The Best One Yet - 👑 “$1,000 if you become our customer” — DraftKings’ promo passion. Papier’s screen revenge. Virgin Galactic’s SPACe.

Episode Date: February 22, 2022

DraftKings stock has plummeted 75% from its all-time high because it’s looking thirsty. Virgin Galactic just lost its godfather and is now stuck with the SPAC stigma of stocks. And Papier just raised $50M for physical paper stationery because we’re seeing an Analog Renaissance.$SPCE $DKNG $IPOXGot 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.

It is tough to find a can of seltzer these days when you're traveling. It is. I mean, my hotel in the Bahamas actually didn't have a fridge. So I didn't even have the option of getting a six-packed. You're like quench doing the pot. It's like, Jack, you whip up the takeaways force. Three, two. This is Nick.

This is Jack. And this is Snacks Daily Aloha. Welcome back. It is Tuesday. Tea Boy Tuesday, February 22nd. Welcome back to the home stretch of winter. There we go. Jack, thank you for staying up late while we've been in Hawaii. I've only eaten mangoes. Eight hours is the time difference, right? It's eight hours. Yeah, I don't know. I ran into a fikis

the other day. I can barely tell the time anymore. Snackers, this pod's the best one yet. We got that volcano Bitcoin energy. Jack, what's our first story today? Virgin Galactic just lost its godfather and the stock is lower than it's ever been. Because the word SPAC, it's now a stock stigma. For our second story, pay PA, just raised $50 million for stationery. Good old-fashioned pen and paper. 10 for nailing the pronunciation landing, Jack. Snackers, call up analog, Andy. It is the analog renaissance.

Our third and final story is draft kings. The stock plummeted 20% on Friday before the holiday weekend. Because sports betting apps are looking thirsty. And investors, they don't like the look of thirsty. Being available is good. Being too available? You know what I mean? Too available. But Snackers, before we hit that wonderful mix.

We've been waiting all weekend for this mix. I love this mix, Jack. I love this job. This is just the best. Last week, Snackers, we told you about Zuck. new corporate names. Yeah, Facebook is now meta, and Facebook employees are now called meta mates. You're not a Facebooker, if you work at Facebook.

Uh-uh. You now work at meta. Yes. So you're a metamate. You're a metamate. They got to move fast and rename things. Now, Zuck is infamous for copying other companies' ideas. So we had an idea.

Yeah, it's a classic Zuck move. So Jack and I are thinking, you know what? Let's copy Zuck's Metamate's name for other companies. Let's apply mates to other companies. workers. What Jack and I are trying to say here? Let's Zuck. Zuck's Metamates.

So if meta employees are called Metamates, then... Then Jack, that means Spotify employees are technically bandmates. Delta employees are seat mates. Soul cycle employees are soulmates. Tinder employees are consummates. Tesla employees are climates. I like that one, but I raise you Zinga. Their employees are called checkmates.

Well, let's kick mates. things up a notch, Jack. Legal Zoom, their employees are legitimates. Okay, we asked a couple Snackers. Matt Dup told us that Amazon workers, they're not called Amazonians. They're called primates. Oh yeah, and our buddy Samir, he thinks that LinkedIn employees, they should now be inmates. Jack, inmates in the social tab on my Gmail. So annoying. Snackers for Teaboy Tuesday, we want to know your mate's name ideas. What company is going to have cellmates as their employees? What about roommates? Okay, what are we going to do? Snackers tweet us at Robin Hood. Snacks at Jack Kramer at Nick in New York.

We'll be impressed if you think of another man. Honestly, because we thought we thought of them all. Jack, does that mean postmates is now Maid Mates? Jack, let's hit our three store mates. 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 the here ain't food. It's air candy. They don't reflect the views

of the robberhood family. It's all informational just so. You know, we're not recommending any securities. No. It's not a research report or investment advice. Not an offer or About security. Right. Snacks is digestible.

Business news for you. Robberhood Financial, LLC, member Fenra slash SIPC. For our first story, Virgin Galactic, the OG of Spax. It just lost its Spack King Godfather. This marks another low point in the Spackdown that has happened to Spack stocks. Snack as Virgin Galactic, Sir Richard Branson's rocket company. Or is it as toy company? It's like Mattel for billionaires, basically.

