The Best One Yet - “70% of us have Cash-Phobia” — PayPal’s crown jewel. Molson Coors’ brew shocker. SiriusXM’s revival.

Episode Date: August 3, 2020

PayPal hit an all-time high after saying “cash is dead,” but Venmo’s getting all the attention. While the rest of the brew industry douses itself in hard seltzer, Molson Coors figured out how to make beer flourish in the moment. And SiriusXM is a lot like cable TV, but for audio. We hope it doesn’t accept its fate of decline, like cable has.Learn more about your ad choices. Visit podcastchoices.com/adchoices Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. And this is Snacks Daily. Welcome back. It is Monday, August 3rd. Snackers, we want to give you a heads up because we love you. We really love you guys. This is our last week before vacation.

Honestly, if we don't give Nick's vocal cords a break every now and that, true story. The takeaways don't get whipped up. If we're on the beach, we're massaging our larynxes. So Nick and I are taking a week and a half off starting Thursday. We hope you all get the chance to take some time off too, because even though 2020 is insane, it is the summer. So we're going to make sure the next three pods are our best ones yet, Jack,

starting today, first story, what do we got? PayPal execs just literally said cash is dead. Joffrey style. To capitalize, PayPal's bringing back QR codes trying to make them a thing, ironically, they were never here. No, QR codes were never here, but they're bringing them back. Not a thing. Second story, Jack, what do we got? You pay a monthly hefty subscription for 470 channels. Nick, what am I referring to? That is serious XM, Jack. Sirius XM. The cable TV of audio, shockingly, is still adding paid subscribers. Third and final story, Jack. Mulsing cores heard our story last week that hard seltzer is eating beers lunch. They kind of disagree, so their stock just jumped because it depends on what beer you're

talking about. Don't read a beer by its label. Life lesson. Now, Snackers, before we jump into all that good stuff, 2020 has kind of been the year of the week to week. Yeah. Speaking of weeks, last week, Enhanced unemployment checks were sent out to millions of Americans. We're talking $600 extra on top of your state's regular unemployment. Now, it's actually the week-to-week lifeline that's helped millions of families get through COVID. Last week was also the last week for that $600 enhanced unemployment payment, which is a little concerning because for 19 straight weeks, over a million Americans have filed for first-time unemployment.

And last week, 17 million families depended on those payments. Each week, week by week. Snackers, you may be stuck at home asking your family to disconnect their phones from Wi-Fi so you can zoom into the team meeting. Or you might even be commuting to a job that puts you at risk of catching COVID yourself. Or you may even be a snacker who unfortunately had COVID yourself. Despite all the bad out there through 2020, we'll keep bringing the same positive attitude, positive style, and energy to this pod every day. If markets are up or markets are down, we're trying to make everyday T-B-O-Y. Even in a year when every week is not the best one.

Let's hit our three stores. You're tuned in to 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. Robahood Financial, LLC, member FINRA, slash SIPC. For our first story, PayPal stock just hit an all-time high.

Just as PayPal executives boldly proclaimed that cash is dead. Bold earnings report, Jack and I jumped in snacks. It felt like the executive team at PayPal had drank a Red Bull and then thought they were delivering a halftime speech. Well, they're swimming in riches right now. PayPal is worth more than Bank of America, and it's just shy of J.P. Morgan Chase. So they decided to yell out when the earnings began. We just had our best quarter ever. That's because 70% of Americans literally fear for their health when they're at a cash register of a physical brick and mortar store.

This store just took an incredibly dark turn. And now there are contactless payment options that are basically living their best lives. And PayPal embraces that. So that brings us to PayPal, the OG FinTech company, added more users last quarter than in all of 2016. And it turns out 21 million users tried out PayPal or Venmo for the first time, which is why ProfitFont. it's almost doubled. Honestly, I got to say, PayPal's kind of a boring company. Yeah, it's not that much fun. It's like lurking in the background as you're just trying to buy some khakis or a brawl it online. That's why all the attention goes to Venmo, which PayPal acquired in 2013 and now calls

its crown jewel. Well, it turns out that crown jewel just had his biggest jump in users ever. 60 million people are Venmoing. And they're not just paying back Julie for brunch, who by the way is great. Thank you, Julie, for always covering my brunch. Yeah. She's, Fantastic. No, no, no. Venmo wants you paying the brunch restaurant instead of Julie. They want you paying directly. Our buddies at PayPal think millennials might make Venmo. They're one and only financial partner. They want you adding the Venmo link credit card because they want you getting Venmo points. They want you direct depositing your paycheck so that you treat your Venmo balance like your number one checking account. Venmo's pulling some Valentine's Day style guilt and they

want you obsessively using Venmo for any financial interaction you want. Now, PayPal still isn't breaking out Venmo's financial impact on the company, but PayPal is still infatuated with millennials infatuation for Venmo. So Jack, what's the takeaway for our buddies over at PayPal? What's your retention roadmap, PayPal? PayPal, congrats on the record user growth. How are you going to keep them Venmoing and PayPaling once COVID ends, though? That is exactly the question that Blue Apron failed to answer last week, so its stock got hammered by 15%. Well, PayPal's got an answer for it, which is, wait for it. QR codes,

QR codes. QR codes. The only time I've ever used one is Delta's digital boarding pass and to pay for something with my Starbucks app. They're like, can you just tilt your phone

a little to the left, Mr. Kramer? Can you brighten your screen? It's brightened. It's brightened. Quick response codes. That's what it's in a brief for. They basically look like a square box that's losing a Tetris game.

