The Best One Yet - “Air Force 1 is 38 years old” — Nike’s sneaker moment. Spotify’s Hollywood repackage. ChargePoint’s electric shovel.

Episode Date: September 25, 2020

Shares of Nike popped 10% thanks to its retro sneakers, which are still the profit puppy. Spotify wants to repackage its podcast audio content into movies/TV. And ChargePoint plans to go public since electric cars need electric charging infrastructure.$NKE $SPOTGot a SnackFact? Tweet it @RobinhoodSnacks @TBOYJack @NickOfNewYorkWant a shoutout on the pod? Fill out this form:https://forms.gle/KhUAo31xmkSdeynD9Learn 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. It is Friday, September 25th. Snackers, we've been dealing with plenty of pain and chaos and pain between the politics and the national news section. So Jack and I worked extra hard to whip up three fascinating and informative business stories for you. We are proud as a profit puppy to whip up this tea boy for the Snackers. This is the best one yet. Jack honors for a story. Nike stock rose 10% after its earnings reports thanks to our love for retro. Pro shoes. It turns out Nike's star player isn't some new stud. It's the old guy. For our second story, ChargePoint, thinks all those electric car startups are adorable. It's going public too, because electric cars need electric car chargers. For our third and final story, Spotify wants to turn

its top podcast into top movies and top TV shows too. Snackers, we got ourselves the power of the repackage. But before we jump into all that good stuff, I have the privilege, dare I say, a honor and justice. You better get this right. Of speaking and co-hosting with Jack Kramer, wine salesman of the month for three straight months, South Burlington, Olive Garden. Okay, can we get a bottle of cab sod to Nick Martel at Table 12? Jack looks you up and down as soon as he meets you and goes, you know what, that's a Kianti guy. That's, I can smell it on him. Snackers, 18 years old. If you're ever selling wine, the key is the free sample. Give them the free sample and they want the box. Jack, who took your crown in South Burlington, by the way? Mary Jo, famous for covering the West Wing. She

took over as wine salesman of the month. The lucrative ring. A lot of Bordeauxs go out in that Olive Garden. Now, we're talking about the Olive Garden, which is shockingly the most successful restaurant in Times Square, New York. Technically, the most successful Olive Garden is the one in Times Square. That's right. The top Olive Garden in the country is the one in Times Square. And Jack, as a native New Yorker and Italian American, this offends me on two levels. Yeah, it's kind of a big middle finger to Italian-American New York City. But that Times Square Olive Garden, Jack and I jumped in Snacks Style into their earnings report, turns out in 1994, great year is when it opened. This is the six flags of pasta, the Nike town of Tortolini.

We're talking three stories, two kitchens, and 500 guests worth of carbohydrates. Now, if you want to watch the ball drop in Times Square on New Year's Eve and freeze your entire face for 12 hours, real thing. The Olive Garden will actually let you into their restaurant for a $100 cover charge. It's kind of like an exclusive club. That's how they're making their money over at Darden restaurants. Now, this location is the profit puppy for the Olive Garden chain. They typically bring in $300,000 worth of tours of Italy sales per week.

But over the last few months, this Olive Garden location has only brought in $17,500 per week. That's 6% of the typical revenue of this restaurant because takeout only is the rule during the pandemic. But snackers, starting next week, the biggest city in the United States is bringing back in person dining. If you're in the tri-state area, hit up the places you've. I've been missing and listen to Snacks Daily on the way there. Wear a mask, and we're going to hit our three stories. You're tuned into Snacks Daily. We spoke to the lawyers and we got to get something legal out the way.

The 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. Robahood Financial, LLC. member FINRA slash SIPC For our first story, Nike's earnings were like a sports center top 10 over here, Jack. But its retro sneaker advantage is the real highlight we want to talk about.

Snackers, let's take a look at this. Nike stock up 10% in the last week. Now, sales did dip in North America by 2% from June, July, and August brutal. Because most of the stores were closed still. But back in China, sales were up 6% because stores aren't closed there anymore.

