazon packing one pen in a desk-sized cardboard box*.

Amazon's climate policies challenged by 4,268+ workers

"_What does cord-cutting even mean?_"

Cord cutting gets less cool

__No shrinkage...__ In its first earnings report since its March IPO, __[Levi's](https://robinhood.com/stocks/levi)__ sales and profits rose 11% and 81%. That's 11x81 in jean-speak. The stock's now up 25% since its first day of trading. Even better, the CEO [doesn't think](https://www.youtube.com/watch?v=XYoyojCcgsc) you should wash your jeans. Maybe ever.

__Ripped. Not intentionally...__ Because of two market trends, denim sales globally have only risen 3.5% per year over the past decade — Not very fast, considering the rest of the economy's grown faster.

1. __Athleisure's__ [surged](https://www.businessinsider.com/denim-back-in-style-but-athleisure-changed-it-forever-2018-4) 7% per year as consumers rethink boot-cut skinny-crops for jog-worthy yoga pants — In 2017, US imports of stretchy knit options beat denim for the 1st time ever.
2. __Online shopping__ now makes up [over a quarter](https://www.retaildive.com/news/27-of-apparel-sales-are-now-online/526941/) of all apparel sales. But unlike jeggings, jeans need to fit just right, best tried-on pre-purchase. That's a challenge online.

Wear

__Stretch jeans to everywhere...__ That's Levi's strategy. It's leaning into its 166-year-old brand's global recognition to win jean sales away from other denim denizens. The real growth story is international, and it IPO'd to focus on that. So far, it's working — Here's [where](https://investors.levistrauss.com/news/financial-news/news-details/2019/Levi-Strauss-Co-Reports-First-Quarter-2019-Earnings/default.aspx) that happened last quarter (adjusted for foreign currencies):

1. __Americas:__ Sales up 10% to $717M
2. __Europe:__ Up 10% to $465M
3. __Asia:__ Up 14% to $253M — *China + India is where Levi thinks there's huge potential for growth*

Levi's tries on its first post-IPO earnings report

__Pulling a Meghan Markle...__ Shares of __[JetBlue](https://robinhood.com/stocks/jblu)__ popped in after-hours trading on speculation it could go transatlantic for its 1st time with a new London flight. Word [leaked](https://www.cnbc.com/2019/04/09/jetblue-appears-to-be-gearing-up-to-announce-service-across-the-atlantic.html) to CNBC that JetBlue's holding an "all-hands" meeting this afternoon from New York's JFK airport,  with "viewing parties" from other hubs. The details look cheeky:

- A __save-the-date email__ announcing the April 10th event featured a London ~~subway~~ underground style design.
- __Buttons with Big Ben and the London Eye__ were sent to JetBlue offices to be handed out during the "event."

__The royal treatment...__ JetBlue's channeling it. The airline's focused on its profitable business class-ish segment — Mint. It has flat-lying seats, fancy sliding-door suites, and meals that don't come in wrappers. Since 2013, Mint's  focused on long East Coast <> West Coast flights (for now).

- JetBlue's President: "*When we think about transatlantic, we do think we can __disrupt largely around a Mint-like product__.*"
- Then she goes on about the transatlantic haul: "*It suffers from __the same lack of competition and high fares__ that transcontinental routes in the US saw before JetBlue introduced Mint.*" That's convenient.

Surprise

__JetBlue's innovating a whole new category...__ "*Upgraded Low-Cost.*" The airline industry's divided between low-cost and high-cost carriers — 75% of transatlantic flights last year were high-cost airlines like __[Delta](https://robinhood.com/stocks/dal)__ or __[British Airways](https://robinhood.com/stocks/ICAGY)__. But among the 25% that are low-cost, JetBlue's Mint option would fly above. London's calling.

JetBlue jumps on new London flight leaks

__Inspired by Captain America...__ The North Carolina based bank is [jacking up](https://newsroom.bankofamerica.com/press-releases/corporate-and-financial-news/bank-america-raise-minimum-wage-20-hour) its minimum wage to $17/hour on May 1st, rising to $20/hour by 2021. Boom. Compared to the too-low minimum wage of $7.25/hour nationwide, we're impressed. __[Bank of America](https://robinhood.com/stocks/bac)__ shareholders weren't, because higher pay could affect profits.

__The economy needs this...__ Americans in the bottom 60% of the wage scale haven't enjoyed a real income raise [since 1980](https://www.linkedin.com/pulse/why-how-capitalism-needs-reformed-parts-1-2-ray-dalio/?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosam&stream=top). Pay promotions have happened, but barely covered the increased cost of living. But record low unemployment of 3.8% is changing things:

- Since available workers are so scarce, they've got __serious leverage__ in pay conversations with their bosses. 
- So Bank of America is paying workers (a lot) more because they could __probably go somewhere else__.

