The Best One Yet - 👋 “Bezos is gone” — Amazon’s new CEO. Foot Locker’s blister. Wheels Up’s private jet pop.

Episode Date: July 6, 2021

Jeff Bezos officially stepped down as Amazon CEO yesterday, so we’re introducing you to the new guy. Private jets are living their best lives right now and Wheels Up is the 1st purely private plane stock to go public. And Foot Locker is shockingly up 60% this year because it goes to where the customers decide, not where they are.$UP $ASPL $FL $AMZNGot 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 Tuesday, July 6th. Happy 4-day work week. That's the best part of Monday holidays. Welcome back from the holiday weekend.

Jack, how was the Wiffle Ball? I've been meaning to ask? Well, we played on Kramer Field. So there's a short porch and right. And since I'm a righty, I didn't hit any dingers. I'm not sure if that makes any sense. All I know is Wiffleball, it's actually slower than baseball. Nick, the bats are so skinny.

Striking out is inevitable. By the way, Jack, I managed to pull off a one. one-to-one ratio of Nantucket lobster rolls to shirts ruined. Always wear a bit. That's the takeaway. Bumble Cafe, if you know, you know. But today's pot is the best one yet. For our first story, today is the first full day for the new CEO of Amazon. Attention people. Jeff Bezos stepped down yesterday. We're welcoming in the newbie. Pro tip, bagels for the new guy. For our second story, Wheels Up is the first ever pure play private jet public stock. But the whole private jet industry is living its best life right now.

For our third and final story, shocker, but Foot Locker stock is doing three times better than the rest of the stock market this year. Foot Locker, too much Nike, just enough stores. Snackers, before we hit those three wonderful stories. I love this mix. While Nick was eating lobster

rolls, the rest of the country ate 150 million hot dogs this past weekend. We added all that up, divided by three, whipped out the whiteboard. It's enough to stretch from D.C. to L.A. Hands across America, beef and pork edition. And five and a half million of those dogs,

they were made by Nathan's famous hot dogs. Straight out of Coney Island, and give or take 75 of those Nathan's hot dogs from the 150 million last weekend were consumed by one man. In 10 minutes. We're talking, of course, about Joey Chestnut. Joey Chestnut.

Full disclosure, we're recording this before the Nathan's Hot Dog Eating Contest, but we assume that Joey Chestnut has won the Fourth of July tradition once again. That's because Joey Chestnut's the 14-time champion. Try counting that on two hands. By the way, game changer this year, the contestants could use ketchup on their hot dogs. Also, we got another pro tip when it comes to eating things. Condiments slow down the swallowing process.

You're not going to want to use the ketchup. Or does mustard the WD40 of digestion. Add all that up and snackers, Jack and I noticed a wild thing. Nathan's hot dog is a publicly traded stock worth $300 million. We're dumb in snack style. We noticed a wilder thing. Nathan's hot dog literally mentions Joey Chesna in their earnings reports as a revenue driver. And then we noticed the wildest thing. Nathan's hot dog stock is doing twice as good as the rest of the stock market in 2021.

The S&P 500's up 16% this year. Nathan's hot dogs up 32%. 10 minutes, 16 pounds of pork for Joey Chester. Let's in our three stories. You're tuned in the snacks daily. We spoke to the lawyers. The snacks about to hear rain food is air candy. They don't reflect.

like 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. Robberhood Financial, LLC, member FINRA slash SIPC.

For our first story, Jack and I are checking the old LinkedIn updates. And Amazon's new CEO starts today. Who is Andy Jackson? and what kind of company is he taking over? Well, first of all, big question, first day. Where are you going to sit in the cafeteria? Everyone faces. Second big question, what are you going to record for your voice message?

Very good question. Hey, this is Andy. If you're reaching me, you shouldn't be calling me. The marketers sit here, the engineers sit here, the plastic sit over there. Snackers, Jeff Bezos is no longer in charge of Amazon. Nope. Today is Andy Jassy's first full day as CEO. He's got a lot of power.

I mean, if he wants, he can just end prime free shipping. If he feels like it, I don't know, why not? If he wants, he can pay us for Amazon Prime shipping. He's the boss. Jack, I had a dream the hamburger was eating me. He's probably not going to give away Prime Shipping for free because he's a former MBA and an Amazon lifer. Yeah, best known as the head of the legendary Amazon Web Services, great acronym.

