The Best One Yet - 💇‍♀️ “A $750M barbershop” — Pinterest’s plummet. Sherwin-Williams’ paint party. Squire’s barbershop rebound.

Episode Date: August 2, 2021

Pinterest dropped 20% as it takes on its biggest pivot ever: From search engine to scroll engine. Sherwin-Williams has whipped up fresh paint since 1866, but it just signaled that the House Hype Era is over. And Squire hit a $750M valuation for a barbershop app after the founders literally bought a barbershop.$PINS $SHW $SQGot 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.

This is Nick. This is Jack. And this is Snacks Daily. Welcome back. It is Monday, August 2nd. Nathaniel Raitliff is officially Wilder's second concert. There we go. How'd the baby do with a concert?

Jack? Airmuffs are a concert going dad's best friend. So like everyone else held up lighters, you held up a baby? Do that how that works? One more song! Because I really have to leave. We're on borrowed time. Jack, the only problem here?

You still have a name-me podfather of your child. It's weird. It's weird. This is the best one yet, though. T-B-O-Y. Jack, first story. What do we got? Pinterest is the...

the perfect search engine curated to your style and your tastes. But now Pinterest wants to become your scroll engine because scrolling. For our second story, Sherwood Williams, where to get it, where to get it. They've been whipping up paints since 1866. I like what you did there. By the way, bad news for Sherman Williams, you're done painting your house with a fresh cone of paint. For our third and final story, Squire, just hit a $750 million evaluation to help you get a haircut via an app. The founders do it, Jack. They literally bought a barbers shop. Literally bought the barbers.

That's jumping in snack stock. That is aggressive. But Snackers, before we hit those three fantastic stories. It is a wonderful mix to start the week, Jack. It's Horters Almanac, week 72. Week 72 of things were run out of because of the pandemic, Jack and I've been keeping track. CBS News headline right now, Taco Bell, hit by nationwide ingredient shortage.

Yeah, we're talking like the whole menu over a Taco Bell, everything. One employee told CBS News, we can't meet the current crave. They went on. They said, national shortage of everything right now. No, it's funny because about everything on the Taco Bell menu is comprised of the same four ingredients. Jack, you're absolutely right here. It's either ground beef, cheese, shredded lettuce, and a tortilla. You got to mix them together.

It's all of those things in every item. So I guess we're out of ground beef, cheese, shredded lettuce, or a tortilla right now. Snackers, you roll up to a Taco Bell these days. You're hoping to get a Taco Bell chalupa feast. You're walking out, though, with a bunch of black beans and a hard shell and a side of disappointment. Brutal.com. They're like, we're sorry cravers. It's due to transportation delays.

But ironically, I mean, Jack, this could become like the healthiest shortage to hit America if you think about it. This could be a great outcome for public health. Yeah, even though we're rationing Doritos Locos tacos recipes, which feels so wrong. But snackers, remember, even if there's no guac, the guac is still extra. Let's hit our three stories. You tuned in the snacks daily. We got to get something legal out the way. It snacks about the hair 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. Robohood Financial, LLC, member FINRA slash SIPC. For our first story, Pinterest just had the worst performance. of every single social media app we've been seeing. The absolute worst. But now they really want your bored scrolling time. That's pretty fascinating. But Jack, last week was it was like a social media party.

Not all of us got the invites, but it was a social media party. Snap, Twitter, Facebook. They all had their best quarter in years. And YouTube, which is kind of social media, they absolutely exploded. Pinterest, in the meantime, they grew their revenues. They grew their users. But in the United States, they shrank. No joke.

The number of active users in the U.S. fell by 5% to 91 million Americans. That is hard. The stock, it plummeted 18% on Friday. Because last quarter, you were no longer pinboarding your Tuscan-style dream wedding. You are actually out at the bar instead. Which mason jar are we going to go with? I don't know. Here are 46 different options, Jack. Now, last quarter was pre-Delta variant, so we'll see what happens in this quarter. Well, Snackers, Jack and I jumped in snack style and investors were disappointed in Pinterest. Pinterest was suffering and was disappointed in Pinterest, but Pinterest has one huge hope.

They mentioned idea pins. I repeat, idea pins. They mentioned 32 times on the conference call after the earnings. Their brand new product, they were obsessed with it. Every single question in the earnings call was about these idea pins. Open up your Pinterest app, make sure it's updated first. And then they're going to tell you to check out some idea pins from like Vogue magazine's account. Okay, Jack, I literally opened it up just now.

and I am kind of flattered that they told me to follow vote. I feel like that's very nice and very flattering. Well, the idea pins are basically just stories, like Instagram or Snap. It's not a picture of like an oven-roasted roast pork. It's a video of someone cooking that oven-roasted roast pork to perfection that you can follow. And this isn't just zucking stories like everyone has. No, it's more than that. The CEO says idea pins are part of our big transition, our big shift, part of our big future.