Payday

__Treat tellers right...__ With digital-based banks sprouting up, Bank of America's building [500](https://www.reuters.com/article/us-bank-of-america-expansion/bofa-to-open-500-new-u-s-branches-in-four-years-idUSKCN1GA2JG) more physical branches to remind customers that it's physically there for them. Branches need human tellers. This pay raise ups morale for "[tens of thousands](https://www.wsj.com/articles/bank-of-america-aims-to-raise-minimum-wage-to-20-an-hour-by-2021-11554809603)" at BoA — And happier tellers charm customers.

Bank of America leads with $20 minimum wage

"_Behold... Denim!_"

Skinny jeans. Big Levi's profits.

__Sparkling water wasn't mindful enough...__ So __[New Age Beverage](https://robinhood.com/stocks/nbev)__ happened. It's leading the wellness beverage space with exotic kombucha-esque drinks. New Age shares surged 39% Monday as it signed a __[Walmart](https://robinhood.com/stocks/wmt)__ distribution deal — three low-sugar/carb/calorie Bob Marley-branded energy teas will [hit](https://www.nasdaq.com/press-release/new-age-beverages-corporation-expands-with-walmart---20190408-00206) shelves of Earth's biggest retailer.

__The deal smelled of CBD...__ (but it was technically CBD-free). New Age bought the Marley brand in 2017. With the blessing of Bob's family and a partnership with a cannabis investment fund, New Age turned to CBD: The relaxing, psychoactive-less pot extract you see [everywhere](https://www.usatoday.com/story/news/health/2019/04/08/cbd-marketers-cannabidiol-claim-hemp-derived-product-works/3374793002/).

- In January, New Age [announced](https://www.benzinga.com/markets/cannabis/19/01/12995005/new-age-beverages-to-develop-distribute-bob-marley-branded-cbd-infus) plans for a __CBD-enhanced "Marley Mellow Mood"__ flavor within the next year.
- Those 15.5-ounce cans would be filled with __25mg of "pharmacy-grade" CBD__.
- The CEO already __projected $30M in sales__ nationwide in the first year of CBD Mellow's launch.
- And you can already [find](https://www.amazon.com/product-reviews/B01KIYU58O/ref=acr_dpproductdetail_text?ie=UTF8&showViewpoints=1) Mellow on Amazon — __But it's got no CBD__. And there's a reason.


__One main factor affects New Age's CBD future...__ The federal government. While cannabis is legal in some US states, it's still not legal federally. That's an issue if you're distributing nationwide with, say, Walmart. May 31st is the FDA's public hearing on CBD foods, so New Age has its calendar circled. Until legalization, only CBD-free New Age drinks are included in the Walmart deal. 

CBD-focused New Age Beverage surges 39% on Walmart hookup

__Best superhero in a supporting role...__ goes to *Avengers: Endgame*. Pre-sale tickets for the roughly 712th edition of the Marvel movie series immediately [broke](https://www.cnbc.com/2019/04/08/amc-shares-soar-as-avengers-endgame-ticket-sales-fuel-confidence.html) records. That's why a research analyst upgraded shares of __[AMC Entertainment](https://www.robinhood.com/stocks/amc)__, and they jumped 9% on the report. 

__Don't care about IMAX or 3D-printed massage recliner seats...__ Your Snacks team ID'd three trends that explain why movie theaters are still a growing business:

1. __International:__ AMC's got a [deal](https://www.hollywoodreporter.com/news/amc-proceeding-plan-build-movie-theaters-saudi-arabia-1199362) to bring movies to Saudi Arabia for the first time. And China's [expected](https://www.scmp.com/culture/film-tv/article/2140381/china-will-soon-be-worlds-top-film-market-having-overtaken-us-canada) to become the world's biggest movie market soon. 
2. __Remakes, reboots, & blockbusters:__ Global hunger for spandex'd superhumans is insatiable. Aladdin, Lion King, and Pikachu are joining this year's summer movie [lineup](https://editorial.rottentomatoes.com/prev/summer-movie-calendar-2019/), too.
3. __Subscriptions:__ __MoviePass__ brought subscriptions to movies, but AMC's running with it — Its copycat "Stubs A-List" program ($24/month for 3 movies/week) has 19M members now. 

Oscar

__International growth > Domestic problems...__ With Netflix standing by, it's easy to decline Saturday's expensive $50 movie-out-for-two. North American box office sales barely budged over the past decade (just up ~1% per year). But AMC's tapping into a still growing industry: Exporting American-style movie theaters abroad for American-style movies.

AMC theaters jumps 9% thanks to huge Avengers ticket pre-sale

__Don't take it personally, GE...__ The "equity analyst" job description involves being judgy. Really judgy. About stocks. And JPMorgan's analyst for __[General Electric](https://www.robinhood.com/stocks/GE)__ [announced](https://www.cnbc.com/2019/04/08/ge-shares-dive-after-downgrade-by-top-analyst-tusa-at-jp-morgan-price-target-cut-to-5.html) he thinks the stock's not worth as much as everybody else thinks. It's just his opinion, but investors listen, so GE shares fell 5%. 