Also known as AWS, AWS is the pioneer of cloud computing in this world. I mean, Jack, can we sprinkle just a little bit of context on AWS for the people? If AWS was its own company separate from Amazon, it would still be number 69 on the Fortune 500 list of top revenue companies. And that's by revenue. If we do it by profits, Amazon Web Services would be number 14 on the Fortune 500 list. AWS has the same profits as Walmart. Walmart considers Amazon enemy number one.

But that's the other part of Amazon that Walmart doesn't like. Amazon's subsidiary is the same. same profitable size as Walmart. So for raising the company's profit puppy. Very nice. That shareholders love so much, Andy Jassy is being rewarded with the top job. Well, that's Andy, Jack. But how about our buddy Jeff?

What's he doing on day number one of not working? Jeff left Amazon so he can fly into space on a rocket ship. Jeff's actually leaving Earth. Now with a LinkedIn update from Jeff, just an out-of-office message. I'll be in orbit. Leave a voicemail. Hey, this is Jeff. I'm not here.

I'm 55 miles above Earth. I'm having trouble hearing you. I'm going through a different galaxy. Speaking of Earth, Amazon has become something unlike anything else on Earth. Okay, number one in e-commerce, by far, number one in cloud computing, number one in voice assistance with Alexa. Big ambitions in healthcare, big ambitions in groceries, big ambitions in Hollywood with the recent MGM acquisition.

They're number 12 when it comes to podcasts, though. I just think we should mention that. Well, Amazon music is a big new initiative. They also got Audible. They also got Kindle. they also got a bunch more connected gadgets. Also, they're at the point where they can literally scan your palms so you can pay for stuff at an Amazon store without a wallet, without a phone, or without a wearable.

Yeah, humanless retail is their next thing. And this sprawling business Megalodon has become a cultural lightning rod. Millions use and enjoy Amazon, but a growing number resented for its power and its impact on the world. And I love that you drop Megalodon. So, Jack, what's the takeaway for our buddies over at Amazon? Bezos's reign at Amazon was about power. Yes.

Jassy's reign is about responsibility. Snackers, Jeff Bezos published the closest thing Jack and I have ever seen to a corporate constitution out there. John Adams. And Amazon's is called their 14 leadership principles. It's got like customer obsession in there, frugality, bias for action. Those are some of the principles. It's the guiding way of how to work at Amazon. And above all, Jeff tells everyone to act like every day is day one of the company.

Never get comfortable. great work-life balance. Yeah, right. And that relentless focus is what got Amazon to become a $1.8 trillion most powerful retailer on Earth. But for the first time, Nick and I have ever seen, two new leadership principles were published last week. And they appear to be authored by Spider-Man's Uncle Ben. Yeah, here's the first new one. Strive to be Earth's best employer.

And the second new leadership principle for Amazon is success and scale bring broad, responsibility. Those are the two new leadership principles that were essentially Jeff Bezos's parting work. So he's asking Andy to be responsible with incredible might that Andy's inherited. Bezos's reign was about amassing power. Jassies is about responsibility. For our second story, private jet startups are living their best lives right now. But the takeaway of this private jet story has nothing to do with private, nothing to do with jet, Nothing to do with J-Lo and her buddies. Nothing to do with them.

Now, we've been struggling to come up with a term for this. Yes. When you can't afford the product, but you can't afford the stock of the product. It's like when you can't use it, but you can own it. Because private jets, which are like 10 grand a seat, are now publicly traded stocks. Snackers, if you got an idea for like what kind of a business is this thing, please tweet us at Robin Hood Snacks. We're looking for a snacks phrase like profit puppy. something that turns into merchandise eventually.

Ideally, in alliteration. Well, Exhibit A on what we're describing right now is a company called Wheels Up, which is going public via SPAC at $2.1 billion valuation. This is the first pure play private jet stock in the stock market. And it's basically living the aspirational consumer lifestyle. That's actually the name of the SPAC, but they're going to change their corporate name to Wheels Up experience soon,

and their ticker symbol is going to be up. Now, if you're trying to understand the business, this model of Wheels Up. Here it is. They basically Airbnbed the G6. Yeah, they recognize that 95% of the time, private jets are just sitting in the hangar doing nothing. So they found a marketplace for Gulf Streams to like get used more. And then apparently the whole product team over Wheels Up has a sense of humor, but we don't know if they're aware of their sense of humor. This is a bunch of baloney. The CEO of Wheels Up says they're democratizing private jets, but get this, to even have the privilege of paying for a private jet,

you have to pay a 17,000 initiation. Yeah, Democratic Republic of, are you kidding me? After you pay 17 grand, then you can pay for a flight, which has surge pricing just like Uber. We hold these MX platinum cards to be self-evident. Now, funny thing Jack and I noticed when we dove in snack style to wheels up snackers, 2020 commercial air travel fell 96% at one point.

