The Best One Yet - 🧸 “10-year-old makes more than us” — Ryan’s World’s $250M game. Beyond Meat’s veganuary un-miracle. TPG’s public private IPO

Episode Date: January 14, 2022

The 3-time highest-paid YouTube star of the year is… a 10-year-old running a toy media conglomerate. Beyond Meat just officially became the most rooted against stock on Wall Street. And the biggest IPO of 2022 is TPG — A Private Equity firm that wants to be a Public Equity firm.$TPG $BYND $GOOGGot a SnackFact? Tweet it @RobinhoodSnacks @JackKramer @NickOfNewYorkWant a shoutout on the pod? Fill out this form:https://forms.gle/KhUAo31xmkSdeynD9Got a SnackFact for the pod? We got a form for that too:https://docs.google.com/forms/d/e/1FAIpQLSe64VKtvMNDPGSncHDRF07W34cPMDO3N8Y4DpmNP_kweC58tw/viewformLearn more about your ad choices. Visit podcastchoices.com/adchoices Hosted on Acast. See acast.com/privacy for more information.

My Airbnb set up right now, Jack, I'm recording this pod. Here's the microphone. It's on 43 records, an entire record player. I got vinyl's everywhere. I'm looking at a, you got Peter Paul and Mary. I got Fleetwood back. And I'm recording on top of a Sam Smith album. Great standing, guys.

This is the most ironic pod yet because it's literally being recorded on vinyl. Three, two. This is Nick. This is Jack. And this is Snacks Daily. It is Friday, the Real Friday, January 14th. Last pod until Tuesday. We got Martin Luther King weekend coming up.

We got our first four-day work week at 2022, Jack, let's make this a thing. Three-day weekend, four-day work week. Today's pod, it's the best one yet. It's a TVO-W. This is our favorite pod we've ever done. Jack, what's our first story today? The three-time highest-paid YouTube star of the year is 10. He's 10 years old.

Snackers Ryan's World is a kid media conglomerate. That is a case study in content. For our second story, Beyond Meat, it's kicking offig January in the most awkward way possible. Yeah, Beyond Meat is the most rooted against stock on Wall Street literally, officially. Our third and final story is TPG. Yes. And TPG just did the first big IPO of 2022. Because private equity is doing one thing right now. It's going public. Private going public. Jumbo going shrimp, oxymorish. I absolutely love this mix today. I love this mix before the week. Before we hit those three stories, you want some good COVID news? Snackers,

we got some good COVID news. We know you wanted some good COVID news. The good news? Yeah. Your poop. You poop. Snackers. You're poop. Snackers. You're Poop up, your poop is the good news. Snackers, human waste is the magic crystal ball in our fight against this virus. Excritus perfectius. Snackers, wastewater plants nationwide, they process our poo. They've always been doing that for decades. Here's the news.

At 100 of those plants, a company called Biobot Analytics is measuring your manure. They're measuring your manure because your deposit. It's not infectious. It's not going to spread COVID. But it does turn a COVID test positive, just like the stuff in your nose. So, Nick, there's facts in those. feces if you know where to look for them. And they reveal, unfortunately, that COVID is at a record high rate. But it also shows that Omicron is peaking. And that is the good news. Right. Peking means

it flushes downhill from here. Yeah. So that's the number one statistic from your number two. And there's particularly rich poo data over in Boston. Yeah, because over in Boston, they got those sophisticated stool samples. The stool samples in Boston. They've analyzed the data. They're showing a declining COVID cases in Boston before we're seeing it in any other data. So the takeaway here, poo, it is the last thing out of your body. But it's a leading indicator. Good news can't be dirty news. The best COVID news is crappy news.

Let's in our three stories. You're tuned in the snacks daily. We spoke to the lawyers and we got to get something legal out the way. The snacks about to hear ain't food. It's air candy. They don't reflect the views of the robberhood family. It's all informational just so. We're not recommending any securities.

It's not a research report or investment advice. Not an offer or sale of a security Right Snacks is digestible Business news for you Robberhood Financial LLC Member Fenra Slash SIPC

For our first story This one's wild The highest paid YouTuber According to Forbes Is Ryan's world Kids is a big industry And Ryan holds the keys To that industry

Okay Jack How about some salary transparency With the Snackers over here You know Snackers last year Nick and I made Less money than a 10 year old We made less money than someone who, like, isn't even a teenager yet.

