🎶 Sonos beats Google (for now)

...and your caffeine habit is getting pricier [Disclosures](   When the lofi beat drops [Luis Alvarez/DigitalVision via GettyImages]   Yesterday’s Market Moves   Dow Jones 35,625 (+0.31%) S&P 500 4,480 (+0.26%) Nasdaq 14,794 (-0.20%) Bitcoin $45,570 (-4.51%) Dow Jones 35,625 (+0.31%) S&P 500 4,480 (+0.26%) Nasdaq 14,794 (-0.20%) Bitcoin $45,570 (-4.51%) Hey Snackers, From the [earthquake]( in Haiti to the [turmoil]( in Afghanistan, there's a lot of somber news in the world right now. We want to acknowledge that before diving into today's business news. Stocks closed at record highs again yesterday, despite the fact that five US states [set]( new records for Covid cases. Lofi Sonos wins a preliminary ruling against Google — and it could be just "the tip of the iceberg" Legal thriller soundtrack… but make it surround sound. [Sonos]( makes multi-room speakers to fill your Napa winery with lofi jazz. The Santa Barbara-based company uses smart tech for voice control and syncing of its $1.3K+ Surround Sets. Speaking of tech... - The story: A judge preliminarily ruled that [Google]( infringed on five of Sonos’s smart speaker patents. - The backstory: In January 2020, Sonos [sued]( Google for allegedly using its patented speaker tech — while undercutting Sonos's prices with cheaper speakers. - The way back story: In 2013, Sonos shared the tech specs for its smart speakers with Google for a Google Play Music partnership. Sonos alleged Google stole that tech and used it in dozens of products. Cue the deep bass... As part of its suit, Sonos is asking for an import ban on relevant Google hardware — including Google Home smart speakers, Chromecasts, and Pixel phones. Those are made in China and shipped to the US for sale. But it's not Game Over yet: the International Trade Commission still has to decide whether to reverse or accept the judge's decision. That's scheduled for December 13th. THE TAKEAWAY Taking on Goliath is a big risk... that could have a big payoff. Sonos is worth $5B — Google is worth nearly $2T. By challenging Google, Sonos risks paying major legal fees and damaging potential partnerships with big companies. But if Sonos wins, it could force Google to pay licensing fees for every device that allegedly uses its tech. Sonos [claims]( this suit is just “the tip of the iceberg,” estimating that Google has infringed on 150+ patents. Sonos stock jumped 5% after the legal win. Java "Swapflation" could be coming: coffee is getting pricier — and possibly less tasty Dropped my double-shot latte... The cost of coffee beans has [soared]( 43% so far this year, according to NYT. A combo of factors are making beans more expensive: - Cold brew: An unusual frost in Brazil — the world’s largest coffee producer — is expected to cause this year’s Brazilian coffee crop to drop a whopping 19% from last year. - Bitter brew: Political turmoil in Colombia — the world’s third-largest producer — caused bean output to fall 52% in May from last year. - Slow brew: Supply chain bottlenecks and labor shortages have also slowed delivery times. Caffeine jitters... Folgers and many independent coffee shops plan to pass on costs to consumers by raising prices. Meanwhile, [Starbucks]( and [Nestlé]( buy their beans so far in advance that they won’t have to worry about price increases for at least a year. But they still [might]( prices (venti macchiato isn't safe). Besides hiking prices... - Java giants might consider "swapflation." We've seen it before: in 2012, the roaster for Chock full o’Nuts [swapped]( out popular arabica beans for cheaper, but less premium, “robusta” beans. Prices for arabica beans are [up]( 50% in the past 12 months. THE TAKEAWAY “Swapflation” could be coming... and not just in coffee. Companies can deal with rising costs in three ways: raise prices (#inflation), shrink products (#shrinkflation), or swap ingredients (#swapflation). Companies know that consumers hate paying extra for the same products — so some may swap in cheaper ingredients to cover price hikes. What else we're Snackin' - [Crash]( Federal safety regulators are investigating at least 11 accidents involving [Tesla]( cars that crashed into emergency vehicles while using self-driving features. - [IRL]( [Roblox]( shares dipped after the teen-favorite video game platform missed quarterly sales expectations — the game-palooza may be cooling as recovery continues. - [PowerTok]( The Chinese government has reportedly taken a stake and a board seat in TikTok-owner ByteDance's key Chinese entity. - [Hacky]( [T-Mobile]( said hackers breached a company database, and is investigating whether customer info was exposed. - [Milky]( Oat milk maker Oatly said its quarterly sales soared a frothy 53% from last year as the alt-milk boom keeps booming. - [SeaFi]( [Google]( and [Facebook]( are participating in a new underwater cable system to improve internet access across the Asia-Pacific region. 🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up [here](. The Snacks Daily Podcast Adidas just sold off Reebok to a company called Authentic Brands for $2.5B. The bigger story: who is Authentic Brands? Snack Fact Of the Day [The total value of the cryptocurrency market topped $2T on Saturday for the first time since May]( Tuesday - Retail sales report for July - Earnings expected from Walmart, Home Depot, Just Eat Takeaway, Krispy Kreme, and La-Z-Boy Authors of this Snacks own shares of: Google, Walmart, Starbucks, and Tesla ID: 1761998 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. They are also not research reports and are not intended to serve as the basis for any investment decision. Any third-party information provided therein does not reflect the views of Robinhood Markets, Inc., Robinhood Financial LLC, or any of their subsidiaries or affiliates. All investments involve risk and the past performance of a security or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit or protect against loss. There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing. The price of a given security may increase or decrease based on market conditions and customers may lose money, including their original investment. Robinhood Financial LLC, member FINRA/SIPC. Testimonials may not be representative of the experience of other customers and are not guarantees of future performance or success. Robinhood Financial LLC, member FINRA/SIPC. [Robinhood Terms and Conditions]( • [Disclosure Library]( • [Our Editorial Principles]( • [Contact Us]( • [FAQ]( [Manage Your Subscription Preferences](