__GE's come a long way...__ Just not long enough, according to Stephen Tusa:

- __The Golden Era (1892-2016):__ GE became the American corporate conglomerate legend, making machines that moved people, mountains, and power.
- __The Reckoning (2016-2017):__ Tusa was first to call out GE for its profitability problems in a 235-page memo in May 2016. Here's his follow-up a year later (a quick [133-page read](https://www.docdroid.net/z2v4Xvp/jpm-general-electric-co-2017-07-06-2375286.pdf)). *Shares are down 68% since 2016.*
- __The Cleanup (2018-today):__ Fixing GE is a work in progress, but shares have risen 50% on that progress so far.

Buzzkill

__A 127-year-old is really, really slow to change...__ GE's been impressively honest with itself about its problems. It's on its 3rd CEO in two years, written down the value of a bunch of its poorer divisions, and [chosen](https://www.ge.com/reports/ge-next-chapter-ge-ceo-lays-plans-future-company/) just three it'll focus on going forward (aviation, power, and renewable energy). Tusa sees a lot more work to do.

One particular analyst made General Electric fall 5%

"_Watch what I can do to AMC shares_"

Ironman and Thor saved a stock

__Snapchat's into gaming...__ Shares rose 6% last week after __[Snap's](https://robinhood.com/stocks/snap)__ first "Partner Summit." The [highlight](https://www.youtube.com/watch?v=zlbRDJhUXwE): The new "Bitmoji Party" you can play with your avatar-ized buddies. And it's got 5 more multi-player smartphone games hitting the app soon. It's all about user engagement and re-finding Snap's mojo since user-growth stalled.

__*Not* Lyft...__ (and that's OK). Two IPOs last week showed you don't have to be an app — just be yourself. First, __[Tradeweb Markets](https://robinhood.com/stocks/tw)__, an electronic trading platform, jumped 33% on its first day of trading (kinda meta). Then __[Silk Road Medical](https://robinhood.com/stocks/silk)__ surged 81% on excitement for its stroke-prevention medical treatments. FYI, __[Lyft](https://robinhood.com/stocks/lyft)__ swung down before finishing the week above its IPO price.

__What happens in Vegas...__ doesn't really matter compared to Macau. The government authority in China's gambling mecca announced the highest monthly gaming revenues of the year so far. Count it as a [win](https://www.thestreet.com/investing/stocks/casino-stocks-hit-the-jackpot-on-latest-macau-gaming-numbers-14912704) for US gambling stocks — 69% of __[Wynn's](https://robinhood.com/stocks/wynn)__ biz comes from Macau and __[MGM](https://robinhood.com/stocks/mgm)__ just dropped a $3.4B resort there.

__*Streaming* is a side-hustle...__ for Apple and Amazon. But it's full-hustle for __[Roku](https://robinhood.com/stocks/roku)__. The TV streamer's shares fell 4% last week on [word](https://www.marketwatch.com/story/roku-stock-tumbles-after-analyst-says-apple-is-indeed-a-threat-2019-04-04) Big Tech will compete more in its media space. Bright side: At least Roku now says its system will be [ready](https://techcrunch.com/2019/04/05/the-roku-channel-adds-support-for-hbo-just-in-time-for-game-of-thrones/) for *Game of Thrones*.

__"Put your reasonableness pants on"...__ That's what a judge just [told](https://www.cnn.com/2019/04/04/business/sec-elon-musk-contempt-hearing/index.html) Elon. And that was the least concerning issue for __[Tesla](https://robinhood.com/stocks/tsla)__ shareholders. They were more worried about its [production report](https://www.wired.com/story/teslas-disappointing-numbers-more-car-news-this-week/) showing 63K Teslas delivered last quarter — a 31% drop from the previous quarter. Blame how long it takes to ship cars to China and Europe, and (maybe) less demand from buyers. 

__No good deed goes unpunished...__ __[Boeing](https://robinhood.com/stocks/ba)__  decided to pour [more resources](https://www.nytimes.com/2019/04/05/business/boeing-737-production.html) into figuring out what went wrong with its 737 Max jets. Humanity likes that. But shares fell Friday because it means Boeing's cutting production of those jetliners by 20% from 52 to 42 per month.

__Big first move...__ The dating app where ladies initiate, __Bumble__ already revealed its IPO interest last fall. Now it's just [launched](https://bumble.com/the-buzz/introducing-bumble-mag/) *Bumble Mag*: A 100-page, coffee-table worthy, lifestyle advice-packed, physical magazine (remember those?). Our favorite numbers from the Mag:

- __Issue #1:__ Bumble advisor Serena Williams quilled a story, with interviews from female founders like Man Repeller's Leandra Medine.
- __50M:__ Bumble's total userbase (who can request a copy of the mag in-app).
- __2:__ Pull-out posters in the mag that can be used as backdrops for new profile pics in the dating app.