This is a completely different Pinterest that they're trying to create. They want to change from a passive experience where you just browse images, their words, to an active experience where you follow people and see what they post. So in the new Pinterest, you'd go from passively browsing a cheeseboard for inspiration to actively following the boho influencer with the perfect charcutory execution. Is that what you're picturing? I couldn't have said it better. Thank you.

This prejudo, the Monsego. It's beautiful. Salivating. The reason, according to Pinterest, users, are 90% more likely to engage with videos than just the pictures and images you're used to on Pinterest. Let that sink in. 90% more engagement with this new Pinterest product. So, Jack, what's the takeaway for our buddies over at Pinterest? Pinterest is undergoing a major renovation from search to scroll. Search to scroll. Snackers, Google, YouTube, Pinterest. You search for what

you want. You have intent. Facebook, Instagram, and TikTok, you just scroll. You're just passing the time. Yeah, honestly, you're just scrolling. That's it. Let's be honest. Now, Pinterest got to where it's got through search. Right. But to grow further, Pinterest wants to get your board scrolling time, too, because that's when you're most engaged.

So Idea Pins are designed to get you to follow creators. And once enough users have followed enough creators, then Pinterest could start making the big switch from search first to scroll first. Because you scroll more than you search. You just do. For our second story, Sherwin Williams. I don't think we've ever covered them, Jack. No.

Painted 16% more of the world last quarter. Congratulations. Yeah. One nugget, though, about Do It Yourself tells us that house hype may be slowing. Jack, historic company, Sherwin Williams. Hank Sherwin and Ed Williams created this company back in 1866. Hank's doing the mix and Ed's doing the spreading. I think that's how they worked.

33,000 employees today, but the logo... Can we talk about this? The logo is over 100 years old and it's alarming. It is. How would you describe it, Jack? It is planet Earth being consumed in paint dripping down from all sides. Is it paint? Is it an oil spill? I don't know. And then says, cover the earth. That sounds like a threat. That doesn't sound like a slogan.

True. Is it a command? Right. Cover the earth. Sherwin Williams. Just enjoy our biohazard logo. Now, Snackers, investors actually have ironclad faith in their paint business because Sherwin Williams issued a 100-year bond in 1997. Investors were basically like, hey, Sherwin, here's $4 million. Just pay us back in 100 years. No big deal.

Now, Sherwin-Williams, they really have a hundred-year bond. They announced last quarter that revenues jumped 16%. And their stock today is more than two times as high as pre-pandemic. Now, Jack and I jumped and snacked out to their earnings. And there really are two customers here. First, they're serving the professional contractors, the home builders, the construction cruise. Those sales are still booming because we have a housing shortage and so new construction of homes is still happening.

Yeah, even like homes are buying new homes. Everything is buying a home. Pets get homes. But Sherwin Williams also serves people who already have a home and they just want to spiffing things up with an earth tone look in the new bathroom. And that's where Jack and I noticed a fascinatingly concerning comment from Sherwin Williams. The CEO said that DIY sales for DIY paint projects dropped by double digits. Yes, as consumer demand return to more normal levels. Fewer folks are making fewer strokes. That was concerning. So, Jack, what's the takeaway for our buddies over at Sherwin Williams?

House hype may be winding down. Snackers, house hype intense investments in homes by Americans during the pandemic, splurgeon on the whole house, whole bunch of sconces. As the reopening happens, we've assumed that house hype would die out a little bit. Well, Sherwin Williams earnings confirmed that new home construction, is still booming. Okay. So that's great for businesses making building supplies and home furnishings for new homes. But there's that one comment that we just mentioned. The decline in DIY paint sales is a clear data point that existing homeowners, they're not sprucing up their homes as much.

Yeah, there's less paint sold and that's bad news for Home Depot, for Lowe's and any hardware stores that depend on sales to existing DIY homeowners who like painting. I don't know why. Well, we checked it out. Lowe's in Home Depot. There's stocks decline. last week on this nugget of negative news from Sherwin Williams. Jack, I think we can now say house hype is chilling. For our third and final story, the Barbershop app Squire just hit a 750 million dollar valuation. To support barbers, these tech co-founders became barbers. Yes, they did more than a second. In the meantime, Squire, that's the dictionary definition. Like, you know what it is, right?

