The Best One Yet - “Barbie looooves Zoom” — Mattel’s anti-screen bump. L’Oreal’s athleisure skincare. Redfin’s real estate future.

Episode Date: October 26, 2020

Shares of Mattel surged 12% because iPad is out, Barbie is in. L’Oreal sales rebounded as it’s inspired by what Budweiser’s doing. And Redfin’s CEO made a bold call about real estate in 2021, so we’re looking at all the Housing stocks that are publicly traded.$MAT $LRLCY $RDFNGot 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. Welcome back. It is Monday, October. Let's go at 26. Snackers, is it possible for an American to hold their breath for eight days? Checking my Phelps app, turns out we're one week and a day away from the U.S. election.

So we'll see if we can hold our breath for eight days. Come up with a plan to vote. You're going to want to write it on something. And remember the multiplier effect. Tell your friend to come up with a plan to vote. It's Nick and it's Jack. We just want to talk and catch up. Do you have a plan?

Let's get to today's T-Boy. For our first story, L'Oreal has a solution for your RZF, your resting Zoom face. Yeah, the beauty industry is following the same strategy as Budweiser. For our second story, Mattel Stock jumped 12% on Friday because of a pandemic surge in doll sales. Honestly, little Julie wants a Barbie not an iPad, and her parents, they want her to have a Barbie, not an iPad. For our third and final story, you probably have a buddy who's using the pandemic to get his first house. So we're looking at who's selling shovels to the real estate. Old rush.

But before we get to that, Snackers, the most strategic pivot we've seen. Yep. Since last week when we talked about movie theaters pivoting in the coronavirus. This time, it is airplane food. Over in Helsinki, Finland, Finnish Airlines, lovely, aka Finner, has seen bookings plummet by 90%, so they got a lot of time on their hands. Also not totally shocking what we've seen double during the same time period. Ready-made meals that you just grab at the grocery store and heat up at home and watch

in front of Netflix. So this Finnish airline is, looking at variable A. They're looking at variable B, and they said, you know what? We're going to pack up our classic airplane dishes for grocery store shelves. That's right. Enjoy a six inch tin of sodium-filled entrees at sea level. One request, can we include the TSA-approved spork? Is that too much to ask for? I actually prefer to call it a fpoon. Jack's a B. Y. Foon person. Now, Finare kicked things up a notch, though, not just a spork here. Yeah, it turns out these grocery store airplane meals, they're more business class than they are like seat 54B. That's right.

right, this isn't like American Airlines chicken or beef. We're talking Nordic Japanese fusion dishes. Jack, can I interest you in either the reindeer meatballs or maybe the medium rare Arctic char? I honestly don't know what char is. It's like an arrogant salmon. I thought char was just like one way that you could cook chicken. Not in Finland, baby, not in Finland. So Snackers, we're talking about land quality food made by an airline, consumed back on the ground to make you feel like you're in the air in a plane with flavors you'd never get in the air. an incredibly inefficient way to prep food for dinner. Let's dinner three stories. You're tuned in the snacks daily.

We spoke to the lawyers. 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.

Snacks is digestible. Business news for you. Robahood Financial, LLC, member FINRA, SIPC. For our first story, L'Oreal sales are back, baby. And once again, what we see in one consumer industry is carrying into another. Jack, L'Oreal, it's 111 years old, but it looks honestly, it looks like a spring chicken. It's never been better.

It has got a pep in its step. After two quarters of brutal falling sales to start the pandemic, it actually had a 19% sales drop last quarter. Yeah, it's a tough situation when salons are closed, Maces is closed, retail stores are closed, and airline shops are closed. L'Oreal's like, thank God we put our product in grocery stores. It's the only thing still open. You actually can buy their Garnier shampoo at the grocery store.

But they're probably like, Can we make the lipstick edible so you can put it in the Instagram? So they finally managed to climb back to revenue growth in the most recent quarter with sales climbing 2% for L'Oreal compared to the year before. Maybe it's her. Maybe it's Mabelian. Maybe it's you caring about resting Zoom face. Actually, Loreal's makeup rebound wasn't really a makeup rebound.

