The Best One Yet - “Apple’s got a Stage 5 Clinger” — Jamf’s IPO. DraftKings Opening Day drama. Ro hits $1.5B

Episode Date: July 28, 2020

DraftKings shares dropped 6% because baseball just had its first mid-season COVID crisis. Jamf stock has doubled since its IPO because it’s got a single mission: Help your company thrive on Apple devices. And our “Unicorn of the Day” is Ro, whose valuation tripled to $1.5B by evolving beyond cheap direct-to-consumer Viagra to all of healthcare.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. It is Tuesday, July 28th. Markets did barely anything yesterday. Yeah, they're not doing that much. Kind of feels like, we're talking late July here, Jack. Feels like a late July slow market day. So we're going to get right to our three stores. I think we said the exact same thing yesterday, which also means it is a late July market day. Yeah. Now, this happens to be the best one yet. First story, opening day for baseball was on Thursday. And that was Draft Kings' best day ever for bets. But then, We got our first baseball COVID cancellation, so the sports gambling stock just went JV tanked. For our second story, JAMF, JAMF, just IPOed with one single mission as a company. Be as obsessed with Apple as you can without getting too creepy. Third and final story, the unicorn of the day is a company called Roe. Simple. Which started out as direct-to-consumer generic Viagra. Now it's pulling the Beezoo switcheroo from focusing on one product to focusing on an entire industry.

But before we hit those stories, your credit score. Yeah. It's like Professor Snape's most secret potion. Let's be honest, no one really knows what goes into this thing. It's a little bit of your car payment history, a little bit of your average credit age, and a little bit of the number of soft pulls. Throwing maybe a couple eyes of the newt, but you don't want any hard pulls. That's where they get you. Do not add any hard pulls, or you're going to have a bad concoction.

But the worst part about your credit score is having to build up a credit history to get said credit score. They're like, build up a credit history to improve your score. Whoa, not that much credit history. Easy there, slugger. A little too aggressive on the swipes. But we have one big new development in the way that your credit score is calculated. Jack and I just noticed that Experian, one of the big three credit rating agencies, is adding your Netflix history to their credit score calculation. Your Netflix history. Not the number of times you've watched the office since COVID started. No, no, no, no, no. The number of times you've paid for monthly subscriptions. so that you can watch the office. Now there's one catch here. If you're bumming off your older brother's

password, thank you very much, Tuck. I'm like three years in debt to you. It won't help your credit score at all. No, you got to be paying for yourself if you want to be up in your credit score, which got us thinking a little more aggressively about this. This could be, Reed Hastings, the CEO of Netflix, his master plan to eradicate the moochers from America. That's because mooture Netflix nation has 44 million citizens worldwide. That's the population of Argentina. And that's the number of people not getting credit for paying for Netflix because they're actually moochie. This is Nick. I'm a citizen of the United States and a citizen of mooture nation of Netflix. This is Jack. I plead the fifth. 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. It's 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 you know. We're not recommending any securities. It's not a research report. or investment advice. Not an offer or sale about security. Right. Snacks is digestible. Business news for you. Robberhood Financial, LLC, member FINRA slash SIPC. For our first story, Draft King Stock soared on hopes of sports reopening.

And crashed yesterday on the first COVID outbreak, the first weekend of Major League Baseball resuming. Round one, first round, first game company down. Now, Draft Kings went public just a little bit earlier this year via SPAC. And the timing was terrible because Draft Kings relies on sports so that people can place bets and sports wasn't happening since COVID started. The only thing you could watch was like Hungarian table tennis. And remember, in Soviet Russia, ping pong table you. Draft Kings was actually getting a shocking amount of business from people placing bets

on Russian Federation table tennis. Because it's the most entertaining thing when there's nothing entertaining. Now, the stock has tripled since then. The theory being pretty simple, you're not doing anything. That's right. Sports aren't happening. but a sports betting app stock triple. I think that's called a paradox.

It's not an oxymoron, and it seems somewhat like a conundrum? Now, here's the theory here from investors boosting up drafting up drafting stock. They figure sheltering in place is going to be good for gambling because eventually sports will come back and they'll have nothing to do but gamble. Right, and betting, in this case, doesn't require casinos. No, you don't need that mandatory gin and tonic order, even though you don't even want it. I think it's like required to sit at the table. No one wants gin and tonic.

