The Best One Yet - 🌍 “Bitcoin becoming a gas guzzler” — Domino’s self-driving calzone. Netflix’s video games. Crypto vs Climate.

Episode Date: April 22, 2021

If you’re in Houston right now, you may see a self-driving pizza go by (Domino’s just whipped one up... and Chipotle and Walmart want in). Netflix stock dropped 7%, but the real surprise was a sneaky hint about video games. And a surprising risk to the climate on Earth Day is actually crypto: Bitcoin could become the gas-guzzler of our generation. $BTC $DPZ $CMG $WMT $NFLXGot a SnackFact? Tweet it @RobinhoodSnacks @JackKramer @NickOfNewYork Want a shoutout on the pod? Fill out this form: https://forms.gle/KhUAo31xmkSdeynD9 Got 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. It is Thursday, the new Friday, April 22nd. The Super Soccer League we mentioned two days ago, guess what? It's already dead. Suspended two days after announcing. This is like the quibby of sports.

The fans won? Yeah. The big money behind that league lost. Manchester United Stock is down. The Dow is up. Happy Earth Day, Snackers, and this is the best one yet. TBI. Jack, what's our first story today?

Right now in Texas, there's a pizza staying warm in a self-driving, Poverry pot. Beautiful. Headed to somebody's door. Domino's driverless delivery. Now a thing. And we noticed it's not the only one. For our second story, the Flix.

Netflix lost $20 billion of value yesterday. And here's the real surprise. They hinted in their earnings. Video games. Netflix video games. Wow. Yeah. For a third and final story,

Happy Earth Day once again. And as the Global Climate Summit kicks off today at the White House, one threat to the climate hasn't been factored in enough. Cryptocurrencies. Geez, Bitcoin could become the gas guzzler of our generation. But Snackers. Before we hit those three stories, we've got to talk about something serious here. Oh, yeah.

Are you thinking, Jack? The decade-long denim cycle that is now over? The 10-year reign of skinny jeans half-expired Snackers. Yes, it is. Turns out mom jeans are the new It jeans. If the waste isn't high enough to be an overall, burn it. Recycling. It's Earth Day.

Recycle those jeans. You need the high-wasted stuff. Turns out, according to the New York Times reporting, The fashion industry sees gene trends move in like 10-year cycles, very cyclical. We've seen it in the movies. Go back to the 70s, that was all bell bottoms. Jack, take me back to the 90s, got Jankos. The bagier, the better.

In the 2000s, it was low-rise. As far down as possible without breaching. And since 2010, the slim-fit lifestyle, that has owned the jeans thrown for men and for women. When you sit down, there should be a healthy bit of concern that your jeans might tear. Did someone hear something? Was that me? Well, that was me. Now, skinny jeans in 2019 were number one.

41% of women's gene sales that year were skinny jeans. And then Jack and I noticed during the pandemic, that plummeted seven points. You were at home, remote working and chilling. And the skinny denim decade was killed. What started with crocs on the feet has encroached up the leg. It's all about comfort. The roaring 20s we're embarking on will happen relaxed, loose fit, high-waisted, with function over fashion.

Jack, you know how I never miss a jeans trend? How? I wear khakis. Let's sit 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. 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. Snacks is digestible. Business news for you. Robberhood Financial, LLC, member Fenra, slash SIPC

For our first story, Domino's, Chipotle, Walmart, they all just made the same move simultaneously and we caught them, we noticed. Self-driving cheese. Yeah, it's here. Snackers, here's how this goes down. First of all, do you live in Houston?

I hear it to dry heat. Woodland Heights neighborhood specifically. And are you hungry? Are you hungry? Living in Houston. That part is key. Because maybe, I don't know, Jack, are you in the mood for the Cali Chicken Bacon Ranch pizza by chance?