The Walter Journal actually has a list of TikTok stars who make more money than corporate CEOs do. Yeah, they make more money than all of us. This isn't about TikTok, though. This is about the highest paid YouTuber who got $25 million last year. Yeah, we're talking about Ryan Kaji, who's 10 years old and, like, recently started brushing his teeth by himself. This is a kid fluencer. We're talking the Shirley Temple of YouTube. Okay, McCauley Colkinjack, he was home alone.

Ryan is at home making millions of dollars. playing with toys. Toy videos. That is a huge genre on YouTube. Shockingly, you genre. And if you watch these toy videos, you'll notice it's not like a live stream of a Scrabble game. No, it's Ryan ripping apart the packaging on the latest Paw Patrol doll and showing you either it's an epic toy. You need to get it or it stinks. Pass on it this year. Sesame Street, Peppa Pig, they're going to teach you about sharing, loving, and caring. Ryan is going to teach you about what you need to demand from your parents for your birthday this year. This is zero.

percent learning. By the way, Jack, have you seen his other show, Ryan's mystery playdays? Just like Barney the Big Purple Bannosaur? I think what I'm trying to say is, I want my Potson to get on TikTok. Can you put my Potson on TikTok so we can start making money off this game? You're not getting commission. Okay. But Snackers, the creator economy, the creator economy was a term that like came of age in 2020. But Ryan, he's been monetizing online before he could watch. Okay, Ryan's first video was when he was three years old over an aisle six at Target. It wasn't building the Legos in Target. he was putting them in his mouth like kids do at that age.

Well, then he went viral with a paper mache egg video. That was an instant classic. Back then, he was an amateur YouTuber. He made $150 in his YouTube ad revenue share. But that was pretty good because costs were only 20 bucks a week. That's it. Which the parents spent on toys for him to open. That was the production budget.

So, Jack, can you share where Ryan stands today when it comes to the content? He's got 10 separate channels. Yep. 31 million YouTube subscribers. bringing in $250 million a year. That is correct. Ryan, 10-year-old Ryan is a quarter of a unicorn. Not bad for a kid whose family fled Vietnam as refugees years ago.

Not too bad. Now, we know what you're thinking here. How are they going to scale Ryan because, you know, he's got to go to school at some point. He's got to go to third grade. They're actually pivoting to cartoons of Ryan. Yes. Since we all know him so well already. So that Ryan can get off camera and go into third grade.

So Jack, what's the takeaway for our buddy over at Ryan's World? The umbilical cable cord has been cut. Yeah, Snackers, you've heard about millennial cord cutting plenty over the last few years. But that means kids' cords have now been cut to. Ryan's viewership on YouTube is way bigger than Nickelodeon's viewership. According to Nielsen, Nickelodeon's audience has fallen for every single one of the last four years. It is down 71%. So Amazon, Walmart, and Skechers, if they're trying to market their toys to kids,

They go to Ryan. They don't go to Nickelodeon anymore. They're not going to Doug Funny and they're not going to Rugrats. But kids, here's the thing Snackers. Kids didn't choose to watch Ryan's unboxing over the Rugrats. The choice was made for them. It was because kids likely live in homes with millennial parents who now don't have cable. If you're a 33-year-old today, you probably grew up watching Nickelodeon.

But a five-year-old today probably doesn't have Nickelodeon as an option in the house. So kids can't watch Nickelodeon because their cable courts got cut by their parents. They had no choice. So they watch Ryan instead on YouTube. And so Ryan makes more money than all of us. For our second story, we should disclose, you don't want to get double whopper. You should just say that, by the way.

Just in time for Vig January, beyond meat is the most shorted stock on the market. Plant-based meat is literally the stock Wall Street most wants to lose. Two years ago, the January right before the pandemic. I remember like it was yesterday because you were like, you were so hungry, I caught you chasing a squirrel. I broke my fast. at your barbecue party at the end of January.