You're just like saying you want gin and tonic. And this world of gambling, we also don't need bookies anymore. Yeah. Nice guys. We're sure they're great, but they're a little rough around the edges. And that's thanks to Draft Kings, which owns a fantasy sports app and a conventional sports betting app that is legal in seven states. Exactly.

And Draft Kings has got a one-two punch going on here. They've got the number 13 and number 15 sports apps in the sports category on the app store. And so the stock has been climbing and climbing and climbing on expectations. that sports will come back and draft kings will make a lot of money once it does. And we should point out here, that's impressive because all the other apps in the sports category are like NBC or like ESPN3. Oh yeah, number 13 and number 15 is really good in the app store for a sports betting app. Highly respectable, you're still getting on the field and your mom's proud of you. So then last week, the executives of draft kings were probably ridiculously pumped

when MLB put on the uniforms, got out the peanuts and cracker jacks, and launched baseball again. Which is why Jack and I just noticed a fascinating, statistic that is our hero stat that like defined this story. Get this, there were more wagers placed on the Yankees Nationals' opening day game on Thursday night than in last year's game seven of the World Series. Game seven, that's the ultimate game of anything. People were dying to bet on sports and it's a very good signal for Draft King's business. It also was the new news. And it makes us think Draft Kings could have a very, very good third quarter, the third quarter of course, which we're in right now.

But Jack and I are looking at the box score over here, and it kind of seems like sports took the early lead, but then COVID scored like 20 unanswered points in the second quarter. Sunday morning, we had some bad news from baseball. Four players on the Miami Marlins tested positive for COVID-19. And then the Marlins still played on Sunday without those four players in Philadelphia. Now the Marlins have confirmed they have 14 infected, 12 players, two coaches.

It's officially an outbreak. So their game Monday got canceled, and then so was the Yankees-Fillies game, because they were playing the same place as the entire infected species of Marlins. Right. And if you're looking at this, if it happens with the Marlins, it could definitely happen with other teams. This is a major threat to baseball. Jack, that sounds like the kind of line like our mothers would remind us of on a daily basis. So Drafking stock fell by 8% yesterday because it only makes money if sports is actually happening and can be better. So Jack, what's the takeaway for our

buddies over at Draft Kings? All of America is a marketer's dream right now. We are a captive audience. is a captive audience, just like when you're walking through the airport terminal and you have nowhere else to go. Or you're in an elevator and you have to stare at the wall in front of you in the elevator. That's why they put ads on those walls in the elevator because there's nothing else you can do. Just like those two humans we just described, Americans are stuck at home with limits on what we can do. We're a captive audience. And when you're captive like that, you are desperately craving something entertaining to do. Our question, who's going to deliver a COVID-friendly entertainment solution for American. So Jack and I are checking out the calendars and his fall rolls into winter, people will be

indoors more, outdoors less. So the demand for entertainment from your TV will be even more crucial. Sports gambling could be the highlight real solution for this captive audience if sports works out all the health kings. NBA's got the bubble. True. Hockey's got Canada north. No, it could be sports or it could be something else like HQ trivia or Dance Dance Revolution. What can entertain this captive audience. With a captive audience, it's got to be something. For our second story, a fascinating company called JAMF just IPOed last week and its stock doubled. But we need to talk about a borderline unhealthy relationship Jamp has with Apple. So true. It's like we got to call Jamp into a room and like have a little intervention here. Jack and I jumped in snack style to the S1 IPO filing

paperwork for JANF and we noticed that this was its mission. Help organizations succeed with Apple. A little bizarre. They mentioned someone else. in the first line, but we took it, you know, we were curious. But then we noticed this wild stat. Marilyn does crab cakes and football. JANF does Apple. JANF mentions Apple 533 times in its IPO paperwork. We did the old Control F. Apple was mentioned 19 times on page one. Tim Cook, you might want to get a restraining order for this company called Jamp. And then Jack and I noticed that Jamp starts reciting some like poetry obsession with this company Apple. I think there was a sonnet in here.

They said Apple is ubiquitous. Apple is the most valuable brand in the world, according to Forbes. Apple's success has been driven by delivering the best user experience. I love Apple. It's like a groupie, a lobbyist, an Apple whisper. Like they know a guy. It's all rolled into one. We're talking stage five Klinger.