__Online just defined the relationship with offline...__ After digging into *Bumble Mag*, we were shocked at the number of [digital brands](https://techcrunch.com/2019/04/04/bumble-goes-to-print-with-its-new-lifestyle-magazine-bumble-mag/) with a thing for analog publications. In an app-first era, *disconnected* engagement now drives *connections* with digitally-native brands:

- __"*Wooly*":__ Mattress-in-a-box pioneer __Casper__ explores "comfort, wellness, and modern life" for $12 per magazine.
- __"*Here*":__ Suitcase icon __Away__ is on issue #7 of its travel print.
- __"*Grow*":__ Yes, __Facebook__ has a quarterly magazine for business leaders who love "thought leadership," "synergies," and buzzwords.
- __"*Airbnb Mag*":__ That Wes Anderson-inspired movie theater apartment in Ontario? __Airbnb__ curates its most obscure experiences at $18 for 6 issues.


Swipe

__This is Bumble's anti-Tinder strategy...__ __[Match Group](https://robinhood.com/stocks/mtch)__ dominates online dating with over 45 apps (including Tinder and Hinge). Bumble CEO and founder Whitney Wolffe [is open](https://www.wsj.com/articles/bumble-is-open-to-a-right-swipe-on-ipo-1542231332) to IPO, and knows a lifestyle brand is Bumble's differentiator — Its "Hives" (physical Bumble clubs for talks, socializing, and networking) were part of that strategy. So is its *Mag*.

Bumble launches physical magazine — Its future IPO differentiator

__It's the most wonderful time of the year...__ Happy earnings season, as companies give the gift of their financial and strategy updates, starting with big banks (__[Wells Fargo](https://www.robinhood.com/stocks/WFC)__ and __[JPMorgan](https://www.robinhood.com/stocks/jpm)__). But this season's different — Slowing global economies and shrinking impacts from 2017's US tax cut have investors worried about the first quarterly [profit decline](https://www.factset.com/hubfs/Resources%20Section/Research%20Desk/Earnings%20Insight/EarningsInsight_032919.pdf?utm_source=newsletter&utm_medium=email&utm_campaign=newsletter_axiosedge&stream=business) in two years.

__2018. Good year. Maybe too good...__ The huge tax cut passed in December 2017 boosted 2018's profits for S&P 500 companies by 20%. *Twenty-percent* (that's crazy strong growth). Analysts aren't getting the same vibes for 2019. They predict first quarter profits will fall by 3.9% compared to last year.

Scoreboard

__Don't be shocked by *profit shrinkage*...__ Companies already showed their cards — Many CEOs have recently warned us through "guidance," a heads-up on what to expect. And 73% of guidance lately has been simple: Profits will be less than last year. [__Walgreens__](https://www.robinhood.com/stocks/WBA) did it just last week, and its shares are down 14% since.

The 1st quarter earnings season kicks off Friday (with one worry)

S&P 500 

_Get physically ready. It's earnings season._

Bumble goes off its app

__We're getting bold aromas and notes of oak...__ from the earnings report of __[Constellation Brands](https://robinhood.com/stocks/stz)__. The liquor legend's beer sales jumped 9%, but wine slipped 8%. Blame that on 3 key [trends](https://www.bloomberg.com/news/articles/2019-01-17/americans-drank-less-alcohol-in-2018-for-the-third-straight-year):

1. Americans are drinking less.
2. When they do drink, it's higher-end stuff.
3. And they want to try something lower-cal (but refreshing).

__"Rosé all day" is over...__ "*Expensive low-alcohol rosé occasionally*" is the new thing. Constellation's adjusting to those shifting tastes in a big way with its wine portfolio — "Non-premium" is out and vintage Brunello is in:

- __Under-$11 labels:__ Gone. Constellation just sold off 30 of its cheapest brands for $1.7B (it was hoping to get [twice that](https://www.winemag.com/2018/10/25/constellation-brands-seeks-to-sell-wine-brands-in-3-billion-deal/)).
- __Over-$11 labels:__ They get all the attention. Constellation's promoting them through [new partnerships](https://www.cnbc.com/2019/04/04/constellation-brands-q4-2019-earnings.html) with the PGA and a bunch of NFL teams.


__Constellation's making alcohol more like seltzer...__ Rising Modelo sales have Constellation focused on beer. Next is __Corona Refresca__, the Mexican brand's 1st non-beer (but beer-branded) option that comes this month. Look out [for its](https://www.simplemost.com/corona-launches-line-refresca-malt-beverages/) Insta-worthy guava or coconut-lime flavor cans. Pairs well with those 3 trends above. ⬆️⬆️

Corona-owner Constellation switches from wine to beer

__Just one of those days...__ Shares of the electric car pioneer __[Tesla](https://robinhood.com/stocks/tsla)__ sank 8% Thursday on 1 business headline and 1 legal one:

- Both its car production and deliveries were __down across *every* Tesla model__ in the last quarter of 2018.
- __Elon Musk visited court__ after ignoring an SEC order for Tesla lawyers to screen his tweets *pre*-tweet (the judge gave him [2 weeks](https://www.nytimes.com/2019/04/04/business/elon-musk-contempt-court-hearing.html) to agree to a settlement with the SEC).