Online sales, though, globally. almost doubled at Nike.com, which is insane. I'm going to sprinkle a little context on this thing. Keep in mind their other retail peers, Brooks Brothers, Jay Crew, J.C. Penny, Neiman Marcus. What's the status over there, Jack? They're all bankrupt. But at Nike, you get a little bit of a different picture because the CEO just busted out this halftime speech after the earnings report. Actually said this at the earnings.

No one can match our pace of launching innovative product and our brand's deep connection to consumers. It's hard to argue with. Now, what fascinated us is not how much Nike sold last. quarter. It's what was sold last quarter. Nothing like drinking a Red Bull before the earning support, by the way, Jack. Yeah. Whenever sales slump, Nike can always fall back on its reruns, like the original Air Force One sneakers. Disney Plus is a company that's grateful. It has 32 seasons of the Simpsons for you to watch. Yes, it is. Nike is thankful. It has 32 versions of Jordans for you to wear. That's because the OG Air Force Ones are like Nike Simpsons with a hint of Seinfeld and a little

dollop of fresh Prince Belair. Launched in 1982, the original Air Force Ones are 38 years old with a relaxed leather silhouette that's still in style today. Jack, you put these things on, it's like a beanie baby on your foot. It brings you back, and it feels good. Now, Nike doesn't tell us how many Air Force Ones they sold in their earnings reports. But Nick and I were able to triangulate the precise data using some technical instruments. First place we looked, market research from NPD.

Apparently, Air Force Ones are the number one. selling sneaker of 2020. According to a payment firm called Clarna, it's the most popular shoe selling on the Nike app. And then finally, retailer Foot Locker said that the Air Force Ones are among the retro releases that were a really good category for us in Q2. The fact that Nike can just like get out of bed and whip up a vintage sneaker from 1982 is a huge advantage today.

Now, technically, Puma and Adidas, they can do it too. We're picturing the Stan Smiths. True. But newer brands like Lulu Lemon, Under Armour, Outdoor Voices, they don't have that luxury. They got to whip up a new look every single season. Albirds is like, how can I make plant-based shoelaces for my next shoe? We got to have something in black and dark gray and then versions of black and dark gray. So Jack, what's the takeaway for our buddies over at Nike? Across almost every industry, nostalgia thrives during a recession.

Snackers, Nike always is down for revamp and old retro styles because it requires literally no creativity. The Air Force One selling today is the Air Force One that was selling in 1982. They don't even bother waking up the design team anymore. Dustin, take two weeks of paid leave. We don't need you for a while. We're going back to Air Force One. Just forward us the files you did five years ago. But consumers like you and me especially love retro anything during a recession.

Nostology is a successful marketing strategy when money is like really tight and uncertain. That's what works. Studies show that consumers will pay more for the immediate sense of comfort and happiness and better times. We saw this happen after the 2008 financial crisis. Now we're seeing it again across all industries, not just Nikes. For our second story, ChargePoint is going to become the first pure play electric charging station stock. Nice timing because the state of California just announced all new cars sold starting in 2035. They got to be electric. Now, Snackers, we have talked about the California dream before. Jack, where is it kickoff? Founding a company and driving a Prius. Yeah, but then the key,

you got an IPO, then you drive the Tesla. That's the California dream. Full circle. But if you're a fan of Clean Energy Snackers, you're going to have a new stock option soon. It's called ChargePoint. Based in South Silicon Valley is the orange-branded electric charging stations. I know South Silicon Valley was a thing.

I think they should roll with that. So now, so pop. Now their customers are, interestingly, not just households, and not just households and companies, but households, companies, and entire cities. That's right. You can buy a charging station for your garage, for your parking lot, or for the street corner for anyone to use. So Jack and I did the old Google Maps test.

Okay, so I searched ChargePoint on Google Maps, and I found that there were actually 20 chargepoint stations within three miles of my Menlo Park, California apartment. Okay, so I went a little bit further north, and I also searched ChargePoint in Google Maps. Turned out there were 20 charge point locations within a 20 block radius in San Francisco near my apartment. Now, California is not representative of the rest of the country. No, it's not. But 20 stations in a three-mile radius? By the way, understatement of the century, Jack.