No, this is what Jack and I found fascinating. It was a specific type of product called an active cosmetic. An active cosmetic is a beauty product with a single ingredient that improves your skin health, not just your skin's appearance. Key distinction, because those days are covering up every square inch of your face with blush is over. Today, it's all about dewy, fresh, healthy epidermis. We get on this podcast, Naggers, I'm looking at Jack, Jack, your cheeks, they look like they've been simmering in a can of life.

I look like an 11-year-old elf with my rosy cheeks. The light hits Jack in the wrong way. I get blinded. That's why L'Oreal has acquired three companies since 2017 that make active cosmetics in the beauty industry. The names of these companies come with a side of baguette. It's Vichy, LaRoche, and Saravi, which they purchased for $1.3 billion. Don't let the name fool you, Nick. They were actually acquired from a pharmaceutical company down the New Jersey term pipe called Valiant Pharmaceutical. Yeah, Saravi isn't some Parisian startup. It was founded in 2000. 20% growth in 2020 and was created by dermatologists. I actually have a couple years of using the Serafea product. I was a big regular with the AMPM facial moisturizer with SPF. I like that full

disclosure jack. By the way, AMPM feels like they're covering the whole spectrum of the day on that one. Two different products, Nick. If you have to ask, you can't afford it. Meanwhile, their peer LaRoche has a quote unquote key ingredient in all their skin care formulas that's proprietary to them. It's known as thermal spring water. The two standout products from L'Oreal's last quarter. One includes SPF, one includes thermal spring water. Active cosmetics. And together, they prove that beauty has shifted from makeup first to skin care first. So, Jack, what's the takeaway for our buddies over at L'Oreal? What we saw first in the beverage industry, we're seeing now in the cosmetics industry. Snackers, theme of 2020, Jack and I have focused on it before. It's two words, functional beverages.

herbal drinks, vitamin kombuchas, mineral waters, some kind of fermented amino acid product. I know well. They're all providing health benefits in their beverages. Now, functional beverages is how every beverage company from like Coke to Budweiser has embraced the new wellness trend. When it comes to trends in consumer business, what functional is to beverages, active is to cosmetics. Case in point, Molson Coors just launched Vizzi, a spike seltzer with one differentiator, vitamin C antioxidants. I raise you La Roche's anti-aging serum with one differentiator, vitamin C

antioxidants. Jack, the same formula that's working in the beverage industry was just adopted by the makeup industry. Functional beverages, active cosmetics. For our second story, Mattel Stock just searched 10% on Friday. And it's all thanks to one 61-year-old 11-inch tall woman named Barbie. I don't know this is going to be controversial, but Jack and I just want to put this out there. Mattel's earnings report, not as much fun as Hasbro's earnings report. Both Mattel and Hasbro put out these PowerPoints. But Hasbro's has like Furby popping out of the corner. My little pony over there next to the EBIT dot chart.

They're like, one of the revenues, oh, that's a cute little boy. But our favorite part of the Mattel earnings deck that we just looked through is slide 28. Yeah, we're going to tweet this thing out. They're over, get this, 200 toy brands. owned by Mattel, and they own all of that intellectual property. Hot wheels, who knows, the card game, Playmobile. It's like an all-star lineup situation. Barney, the kind of creepish dinosaur, he's fantastic, he's in there, too. We noticed at the beginning of the pandemic, the toy world looked different, and you saw it in Mattel's earnings.

The first wave was like this fascination with what Mattel actually calls boredom busters. None of us expected to be stuck at home in April, so there was a huge rush to buy puzzles and board games. There was nothing more soothing than sitting down for 8,000 hours with a 15,000. 100-piece puzzle. That looks like nothing interesting. I actually saw a 1,500 piece puddle. That was just a red, like, block. By the time you get to the end, the joke's on you. But now we're in the second wave of the pandemic toy buying phase, because Mattel just enjoyed a 10% sales surge. Get this. And it was all thanks to one heroin, Barbie. 29% jump in Barbie sales happened last quarter. The largest quarterly increase in 20 years. And a key part of this is, you know,

in just the last year, Barbie has finally become a whole bunch more inclusive. There is a every type of Barbie. Different body sizes, different skin tones, hair colors, and career paths. And if you want to know how detailed the team over Mattel got, they've even got a Barbie activist version for this year. The 2020 Barbie collection is like Potus and Veep Potus, showing dolls taking on various political and civic leadership roles. They even have campaign manager Barbie as one of the new types of dolls. I wish they had a Gary Barbie from Veep with the bag. But separate from all of those new developments, maybe the strangest development we've seen out of Barbie is the new color reveal Barbie.