__63K eCars delivered — But that's down 31%...__ And Tesla got right down to the excuses for [coming up short](http://ir.tesla.com/news-releases/news-release-details/tesla-q1-2019-vehicle-production-deliveries):

1. __Ships take time:__ Tesla began exporting its lower-priced Model 3 to China and Europe. It takes a while for them to get there.
2. __$$$:__ That US government subsidy to encourage electric car purchases? Just got cut in half, making Teslas more expensive for customers.

eDrive

__Tesla shares have no chill...__ The polarizing CEO attracts lovers and haters (think pineapple on pizza). Thursday's report makes Tesla's goal for 360K-400K car deliveries this year look unreachable, so investors piled on the hate and sold shares. They think it'll run out of money. Others still think it's *the* car company of the future.

Tesla sold way fewer cars last quarter (and Elon hit court)

__Two struggling tech icons got together...__ The result is [Bitmoji Party](https://www.youtube.com/watch?v=zlbRDJhUXwE). [__Snap's__](https://www.robinhood.com/stocks/SNAP) launching video games with Bitmoji, the app it bought in 2016 to create custom avatars, the cuter cartoon vision of yourself. "Words With Friends" creator [__Zynga's__](https://www.robinhood.com/stocks/ZNGA) adding 5 more games to Snapchat soon. All multi-player. All smartphone playable.

__Engagement. Engagement. Engagement...__ *Engagement*. That's what social networks do. Snap's under pressure to add users and power engagement back up since Instagram copied its [Stories](https://buffer.com/library/instagram-stories) in 2016. But this gaming move's not that new:
 
- [__Facebook__](https://www.robinhood.com/stocks/FB) got gaming in 2009 with Farmville. Now 700M humans game there.
- __[Amazon](https://www.robinhood.com/stocks/AMZN)__ dropped $970M for the live-streaming, watch-your-buddy-pwn platform __Twitch__ in 2014. One [celebri-gamer](https://www.theverge.com/2019/3/13/18264366/ninja-ea-apex-legends-1-million-dollars-promoted-stream-fortnite-sponsorships) now has *14M Twitch followers*.

Bitmoji

__It always comes back to ads...__ A live Bitmoji Party brings physical friends together digitally, for free. And Snap rose 1% on hopes you'll love Snap-gaming so much you'll tolerate *ads* to earn virtual coins. Fortnite games hope you pay up for *in-game purchases* (picture digital you in a new costume). But ads are Snap's main game.

Snap jumps into video-gaming 

When you're Tesla and it's Thursday

Snapchat's Big Bitmoji Bet

__Long-time listener, first-time IPO'r...__ With 848 stations, __iHeartMedia__ is America's biggest radio broadcaster. And it just [filed paperwork](https://www.sec.gov/Archives/edgar/data/1400891/000119312519096030/d694706ds1.htm#toc694706_8) to list its shares on public markets.

- __*1 catch:*__ It filed for bankruptcy last year with $20B in debt from the '08 financial crisis. So it needs to thank a [bankruptcy judge](https://www.nytimes.com/2019/04/03/business/dealbook/iheartmedia-ipo-radio.html) who said it only has to pay a portion of that debt back.

__Battle of the bands 2019...__ is __[Spotify](https://robinhood.com/stocks/spot)__ vs. iHeart. And antenna-loving iHeart is putting up a shockingly good fight:

- __Total $$:__ The two brought in about the same revenue last year (~$6B), but Spotify's growing much faster. 
- __Total Ears:__ iHeart has 275M US listeners. Spotify has 207M (with 62M in North America).
- __Live Events:__ iHeartMedia leads with 20K/year, featuring Cardi B, Ed Sheeran, and iHeartRadio Fiesta Latina.
- __Podcasts:__ Spotify has acquired 3 podcast companies this year. But iHeart already connects 16.6M podders, making it the #2 podcast creator behind NPR.
- __Social:__ iHeart's radio hosts and personalities enjoy 145M followers, [compared to](https://www.billboard.com/articles/business/8505531/iheartmedia-files-for-ipo) the 28M following Spotify's.

Radio

__"*Companionship*" is the jingle...__ iHeart dropped that word 21 times in its IPO filing. Talk radio personalities bond powerfully with  daily commuters or anybody enjoying an AM/FM dial. It barely veils resentment for Spotify's core biz of "music collection...which essentially replaced downloads and CDs." It hopes advertisers agree.

iHeartMedia challenges Spotify with possible IPO

__The Church of "Uncarrier"...__ is led by unordained John Legere. The __[T-Mobile](https://www.robinhood.com/stocks/TMUS)__ CEO had already preached about his "Uncarrier TV," fixing all the stuff you hate about cable. On Wednesday, we got [details](https://www.engadget.com/2019/04/03/t-mobile-viacom-streaming-tv-service/): It'll feature __[Viacom's](https://www.robinhood.com/stocks/VIAB)__ TV channels, including Comedy Central, BET, MTV, and Nickelodeon. 