Not really, but on Domino's, you may see an option on the app for humanless delivery. that pizza. So that's weird. You're curious. You click on that and then your phone starts buzzing like a half an hour later. It alerts you that a strange bot has arrived in front of your house. Yeah, you go outside, you're curious, you proceed to the bot, and that's when you input your confirmation number that was just texted to you by Domino's. And the butterfly doors of that vehicle open up and you are clobbered with the waft of American-made bachelorelli cheese.

voila, you enjoy the pizza, but you're more shocked by the fact that it was humanless Domino's delivery that got it to you. That's Nick and my mediocre illustration of what humanless Domino's delivery looks like in Houston, Texas right now. Domino's, feel free to use that fantastic footage. By the way, the wild thing here, the last person to touch your pizza was the chef, and then you touched it three miles later at your home. Now, Domino's Pizza claims they are a tech company that makes pizza. They love that. So they're acting like a tech company with this rollout.

Yeah, so they're testing this new feature in one city, in one neighborhood, and then things go well. They're going to roll this thing out nationwide, potentially. Now, this is all possible thanks to a $5 billion startup based in Michigan called Nero. Neuro. They make the self-driving delivery vehicles we're talking about. They do. And these vehicles, they look like a big Advil pill that happened to have four wheels on it.

It looks like a tiny storage unit on wheels or a lunchbox that took human growth hormone. Now, here is what's so fascinating about Nero. And Jack, I'm going to hand this over to you because you went to school, Michigan, and I know you love a good car store. You love a good chassis. Sure, I'm using my Michigan business and my Michigan public policy partial degrees here. Round it all up into one SUV. Nero is the first vehicle to receive Department of Transportation approval to operate on roads with no human at all. That's right.

There's not like a person in the front seat with their hands like near the wheel in case in an emergency. There's no one in the pizza delivering machine. And Domino's is using them. And this company, Nura, they just raised $500 million to continue growing from the likes of SoftBank and other venture capitalists. And funny thing, we noticed Chipotle was involved as an investor in this last round. Okay. Separate but related story. General Motors, $30 billion self-driving cruise, which is a self-driving car company.

No well. They also raised big venture capital money last week. Funny thing, we noticed that Walmart was an investor in their latest round last week. And Walmart is also testing human list delivery in Scottsdale, Arizona right now. You get a Swiffer, a baggett and six pack of tissues, boom, show up at your door in Scottsdale, the home of self-driving. To sum it up, here's what's a lot of. happening in April 2021. Domino's and Walmart are both testing delivery with humanless vehicles. And Walmart and Chipotle are both investing in that technology that delivers without humans.

So, Jack, what's the takeaway for our buddies over in the economy that eats things? Delivery is dominating in the 2020s, but delivery companies may not. Snackers, retailers, they want to own the delivery, the delivery itself. They don't want to pay DoorDash to be doing that. Say it costs $5 snackers to deliver a burrito from Chipotle or $5 to deliver a frozen de journo pizza from Walmart. Absurd delivery fee, you must have gotten any extra guac on that. Now, today, the biggest chunk is going to be shelled out to Larry, who's the human driver for DoorDash getting that to you.

But Robo delivery, like what we're talking about, could dramatically cut the cost of delivery because you don't have to pay any wages to Larry. But here's the key. That doesn't mean with Robo delivery that Walmart or that Chipotle are going to pay less than $5 to deliver you that goodness. More likely, it just, just means that DoorDash is going to take the savings of not paying Larry and finally make a profit for themselves.

And that is why Walmart and Chipotle aren't just interested in delivering their stuff that's humanless. They want to own the companies that do the self-driving delivery of the future so that they can own the profits of cutting out the driver. So Snackers in 2030, they don't want to be using DoorDash Robo. They want to be Walmart minusing the robot. Walmart minus the human driver. For our second story, the Oscars are coming this weekend. We got the envelope here for most success in a leading dramatic role. Yes, Netflix is doing really well, but it has failed last quarter.

And the stock plunged by 7%. All right. So this was not a good earnings report, but it's never good when an earning starts out with this. Jack, this was amazing. Okay. The earnings presentation that Netflix was presenting to Wall Street analysts. True story. It froze.