Yeah, he loves playing with those rockets. The Beanie Baby of the Super Wealthy. Here's the news about Virgin Galactic. They just opened up reservations so that anyone, I mean anyone, can enjoy a 90-minute space ride and enjoy the experience of no gravity. Jack, you're going to want to use your Chase Sapphire card for this because it's $150,000 to reserve a seat on the rocket ship. Just to get on the wait list. And then on launch day, you pay $300,000 more. So, again, anyone can do it.

Anyone can do it. You just need $450,000. Now, this company, Virgin Galactic, it went public way back in October 2019 through what was like a weird thing at the time. We covered it on this pot. We did. We did. We were like special purpose acquisition corporation. Right.

It's a long term. So it became known as SPACs. It wasn't an IPO. No, it wasn't. Like an IPO, Virgin Galactic went from a private company to a publicly traded one. Instead of doing an IPO, it got bought by an empty company that all. already had done an IPO and was already public. And a man named Chammoth Palapitia set up the publicly listed SPAC, which was the shell

that Virgin Galactic eventually crawled into that day in October 2019. I'm getting like, I'm getting turtle images here. I see where you're going for. Yeah. Virgin Galactic is a turtle. It had a beating heart. It had four limbs. It just needed a protective shell to become a publicly traded stock.

Now, Snackers, since then, this Virgin Galactic Rocket Company stock has, looked like a rocket ship. A rocket ship that came back down to the earth. Isaac Newton, very proud of this gravity moment. All right, let's Wikipedia this thing and look at their stock price from their listing day all the way through to today. Snack as Virgin Galactic, its stock listed on October 28th, 2019 at a price of $12. It nearly quintuple to 58 bucks a share last summer when Richard himself went up into space. But Jack, now, where is Virgin Galactic stock? It's the price. It's the price of of a burrito. It is. It's eight bucks. It's below where it started two years ago. This is ground control to everyone at Virgin Galactic. What is happening? It's a sad story. And then Friday, the stock fell again

because Chammoth, the guy that Bloomberg coined the Spack King. The man who kicked off all the Spacks. Resigned from the board of the OG Spack. Not only is Chomith off Virgin Galactic's board, but he's also sold all of his Virgin Galactic stock. Chammoth's experiment with the first big SPAC is now completely over. One small step for Chamas wealth. One giant leap backward for Virgin's existing shareholders. So, Jack, what is the takeaway for our buddies over at Virgin Galactic? The word SPAC has become stock market stigma. Snackers, if you want to check out how SPACs are doing right now, there's this ETF you can check out. It was designed to track the performance of SPAC stocks. There are a bunch of ETFs that track SPAC stocks. We just picked one. Now, almost exactly one year ago,

it showed that the SPAC frenzy had peaked. February of 2021. But on average, all those SPAC stocks, like Virgins, they're down 43% since one year ago. And Jack, that's even worse if you compare it to the rest of the stock market, which is up 11% during the same period. For all you stock jockeys out there, that's negative alpha of 54%.

Plus, Bloomberg has counted 22 SPAC deals that were canceled just since last summer. Because today, the word SPAC is a stock. stigma. For our second story, Jack, mechanical or number two pencil? Number two. Yeah, I think every time. Dixon, Tai Kondaroga. That's all I roll with. Yeah. Otherwise, you have to replace the lead every 12 hour. Snackers, second story, PPA, just raised $50 million for paper stationary that you'd send to your mother. This paper is so good. You only want to write on it with a ballpoint pen. And the way we're seeing it, PPA is another sign of the analog renaissance. PPA. Yes. Is this one of those

misspelled startup names? Did they jam an eye in there? You've been working on your French and I like what you're doing with the Frenchman. Here we go. I thought it was just paper misspelled for a while. Someone grew up near Quebec. Well, PPA was founded six years ago at a couple desks in like a we work location in London. Not a Silicon Valley garage. No, a we work in London. And what they're doing is customizable stationary for like the wannabe calligraph. This paper is beautiful. Whether it's a wedding invite, a daily planner, a beautiful journal. Alex, I hope you're not listening because I'm going to to order you want off this site. That sounded like an ad, but it's not.

Snackers, it is beautiful paper. And the website, you know, it looks like a Pinterest mood board. If Wes Anderson launched a startup, what is that? This is what Wes is doing. Now, the way they work is they curate style trends from Instagram. Floral patterns, earth tones, a gold leaf. Whatever is in, they turn it into a physical. Yeah, initials are out.

Serif is in. And they also collaborate with what we're calling ink influencers. Yeah, because the business model depends on outside creativity, too. They find a creator of like a viral font, and then they like scale that viral font. Debbie wrote the letter G in a way that blew my mind. I've just never seen the, you know, at the bottom like that. You know those really weird lowercase Gs? I don't like this.