You've seen these before. And PayPal's launching QR codes so that you can scan with your phone to pay at 8. CVS locations. Big new partnership and using Venmore PayPal at the real register is a lot different than just using it at an online register when you're at your computer. Oh, by the way, we think QR codes are even more socially distant and sanitary than paying through Apple Pay. You're doing Apple Pay. You get the phone kind of intimately close to like the point of sale thing. You wait until it vibrates

and you're touching the thing by the time it finally does. We're not doctors, but those bacteria could probably jump. For our second story, Sirius XM is suffering badly for the commute apocalypse. But somehow Series XM still added users' last corner. So Snackers, if Apple music is Paul, you're going to want to think of Spotify as John. So Pandora is Ringo?

Yep. And my sweet lord, Series XM would then be George. Wasn't George Harrison, the musician of your first song, dance at your wedding? Process of a lady. Yes, he was. Not in person. We should make that clear. This was a straight-up recording, of course, naturally.

Now Snackers, Pandora and Sirius XM actually merged last year, a true story, to compete lyrically with John and Paul, aka Spotify and Apple Music. It's the only way you can do it. If you can't beat them, join together in merge music. Series XM is the more expensive, kind of old-schoolish option when it comes to like listening to things. Series XM is the direct TV of the audio world. And that's because it's got a cool, not four, not seven, 470 channels of stuff you can

tune into. Bruce Springsteen on Channel 20. You got Prince on Channel 743. Comedy Central, Channel 95. ESPNU, Channel 84. Pitbull, Channel 13. No, by the way, ESPNU, there's like seven other ESPN channels if you need more support. Pitbull's insulted by that.

Now, you pay for lots of channels here, Snackers, so you pay you lots of money for it. It's inspired by cable TV, and it's uninspiring. Yeah, for $22 a month, you're getting satellite radio in your car and in your home, and that's what Series XM is. And that's about double what Spotify and Apple Music are charging you for something very similar. If you want less, you could also get Pandora, which Sirius XM happened to have acquired. And they also have whipped out some skinny bundles reluctantly because not everybody wants to pay $22 a month. And those just sound like a healthier thing. Now, Series XM's profit puppy, without question, is car satellite radio, which is experiencing a car apocalypse right now.

Jack, I'm proud that there is not a single word you and I can't add Pocalypse-to. Now, April through June is when millions stopped driving to work during the work office apocalypse. Three for three, baby. Now, that might have been the perfect moment to cancel that $22 bucks a month, SiriusXM situation. Right. So that could have been bad for CSXM. Plus, carmakers often give away new car buyers one free year of SiriusXM if you buy a new car. And if you're not buying cars, which has been the case in the last three months, you're not hearing Sirius XM Channel 4, which Jack, do you know which one that is? 40s on 4. No, that was the decade where there was. was no music. It actually was sole cycle. They got their own channel, even though all the shops

are closed. They call it the silent generation for a reason, I guess. Now, despite all the odds against them, shockingly, Series XM just announced they grew their subscriber base last quarter by 1% to 30 million paid subscribers. And Pandora added 60,000 paid users. Now, for perspective, Spotify has 10 times as many users as SiriusXM, so just saying. But the reason the stock ended up jumping, investors actually expected way worse from Sirius XM, and they got pleasantly surprised. I'll be honest, I was expecting worse, too. So, Jack, what's the takeaway apocalypse for our buddies over at Sirius XM? How can Sirius XM not suffer the same fate as cable TV? Snackers, cable TV lost three million subscribers so far just in 2020. That's three million people not paying $1,200 a year to get three different history

challenge. That is how real cord cutting has become. And Sirius XM, is really, really similar to cable. Think about it. They profit off a huge bundle of channels that cost double what the streaming alternative costs. But Series XM has one main customer retention driver, and that is Howard Stern. WNBC.

He is exclusive with SiriusXM, just like Michelle Obama and Joe Rogan are exclusive via podcast with Spotify. We hope SiriusXM doesn't get lazy like Cable has. Yeah. Cable is pretty much just hanging on to its old users who aren't confident enough to stream something through their computer. Cable has accepted its fate of forever decline.