__It's exciting for 1 company...__ It's desperation for the other:

- __T-Mobile (networks):__ Its business is low-cost phone plans. And it boldly (and kind of unrealistically) wants the same with TV. No bundling, no minimum 2-year contracts, "no BS." *John's words, not ours*. 
- __Viacom (content):__ The last kid standing on the streaming dance floor. Other content companies paired-up to compete with Netflix. Viacom finally did, but Uncarrier TV hasn't even launched.

__"Bundling" beats "discounting"...__ We hope Uncarrier TV will be free for T-Mobile subscribers. If it does, T-Mobile can keep winning new customers with freebies. Bundling in free stuff earned it a record 2.4M new subscribers last year:

- __Major League Baseball__ streaming comes free to each T-Mobile subscriber.
- And __"T-Mobile Tuesdays"__ offer up free things weekly: 1 free taco. A Dunkin' latte. 10 cents off Shell gas.

T-Mobile seeks to "replace cable for the 5G era"

__Plush. Luxurious. Temporary...__ [For $34/month](https://www.reuters.com/article/us-ikea-sustainability/ikea-to-test-furniture-rental-in-30-countries-idUSKCN1RF0WY) in Holland, you get a bed, desk, table, and chairs. __Ikea's__ now shipping that idea to 29 more countries. It copies the home-y rental [partnership](https://www.cnn.com/2019/03/07/business/west-elm-rent-the-runway/index.html) between __Rent the Runway__ and West Elm (owned by __[Williams-Sonoma](https://www.robinhood.com/stocks/WSM)__), and is fueled by demand for subscriptions over ownership.

__2 distinct customer types...__ Many millions of customers. And they all want flexibility. Thanks to __Task Rabbit__, the gig handyman app Ikea acquired in 2017, these potential furniture renters don't even need to assemble the stuff. Or [pronounce](https://stickybranding.com/how-ikea-names-its-products-its-a-surprisingly-brilliant-naming-system/) Äpplarö.

- __College students__ don't want to buy couches that they'll have to toss on Craigslist two semesters later.
- __Startups__ don't want to waste investor money on desks when the venture could fail before the launch party.

Uncouch

__So many trends coming together...__ Ikea's pouring resources into scaling its anti-ownership rental plan. That's because it snugly fits in with 3 key current themes of twenty and thirty somethings:

1. __Transient:__ When you're bouncing city-to-city, you don't want the cost and weight of a dresser with you.
2. __Not rich:__ That 1.5-month security deposit was expensive enough.
3. __Environmentally conscious:__ Ikea's CEO wants designs like its Poäng armchair to embrace recyclable parts thanks to the new initiative. And to reuse furniture when the rental’s up.


Ikea expands furniture rentals to 30 countries

The race for $34/month living rooms

Ikea's 30-nation rental feng shui

__This is awkward...__ __[Blue Apron](https://robinhood.com/stocks/aprn)__ announced its CEO and its Chief Technology Officer (who is also the last co-founder still there) are "pursuing new opportunities." Linda Kozlowski (Etsy's former COO) is now top chef. Investors were so into the change that they bought up shares 15% in after-hours trading.

__Chefs in the kitchen...__ So many. Aggressive jumps into the meal kit market from big fish (Amazon, Walmart, Kroger) and little ones (Plated, HelloFresh, Sun Basket) hit Blue Apron hard — Shares have fallen 90% since its 2017 IPO. And the number of customers has [fallen](https://www.wsj.com/articles/blue-apron-replaces-ceo-11554243666), too:

- December 31, 2016: __1,000,000+__ customers
- December 31, 2017: __746,000__ 
- December 31, 2018: __557,000__


__Food tribes are the future...__ Gluten-full? Keto-ish? There's probably a meal kit for you. To stand out, Blue Apron's partnering with beloved brands to reach as many food-focused segments as possible. The stock popped in December [after it](https://markets.businessinsider.com/news/stocks/blue-apron-stock-price-soaring-after-its-ceo-steps-down-2019-4-1028080359) partnered up with __Weight Watchers__. Here are the others:

- Blue Apron __+ Fitbit + Adidas__ = [Activity](https://techcrunch.com/2019/03/06/fitbit-is-partnering-with-adidas-and-blue-apron-for-an-activity-rewards-program/) rewards for carb-loaders
- Blue Apron __+ Gimlet__ = [Podcasts](https://blog.blueapron.com/why-we-eat-what-we-eat/) for food lovers
- Blue Apron __+ GrubHub__ = Meal kits for [lazy](https://www.cnbc.com/2018/10/02/blue-apron-is-now-selling-its-meal-kits-on-grubhub-and-it-seems-odd.html) people
- Blue Apron __+ J. Crew__ = [Chinos](https://www.jcrew.com/th/womens_feature/BlueApron.jsp) for meal kit lovers


Blue Apron surges 15% after C-suite switcheroo

__We appreciate the candor...__ First, __[Walgreens](https://www.robinhood.com/stocks/WBA)__ became the worst-performing stock among the 30-company Dow Jones index. Then, its CEO called last quarter the "[most difficult we have seen](https://investor.walgreensbootsalliance.com/news-and-events/financial-news/financial-news-details/2019/Walgreens-Boots-Alliance-Reports-Fiscal-2019-Second-Quarter-Results/)" as profits fell 14%. He even downgraded expectations for the full year — he expects zero profit growth now.