Me neither. So here's what Jack and I find fascinating about PPA. This company is one that uses technology. There's no physical stores. It's all online. But the product they're selling is the exact opposite of technology. Paper. It's like 5,000 years old.

The revenues for PPA, they're up 150% since 2020. Last year was like their best by far ever. So they're raising $50 million from a venture capital firm to keep growing. And here's the surprise about what they're doing with that money. They're expanding to more paper-based things. Makes sense because their target customer is paper people. It's right there on the website. So the less techie the products, the better the products for this audience.

The less techie the people, the more paper people pay pay pay. That was impressive. Snackers, we know what you're thinking. You hear the word notebook. You're like picturing your mom with the calendar, the roll of decks. She's like pulling out, putting the date here, circling this, canceling that, scratching this. For you and me, Nick, I know it's a little different. We use the notes app all day. You're always sharing your notes app with me.

It's an updated 3 a.m. I know. 3am idea. Open up the notes app. But here's the shocking thing, Snackers. PPA's customer base is 53% millennials. And Gen Z is the fastest growing customer group of Papers. Yeah, so everyone you think would just be on TikTok is also writing in more and more wellness journals.

So while venture capital is obsessed with decentralized crypto, NFTs, Web 4.0, for leisure activities, though, consumers are increasingly choosing non-screen options. So pay PA is using this 50 million bucks and expanding to pencils, paper clips, paper weights, and other paper adjacent products. So, Jack, what is the takeaway for our buddies over at PPA? And analog renaissance is happening because of the digital deluge. Snackers are getting like screen fatigue. You spent two years Netflixing from the couch.

Jack has literally run out of shows to stream. You were like asking me the other day for recommendations. You don't have any more. I can't decide whether to rewatch a classic. Yeah. Or like take a risk and try something new. By the way, Snackers, hit me up at Jack Kramer on Twitter. What's your show recommendation?

Guilded Age was okay, but I wouldn't recommend it. The pendulum Snackers, it has swung so far to the screen in the last two years. we kind of now want to disengage a bit. According to Pew Research, a third of Americans are actively trying to reduce their screen time. And Jack and I are seeing early signs of a rise in analog Andes out there. Think about it. E-books didn't kill off regular books. Yeah, screen haven't totally killed off paper either.

It's growing. That's why we're seeing an analog renaissance happening. For our third and final story, Draft Kings. The Draft King Sports Bend stock is 75% down from its record high. after another painful earnings. Draft Kings and the whole betting app industry looks thirsty. Snackers, remember when we were talking about the Super Bowl the other week? We had that new name for the Super Bowl.

This year it was the Super Bitcoin betting bowl. Yeah, it was. Well, Draft Kings, they didn't add in the Super Bitcoin betting bowl. They had a commercial, and Draft Kings is one of the top two mobile betting apps for sports betting, along with Fandu. Draft Kings is worth $14 billion, so it's about one lift in size. Right. Now, when it comes to TV commercials, his sales.

Historically, alcohol and car companies are the biggest spenders. Along with a whole bunch of pills. Well, Draft Kings has entered the chat. Yes. In 2021, Nick and I just jumped in snacks down to their earnings. Draft King spent $830 million on ads. So, Jack, let's sprinkle on a little context here. 830 million big number, but a particularly big number in this case.

It's just about as much as their total revenue of $1.2 billion. So basically every dollar in over at Draft Kings, is a dollar out going into a TV ad. Every $4 in was $3 out. So, Jack, let's whip out the whiteboard charts here. It can be okay if a company's costs are growing hugely. Right. It's okay when costs are growing a lot as long as revenues are growing even faster than costs. Well, for draft kings in 2021, their costs surged by 96%. Jack, how their revenue is doing? They jumped 111%. So a little too close for comfort. Turns out America's biggest sports betting app was just as unprofitable in 2021 as it was in 2020. And guess what? Management thinks 2022 will be just as unprofitable as 2021 and 2020. Okay, this was a shocker. Draft Kings,

they're actually expecting revenue growth to shrink by half this year. And they expect to lose another billion dollars this year for the third straight year. Add all that up. And Jack, that is why Draft King's stock plummeted 20% on Friday before the three-day weekend. It's now down 75% from its high at reach last year. So, Jack, what is the takeaway for our buddies over Traffkings? Mobile gaming, the whole industry, it's thirsty. And thirsty isn't a good luck. Yeah, Snackers, thirsty for customers.

