The Best One Yet - “BlackBerry’s back, alright” — BB’s 30% stock u-turn. Sephora’s Inception retail. Zoom’s shrinkage.

Episode Date: December 2, 2020

Instead of hibernating, BlackBerry’s turned from smartphones to smart cars… and its stock just shot up 30% on an Amazon partnership. Sephora heard our story on Inception Retail, so it’s whipping up its own store-within-a-store. And Zoom’s earnings continue to dominate the Year of Zoom, so we’re looking at why the stock fell 15%.$BB $ZM $KSS $LVMUY $AMZNGot 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 Wednesday, December 2nd. I actually thought it was T-Boy Tuesday, but this happens to be the best one yet, T-B-O-Y, Jack, what do we got for our first story over there? Blackberry stock popped 30% yesterday because we have to quote, legendary snacker Justin Timberlake.

Blackberries, back, how bad? Well done. For our second story, Sephora and Coles must have heard our story about Inception retail, so they're putting a store within a store. Because my lipstick brings all the boys to the yard, Jack, and that's right, it's cheaper than yours. It's cheaper than Coles, actually. For the third and final story, Zoom's Erniks. We're insanely good as no one is shocked by.

And yet, the stock dropped 15% yesterday. Okay. Yeah, we're going to have to investigate. It's a little weird. But before we hit that wonderful mix of stories, Jack and I got to focus on the big moves for something we've been talking about for years. The four-day work week. The four-day work, a.k.a. the three-day weekend. Unilever, which is the company behind Ben and Jerry's ice cream,

Lipton iced tea and dove soap, they're testing out the four-day work week in the New Zealand office. And you kind of love the four-day work week, because you tell your boss, hey, I'm working four days. It's the four-day work week. But then you brag to your buddies, you got a three-day weekend. It's a glass-half-full, glass-half-empty situation. But Snackers, this brings up a vital, critical,

and maybe the most important question of all when it comes to the four-day work week. If you can take a day off, which day are you taking off? So Monday is the worst choice for the four-day work week one day off. Because then Tuesday becomes the worst choice if you take Monday off. But then Friday, if you take Friday off, that gives you three straight days off. Seems good. But Friday was already basically a half-work day anyway. Let's be honest.

So then you're thinking about Wednesday. Wednesday is that painful hump day. Maybe you take Wednesday off. No, because then you have two short work weeks instead of one work. But we all know you can't take Thursday off. Thursday doesn't work at all to take off. Because Thursday's the new Friday. So the answer there for Snackers.

is you got to take off Tuesday. You take Tuesday off for the four-day work week. This isn't just a process of elimination. Tuesday is legitimately an inferior day to Monday. Because at least Monday, you know, touches a weekend day. Monday is friends with Sunday. Meanwhile, Tuesday is a landlocked day between two weekdays.

There's one thing my buddy from Vermont knows. It's landlocked. Lake Champlain. Freshwater doesn't count. Let's hit our three stories. You're tuned in the snacks daily. We spoke to the lawyers and we got to get something. illegal out the way.

The snacks about the hair ain't food. It's ear 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, honestly, we didn't see this one coming. Blackberry is partnering with Amazon. That's right. Blackberry wants to be in your car, not your palm. We repeat, Blackberry is partnering with Amazon. This is like Polly Shore partnering up with Steven Spielberg. Honestly, this is funny how your ugly friend's been dating your hot friends. It's quite a mismatch. And for issuing a joint press release with Amazon, that alone sent Blackberry's top up as much as 64%.

This is moaning by association. Not bad to be Blackberry yesterday. Now, BlackBerry is a recovering smartphone maker. They don't do smartphones anymore. Now that is so 2010. Instead of connecting phones, BlackBerry is connecting cars now. And get this wild stat Snackers. Turns out 175 million cars are already using BlackBerry's code in those cars. Are there even 175 million cars in the world? We repeat, 175 million cars are already using BlackBerry's technology. We're impressed, BlackBerry. We're impressed. But then they just announced yesterday, a vehicle data integration and monitoring program called Ivy. Ivy Y, all capital letters.

Shocker, not an acronym. They must be fans of the Chicago Cubs. But Snackers, then Jack and I ended up recording this here podcast about two hours later than usual because Blackberry issued an absurdly long press release. We had to jump into Snack style. I read the whole thing. It took me about an hour, Nick. 1,300 words, 37 tweets. This press release was like half a lift. It was half a lift because it was extremely hard to understand the service, so they had a lot of explaining to do. They went into a lot of detail, and the core theme here is IoT. It's the internet of things, connecting everything to another thing. BlackBerry's Ivy system is going to let you check everything going on in your car from the comfort of your phone. Now, the examples they're given,

they went from interesting to shocking. Jack, let's say you've got to check the oil in your car. No need to grab a paper towel or a dirty rag to wipe off that dipstick. You can check your oil level straight from the app. Humble brag on the dipstick. Nice drop there. Jack. Let's say you got the old check engine light going on. You got to check the battery, Jack. What do you do if you got Blackberry's tech? The car will actually predict when your battery is going to run out and suggest to you you might want to set up a reservation at Exit 2, which has a bunch of superchargers. Jack, what if you got a car? You got the Blackberry technology in it and your kid may be driving that here vehicle. They will inform parents if they detect that their children are texting and driving. That is wild and it's possible because BlackBerry is putting sensors every. everywhere recording data on everything that touches the chassis. Loads of data from the car and the driving is going to feed through Amazon Web Services, the cloud service. So then BlackBerry and Amazon are going to team up to analyze that data and provide insights to the drivers and the car companies. Weird but lucrative couple, BlackBerry and Amazon.