And then we did find out that honey wasn't vegan, but you'd been having honey, but we didn't tell anyone. It's baloney. We all make mistakes. But Nick and I, we bought the stock of Beyond Meat, and we've been fans of Beyond Meat since their IPO day, way back in May 2019. It was a thrill.

We both bought the stock like right now. We did it like right now. It was the first plant-based meat company to go public, and it was valued at just $1.5 billion. And we thought it was worth more because we were both reducatarians, and so we're a bunch of our friends. They were, you know, trying some plant-based meats. Reducetarians, not full vegetarians, but we're not ordering like

the baby back ribs unnecessary. This isn't college across Nick and college football, Jack. Wall Street agreed with Nick and me at first. The stock soared that day in May 2019 by 163% on the first day of trade. The fast food chains, they were vegan curious too. They started partnering up with Beyond Meat. At one point, Beyond's valuation hit 14 billion. It did. Almost 10 times higher than the IPO price. If so Factor, Beyond Me, was worth one lift. But we provided you a sad update on this pot in November. Jack, I remember it well.

Beyond Meat, he's just not that into you. Beyond Meat massively downgraded their growth expectations. Partially because Dunkin' Donuts and a bunch of other fast food companies ended those plant-based meat promotions. It's not me. It's you. So Jack, two and a half months later after we gave that update on Beyond Meat, how are things looking for Beyond Meat?

Ugly headline yesterday from the financial times. Beyond Meat is a lot of the financial times. is the most shorted stock on the stock market. And shorting of stock is the opposite of buying a stock because you benefit if the stock price falls. Of the top 1,000 stocks on Wall Street, no stock has a higher short percentage than Beyond Meat. No stock is more shorted right now than Beyond Meat. That is not a number that Mom is going to stick up on the food. Yeah, because 42% of Beyond Meat stock available to trade, it's owned by some haters.

There is literally no stock investors like less right now than Beyond Meat. So Beyond stock is down 41% in the last year. It's not worth $14 billion anymore. Jack, how much is Beyond Meat worth? Just $4 billion. Snackers, we think they should hire Fabio out of retirement. Here's what you do. You do a boomer surprise thing.

I'm going to pull this on my parents. You give them the meat, but you don't tell them it was beyond meat. I've done it with my dad a half dozen times. It's fun. And then... It's a great party trip. I can't believe it's not burger. I can't believe you pulled that on Big Ted.

So, Jack, what's the takeaway for our buddies over at Beyond Meat? Beyond is eating a double whopper. It's losing market share in a shrinking market. Beyond Meat is not optimistic for New Year's this year, Snackers. They're announcing their fourth quarter earning soon, and they've already said they expect their sales to decline. Beyond Meat is way too young a company in way too young an industry for sales to be declining. Now, part of the issue is competition.

It is. Yeah, you got Tyson, you got craft, you got Hormel. They're all making plant-based alternatives these days. And impossible meats too. Okay, so Beyond is losing market share. But here's the thing. that's just the first whopper. The double whopper is that the entire plant-based meat market is shrinking. Exactly.

According to retail data group spins, for the last 10 months, plant-based sales have been declining in the U.S. Maybe people are going back to meat-based meat-based meat. Yeah, or maybe you're going full-on regular 100% veggie burgers. Those black bean burgers are pretty good. Yeah. Well, beyond, they need a Viganuary miracle. Because it's getting double-wopered.

And you don't want to get double-wopered. for our third and final story before we miss you for the weekend. TPG is a private equity company, but they just went public. You can try to invest or let someone else smarter do it for you. Okay, Jack and I jumped in snacks out to their IPO paperwork. Jack, what was the first sentence of the TPG private equity IPO paperwork? We are an investment manager. One word, Jack, inspiring.

Take it on a T-shirt. TPG believes their 320 investment in operations professionals are smarter with money than just about everyone. That's because when they applied for jobs at TPG, they put their GMAT scores on the resume because that's what you do at TPG. Exactly. TPG owns a piece or the entirety of 280 different companies. Yeah, and their ownership in those 280 companies is worth a whopping $109 billion today. And that's up 81% from five years ago. So I think those GMAT scores were over 700. So Jack, let's take a second here. Let's break down those 320 critical employees to TPG private equity.