And they're like, could somebody fix the buffer? Netflix literally. They're like, Darrell, can you plug and unplug the router from a streaming company? Really the only thing you got to know about these earnings, the hero metric. Net news subscribers from January to March, they were expecting like 6.3 million new Netflixers. Instead, they only got 3.9 million people to sign up for Netflix. Okay, we've got to sprinkle a little context on this. In the same three months, last year, Netflix didn't add 3 million or 4 million or 6 million.

They added 16 million new Netflix onistas. And even worse news, Netflix executives warned that this quarter, second quarter, April through June, they expect just one million new Netflix subscribers globally. After last year's epic Netflix performance, Netflix is basically like Usain Bolt, who just won the 100 meter dash. And then investors are like, can you do another dash? Or can you run a marathon too? Right. And the CEO said that growth during 2020, it was so good.

So good. It ate into this year's growth, which isn't happening because of it. The technical quote they used was they pulled. the demand forward. We as consumers pulled demand forward in 2020. Now, here's the funny thing snackers. Separate from those numbers, Jack and I noticed a shocker hidden during the Netflix earnings call video games. A Wall Street analyst from Fidelity asked Netflix if video games were in their future, and Netflix basically said yes. Even like the Netflix co-workers were like, we're doing, we're doing video games. I don't know. No, I didn't get the memo on this. There was a bunch of sodas spat out

into their Zoom screens when this happened. Now, Netflix is already doing interactive shows. They got like Band or Snatch, which lets you choose one out of five endings, choose your own adventure. Right. I got to watch that. That sounds really fun, actually. I would watch it too, but I guess we would have a different experience. But then a more basic video game expansion, the C.O said that Netflix was interested in licensing.

Yeah. For example, taking stranger things and letting somebody turn that into a PlayStation 5 game. Could take it a step further. Queens Gambit turned that into a chess game on Roblox. Boom. run with it. Kind of exciting for Netflix to get into video games. So Jack, what's the takeaway for our buddies over at Netflix? Tough day. Their greatest strength is their greatest weakness, the burden of profits. Snackers, Netflix's biggest advantage, profitability.

They brought in $1.7 billion in pure entertaining profit from their shows, their movies, and their schmovies. Love them. For the family last quarter. But Netflix's greatest disadvantage, profitability has raised the bar for Netflix every single quarter. And that's why the stock fell on disappointing results last quarter. Yeah, meanwhile, HBO Max, they're like burning through cash over there. They're offering movies the same day as theaters. They don't even care if they lose money. Disney Plus, seven bucks a month, that is priced for growth, not profits. It's half the price of Netflix. Here's what we're thinking, Snackers. Eventually, all those streamers, they're going to have to stop being so generous, giving out their stuff for free like it's under an Oprah mattress. They're going to have

to raise the prices or cut costs to make a profit like Netflix already has. Until then, Netflix carries the glorious burden of profitability. For our third and final story, President Biden is pledging major cuts for U.S. emissions for Earth Day. But there's a problem. Surging crypto means surging emissions. The White House Snackers, it's host in world leaders right now. It's another stab at a coordinated global action to stop climate change. International subits. Yeah. They're usually Michelin five-star fair snack. I'm sorry. I can't. I'm going to be in Davos. We're going to Paris. No, it's Kyoto. So can you expand the restaurant reservation to six in Copenhagen at Noma?

Today, a two-day White House climate summit begins on Zoom. Zoom. A little bit different situation. We got a caviar buffet for everybody. I mean a door-dash $30 promo code. Here you go, Prime Minister. Oh, sorry, it's $15. Now, impressive term out, but I guess Zoom, 40 countries, including our polluting adversaries, China and Russia are attending.