Now, charge point's goal is to build a new nationwide physical infrastructure, and they started it back in 2007. So to make electric cars go mainstream, you kind of need charging stations as accessible as gas stations. So charge points basically pulling a hands across America, but focusing on each little parking space. Yeah, charge points don't require a full station situation. It's just a parking spot for a casual 15-minute car charge. Right.

Most charge point stations don't have like vending machines, a slurpy machine and like the thing to clean off your windshield wiper. You're not popping in and popping out with six bags of Doritos in this place. That's why ChargePoint was able to hit its 100,000 charge point globally in September of last year. But for context here, Snackers, there are 112,000 gas stations in just the U.S. alone. So we're talking similarities. Yeah.

It's not apples to apples because globally versus U.S., But ChargePoint isn't the same ballpark as gas stations. By wait, can we point out that how many gas stations are there in the U.S.? is a fantastic, classic interview question? Yeah, you're going to want to take a couple minutes before you respond to that one. Also, pro tip here, Snackers. Jack and I have been through a few finance interviews. If you get a tough question, answer the tough question with more questions,

and you never answered it incorrectly. No, ChargePoint has some exciting existing investors we want to quickly talk about. Yeah, we're going to whip these up. BMW, Daimler, Siemens, these are companies jealous of innovation happening in California, so they invested in ChargePoint. Volkswagen, another German company, they feel bad about the diesel scandal that they were involved in, so they're investing in electric charging infrastructure in the U.S. And then Chevron, they've been yelled at so many times for not diversifying away from oil. They just decided to invest in ChargePoint. All right, those are the existing investors, but before the end of the year, a Shell company is going to acquire ChargePoint, this is what they announced yesterday, taking ChargePoint to the public stock market.

But before you get excited, keep in mind that they are a horribly unprofitable company because building 100,000 charge points is expensive. The hope is that once the system's done, that's when they start making money. So, Jack, what's the takeaway for our buddies over at ChargePoint? Chargepoint is selling shovels to the gold miners. Snackers, we got ourselves an electric car gold rush going on. Every car company is just one-uping the other one. Here at GM, we're happy to announce 23 electric car models coming by 2023. Here at Electric Car Inc, we got 24 models by 2024. Now, the state of California just added some urgency to this electric car gold rush because their state is feeling climate change right now really bad. Yeah, California just told car companies that starting in 2035, all new cars must be electric.

Now, that's kind of a big deal because California, fifth biggest economy in the world. Fifth. Behind Germany, ahead of India. And gasoline in the future, it's electricity. That's what charge point does. Snackers, there are a run. of companies trying to win in the electric car race. And each of those companies needs chargers. That's what charge point sells. For our third and final story, Spotify is partnering up to turn its podcasts into films and TV shows. Nick, I'm thinking the Great British Snacks Bakeoff. Yeah, I remember we proposed that, Jack. Mary Barry was going to like rip into our scones. And for HBO Snacks Daily, after dark. With guests from the Great British Snacks Bakeoff.

No, we've talked about Spotify's gated garden strategy before. Yeah, classic strategy here. You buy up the big podcasts and then you make them exclusive on your platform. Spotify's like the New York Yankees. They've signed Joe Rogan, Michelle Obama, Kim Kardashian. They've even bought up big producers like Gimlet and the Ringer that pump out a whole bunch of podcasts. In total, Spotify's put down like a billion dollars on this IP, the intellectual property. And snack is, you know, if you own the content, if you own the IP, you can do what you want with it.

