☕️ Takeoff

A videogame...or a religion? August 20, 2020 [View Online]( | [Sign Up]( [Daily Brew]( TOGETHER WITH [Curiosity Stream]( Good morning. Today is National Radio Day, so we gotta ask: Why is every country station 92.5 no matter where you go? MARKETS NASDAQ 11,146.46 - 0.57% S&P 3,374.95 - 0.44% DJIA 27,693.43 - 0.30% GOLD 1,944.40 - 3.41% 10-YR 0.685% + 2.00 bps OIL 42.79 - 0.23% *As of market close - 2020: The Democrats rolled out their [heavy hitters]( on the third night of the virtual DNC. Barack Obama, Hillary Clinton, and VP pick Kamala Harris all made the case for Joe Biden while bashing President Trump. - Economy: Yesterday, the Fed [released]( the most closely read minutes of any meeting in the world. The central bank left it pretty vague per usual, confirming that the coronavirus pandemic will “weigh heavily” on the economy in the short term, and posed “considerable risks” in the medium term. TECH [Apple’s Stock Must Be Using One of Those Big Charging Blocks]( [Gold Apple] Francis Scialabba Apple’s market cap [surpassed $2 trillion]( for the first time yesterday, cementing its status as the biggest company in the world. Its stock, which will undergo a [4-1 split]( in the coming weeks, has increased over 50% in 2020. Apple wasn’t the first to break the $2 trillion valuation mark—that honor goes to the oil conglomerate Saudi Aramco—and it (probably) won’t be the last. Big Tech buddies Amazon and Microsoft are both sitting at valuations [around $1.6 trillion](. - A crazy stat: it took Apple 42 years to reach a $1 trillion valuation, but only two years after that to break $2 trillion.  How’d Apple do it? Pretty much by just being Apple. The iPhone maker hasn’t released an entirely new product since the HomePod in 2018, mostly focusing on tweaking or updating existing lines. But if there is one thing Apple does well, it’s make money: Despite the pandemic, Apple’s Q3 profits rose 12% while sales of [every single product]( increased. But it doesn’t just sell iPhones: Part of investors’ Apple fever has been fueled by CEO Tim Cook’s increased focus on its services business that includes Apple Music, Apple TV+, iCloud, and the App Store. In 2017, Cook outlined his goal to [double 2016 services revenue]( by 2020, which he achieved six months ahead of schedule. - It was a prescient move. With iPhone sales plateauing worldwide, Cook’s pivot has investors valuing Apple less like a hardware company and more like a software one. There will always be controversy After Cook testified in the [antitrust showdown]( with Congress last month, Fortnite creator Epic Games poked the bear by attempting to circumvent Apple’s 30% cut of in-app purchases. But even as other developers have [joined in]( to criticize Apple’s alleged monopolistic control of the app marketplace, investors remain unfazed. Looking ahead...Apple optimism continues to abound. The iPhone 12 coming this fall is widely expected to come equipped with [5G connectivity](. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=Apple%20Surpasses%20%242%20Trillion%20Valuation,%20Widens%20Lead%20as%20Biggest%20Company%20in%20the%20World:%200A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%E2%80%94Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley,%20daily.%20 TRAVEL [Airbnb's Doing the IPO Thing]( [SUN VALLEY, ID - JULY 08: Brian Chesky, co-founder and CEO of Airbnb, a...] Scott Olson/Getty Images A collapsed travel industry, 25% of its workforce laid off...Airbnb swept it all aside like it’s preparing for an 11am checkout. Yesterday, the short-term home rental company filed [confidential paperwork]( to go public, a big step that’s been rumored for years. - Things were looking hairy as the coronavirus decimated the travel industry in March/April. However, the company rebounded thanks to increased demand for rural rental properties. - It’s still a shell of its former self. Airbnb was last valued at $18 billion when it raised money this spring—only about half its valuation in 2017. You buying? �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=Airbnb%20Confidentially%20Files%20for%20an%20IPO:%200A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%E2%80%94Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley,%20daily.