Yeah, it was like April 15th of last year, flying was only for the extremely courageous. But private jets, they didn't suffer last year. They kept on flying. Counterintuitive, but makes sense if you think about it, 2020 was an all-time high for private jet travel. And get this, 2021, it's looking to beat that. It could become the best year ever for private jets at this pace.

One airport in particular that has a lot of private jets, Palm Beach, Florida. Private jet flights are up 42% this year compared to 2019, a pre-pandemic year. And it wasn't just Lily Pulitzer and Palm Beach and the rest of the existing private jet customers. The private jet industry is enjoying a bunch of new members to the No TSA Club. Yeah, Jack, and I noticed that 80% of existing private jet customers have booked flights in 2021 so they can get to Aspen ASAP. But the industry has noticed that 70% of private jet flyers this year are either first-time private jet flyers or irregular customers that don't have a history of private jet travel. Never been to Turks and Kicos may as well spend half a hundred thousand dollars to. get there. The reason for the surge in private jet travel is, first, huge stock market growth,

huge real estate growth, has printed a bunch of new millionaires. Yeah, so you got the new money, plus the pandemic fears, plus the work from anywhere. And Jack, what do we get in the final equation? A surge in private jet demand. So, Jack, what's the takeaway for all of our buddies who are getting very nice peanuts over in the private jet pop? The private jet pop really tells us about the state of U.S. infrastructure. Yeah, Snackers, here's how Jack and I are seeing this. The worst the society's infrastructure, the more those who can't afford to escape it do escape it. If the subway is congested and delayed, you can splurge and take a cab instead. If traffic's a killer, maybe they take a chopper instead.

If airports are miserable, you can take a private jet to a red velvet private airport instead. So if the wealthy don't trust the safety, the efficiency, the reliability of travel infrastructure, then they have the privilege to access an alternative, a fancy one. Private jet companies like wheels up, net jets or blade. That's how the wealthy, can avoid America's crumbling infrastructure altogether. As infrastructure gets neglected, high-end travel booms. Snackers, stay tuned for the next update on the big infrastructure bill, which is still getting debated in Washington, D.C.

For our third and final story, Foot Locker, this is a shocker. The stock, we just noticed, is close to a record high. Foot Locker. This company is all in on physical stores. Yes, it is. Because of blisters. Yes. If you know, you know, by the way.

You're going to know in three minutes, Snackers. Foot Locker founded 1974, literally hasn't changed the logo since 1988, kind of like us. It's a referee wearing one of those black and white shirts, blowing a whistle, calling a foul on someone. He looks judgmental, I want to say, but also ambiguous. I hope it's not Tim Donegie, if you know, you know. Throwback jack. Some Snackers are going to tweet out us for that. In the meantime, Foot Locker was actually spun out of the department store Woolworths.

Now it's a $6 billion public company. They sell all kinds of shoes, all kinds of stuff. sneakers from Ugs to Birkenstocks to Adidas. So Jack and I were curious, like, why is the stock at a record high? We jumped in snack style and noticed like this funny thing. Foot Locker is obsessed with Nike products. Obsessed. They mentioned Nike seven times on their earnings call.

Okay, that got us more curious. So we dove in snack style a little bit further. They just launched a community power store. Real thing. With Nike. So then we dove in even further. If you want to try on a pair of Nike shoes at your local Footlocker, why wouldn't you?

You can reserve a try-on session using the Nike app, like a restaurant, to make sure that the nine and a half, you know, Nike's are there. You don't want to show up and there's nothing there. Add all that up, and Jack and I then discovered this wild stat about Foot Locker. Foot Locker is incredibly dependent on much bigger, much more powerful Nike because 70% of its sales are of Nike products. Sit down, stand up and sit back down. Another kind of issue we noticed about Foot Locker is the huge overlap of the several brands that they have. Yeah, let's say you want that size, nine and a half Nike AirMax sneaker and you reserve it ahead so you can try it on at Foot Locker.

You could find the Nike AirMax 90 at Foot Locker. Yes, you can. At Foot Action. Why not? At Champ Sports. Very great place. Or at East Bay. There's the problem with all that, though.

All those brands, they're all owned by the same company. Foot Locker. And they're all selling the same product, which kind of sends a message to the customer that these products are a diamond dust. So foot lockers are competing against other brands. They're cannibalizing their own footlockers. Given this confusing brand relationship. It's awkward.