Serious hasn't yet. For our third and final story, Molson Core stock just jumped 7% after its earnings report. They heard our story last week about Seltzer beating beer, and they said, Hold my beer, let me address this. Mulsin Core's earnings calls. They kind of feel like a lecture from like a bartender

who just threw a towel over his right shoulder. Hey, son, every company that makes anything in 12, cans can be challenged from time again. No joke. That is an actual quote from their earnings report minus the sun part. They didn't say sun. We should say that. That's because there's a global shortage of aluminum cans. True story. This company is literally importing aluminum cans from South Africa and Brazil right now. Because think about it, you haven't ordered a pint glass of beer or a pitcher of beer because you're not going to bars or restaurants. The pitcher comes with a side of super spreader. Now, Snackers, Jack and I have been looking at the beer earnings recently,

and we kind of noticed that there are two themes going on. Jack, theme number one. All of our sales from restaurants and bars have evaporated to zero. And Jack, theme number two. Douse me in sparkling seltzer, because we need some sparkling salter. Now, that's what's going on with other beer companies, and it's kind of what's going on with Mulsat cores right now, too. They opened up their earnings reports announcing that keg sales have hit $0 and that they're launching a new hard shelter. It's called Vizzy. Don't ask them about it. They don't care. They just hired a consultant. Why are you doing it? I don't know. Peer pressure, everyone else is doing it. But then we noticed a gem of a quote from a CEO that really stood out. He said that July 4th week is when they have their biggest sales of the year. And they've already eclipsed last year's July 4th week four times this year. So people are buying beer. They have had four July 4th in a single quarter. That's incredible. Now, everybody else's beer sales are flat, but Molson's beer is living its best life. Yeah, so Jack and I got curious, how are they pulling this off? got Coors Light just had its highest market share ever in the U.S. And then the CEO said, let me repeat that. Yes, he did. And he actually repeated that. He said that line twice. Now this company is doubling down hard on Coors Light. They just made Coors Light the official beer of the Las Vegas Raiders football team, which is a pricey official beer to become. Yeah, so that's what's going on with like the SIG-Epe beers. But how about craft beers in the Molson Beers portfolio? Blue Moon just came out with a light version, which is the highest selling new beer

Sounds classy. And guess what, Snackers? They're doubling down on this craft beer stuff too. Moulson Coors, whose ticker symbol, by the way, is TAP. Classy, impressive. Just acquired Detroit's Atwater Brewing Company to up its craft brew sales straight out of East Detroit. Remember, you're not at craft beer unless your label looks like it's a 1976 record. So, Jack, what's the takeaway for our buddies over at Moulson Coors? Trends are like onions. They have layers. Lakers. Snackers. Broader trend here is that beer sales are slowing in the U.S. because you're leaving like your Portland pale ale on the shelf because you're going for the hard seltzer instead. But the trend within a trend is that a recession heavily benefits

some types of beers over others. Yeah, you lost your job. You're not splurging on the $24 CBD-infused IPA made in a French oak barrel. You're looking for the giant cases of beer where each beer is like 50 cents per beer like Coors Light so you can toss it over the fence to your neighbor. That's what Molson Coors does. Jack, and you'll whip up the takeaways for us to start the week. thinks cash is dead because 70% of people fear touching cash. Once COVID is gone, it hopes you'll pay with a Venmo QR code instead. Tetrisy, very Tetrisy. For a second story, Series XM sells pricey giant bundles of channels.

Sounds like cable TV, but they shouldn't give up like cable TV has. Third and final story, Molson Coors is a rising beer ship and a sinking beer ocean. Every trend has layers and lower-priced bulk beer sales are best in a recession. Now, time for our snack fact of the day. This one sent in all the way from across the pond by Richard Philbin, longtime OG snacker in London, England since before Brexit was a portmanteau. Pormantow. The snack fact here really is that we pronounce portmanteau potentially correctly.

Can somebody fact check Nick's SAT score? There were too many syllables in there to not make a mistake. Now, Richard puts Jeff Bezos his $190 billion of wealth into percentage. Yeah, it turns out this single man is now worth more than Nike, then McDonald's, and more than Costco. Incredible. Thank you, Richard, across the pond. Now, before we go, Snackers, we want to say happy birthday to Claire Park turning 27 in lovely Boston. And happy birthday to Shannon from the Garden State of New Jersey. And happy birthday to Brennan Giles. We don't know where he's from, but wherever he's listening.

Now, Snackers, since we'll be off soon, you should get to know the Robin Hood Snacks daily email newslet. In today's newsletter, we're checking out the online ad scoreboard. Google, Facebook, Snapchat, Twitter, and Amazon rank in terms of online ads. That's in our Robin Hood Snacks Daily email newsletter. You can subscribe at Snacks.robinow.com. It'll be there the whole time while this pot is, have you had your snacks daily? We'll see you tomorrow. If you know, you know.

This is Jack. I own stock of Spotify and Amazon. Nick own stock of Apple. The Robin Hood Snacks podcast you just heard reflects the opinions of only the hosts who are associated persons of Robin Hood Financial LLC and does not reflect the views of Robin Hood Markets, Inc. or any of its subsidiaries or affiliates. The podcast is for informational purposes only and is not intended to serve as a recommendation to buy or sell any security and is not an offer or sale of a security. The podcast is also not a research report and is not intended to serve as the basis of any investment

decision. Robin Hood Financial LLC, member FINRA, SIPC.