__The CEO said, "[*no excuses*](https://www.wsj.com/articles/walgreens-cuts-earnings-guidance-after-a-challenging-second-quarter-11554204891?mod=hp_lead_pos1)"...__ But there were *reasons*. And he was happy to blame them for Walgreens' struggles.

- __"A weak cough, cold and flu season":__ Lack of fevers was good for society, but bad for sales of medicine, tissues, and bed-side ice cream.
- __"Continued de-emphasis of select products such as tobacco":__ Under pressure to follow [__CVS__](https://www.robinhood.com/stocks/CVS)'s leadership (the rival quit tobacco in all its stores), Walgreens tested out tobacco-less stores. Turns out it hurt sales, so Walgreens [won't expand](https://www.wsj.com/articles/walgreens-isnt-ready-to-quit-cigarette-sales-yet-11554049495) the pilot.
- *FYI: It hopes that adding __CBD products to 1,500__ locations can [help](https://investorplace.com/2019/04/walgreens-stock-cbd-cannabis/) ease some of that pain.*

Pharma'd

__Insurance companies. They can be bullies...__ When Walgreens sells prescription anything, it's paid by customers (a small co-pay) and insurance (the rest). And insurance companies keep growing [through mergers](https://money.cnn.com/2018/03/08/investing/health-care-mergers-cigna-express-scripts-consolidation/index.html). Now they're flexing their pricing power by paying Walgreens less for drugs you buy.
- Customers of monopolies __suffer__.
- And the health insurance market keeps getting __more monopoly-ish__.

Walgreens falls 13% to become the Dow's worst of 2019 so far

__15 million shares...__ That's [how much](https://pitchbook.com/news/articles/9-big-things-in-lyft-ipo-a16z-makes-a-killing) stock venture capital legend __Andreessen Horowitz__ owned in Lyft before the IPO. Now the decade-old VC's raised [$2B in cash](https://www.forbes.com/sites/alexkonrad/2019/04/02/andreessen-horowitz-is-blowing-up-the-venture-capital-model-again/#38172b017d9f) for a unique fund to find Lyft #2. And #3. And #50. And they like using [big terms](https://www.forbes.com/sites/alexkonrad/2019/04/02/andreessen-horowitz-is-blowing-up-the-venture-capital-model-again/#5a6b9207d9fa) to do it.

- Their first fund wanted to invest in __"megalomaniacal founders"__.
- Then they [created](https://a16z.com/2011/08/20/why-software-is-eating-the-world/) the concept of __"software eating the world"__.
- And the __"a16z" nickname__ is a coding thing — starts with an "a," ends with a "z," and has 16 letters in between (we didn't get it, either).

__Cue the makeover montage...__ Early stage venture investing not enough? Transform into a "Registered Investment Adviser." That's what a16z is doing. RIA life comes with extra regulatory rules — But it gives a16z freedom to drop money into more crypto and regular old public stocks, too. Other VCs will just watch (or [follow](https://techcrunch.com/2019/04/02/andreessen-horowitz-isnt-alone-in-leaving-behind-vc-as-we-know-it-and-more-company-is-coming/)).

Venture

__a16z breeds unicorns...__ Since starting the fund in 2009, it's invested in __Instagram__, __Buzzfeed__, __Dollar Shave Club__, __Skype__, and __Soylent__. And in 2019, its shares in __Slack__, __Lyft__, __Pinterest__, and __Airbnb__ will probably (or have already) become publicly traded. [This portfolio page](https://a16z.com/portfolio/) is really a humble-brag trophy case.


Andreessen Horowitz transforms venture capital with new $2B fund

*New CEO, new recipes*

$2B for future Ubers

__Going full paleo?...__ __[Kellogg](https://robinhood.com/stocks/k)__ is cleansing its home: For $1.3B, Italian sweets legend __Ferrero__ beat out Twinkie icon __[Hostess Brands](https://www.robinhood.com/stocks/TWNK)__ in a multi-month bidding battle for the Kellogg's dessert. The winnings include elf-powered Keebler, Famous Amos, fruit snacks, and even [Girl Scout](https://www.nj.com/news/2019/04/13-billion-deal-will-bring-keebler-girl-scout-cookies-other-tasty-treats-to-nj-based-snack-company.html) cookies (#SaveTheSamoas).