Why is Foot Locker stock close to a record high? It's dependent on Nike. So many brands. Jack, what's the takeaway for our buddies over at Foot Locker at an all-time high? Don't just meet the customer where they are. Meet them where they decide. All right, Snackers. Another interesting thing, Jack and I noticed on the earnings call was a great question from one of the analysts.

Hey, Foot Locker, congrats on the Great Quarter. This is Tom Jansen from Phoenix Securities. Just wanted to ask, do you think that your store base is actually a competitive advantage? Well, a funny question here because Foot Locker has a whopping 3,000. physical stores and they just announced another $275 million investment in more physical stores. Footlockers like, yeah, Tom, we do think our physical stores are competitive advantage. Interesting. Because shoes are a very particular type of product.

Get this snackers. Shoes, you wear them daily. You don't want a blister. You got to have an exact fit. If you buy sneakers online, you got to order three sizes and then schlep the other two back to the UPS store to return. And then you break that shoe on the way of the walk. got to order a whole new shoe and it begins the whole process all over. Above and beyond other apparel, consumers prefer athletic footwear be bought in store. So Foot Locker doesn't go to where the customer

is. It goes to where they can try them on. It goes to where they decide. Jack, can you whip up the takeaways for Tom Jansen over at Phoenix Securities? Amazon has a new leader. His name is Andy Jassie. Jeff Bezos's reign was about power. Andy Jassie's reign is about responsibility. Wheels up just went public because private jets have experienced a boom. The wealthy can afford to avoid infrastructure, so they have. Foot Locker is living its best life with its 3,000 stores and its four totally overlapping brands. Yeah, so it's not where the customer is, it's where the customer decides. Now, time for our snack fact of the day.

This one tweeted in by Leila Boozuba from lovely Atlanta, Georgia. Okay, I lived in the city of Detroit in the summer of 2017. Fantastic. Detroit, the Motor City, Moten. and the Paris of the West. Hockey City. Is that right? Hockey City.

Something like that. The Red Wings love that we just said that. They're also known for the Coney Island hot dog, which doesn't make any sense. But here's what's so weird about Detroit's geography. Detroit is actually east of Atlanta, Georgia. That's right. You'd think of the west. And by the way, Detroit is actually north of Canada.

That's right. Detroit is the only place in the United States where if you go south, you get to Canada. Remember I visited you and you took me to the water and then With that a compass. I'll never forget that trip, Jack, because it was October in Detroit, and I didn't know you were supposed to dress for tundrum. Snackers, Nick wore my snow boots. I did. His feet and toes have never recovered.

Missing some little piggies. If you want to fact check this story, get yourself a globe. If you don't know, then you know. Snackers, you look fantastic. Jay Jack, great to be right back with you. You too, Nick. Snackers, we'll see you tomorrow. And before we go, a thank you to Andy, Tommy, and Leo, three Snackers listening to their

100th straight snacks episode together before school in Miami. Incredible. And happy five-year anniversary to Caleb and Quinn Barefoot in North Carolina. Alejandro Fernandez graduating in Barcelona, Spain. Congrats. And Dominique and Peyton Saragalia are moving into a new home in Phoenix, Arizona. And happy birthday to Leslie Okazaki celebrating in Napa with her friends, Pino-Gree and Pino Noir. You say Chirah, I say Chiraz. And happy birthday to Christina Lugo. in Puerto Rico. And Francesco DeNicla in Fort Myers, Florida. And swimmer Tom Shrapan

in Berkeley Heights, New Jersey. And Laura Marcella Marin in Miami, Florida. And Alex Worley down in Seattle. And Aaron Jones in Raleigh, North Carolina. And Furnham, over in Atlanta. And Zano Hastings, happy first birthday in North Carolina. And Spencer Erickson, happy birthday in Salt Lake City. And Mike Masola in Wayne, New Jersey. And Bing Gordon in Bristol, Connecticut. And Aaron Bordola in South Pasadena, California. And Seth and Lexi, Sparney. Baldwin, both got birthdays today, both in Austin. If you're celebrating something today, Snackers, make it a T-Boy. Celebrate the wins.

This is Jack. I own stock of Amazon. 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.

Oh, Jack, here. This is Brooke who loves our radio show. Hey, Brooke, how are you? He says, yeah, he says, how are you, Brooke? Say it to the mic. Good. Good. Now you're on the recording. Have you had your snack daily, Brooke? Have you had your snack daily, Brooke? Maybe. Did you make? Nothing.

Nothing? Oh, that's the wrong word. Dude, very cute young snacker. She calls it our radio show.