They're up to 250 original shows, some of which are exclusive on Spotify, some of which are all over the place. They're true crime or sports talk, but honestly, like mainly crime stuff. Apparently that's big. I've never listened to a true crime podcast. Yeah, full disclosure. This is Nick and this is Jack, and neither of us has. Now, Spotify, they know a thing or two about audio. They probably know more about audio than any other company. They're less comfortable in front of a camera. And Daniel Eck, CEO, he's got a thing for ears. That's why they partnered yesterday with a media polyglot called the Churnin Group. This is a company that produced like Ford versus Ferrari or the New Girl TV show,

and they're also behind Barstool Sports. Here's the deal. Spotify's got a lot of podcasts. Churnin Group has the first rights to pitch those podcast shows. And not to be like shows that are in the Spotify app. No, these are to pitch to like Hollywood Studios and streaming networks. Now, the transformation from earbuds to the big screen is key. It's key. is already upon us actually. Yeah, Snackers, we looked into this. The Clearing, which is a big podcast

about, guess what, a serial killer's daughter, is becoming a TV show. And Spotify's homecoming podcast is becoming a, wait for it, TV show on Amazon Prime. So Jack, what's the takeaway for our buddies listening up over at Spotify? The newest trend in media is the power of the repackage. Snackers, the New York Times just bought a tech company called Autumn that turns their written stories into audio stories. Wall Street Journal has reporters writing incredible articles about Theranos. Well, they sold that IP to HBO to turn it into a Theranos documentary. Just like the New York Times in the Wall Street Journal, Spotify owns the valuable media content, which are valuable stories. But they're only distributing those stories in one way to one audience that's consuming one media,

audio. So to maximize the value of that content, Spotify can repackage all of it into other media. Now, you don't just repackage into other media. You need a specialist like churning that knows the difference between the voice of video and the voice of audio. And there is a cannibalization risk that some people stop listening and just start watching your content instead.

Now, Robin and Snacks, we have a daily email newsletter, a daily podcast, and daily video, and we've seen that there's audiences for audio, for written, and for video. The cannibalization risk that people focus on is actually quite a small risk in Jackson, my experience. If you repackage your stories right, you actually just reach more people and you lose few.

Jack, how many gas stations are there in the world? And can you whip up the takeaways for us over there. Nick, if Nike's tired, it can always just fall back on its reruns. Air Force ones, the retro shoe still profit-pupping 38 years later. Second story, ChargePoint is making the shovels for the gold rush. A.k.a. the charging stations that every electric car is going to need. Third and final story, Spotify, has fantastic stories, and it doesn't want to limit them just to audio.

Honestly, we're calling this the power of the repackage. Now, time for our snack fact of the day. This one tweeted in by Nick Van Dam in Lake Minnetonka, Minnesota, aka Home with the Flying V-Jack? Turns out, I think so. Ducks fly together. Turns out the most successful chimpanzee ever was a six-year-old chimpanzee named Raven that got this title from the Guinness Book of World Records in 1999.

Now, this is back in 99. Before there were trading algorithms and, like, robots buying stocks. Yeah, Raven, she, by the way, not a he, became the 22nd most successful money manager in the United States after picking stocks by throwing darts at a list of 133 companies. When asked for comment, she had no comment. Snackers, before you have a fantastic weekend, we got to say congrats to Anika, a snacker who just started grad school and brought us lava Slovakia.

And congrats to Freddie Miller for getting your pharmacist license over in Illinois. And to Dennis Hatch, who just retired in the Poconos of Pennsylvania. Happy anniversary to Lewis and Katie in Seattle, Washington. And to John and Carith Dahl, marrying this weekend in Seattle, big congrats. Dennis and Olivia, happy nuptials in Essex, Massachusetts. Kelsey and Scott from Scottsdale getting married, probably in Scottsdale. Is that the Scott from Scottsdale? I think that's the Scott from Scottsdale.

And happy engagement to Matt Brooks and Kate Yarbrough in North Carolina. And to Jen and James Sperry in lovely Philadelphia. And a special happy birthday to Cody Goodermott in San Francisco, California. to Aaron McGrane in Des Moines, Iowa, and Holly Jade in West Bloomington, Minnesota, and Nicole Calandra in New York City, and Sydney in Lawrence, Kansas, and Willie Sanchez, San Antonio, Texas,

and Grace Precourt in Minneapolis, Minnesota. Snackers, you guys did great this week, and you look fantastic. Take a load off, watch a movie, get some R&R. We'll be back with you on Monday. HY HYSD, if you know. Have you had your snacks daily? You know. This is Jack, I own stock, of Spotify.

The Robin Hood Snacks Podcasts, 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.