The little man who carried around a knight's armor and sword. Like Padrick from Game of Thrones. How did he die? Actually, don't tell me how he died. I assume, Jack, actually, you know how he died in Game of Thrones? They covered him in Sherwin Williams paint. There you go. Now, Squire, great name for a tech company,

trying to help barbershops and hair salons. Yeah, Squire's like Open Table meets Square. You book appointments and you take payments in the app. But specifically, it's designed for barbershops and hair salons. Now, the hope is that barbers and barbershops flock to Squire to put all their appointments on there. so that's where all the booking happens. On the other side of the platform,

the hope is that customers rate and review barbers and then make Squire their go-to app for booking a haircut. But one pretty big problem from last year, Jack. We were un-groomed. Yeah, that was the look. Not much grooming going on. Jack Sparrow up top Hagrid all around the face. I don't know, Jack.

I'm not seeing anyone. Maybe I'll try bangs this week. Barbershop revenues plummeted last year because, you know, you asked your significant other to use the clippers once again. Right. But can I just say this because Snackers can't see us right now. It's purely audio.

Snackers, Jack's beard, it is the fullest thing I've ever seen. I don't know how you pulled off. I'm extremely jealous. It's just there's no point without a patch. I have all these patches. I don't know how I lived for 26 years without this beard. Yeah. No, it's impressive.

I mean, I think it's part of your brand now. It works. Jack's beard LLC member figure out of it. Where were we? Well, Nick, as as barbershop revenue fell, so did Squires revenue. Yeah, it did. But as vaccinations reopened the, economy, barbershops are getting trimmed on up again. That's why Squire managed to just get a new

fundraise, which triples its valuation to $750 million. Now, that's a big deal, but a bigger deal is that there are over 500 unicorn companies in the world worth over a billion dollars, but only three of them are owned by Black founders. Squire, if it keeps growing, could be number four. It's at 750 mil. So, Jack, what's the takeaway for our buddies over at Squire? To serve a niche customer, you must truly understand. that niche customer. Okay, Jack, I kind of love that we saved this part for last. The wildest part about Squire is to launch a barbershop software. The founders bought a barbershop. In 2016, the founders bought a barbershop in Chelsea, New York City. Lovely. They were doing everything except cutting the

hair. They hired barbers for that. These guys, they were literally taking the appointments and they were literally mopping up the locks. What they realized is that at a barbershop, you waste like 10 minutes scheduling appointments. You waste five minutes paying for it. And the whole shop gets thrown out. Everything gets thrown off. Every schedule. So that's why the Squire app does the booking, does the payments, no phone call needed, no time at the cashier after your haircut. Right. Like Jack, I'm on the app right now. I can see Palmolet Barbershop. You could book with Ricky Jay. You get the $45 fade or the $55 signature 2 p.m. Squire recognized the unique challenges of a barbershop and figured out how they could run way more efficient. But to do that, it had to become

a barbershop. Jack, can you cover the earth with your takeaways ever. Pinterest got where it is by being a search engine. Now it wants to be your board scroll engine too. Sherwin-Williams has been doing paint since 1866. Yeah, and you've been doing house hype since the pandemic started, but it's slowing down. Squire is the barbershop app. But to become a barbershop app, Squire became an actual barbershop.

Now, time for our snack fact of the day. This one tweeted in by Stephen Mince from lovely Jersey City, New Jersey. Tokyo isn't just the host city of the 2020 Olympic Games. No, honestly, it's arguably the food capital of the world by this definition. The French food guide called Michelin ranks the greatest restaurants in the world. It does. And Tokyo actually has more three-star Michelin ratings than any other city on Earth. New York City, London, Paris, Nata.

Jack, Tokyo. You come for the trip. back in field, you stay for the three-course meals. You know, you can see Mount Fuji from Tokyo, which is a volcano. Zero Michelin Stars, though. Jack, great job with the beard. Snackers, you look fantastic today. If you got buddies who should be snacking, ask them H-Y-H-YS-D. Have you had your snacks daily? Grow the snacks. Nick and I'll see you tomorrow. Jack, can't wait. If you know, you know. And before we go, happy birthday to Snacker Sierra in Grand Rapids, Michigan. And Corey Cholalo in Nashville, Tennessee. And see you.

Aira Ariaga in Atlanta, Georgia. And Anthony Ortiz in Rochester, New York. Oh, and Jack, Ross Thompson is moving to New York City. Have a blast man. Congrats to Molly Hart, who just launched a clean cosmetic startup. And Wesley Liu, first day of work as an adult. Fantastic. Congrats and good luck to Tim Pendle, who's an Amazonian starting today.

Very detail-oriented. And positive vibes to Cameron Braverman, who's moving to SF to work at Apple. Very user interface oriented. This is Jack, Nick on Stock of Al. And Scott and Lori Stephanie are in an RV right now, riding around the country. Listen to Snacks daily. Couples who snack together, stay together. Have a blast. This is Jack, Nick on Stock of Square. 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. Okay, here we go. Three, two, this is Nick. I was good.

I didn't see it coming at all. Here we go, three, two, this is Nick. Jack's throwing a dog toy at me. All right, here we go. Three, two.