Robinhood Snacks - 🚢 Carnival stock sinks

"Get me off this ship"

 

 

Dow Jones

26,121 (-3.58%)

S&P 500

3,024 (-3.39%)

Nasdaq

8,739 (-3.10%)

Bitcoin

$9,113 (+4.04%)

10-Yr US Treasury

0.915%

Hey Snackers,

The latest venture to take a hit from the coronavirus outbreak: No Time to Die, the (unfortunately-named) new James Bond movie.

Markets fell sharply after Wednesday's relief rally — the VIX (aka Wall Street's "fear gauge") spiked almost 25% on stock sell-offs.

Cruise

Carnival is on an epic losing streak with (another) coronavirus-infected ship

THE TAKEAWAY

Major players in successful industries have resources to weather storms... Carnival's dominance might protect it long term from temporary (but major) setbacks. Today's coronavirus impact reminds us of the travel industry's struggle post-9/11. But industry-shaking issues like coronavirus could be bigger tests for smaller players with fewer resources:

• Luminous Cruise, a small Japanese operator, filed for bankruptcy due to virus cancellations.
• Struggling UK airline Flybe collapsed — the virus-related fall in sales dealt it its final blow.

Wear

Aerie emerges as American Eagle's MVP — its "product/market fit" game is strong

THE TAKEAWAY

Filling the Victoria's Secret vacuum... VS' sales have fallen because its brand of airbrushed models and extra-padded bras lost touch with customers (VS was recently sold off by its parent company). But the AerieREAL Role Models campaign features unretouched pics of female athletes, activists, and entrepreneurs, boosting sales significantly. The same shift in tastes that led to VS' sale/loss also led to Aerie's growth, positioning Aerie to take what Vicky missed.

What else we're Snackin'

• Canned: Canopy Growth — the world's biggest cannabis company — is closing down greenhouses and laying off 500 employees (weed demand has been lower than expected)
• Rejected: HP turns down Xerox's hostile takeover bid, calling the offer too low
• Recover: JPMorgan's CEO Jamie Dimon undergoes emergency heart surgery — 2 company deputies will take over while he recovers
• Wanta Planta: El Pollo Loco launches plant-based chicken tacos and burritos made with a soy protein it created itself (Wendy's also created its own alt-meat for its Plantiful burger)
• WFH: Facebook closes its Seattle office after a contractor there tested positive for coronavirus — its encouraging all 5K Seattle employees to work from home until March 31

The Snacks Daily Podcast

If you build it, will they come?

GM just unveiled a snazzy new electric battery and plans to invest $20B over the next 5 years in e-vehicles. But...

Americans haven't shown high demand for electric cars. Only 1.4% of the 17M cars sold last year were electric...

Will GM end up with a bunch of EVs and no buyers? More in our 15-minute Snacks Daily pod.

Snack Fact Of the Day

Human bodies contain about 30 of the 118 elements in the periodic table — iPhones contain 75 elements (or 64% of the elements that make up all known matter)

Friday

• February's big Jobs Report

Disclosure: Authors of this Snacks own shares of Carnival Cruises

ID: 1111257

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