🚴‍♀️ Peloton's new muscle

And Walmart's now a villain or a scapegoat [Disclosures]( Peloton just snagged another assembly line Yesterday’s Market Moves Dow Jones 30,016 (-0.67%) S&P 500 3,687 (-0.21%) Nasdaq 12,808 (+0.51%) Bitcoin $23,410 (+1.43%) Dow Jones 30,016 (-0.67%) S&P 500 3,687 (-0.21%) Nasdaq 12,808 (+0.51%) Bitcoin $23,410 (+1.43%) Hey Snackers, Surprise: Turns out Elon Musk [tried]( to sell Tesla to Apple sometime in the last few years, but Tim Cook wouldn't take the meeting (he's more of a souped-up Prius guy). Stocks fell for the 3rd straight day despite Congress passing pandemic stimulus #2. Ride Peloton jumps 12% after a $420M bike purchase Biker pro tip... Always splurge on the wheels. [Peloton]( is dropping $420M on Precor, a stationary bike-maker. Precor's an unsexy combo of 625K-sq-feet of manufacturing space and 100 Research & Development employees — but the strategic purpose powered Peloton stock up 12% to an all-time high (get them a mid-ride shoutout, @[Toussant](. "Biggest impediment to growth"... [That's]( what one analyst calls Peloton's inability to make its own bikes to meet demand. We call it a hill. Peloton stock is already up over 400% in 2020, but "not-being-able-to-make-enough" is problem #1 (there's still a months-long backorder). With Precor, Peloton buyers will (ideally) not wait as long between bragging about ordering a new bike and actually riding it. THE TAKEAWAY Peloton's unlocking the power of vertical integration... The ability for a brand to vertically integrate, owning its entire supply chain, can control success or failure. Direct-to-consumer icon [Casper]( warned it isn't vertically integrated, leading to long mattress waits that result in lower sales. Peloton's splurging on vertical integration to avoid that. Sued The US Government sues Walmart for (allegedly) fueling the opioid crisis You're guilty, too... We already know the biggest villain of the terrible opioid epidemic that ripped apart families and took hundreds of thousands of lives across America: Purdue Pharmaceutical. The fines and penalties coming to the OxyContin manufacturer (and Sackler family behind it) [forced]( their bankruptcy last year. Out of nowhere, another villain: - The US Justice Dept [sued]( [Walmart]( yesterday, alleging it helped fuel the crisis (and fuel Walmart profits) because prescriptions were filled too easily at Walmart pharmacies. - Walmart's response: The government's embarassed. Instead of owning up to failed regulation, they're looking for a scapegoat in Walmart. 76 prescriptions for every 100 Americans... That's the average [ratio]( that 200M+ addictive opioids were dealt out annually from 2006-2016 (it's down since, but still very high). We already know the drug company and tons of doctors who played a role in over-prescribing nationwide. Now Walmart's 5K in-store US pharmacies are under the spotlight. THE TAKEAWAY Cut corners, make profit... The lawsuit basically says that Walmart [handed out]( opioids willy nilly, without following proper rules & regs. Walmart stock fell about 1.5% yesterday as it pledged to fight this allegation in court (lawyers are expensive, too). But mainly it's bad PR, a distraction from the company's core biz, and could result in huge fines or penalties. What else we're Snackin' - [Spun]( [IAC]( stock jumps 14% on word it's spinning off YouTube rival Vimeo into a separate publicly traded company. - [Stream]( MGM Studios now wants to sell off the latest James Bond movie, since your local theater is probably empty. - [Shoot]( [Sportsman's Warehouse]( stock jumps 40% on news it's being acquired by Cabela owner Great American Outdoors Group. - [Needle]( [Pfizer]( is close to a deal with the US government to whip up more vaccine doses than planned. The Snacks Daily Podcast The Snacks pod hosts are on vacation, but just dropped a "Best of Snacks 2020" album: Our 3 favorite Snacks Daily podcast stories from the worst year yet. Taste our 15-minute pod on [Apple]( or [Spotify](. Snack Fact Of the Day [80% of kids’ wish lists are for devices and screens, up from 50% in 2017 (you've still got time to switch)]( Wednesday - Earnings expected from [Neogen]( - Consumer Price Index report Disclosure: Authors of this Snacks own shares of Apple and Peloton ID: 1459234 Robinhood Snacks newsletters and podcasts reflect the opinions of only the authors who are associated persons of Robinhood Financial LLC and do not reflect the views of Robinhood Markets, Inc. or any of its subsidiaries or affiliates. They are meant for informational purposes only, are not intended to serve as a recommendation to buy or sell any security in a self-directed Robinhood account or any other account, and are not an offer or sale of a security. 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