They're signing in. President Xi, you're on mute. And you got the Pope and. Bill Gates, because this is a big deal. This is their attempt to, like, rectify the Paris Climate Accord, which kind of fell apart when President Trump exited a few years ago. And here's the goal that's expected to be announced by President Biden today. Jack, big goal. Reduce greenhouse gases in America to half of 2005 levels by 2030. Let that sink in. Half of 2005 levels, so 16 years ago, by 2030. It's an ambitious pledge by President Biden, but it's just a pledge. Is it realistic and doable

Nick. Okay, so first you got policy actions. Policy actions could help this pledge. Yeah, a carbon tax or passage of Biden's proposed infrastructure bill. Those would do a lot to helping us achieve that carbon reduction goal. But over in the private sector, Jack and I haven't talked about this a bunch. You already got a bunch of companies doing a bunch of work. Battery prices have fallen by 90% in the past decade, which makes electric cars more affordable. Wind energy prices down 70%. Solar prices down 89%. Even fossil fuels, like the problem, are getting less problematic because coal is out, natural gas is in. But here's the thing, Snackers, here's what Jack and I find fascinating. There is one major trend that is in total conflict

with all of this decarbonization. Crypto. Doge coin to the moon. Doge to the moon? Kind of messing with Earth. So Jack, what's the takeaway for our cryptocurrency buddies? Crypto could become the gas guzzler of our generation. Snackers, eventually, crypto's rise in America's decarbonization, they are going to collide. We're talking like, this is like a King Kong Godzilla sequel situation, Jack. Crypto is digital. It's a digital currency. Yeah.

But it requires huge electricity to mine and to power the blockchain. All right, Jack and I spent like 12 hours whipping up these snack facts for you. One Bitcoin transaction generates, get this, the same amount of carbon as one million visa transactions, a million credit card swipes. According to Cambridge University, Bitcoin alone accounts for half a percentage point of the world's electricity consumption today. Jack, I think this might be my favorite one. Bitcoin uses more energy right now than the country of Holland. It could get a lot worse.

According to a study published in 2018 in the journal Nature Climate Change, if Bitcoin becomes broadly adopted for payments, like paying anything. Bitcoin alone could raise global temperatures by 2 degrees Celsius. Oh, you're driving a Tesla, but you also bought some Bitcoin. Congratulations, they just canceled each other out. Crypto could solve one problem by decentralizing currency and payments globally. But unless things change, it could mess with another. It could add a huge carbon footprint

to our spending network. Jack Kenyo, whip up the takeaways for us over there. Self-driving delivery is getting tested by Domino's and invested in by Walmart and Chipotle. Delivery, it's winning the 2020s, but delivery apps may not win the 2020s. Netflix massively missed expectations for subscriber growth last quarter. Netflix already has huge profits. Its greatest strength is its greatest weakness. President Biden is expected to pledge huge cuts to America's greenhouse gas emissions today. Or rise in crypto also means rise in carbon. Now, time for our snack fact of the day. This one sent in by Taylor Hurley and Jacqueline's son, co-founders, two University of Michigan seniors who started a cauliflower oatmeal startup called Brasi. Collieflower and oatmeal. It's a dinner,

but it's a breakfast. King Louis XIV. Love cauliflower so much that he demanded it be served at all state dinners in Versailles and it raised noble status. Well, today, cauliflower is rising in the ranks again and was called the new kale by the Wall Street Journal in 2020. The French, always ahead of their time. Nick, what do they call cauliflower? A crustacean vegetable? Here's the thing. What's the word? cauliflower is kind of like, I never asked to become all these things. I kind of could have just been myself. Snackers, you look fantastic today. We'd love if you'd share your snacks. Ask your friends, H-Y-H-Y-S-D. Have you had your snacks? Do you have your snacks to the moon?

If you know, you know. And before we go, happy birthday to Jeff Wang over in Chino Hills, California. And Chrissy Frommnecked in Cleveland, Ohio. And Kenny Moore down in Providence Village, Texas. And Jody in Newark, California. And Markey White in Crown Point, Indiana. And Parth Dave in Orange Park, Florida. Happy birthday.

And Joe and Jenna Garcia, congrats on the 10-year anniversary down in San Antonio. And to anyone else celebrating anything today, make it a T-Boy. Celebrate the wins. This is Jack, Nick Onstock of Tripoli. I own stock of Netflix. The Robin Hood Snacks podcast you just heard reflects the opinions of only the host who are associated persons of Robin Hood Financial LLC and does not reflect the views of Robin Hood Markets, 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.