First, the investment professionals. Yes, the investment professional. Snackers, they find the fixer upper companies. They buy them with debt and they hope to eventually sell those fixer upper companies at a later date for a higher price, which would be at a game. You know what this smells like? You know what this looks like? It's just like house flipping. It's basically house flipping. But instead of renovating a kitchen, they're like renovating the C-suite getting rid of the chief executives.

All right, which brings us to the second big critical group of employees, the operations professionals. Right. Because after the investment professionals by a company, the. operations professionals come in and they shake things up. So the investment team buys like a dilapidated house. The operations team comes in and rips out the plumbing and installs the subway tile. The back splash baby. We got a classic example here. How about a Petco which TPG acquired back in 2006 for $1.8 billion? TPG is like interesting. The old CEO, you're telling me he flew private? Not cool. Well, we fired that dude. And new company policy, everyone flies coach. No extra legwork.

And by the way, we're shutting down the iguana business because it's a small business. It doesn't make money. We're going to focus on cats instead. Those are the kinds of moves that TPG probably made with Petco. They ended up selling the business 10 years later for double the price they bought in it. And they used that money to repay the banks that lent the money. They took home some handsome profit for themselves. And then they hired some more investment in operations professionals.

Yeah, they did. So, Jack, what's the takeaway for our buddies over TPG? Private equity isn't private anymore. Now, historically, TPG's cash arsenal, it came from private investors. TPG was a sumo stock. If you wanted to invest, you were straight up missing out. To get involved in Petco's flip and make money on that, you needed to be super rich to invest in TPG. But not anymore.

Now, TPG, as of yesterday, is a publicly traded stock. It is. And so are its top three competitors, KKR, Blackstone, and Carlyle. Yeah, all of them are private equity firms that are now publicly traded. Brookshire Hathaway, that's basically a P.E. firm managed by the great Warren Buffett, And it's got a publicly traded stuff. Okay, IAC, similar situation. It acts like a private equity firm focused on tech companies.

And it's managed by Barry Diller. It's a public company now. Private equity, why are we calling it that? It's not private anymore, Jack. It's public. Private equity is now public. Private is public. Jack, can you whip up the meat-based meat takeaways for us over there?

Ryan's world is the top paid YouTube channel three years straight. Wow, because kids' umbilical cable cords got cut. For a second story, Beyond Me, has become the most short. It's a double whopper situation. A shrinking share of a shrinking pie. For our third and final story, TPG, private equity, public equity. Okay, why are we calling it private? Equity means stock and the stock is public now. They're public equities. They're public equities. Now, time for our snack fact of the day, which in this case, Jack and I wanted to share a little one that we whipped up for you before the weekend. Monday is the day we celebrate Martin Luther

King, the Reverend Doctor's birthday. Now, in the 11-year period between 1957 and 1968, Dr. Martin Luther King Jr. traveled over six million miles and spoke over 2,500 times. Wherever there was injustice, protest, and action, Martin Luther King went. Happy MLK Day. Jack and I, we'll see you Tuesday. And before we go, congrats to Snackers, Melanie and Kyle, who just had their one-year dating anniversary down in Washington, D.C. Congrats to Carrie Mannion, who just got a new job at Black Rock out in California. And Victor, fam, just had the first week. working as a real estate attorney also down in D.C.

Happy birthday to Danny Hadajack in Topeka, Kansas. And David K. Ripin over in California. Happy 11th birthday to Aubrey Johnson, who's listening on the way to school right now in Atholmas. Aubrey, you got to send us a snack back sometime. And to anyone else celebrating something today, make it a TV. Celebrate the weekend wins. This is Jack.

I own stock of Amazon and Nick owned stock are beyond me. Robin Hood Snacks, newsletters, and podcasts reflect the opinions if only the authors who are associated persons of restaurants. Robin Hood Financial LLC and do not reflect the views of Robin Hood Markets Inc. Or any of its subsidiaries or affiliates. They are meant for informational purposes only and are not a recommendation to buy or sell any security, cryptocurrency, or investment strategy in any account. This is not an offer or sale of a security, not a research report, and is not intended to serve

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