Now, Nick, what is JAMF's ticker symbol? It actually is just Jamp, which is disappointing. big missed opportunity. Should have gone with APPL, which isn't Apple, but it's like Apple. Now, since 2002, Jam's been helping your IT team connect all your company, MacBooks and iPhones and iPads. Think back to that wonderful hand-holding orientation you had on day one of whatever company you're working at. It was amazing. You played two truce in a lie. You had to say, hey, I'm Carl, here's my fun fact. I spelled Carl with a K. This is the whole thing. But then you went into a room where you got these fancy new devices. and guess what, jamf was there the whole time.

Everyone gets excited. It smells great in that room. The devices to all the systems and all the drives in your whole office, Jamp connected them. Unless you're at a company where you're getting like a company issued IBM think pad, a Blackberry, and you got to shuffle your personal phone. The worst. You're not a Jamp customer in that case. No, you're also living in 2008.

Nick and I had like the Blackberry slash iPhone ripping out our gene pockets every day. We had to carry them both. It stunk. You text someone back. I can't email you. I'll just get back to you when I get home. Now, these days, direct-to-consumer flossing startup based in Soho, they're not giving you a PC. They're sticking with Apple because they want you to carry fewer devices and fewer dongles. And that Apple obsession is what's earned Jamp 40,000 customers who are now connecting 17 million Apple devices. Now, there was news that came out Monday. Separate from Jamp's IPO that Jamp loves.

Google is apparently going to have 200,000 of its employees. and contractors work from home through July 2021. Crazy announcement. We need to like rethink how long COVID's going to last. Google's got more data than anybody. They think it's going until July. And Jamp is feeling happier than anyone because their sales jumped 37% over the last quarter to $60 million because they got to connect all your work from home stuff.

Think about it. Work from home is great from Jamp because your IT team is working overtime trying to connect like Carl's MacBook to the VPN again. And then Carl reaches out to IT. and says the VPN still not connected, boom, that's more time using JAMF to connect Carl. Jamp has never been more important to company's IT departments than during work from home. So, Jack, what's the takeaway for our buddies over at Jamp? You live by the best customer, but you can also die by your best customer.

Snackers, for 18 years, Jamps grown into a $5 billion business by riding the Apple product wave. But Apple looks at Jamp and they're like, yeah, we're friends? Yeah, but we're not best friends with Jamp. It's like that friend of yours who thinks they're going to prom with someone, but then, you know, they never really ended up asking them to go to prom. It's an unbalanced relationship, which JAMP identifies in their own S-1 document as risk number four of this company. Yeah, they say changes in our continued relationship with Apple may have an impact on our success.

What if Apple decides they're just not that into JAMF? Yeah. And they like try to launch their own JANF competitor. And we looked into it. The future relationship between Apple and JANF looks kind of awkward. We're not betting on this. thing. Apple just acquired a company called Fleet Smith, which pretty much does what JANF does. Basically, Apple is already seeing other people besides JAMP. JANF should get new friends just in case

Apple decides to suck JANF with their own product. For our third and final story, three-year-old healthcare startup Rowe just tripled its valuation to $1.5 billion Unicorn of the Day. Kind of looks like it's trying to become the everything store for healthcare. Great name. Roe is a little bit a shorter name. Not quite everything. Doesn't have the same role. We got a little bit of a row, row, row your boat situation over there. Now, Roe calls itself a digital health clinic, but really the startup began just a few years ago by identifying three key trends. The first key trend. Patents were expiring, like the one for Viagra. Pfizer always had the patent, but they can't control that forever. That blue little pill,

it does fit in Pfizer's hands, but they can't keep it on lockdown forever. When Pfizer doesn't have it, Morpheus has it. And he could. controls it for a long time. The second key trend that's Guiding Row, consumers love opening boxes when those boxes come in just adorable direct-to-consumer branded package. Amazon isn't fun to get, but then you get that Allbirds box. You're like, wait a second, are these cool shoes, or could this be my hair loss pills? You get excited. The third key trend, guiding row, is the belief that millennials hate wasting time doing things they'd rather not do. Are you going to hop on the five train, head up to the Upper East Side, pop off on 86th Street, and then