__Cookies need love, too...__ And that's what Ferrero does — It turns around tired candy brands with marketing love. It recently bought some candy bars from Nestlé for $1B and already reintroduced a "[Better Butterfinger](https://www.foodandwine.com/news/butterfinger-new-recipe-taste-test)" (with bigger peanuts 👌). Kellogg's hadn't been giving its older candy brands the [attention](https://www.cnbc.com/2019/04/01/kellogg-to-sell-keebler-and-famous-amos-business-to-nutella-owner-ferrero.html) they needed, and it shows:

- __$4.4B__ = The 2001 price Kellogg paid for Keebler.
- __$900M__ = The 2018 [total sales](https://www.wsj.com/articles/kellogg-to-sell-keebler-other-brands-to-ferrero-for-1-3-billion-11554127179) for Keebler *+  all the other brands Kellogg's just sold*.

Acquired

__Unhealthy isn't totally unhealthy...__ Kellogg's stock is down 11% in the last year as consumer tastes shift, and its sugar-fueled [cereals lose](https://www.fooddive.com/news/kelloggs-q4-revenue-tops-expectations-but-cereal-sales-are-still-soggy/516635/) out to chia pudding. But the calorie-infused brands that Kellogg has treated with marketing money are actually doing [just fine](https://www.cnbc.com/2019/03/25/ferrero-and-hostess-vie-for-kelloggs-keebler-and-famous-amos-cookies.html).

- __Cheez-Its__ (sales up 5% since last year)
- __Pringles__ (up 7%)
- __Rice Krispies__ (up 15%)

Kellogg's sells off cookie biz to Nutella-owner for $1.3B

__Long-term exclusive commitment...__ Saudi Arabia has historically been a one company Kingdom. That's __Saudi Aramco__, the state-owned oil giant. And as a privately-owned company, Aramco's financials enjoyed secret status. But now that it'll participate in public markets for the 1st time, we get a look at its (gigantic) numbers. 

__$15B to spare?...__ That's all Aramco's asking to borrow. To convince investors it's good for the money, it's showing off its profits. And they're extremely connected to whatever oil prices are doing:

- __In 2016,__ profits for Aramco were __$13B__. That's when the average price of oil hit a 13-year low of $38 per barrel. 
- __By 2018,__ profits had surged to __$111B__ thanks partly to oil prices returning to $58 — Aramco's profit was more than Apple, Alphabet, JPMorgan Chase, and Exxon Mobil's. [*Combined*](https://www.cnbc.com/2019/04/01/saudi-aramco-made-111-billion-in-2018-topping-apple-as-the-worlds-most-profitable-company-by-far.html).  
- __Despite the extreme profitability__, Aramco didn't get a perfect credit rating ("A1" = good, but lower than less-profitable American oil companies). Blame the bigger [political risk](https://www.nytimes.com/2019/04/01/business/saudi-aramco-profit.html) in the region.

Drill

__This may shake the oil habit...__ Aramco's profits fund [70%](https://www.washingtonpost.com/business/rare-glimpse-into-saudi-aramco-shows-111-billion-net-profit/2019/04/01/10a312ea-5479-11e9-aa83-504f086bf5d6_story.html?utm_term=.73fdfe9fec9e) of Saudi Arabia's national budget. That worries Crown Prince Mohammed bin Salman, as car giants and nations go electric. The $15B that Aramco's borrowing will give the Prince money to invest in economy-diversifying anything (he's got a thing for US [tech](https://qz.com/1426370/silicon-valley-is-awash-with-saudi-arabian-money-heres-what-theyre-investing-in/) and [movie theaters](https://money.cnn.com/2018/04/05/media/amc-saudi-arabia-cinema-license/index.html)).

The new most profitable company in the world: Saudi Arabia's Aramco (by far)

__But is it fake?...__ For [23 full minutes](https://www.youtube.com/watch?v=m8UQ4O7UiDs), John Oliver's *Last Week Tonight* put __[World Wrestling Entertainment](https://www.robinhood.com/stocks/WWE)__ in a figure-four leg-lock. The Sunday night show claimed WWE wrestlers are independent contractors facing brutal work conditions. WWE shares fell 2.3% early Monday before rebounding back.

__The ring of public opinion...__ That's where the stock's moves all played out. WWE was accused of blocking wrestler unions and offering them no benefits, just to save money. Then WWE aggressively denied everything from the HBO segment, [claiming](https://deadline.com/2019/04/wwe-john-oliver-last-week-tonight-hbo-vince-mcmahon-1202586366/) it could "refute every point in his one-sided presentation."

Grapple

__Feels like a docu-doozy re-run...__ High-profile exposés and documentaries that damage a brand can hurt share prices long-term. Here's who else has also suffered from the stuff on TV:

- *Blackfish* dampened __[SeaWorld](https://www.robinhood.com/stocks/SEAS)__ park attendance for years.  
- *Leaving Neverland* could hurt Michael Jackson's __[Sony](https://www.robinhood.com/stocks/SNE)__ music deal. 
- The infamous *60 Minutes* segment on __[Lumber Liquidators](https://www.robinhood.com/stocks/LL)__ ripped the lacquer off the wood company's shares. 