You buy a Barbie that is as purple as Barney the Purple Dinosaur. And then you dip Barbie in a vat full of liquid. And she emerges with a surprise hair color and skin color. If you want to make your Monday the new Friday, spend a good half hour watching the unboxing videos of the new Barbie Dipping Water version. It's called the Barbie Color Reveal. It's highly entertaining.

But what's most important to Mattel is that age-old thing everyone likes to say, a rising Barbie lifts all dolls. Dolls, the doll category had a record 690 million in sales last quarter. That's right. The doll category at Mattel is worth one-tenth-a-lift. And according to Mattel, dolls are only dolls intended for girls because, you know, when it's a boy, they're called action figures apparently. That's all according to Mattel's manual of incredibly outdated categorization. So, Jack, what's the takeaway for our buddies over at Mattel? For every trend, there is an equal and opposite retrend. Snackers for years, physical toys were, you know,

Sadly, losing to screens. Thomas the Tank Engine's YouTube channel was beating out the physical toy that you play with in the basement. Well, now we're in a pandemic. And what's the driving trend of the pandemic? More screens, more screen times. Since I arrived in Vermont last month, I've actually been spending quite a time with newborn babies. Like baby bears? And Nick, their eyes gravitate towards screens like every second.

And it's hard for them to leave it, which is very much an adult problem too, but it's still concerning. And parents have become aware of it. So parents are now pushing back against potential early screen addiction from their kids with non-screen-based physical toys. That's why we're calling the Barbie boom a retrent. It's a reaction to the screen addiction. Boom, Christmas idea. Physical toy for the kid in your life. For our third and final story, Jack and I are just saying this is a total pent-up story. Redfin CEO is enjoying absolutely insane, his words, housing demand. The COVID housing boom, we're all experiencing, is a gift for the economy.

and for the stock market. Jack, call me barefoot contest because I just found your and my recipe for a housing boom. Let me whip this up for you. Ingredient number one, unbelievably low interest rates. Yeah, you know, the 30-year mortgage rate just hit a record low for a 11th time this year. It is 2.8% right now a record low for a 30-year loan net. Jack, the banks, they're paying you to buy the house. Ingredient number two, remote friendliness for jobs. Yeah, you're going to need about two cups of this. The last 10, years of high-paying jobs, they've clustered around, you know, your big high-rent cities. So there is pent-up demand from a lot of Americans to spread out, have a long, chill, and set up

a lemonade stand in front of the house. Although I want to point out, used to sell lemonade on Lexington Avenue 93rd, also a great corner. I hope Bloomberg gave you an A-cleannliness rating on that lemonade stand. Didn't pay taxes on that, Jack, in New York City. Ingredient number three, free time. Building and buying a home takes a whole lot of time. It's quite a mental schlep, actually. Jack, It's going to be between four and 14 months. Fortunately, right now, time is something that we all have quite a bit of. Oh, yeah, just got out phone with the contractor.

Just tell them we're free any time this month. Calendar's completely open. You add up all that beautiful stuff bake for 30 minutes at 4.50. And the result, despite high jobless rates, the housing market is living its best life. Existing home sales in the United States last month rose to the highest annual rate since 2010. And then Jack, how about the homes that haven't been built yet? 134,000 shovels got whipped out

and busted into the ground to groundbreak new home construction in September. I love how visual you went there. I could, like, feel the soil on. Nick, that was the highest rate since 2007. But Snackers, whenever Jack and I are looking at econ data like this, we call each other and we say, what's our first question? What stocks can we connect to this economic news? is a B.Y.

Sleaping Bag house party. Nick, there are so many publicly traded housing stocks involved. Jack, we got to break this down to three types. First type, you got your builders. Those are one type of publicly traded housing stock. There's actually a lot of publicly traded building companies, but we're going to look at Lenar and Toll Brothers who are up 40% and 20% this year on this housing book.