It's a beautiful couple. So, Jack, what's the takeaway for our buddies over at Blackberry? Detroit plus BlackBerry equals Tesla. Love the equation, Jack. Now, Tesla, it's got the tech town. Tesla's headquarters are over in Palo Alto. It's about a, what would you say, Jack? Like a three, two, three mile self-drive from Stanford's campus?

Yes, and Stanford's campus is so techy, their winter dances have been touchless since 2017. Jack, I heard it's Stanford. They don't pay tuition. They pay subscription. Exactly. They have $55,000 subscription. Now, you got Detroit Snackers. You got Stuttgart, Germany, you got Japan.

They're not as known for their tech. They're more known for their four wheels. So to compete with Tesla's ridiculously connected cars, All the other car companies, they're going to turn to Blackberry and Amazon Web Services. And that is exactly the hope of BlackBerry's investors. That every car company will turn to it to Teslaify their own cars. Even better than Tesla. For our second story, Coles, get the, this is shocking.

The stock at Coles just jumped 13% yesterday. They haven't done that in years. The mid-tier department store is setting up 850 Sephora stores within their stores. We're calling it Inception Retail. Inception Retail. a dream within a dream. Christopher Null, this is very Leo. It's a Leo strategy. Now, they need a boost because coal sales have fallen 25% this year. They didn't get that essential business badge, so they had to close down stores early with COVID. The cloak of essentiality.

By the way, Jack, did you call them a mid-tier department? I did. I feel like it was vaguely insulting. It was subtle. It was no target. But by 2023 stackers, nearly a thousand coal stores are going to have these little 2,000 square foot makeup stores within their stores. And those makeup stores are going to be Sephora stores. With any partnership, you expect both sides to benefit. That's the key. That's the fundamental thing Jack and I look at here. And for Sephora, which is owned by luxury brand LVMH, they're going to get to open fewer stores now and they can worry less about real estate because they'll be inside Coles. Coles is getting some excitement inside their stores and they expect this inclusion of Sephora to triple beauty sales there. Now Snackers, this may

sound familiar to you, it may sound like a lot like those Disney stores within Target stores that we talked about just a year ago. Or Alta Beauty, which is doing the same thing, putting mini stores within targets, they announced that last month. But there's a funny, key, and critical difference, Jack and I noticed here about Coles.

The CEO is being very loud about us. Yeah, those are his words. Literally, he said, we're going to be very loud about this partnership. This isn't a target situation where they're plopping a mini store of someone else's subtly in between aisle six and seven. No, no, there's nothing subtle about this.

Coles is actually going to stick a Sephora logo, a sign on the very front of their own Coles stores as if they're on like the same page. They're probably giving it prime real estate right when you walk in the store. Nick, what's the opposite of hubris? Jack, I believe it's Mibris. Now, Coles isn't going to stop there

because they're also going to stop selling beauty products that are like Cole's beauty products. They're only going to let Sephora sell the beauty products. They're basically delegating their entire cosmetics business over to Sephora for their stores within stores. If Coles does more of these loud stores within their stores, there won't be any Coles left over for anybody to shop. If you got too many stores within stores, you're becoming a mall.

So, Jack, what's the takeaway for our buddies over at Sephora and Coles? Coles needed an anchor product, and Sephora only does anchor products. Snackers, anchor products. It's that one surprising thing that routinely gets people in your store, but then they end up buying other stuff there because they're anchored in by the anchored product. For Chewy, the online pet store, the anchor product is dog food. Yeah, you got to buy dog food monthly, puppies got to eat. For Walmart, the anchor product for new parents is diapers, which I learned today.

Newborns need nine or 12 of per day. You got to get those weekly. Makeup also needs to be replenished frequently, so it is a great anchor product too. It's also the ultimate anchor product because it gets a younger clientele in your stores. And once they're in the store, you might as well head over to aisle 6 and buy some slippers or something and pay coals for them. Inception retail, it's part of the story, but the key. is that Coles just found the ultimate anchor product. For our third and final story, Zoom just unveiled, honestly, Jack,

a freakishly impressive earnings report over there. Zoom's earnings report has to pee in a cup and get that analyze. Yes, it's like a deer-rantler situation going on. And yet, Zoom stock plummeted 15% after their report. It doesn't make any sense. Jack and I jumped into this next aisle. By the way, people complain that you have to like click to leave the meeting and then it's like awkward because your face is still there.

