💊 Amazon launches an ePharmacy

Wednesday, November 18, 2020 by Robinhood Snacks | Disclosures
_Forgot the code for the Nasdaq check-in_

Forgot the code for the Nasdaq check-in

Dow Jones
29,783 (-0.56%)
S&P 500
3,610 (-0.48%)
Nasdaq
11,899 (-0.21%)
Bitcoin
$17,593 (+4.83%)

Hey Snackers,

The most adorable automation play of 2020: Bobacino. This robo boba-making prototype would be the star of any WeWork (kombucha on tap < tapioca on tap).

Markets dipped yesterday while bitcoin hit $17K for the first time in nearly three years.

e-Pill
1. Amazon launches an online pharmacy, making CVS and Walgreens stock quake

It's hereeee... Amazon Pharmacy. Two years ago, Amazon acquired PillPack for $1B. Pharmacies were shook, but not as shook as they were yesterday when: the Zon launched an online pharmacy, built off PillPack's biz. Starting this week, people in 45 US states can send their prescriptions to Amazon and order meds.

  • Prime members get free two-day shipping and savings benefits (up to 80% off generic and 40% off brand-name meds). And a savings card to use at 50K pharmacies.
  • Non-Primers get free 5-day delivery (and a whole lot of pop-ups to join Prime). Amazon's accepting most forms of insurance, but you can pay without.

"Code red!"... Overhead at CVS corporate. Amazon's entering a massive market — nearly half of Americans take prescription drugs. In 2018, pharmacies sold $336B worth of prescription meds. But Amazon has over 110M US Prime members, which could make its ePharmacy seem more convenient (and cheaper). That's why:

  • CVS and Walgreens shares dropped 9% yesterday, and Rite Aid plunged 16%.
  • GoodRx stock fell 23% since it's "the Expedia of prescription drugs."
  • Walmart stock dipped 2% — despite strong earnings yesterday — because it has a healthcare biz.
THE TAKEAWAY

Brick-and-mortar could save pharmacies... CVS and Walgreens each have 10K+ locations across the US, and they're expanding on-site healthcare to offer what Amazon can't. Walgreens dropped $1B to open hundreds of doctors offices, CVS is opening 1.5K "HealthHUBs," and Walmart offers on-site care — all to make buying prescription meds more convenient. Then again: telehealth has surged, and Amazon's discounts could be worth a two-day wait.

IPO

Calm down... Airbnb got some inspo from Genesis as it prepped its IPO filing, kicking off its origin story with "In the beginning..." The home-sharing giant plans to go public in December under ticker symbol ABNB (STAY and CASA were too edgy).

  • Spring quarter: Airbnb lost nearly $600M, almost double what it lost during the same time last year.
  • Summer quarter: Airbnb made a $219M profit last quarter, despite sales falling 18%.

Nespresso machine en suite... 5 stars. Investors are giving Airbnb some credit. Earlier this year, Airbnb's valuation plunged to $18B as it took out high-interest loans to cover guest refunds and $250M for hosts' losses. Then it majorly turned its desperate fate around, filed to IPO, and is expected to notch a $30B valuation.

  • The "work from anywhere" trend helped, as people seeked less bedroom-like pastures. Airbnb focused on small towns after noticing an uptick in local stays.
  • Brutal cost-slashing was also key to the comeback — Airbnb sadly laid off 25% of its employees. It also shed noncore businesses and halved exec pay.
THE TAKEAWAY

Airbnb needs to think like Uber (not like Lyft)... Airbnb is just a sharing platform for homes, like Lyft is just a ride-hailing platform. Meanwhile, Uber has become a platform to transport anything — from food, to cargo, to meds. If Airbnb becomes an "anything-sharing" platform (think: parking spaces, storage, boats, RVs) it could protect itself from pandemic pain — it warned that the recent COVID surge could bruise bookings this quarter.

What else we’re Snackin’
  • Beef: Facebook's Zuckerberg and Twitter's Dorsey got grilled by the Senate (again) on content moderation.
  • Dark: Universal and Cinemark agreed to shorten the theatrical window from three months to as little as 17 days for Universal films.
  • Oh: Tesla is reportedly ending the sale of its cheaper $35K Model 3.
  • Marty: Walmart's US online sales rose 79% last quarter, but growth slowed from the previous pandemic quarter.
  • Remodel: Home Depot's sales growth beat expectations as the pandemic House Hype is still strong (repainting every week).
  • Trendy: Twitter is launching a "Fleets" Stories feature and expanding testing of "voice tweets" with audio-based DMs.

🍪 Thanks for Snacking with us! Want to share the Snacks? Invite your friends to sign up here.

Snacks Daily Podcast

"Closest thing to Willy Wonka..." Mars is the family-owned company behind M&M's, Snickers, Milky Way, Skittles, and Wrigley's gum (sugar overload just naming them).

Now it's buying Kind — the maker of those nut-based bars — for a reported $5B. We're getting flashbacks of Kellogg buying RXBar.

Tune into our snackable pod to hear why this a Prius acquisition.

Apple podcast button
Google podcast button
Spotify podcast button
Wednesday

Disclosure: Authors of this Snacks own shares of Tesla, Twitter, and Walmart

ID: 1417424