All right, great. You can build a thing, but you got to pay for it. So then your second type of home building stock are your financiers. Most big banks do mortgages, but rocket mortgage just does mortgage. and they IPO this year. All right, that's great. So you got the payment, you got the building covered, but you actually got to find the homes, which brings us to the brokers of home building stocks. Big shout out to my brother Teddy, who's a real estate agent, Zillow and Redfin are both publicly traded stocks. Both have doubled this year because they're taking broker fees on every

sale. Interestingly, they're also getting some capital gains because these companies, you know, buy a home, throw in a couple fig trees, put up the photos, and then flip it and sell it. All right. So this field is packed with stocks. But one stock in particular had a CEO, who isn't hiding his excitement for the COVID housing boom? No, the Redfin CEO put down his culotta for a moment and then decided to say on TV, this level of demand is absolutely insane. I would expect it to last into 2021 at least. When you are a real estate platform like Redfin, you don't care who's buying and who's selling. You just want action. So Jack, there's a whole lot of action out there. What's the takeaway for our buddies in the housing

market. The housing market is K-shaped two. Snackers, that same Redfin CEO also pointed out that the new homes being bought are being bought by remote working affluent. They're the ones who have financial security. They also have all this free money available for mortgages at ridiculously low interest rates. Interestingly, he also said that the millions of laid off people right now aren't interested in buying a home. Even if they were interested in buying a home, low income people are less likely to have access to those super low mortgage rates. Nonetheless, spending involved. all of than actually building that house, turns out to be like a huge gift to the struggling economy right now. The architect pays the construction guy who pays the lumber guy, who pays a

lot of who buys a sushi and it goes round and round and round. And that money multiplier effect is good for everyone on both sides of the K-shaped economy. The housing market is a gift for the economy and for the stock market right now. Jack, can you pass the Arctic Char and whip up the takeaways for us over there? L'Oreal has killed off many cover-up products, replacing them with active ingredients skin care instead. Jack, your epidermis is showing, and Loria loves it. L'Ory second story, Mattel is enjoying the second wave of pandemic toy buying, led by Barbie dolls. To combat Zoom's trend, physical toys are retrending. The third and final story, the housing market is so hot, it's probably violating a city ordinance.

And there's a recipe for why and a trio of types of stocks that are benefiting. Now, time for our snack factor today. This one sent in by a legendary snacker, we can knight him if we could. Over in London, Richard and his wife, Zoe Philbin, who have sent in snack facts for eons. They're also celebrating their 16th anniversary. Congratulations, Richard and Zoe. Richard, you are an OG snacker. Thanks for supporting us. Now, Richard points out that the Bank of Japan, which is Japan's central bank, is not just committed to Japan, it is really committed to Japan. It's now thought to own the Bank of Japan over 51% of all of the Japanese federal government debt. Plus, the Bank of Japan is also thought to own about 10% of

the entire Japanese equity stock market, mainly through ETS exchange traded funds. What this means is that Japan is a highly nationalized financial country because it's incredibly indebted. Now, here in the U.S., we recently just hit a bad milestone. Our debt is equal to about 100% of our GDP. Japan actually has double that. Japanese government debt is more than 250% of the size of its economy. At the end of the day, it's all about commitment. H-Y-Y-H-Y-S-D Snackers. I can't wait to see you tomorrow for T-Boy Tuesday. Every snacker tells a friend to start snacking.

We double snacks daily. Have you had your snacks daily? We'll see you tomorrow. Can't wait if you know, you know. And before we go, welcome to Mehmet, Sir Mel, who just started snacking over in Istanbul Turkey. And good luck to Beatrice Mess Stuff, who just kicked off her MBA in Evanston, Illinois,

at the Kellogg School of Business. And congrats to Chris and Brooke Clark. Just got pregnant over in Calhallow, San Francisco. I'm right up the hill. Jack and I love Hidden Project Juice for Asai. Congratulations to Rakesh and Aparna, who just got hitched in Bangalaroo, India. And congrats to Claire and Bennett, married in L.A.

And to Chad and Danny, who just got engaged in Seattle. And my and Daniel anniversary, first year of La Zalthos, California. And happy first anniversary to Haley and Jesse in Minneapolis, Minnesota. Happy birthday, Gore-Simmerville and Delray Beach, Florida. And Turney McElroy in Carson, California. I definitely botched that pronunciation. John Harris in Picneyville, Illinois. and Ken Hermano in San Jose, California,

and Matt Rump in Lebanon, New Jersey, and Taylor Hayes in Clarksdale, Mississippi. And happy birthday to L.EJ in Austin, Texas. And Prenjali Porcar in Seattle, Washington. 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.