%20 C-SUITE [Additional Maserati Parking Space Needed in Southampton]( [Simpsons GIF of rich students ] Giphy The CEOs of America's largest companies got a major pay bump (14% on average) from 2018–2019, according to a [new study]( from the Economic Policy Institute, a left-leaning think tank. Why? The study’s authors say the increase in realized compensation stems from 1) the power CEOs have to set their own pay and 2) stock-based compensation accounting for a [major slice]( of CEO income. That means execs make more $$$ when their company's stock price jumps, rather than hitting other benchmarks. - The authors expect CEO pay to leap again in 2020 for that reason—they're paid in stock, and the S&P just reached an all-time high. Why it matters: “Exorbitant CEO pay is a major contributor to rising inequality that we could safely do away with,” the authors argue. To take the long view, CEO pay increased 1,167% from 1978 to 2019, but the typical worker's pay grew a measly 13.7% over the same time span, according to the study's calculations. Why it hits different in the COVID era: Some economists are forecasting a “K-shaped” recovery, where those at the top get richer and those at the bottom fall even further behind. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=Study:%20CEO%20Pay%20Increased%2014%25%20on%20Average%20From%202018%20to%202019:%200A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%E2%80%94Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley,%20daily.%20 SPONSORED BY CURIOSITY STREAM [Incurious People Skip This Ad](#) [Curiosity Stream]( If you’re still reading, do we have the [streaming service for you](. [CuriosityStream]( has thousands of documentaries and nonfiction TV shows covering everything from History, Nature, and Science to Food, Tech, and Travel. Safe to say this streaming service would wear smartypants. [CuriosityStream]( features 35 collections of curated programs handpicked by their experts, who we can only assume wear cardigans, painfully cool glasses, and use the word “cantankerous” instead of “grumpy.” Obviously, you can [watch CuriosityStream]( from anywhere at any time on any device. Did you really think these genius curators don’t have the tech to pull that off? Please. Watch with the geniuses for only $14.99 for the whole year [with the code “Brew” at checkout](. SOCIAL MEDIA [Move Fast and Break Up Conspiracy Groups]( [A Trump supporter holding a QAnon flag] Scott Olson/Getty Images Yesterday, Facebook [brought]( the dislike button down on people using its platform to advance harmful beliefs and inaccurate information. The social media giant... - Booted 1,950 groups, 440 pages, and over 10,000 Instagram accounts tied to QAnon, the movement associated with the conspiracy theory that a worldwide network of devil-worshipping pedophiles are trying to take down President Trump, among other outlandish and inaccurate theories. - Facebook also said it would remove 980 other groups related to potentially violent militias and protest movements, including the far-left group antifa. The backstory: The social isolation and economic strain caused by the pandemic have boosted QAnon’s following. Activity on the largest QAnon Facebook groups grew between 200% and 300% in the last six months, according to a [NYT analysis](. At a [press conference]( yesterday, President Trump said he didn't know a lot about QAnon except that its supporters "like me very much." Bottom line: QAnon’s explosive recent growth was clearly a bridge too far for Facebook to ignore. But by policing dangerous beliefs, it’s proving that it’s willing to...police beliefs, a break from past positions. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=Facebook%20Cracks%20Down%20on%20QAnon,%20Other%20Harmful%20Groups%20on%20Its%20Platform:%200A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%E2%80%94Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley,%20daily.%20 AUTO [What Is a Spinoff and Should GM Do It?]( GM’s stock got a nice little bump this week after analysts tossed around the idea that the American carmaker could [spin off]( its fledgling electric vehicle division. But what exactly is a spinoff and why might GM be interested? A [spinoff]( is when a company breaks off a portion of its operations and turns it into a separate entity with its own management and ownership structure. - Spinoffs can be helpful because 1) it lets each business focus on what they're best at and 2) in theory, it gives the spun-off asset more room to grow. - Morning Brew, for example, could spin off our swag business if it distracted us from writing newsletters and we thought it could eventually go toe-to-toe with Lululemon. Morgan Stanley estimates GM’s electric vehicle business, which hopes to have 20 fully electric models by 2023, to be [worth $20 billion]( as a standalone unit. Call it the Tesla effect: When an all-electric car company is worth 8x as much as you, you take a hint. By spinning off its EV unit, GM might better compete with its suddenly much larger sibling. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=Some%20Analysts%20Support%20an%20Electric%20Vehicle%20Spinoff%20for%20GM:%200A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%E2%80%94Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley,%20daily.%20 GAMING [A Videogame...or a Religion?]( [Flight Simulator screenshot] Microsoft If you’re the type of person who starts drooling every time you hear the word “fuselage,” Microsoft just left your roommate a puddle to mop off the floor. On Tuesday, the company [released]( the latest edition of Flight Simulator, its videogame that allows players to take control of a virtual airplane cockpit and fly anywhere on Earth. Microsoft’s digital rendering of our planet is incredibly realistic, turning even the most cynical tech writers into philosophers: - “The game plunged me into sustained meditations on the permeability between the real world and the online one.”—[NYT op-ed]( - “Flight may provide the most vivid, consumer-friendly demonstration in years of how the bleeding edge of modern technology can provide fundamentally new human experiences.”—[Protocol]( - “The visual fidelity is expletive-worthy.”—[The Air Current]( Bottom line: Released in 1982, Flight Simulator is older than Microsoft products Windows, Word, and Office. But perhaps none have [aged]( so gracefully. �  �  �  mailto:?subject=Check%20out%20this%20story%20from%20Morning%20Brew!&body=Microsoft%E2%80%99s%20Latest%20Flight%20Simulator%20Leaves%20Reviewers%20Emotional:%200A%0AWant%20more%20great%20content%3F%20Subscribe%20to%20Daily%20Brew%E2%80%94Delivering%20the%20latest%20business%20news%20from%20Wall%20St.%20to%20Silicon%20Valley,%20daily.%20 WHAT ELSE IS BREWING - [Target]( continued the big box momentum, posting its largest-ever quarterly increase in sales yesterday. - [Nvidia's]( data-center business did more in sales last quarter than its core gaming unit for the first time ever. - [President Trump]( called for a boycott on Goodyear after an image appeared to show a policy that deemed “MAGA Attire” unacceptable. The company said the slide in question was not “created or distributed by Goodyear corporate.” - [Wildfires]( continued to rage across California, blanketing San Francisco in smoke. - [Johnson & Johnson]( agreed to buy Momenta Pharmaceuticals, a company working on treatments for rare diseases, for $6.5 billion. - [Instagram]( released a new feature that could keep you scrolling for even longer. SPONSORED BY QUICKEN LOANS [Quicken Loans]( You know what can improve your home improvement plans? Cash. [Quicken Loans]( is giving away cash prizes totaling $4,750 to help you check some things off your constantly-growing home to-do list. The prizes could be released at any moment, so [sign up now](. BREW'S BETS Buying crypto is hard: The app Coinbase tries to make it simple, but...is it doing a good job? [This article]( breaks down how Coinbase works and teaches you a lot about app UX along the way. New comics: 1) [What It’s Like to Lose Your First Language]( 2) [The Great Escape]( (about Harry and Meghan’s English exit) Cleaning aisle still sparse at your local convenience store? Try making your own [disinfectant spray]( and[all-purpose cleaner](. You can even DIY [cleaning wipes](. WHAT'S TRENDING TRIVIA The following chart represents U.S. Google search interest for gin, tequila, whiskey, and vodka over the last five years. Can you pick out which color corresponds to which liquor? Neal Freyman/Google Trends SHARE THE BREW Chances are you have a friend who'd enjoy the Brew as much as you do. When you [share your referral link]( and new readers sign up, you earn rewards like our classic coffee mug. [Click here to get free swag.]( Hit the button below to learn more and access your rewards hub. [Click to Share]( Or copy & paste your referral link to others: [morningbrew.com/daily/r/?kid=4904f90a]( WHAT'S TRENDING ANSWER Yellow is whiskey, green is vodka, red is tequila, and blue is gin. H/t to [Chartr]( for the idea             Written by [Toby Howell](, [Eliza Carter](, and [Neal Freyman]( Was this email forwarded to you? Sign up [here](. WANT MORE BREW?  Retail newsletter → [Retail Brew](  Tech newsletter → [Emerging Tech Brew](  Marketing newsletter → [Marketing Brew](  Quarantine newsletter → [The Essentials](  Business podcast → [Business Casual]( [ADVERTISE]( // [CAREERS]( // [SHOP]( Update your email preferences or unsubscribe [here](. View our privacy policy [here](. Copyright ©2020 Morning Brew. All rights reserved. 40 Exchange Pl., Suite #300, New York, NY 10005