And then you've got to confirm, yes, do I want to leave the meeting? meeting. It is annoying. Yeah, you've the best solution. So instead, I just shut my computer. It's cathartic, it gets it done. People assume I lost a connection. It makes a loud sound and people get freaked out. Now, Zoom's third quarter revenue quadrupled to $77 million. We're talking nearly $100 million more than anyone expected at a Zoom in the last three months. Guess what? The quarter before that, revenues also quadrupled. Oh, and guess what, Jack? For next quarter, they're projected to quadruple again. Snackers, we're not making this up. Zoom IPO a year and a half. ago at a valuation of $15 billion. Now after like adding up all those quadrupling,

Zoom is worth $115 billion, Jack translation here? 13 left. Yeah. Zoom is the undisputed stock winner of COVID-19. Jack and I checked out the earnings support. And honestly, the most exciting element of this had nothing to do with your weekly team meeting on Zoom. No, it was all about Zoom tickets. Yes. Events that you have to pay a ticket to get into. They mentioned this last month. They highlighted it yesterday. No one was talking about it. But Jack and I thought it was fascinating. It's called on Zoom, and you can check out the website now. You'll see a bunch of virtual event that you can pay like $5 to get into. Now, Zoom calls on Zoom a marketplace for immersive

events, and that's for a specific reason. We found one example on Zoom. There's a $5 somatic restorative yoga that you can pay to get into. It's only $4 if you actually know what somatic means. Zoom set it up so that you could theoretically do up to 1,000 people at these events, and they're plenty on scaling it more next year. And Zoom's not even going to take like, a small cut of the ticket sales like you'd expect, which could give them an advantage over competitors' Live Nation and Eventbrite, which do take a cut. And the reason Zoom is doing this is because they're planning for a post-COVID world where eventually meetings are going to be back in person. All right, so the numbers quadrupled again. They're getting into concerts, which is exciting.

Why did the stock fall 15% yesterday? Jack, they fell because of shrinkage in Zoom's profit margin. So what's the takeaway for our buddies over at Zoom? You're only as valuable as your most valuable customers. Snackers, there is a freeloader situation we've noticed going on over at Zoom, and that's why profits got crunched, and that's why the stock plummeted at 15%. Last quarter also happened to be the back-to-school period for schools. Now, you got like 10,000 classes nationwide analyzing the crucible on Zoom. Twenty-five students, one teacher, they're all zooming. Yeah, they are. But nobody's paying Zoom for it. But is he guilty? I'm not sure. Is he guilty? He seems guilty. Naturally, you only pay for a Zoom meeting if you have to. Yeah. And lots of schools don't have to right now.

And last quarter saw a back-to-school driven spike in free users. That means not just missed revenues you could have made from those Zoom meetings. No. But also added costs from those Zoom meetings. Zoom's got to pay like Amazon Web Services or some other server for every single Zoom meeting paid or not paid. Zoom made a bunch of profit from new paid users last quarter, but it lost some profit from freeloaders. Not that there's anything wrong with that. Jack, can you whip up the takeaways for us over there?

Gladly, BlackBerry is done with phones. They're connecting cars now instead with Amazon. Simple equation, Detroit plus Blackberry equals Tesla. Coals needed a spark, so they're adding Sephora to 850 stores. What they really needed was an anchor product, and makeup is that anchor product. For our third and final story, Zoom experience shrinkage to its profit margin last quarter. It's got a freeloader problem from America's kids and teachers who are great. We love them.

Teachers, of course, being the new frontline workers of this economy. Now, time for our snack fact of the day. This one sent in to us by our buddy, Devin sued over. in lovely Los Angeles. I was shocked at how small this number is. Yeah, guilty. There are seven billion chocolate chip cookies baked and eaten in the United States every single year. We did the math on that. That's 21 cookies per person per year in the United States. And about 50% of those chocolate chip cookies are homemade chocolate chip cookies. We're talking 11 homemade chocolate chip cookies per person per year in the United States. Again, shocked the number is too small. We got to get that number.

We would love to end up making a correction on this in tomorrow's podcast. Snackers, you looked fantastic today, Jack. I appreciate the slamming salmon sweater. You are a man of your word. You look like St. Nicholas in that Christmas sweater today. Third time today, I must be doing something right. Snackers, ask your buddies, H-Y-H-Y-S-D. Have you had your snacks daily?

If you know, you know. And before we go, big congrats to snacker Spencer Kimball and his wife on a new baby snacker girl named Audrey, congrats. And big shout out to Josh Pomerance, who just converted to Snackism. He's a new snacker out in Israel. And happy birthday to Josh Jung and Helen and Oz. All three are Snackers.

Only two of them know each other over in Korea all their birthdays. Fantastic. And Anthony Whitlow, happy birthday in Kansas. And Maria Scoville over in New York City. And Frankie Davis Jr. in Broken Arrow, Oklahoma. And Jonathan Sinara in San Antonio. And Rob Meet Singh in Boston, Massachusetts. And Giuliana Pesivento, half birthday in Illinois.

Happy three years to Lauren and Toler in Graham, North Carolina. And snacker Natalie Boojack, we know you've got COVID right now. We're wishing you a speedy. recovery in Tennessee. 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.