visit Dr. B between Madison and Fifth for like half the day. I'd rather wait for Dr. B on my living room than in the waiting. And then you get to ask questions like, why do they call you Dr. B in the first place? Now, after finding kind of those core principles that guided Roe to its start, it went on an existential journey recently that we're going to walk you through. Yeah, it noticed that its first product was just men's erectile dysfunction, hair loss pills. So it asked, why are we just men's erectile dysfunction to hair loss pills? That's when it was only called Roe. But they recently launched a line called Rory. We think it's named after Rory Gilmore from the Gilmore girls, but these are branded medications like birth control and

eyelashes specifically for women. Then Rowe was looking at this situation and they're like, you know what, why are we just doing gender-specific healthcare stuff? So they launched zero, which works for guys and girls, helps them stop smoking. So then they're noticing they got all these guys' patients who need pills, all these girl patients who need pills, and all these patients, guy and girl who need pills, why don't we launch something about pills? You know, Nick, corporate development and sounds really fun when we tell it like this. Sounds like the team at Roe is just thinking a lot and has way too many whiteboards. So they launched a direct-to-consumer pharmacy subscription for $5 a month.

And that was the last time we told you about Roe, which was in March. Now, the surprising new news we're covering today is a pivot from just consumer businesses to business-facing businesses. We're talking business businesses. Specifically, the CEO said this wild quote, he wants to be the Shopify for healthcare. Remember, Snackers, Shopify is a company. that's there, even though you don't know it, because they provide business-to-business

e-commerce software. Rowe is building software too, but for healthcare and telehealth to run its own business, and then it's realized, wait a second, that could be its own business. So Rowe's going to start working with doctors who want to go directly to consumers online, but like don't have a technical engineering degree to set up the website. Jack and I are looking at Rowe. We've covered it a bunch. Its feature has now become its new business.

So Jack, what's the takeaway for our buddies over at Rowe? Roe started with one product, but their plans were to conquer the entire healthcare industry. Snackers, Roe was following the same playbook as Bezos or Elon. Their ambition seemed modest at first, but the goal was to destroy a big, stubborn industry. Bezos started Amazon by selling books online, now they sell everything online. Elon Musk started Tesla by selling just one super expensive sustainable sports car. Now they're sustainable everything. Roe started by focusing on erectile dysfunction pills.

Now it's trying to change the entire health. health care value chain. Now the big problem with Rose Plans, the healthcare industry is incredibly immune to disruption historically. And another problem with Rose Plans, Amazon is trying to do the exact same thing. True. But even Amazon is struggling to disrupt health care because health care is so damn stubborn. Tushay, Jack. Chuck. Jack and you'll whip up the takeaways for us over there. Draft Kings could thrive when sports finally returned. Because a captive audience of a bunch of board guys needs entertainment. It's that simple. Second story, JAMF is a freshly IPOed company helping company set up Apple devices for all their employees. Sounds like a 90s stereo, but Apple's just

not as into a JANF as maybe you're into Apple. Third and final story, Roe, isn't just a company that sells a couple of cheap pills and nice packaging? No, expanded from one product to one entire industry. Now, time for our snack fact of the day. This one sent in by Shane in Lom Philadelphia, Pennsylvania. Shane, Patzerginos, let us know on Twitter. Shane is a bit of a cereal snack facker. I think this is number two for him. Loves his carbs. And here's what he sent us. Coca-Cola owns every domain name for ah.com that you can probably imagine. Now, what we mean is gulp, gul, gul, gul, gul, gul, g, g, g, g, we're talking a h-h-h-h-h-com, a h-h-h-h-h-h-h-h-h.com. We could go on.

They actually own all the domains up to 62 H's after the A's. Okay, update here, they bought all those domains. Yeah. They seem to not have done anything with it because some of those are for sale now. We appreciate an aggressive move to be ready for literally every possible scenario.

Before we head out, quick, happy birthday to Tremel Taco Miller in Austin, Texas. Congrats on the Cybertruck factory. Tremel, let us know how you got the nickname. Josh in Fargo, North Dakota. Happy birthday. Peyton Wagner and Cape Jerodoo. All right, happy 30th.

Didn't know they got ocean access. Mary and Jake, happy first anniversary. Thanks for snacking as a couple. And finally, Maline and Palo Alto, California. Happy birthday. Not Darlene, Marlene. Snackers, you look fantastic today. So ask your friends, have you had your snacks daily?

Or just say HY HYSD and we'll see it tomorrow. They'll know what you mean because if you know, you know. This is Jack. I own stock of Amazon, Nick own stock of Apple and Shopify. 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.