Because there's so many undifferentiated sports betting apps out there now. They're all just dishing out promo codes. Use promo code save and get a deposit bonus of up to $500. Oh, Jack, here's a creative one. Use promo code win and get a deposit bonus of up to $1,000. Those are actual promo codes you can find on the Draft King's website and use. They're literally right there. And you know, a deposit bonus of $1,000.

That cost Draft Kings $1,000. Check, they may as well, like, stick these in a, I don't know, a PIPIA envelope and send them to each of us every day. If you become our customer, we'll give you $1,000. You were probably going to become their customer anyway. Snackers, funny thing, casinos are the same type of gambling product. But a little different because physical casinos sit back and let customers come to them. Well, physical casinos just had a record year doing that.

Meanwhile, betting apps, they're giving you $500 or $1,000 just to set up an account. Because mobile gaming companies are thirsty and Wall Street doesn't like the look. Jack, can you whip up the takeaways for us to kick off the four-day work week? Virgin Galactic's godfather has stepped down and he's no longer a shareholder at all. Virgin Galactic stock, it suffers from a SPAC stigma. For our second story, PPA already does paper. Now they're moving to paper adjacent. We're seeing an analog renaissance because of the digital deluge.

For our third and final story, Draft Kings, they spend so much money on ads and promotions. So much. It's looking thirsty. And that's not a great luck. Now, time for our snack fact of the day. This one circled on the calendars by Joseph Pettai from Frederick Maryland and Matt on Twitter. The story is about calendars. It's also for math lovers. It is, it is.

This Snackers, it isn't just any old Tuesday. It's Tuesday. Right. Like T-W-O-S, not T-U-E-S. Because it's the 22nd debt, which is two twos. Of the second month. Another two. Of 2022.

Two more twos. Actually, three more twos. And it's a Tuesday. Which is a different type of two, but still a two. Two-two-two Tuesday. Snackers, enjoy the quadruple twos on this Tuesday, the 22nd of February 2020. And before we go, Kelly Cox and Katie Mazur enjoy the 10-year friend of Hursary to get. Congrats to Blaine, Davis, and Travis Johnson, who just got engaged in Kansas City.

And Vincent and Monique, they got engaged on that helicopter jack in the Dominican Republic. Now they're eloping. Fantastic. There we go. And congrats to Dr. Shari Barkin, who just got a new job as chair of pediatrics, taking care of kids over at VCU. And Matt and Petra Higli. Happy 10-year anniversary down in Fresno.

Happy anniversary to Shavani and Sri Kath. in San Jose. And Regina and Danny, enjoy that anniversary down in Austin. Happy birthday to Nelson Barreto in Sao Paulo, Brazil. And Daisy Wang, he's having a birthday in Tainan, Taiwan. And Yvall Paulman in Tel Aviv, Israel. And Jackie Ripper, happy birthday in Brookings, South Dakota. Legendary snacker, Camila, is celebrating a big day today down in Edison, New Jersey.

And John Rich, he's got a birthday. And thank you for your naval service. Just got deployed down in San Diego. Happy birthday to Andrew Newin, in Fullerching, California. And Angus, enjoy the birthday. birthday and moving to San Francisco right down the street. Happy birthday to Abigail in Charlotte. And Chandanda Hiramath down in San Jose.

And Ryan Levin in Chicago. And Julia Gygis turned 22 on 22 over in Nashville. Happy birthday to Nancy Ewan. And congrats on the start of paternity leave down in Los Gattis, California. And Ahmed Syed over in the Bay Area. Happy birthday, Dr. Brenton Penny Cook in St. Louis. And Peter Collins in Brooklyn. And Ashley Albert in Grand Rapids, Michigan.

This is Jack. I both own some Bitcoin and stock of Spotify. Robin Hood Snacks, newsletters, and podcasts reflect the opinions of only the authors who are associated persons of 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 on the basis for any investment decision. Any third-party information provided therein does not reflect the view.

of Robin Hood Markets, Inc., Robin Hood Financial LLC, or any of their subsidiaries or affiliates. All investments involve risk, including loss of principal and past performance, does not guarantee future results. Robin Hood Financial LLC, member FINRA, SIPC. And whenever you get up to that part of Vermont, it's like, Burlington is eight miles away. Belitton is 18 kilometers away. You're like, that came out of nowhere. Montreal is right around the corner.