The Best One Yet - “Bob Ross would’ve used Canva” — Virgin Galactic surges 16%. Canva hits $6B. Hey vs. Apple.

Episode Date: June 23, 2020

Virgin Galactic shares popped on word of its 2nd business line: space tourism to the International Space Station. Hey (real name) is trying to fix email forever, but first it’s taking on Apple and its infamous App Tax. And Canva is our “Unicorn of the Day” for hitting $6B while making you look sharp on social media.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, June 23rd. Nick, I love that T-boy t-shirt you're wearing right now. I know. It kind of felt like the kind of day to do this thing, Jack. It is because this is the best one yet. Straight up T-B-O-Y. Jack, first story. First story is Virgin Galactic. It's totally jealous of SpaceX's deal with NASA. Yep. So it signed its own NASA deal. We're talking a two-night's day at the International Space Station, an all-inclusive galactic resort. Second story, Jack? less time on email. That's the promise that, hey, thinks is worth $99 a year. But hey, real name, is a new app that's been arrested by the Apple App Police for not paying the old 30% app tax. For our third and final story, you've had PowerPoint, then you had Google slides, now you have Canva? Bob Ross would have loved painting an instant post on this graphic design software,

which is now worth a cool $6 billion. Jack, can you translate that number for us? Six billion dollars? Half a lift. But before we jump into all that good stuff, Snackers, Jack and I got to wish a happy T-Boy Tuesday. For this T-Boy Tuesday, we're noticing a trend. The babification of mascots. The company is getting older, but their spokespeople are getting younger? Yeah, to be clear, I said babyfication, not babification. We're talking Benjamin Button vibes here.

The influence of Baby Yoda was strong for Disney Plus. And the influence of Baby Yoda's Disney Plus success has been strong on the marketing industry. Strong with marketers, it has been. So you see, Planters' Peanuts is basically trying to get a baby, Yoda-like success. That's right. Jack and I noticed that the human-like peanut with like a cane and monocles was killed off last year during the Super Bowl. Rightfully so, because that thing looked like Monopoly guy bred with a legume. Not a good combination. The replacement was baby peanut this year. It's an androgynous baby and it's adorable. But aren't all babies androgynous?

Yeah, that's a beautiful boy. And we looked into this further. It's even going on with our buddies at Mr. Clean, the cleaning supply. We dove and snacks out. The ball. All dude with earrings whose washboard ad were literally a washboard. Well, he got a baby version of himself created in an advertisement last year. Not too shabby. So, Jack, what's the business takeaway for our buddies who are babifying everything? Old school consumer package goods companies have lost your trust, and they're winning it back with babies. So Jack, what's the life takeaway for all of us who have to stare at these baby mascots?

Babies are always cute. Snackers, what logo should be babified next? tweet us your answer at Rob Nood Snacks on Twitter or on Instagram DMs, whatever works for you. Happy T-Boy Tuesday. Let's hit our three stories. You're tuned in to snacks daily. We spoke to the lawyers and we got to get something legal out the way. 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. You know, we're not recommending any securities. It's not a research report or investment advice. Not an offer or sale of a security.

Right. Snacks is digestible. Business news. For you. Robberhood Financial, LLC, member Fenra slash SIPC. For our first story, Virgin Galactic stock just jumped 16% yesterday. Because NASA wants to start Airbnb the International Space Station. We're not using it on Tuesdays. Let's get someone in there. It is crazy. There is a publicly traded stock in the business of space tourism. By the way, we want to point this out, the low-Earth orbit economy seems like a great place for we work, and we think Adam Newman's going to jump into the space.

Virgin Galactic, though, has a shockingly simple business model. You paid $250,000, and then you're on the wait list for a spaceflight. Boom, that's it. Not much different than getting into a nightclub in Los Angeles. Now, 600 people have signed up so far to be on this wait list, but only five have actually done Virgin Galactic suborbital spaceflight. And let's be honest, the real value in signing up for a Virgin Galactic spaceflight is telling everyone you signed up for a Virgin Galactic spaceflight. Oh, you're going to the Outer Banks? Yeah. I'm going to Outer Space. Oh, I'll wave to you from there. I'm going to go name a planet after my thirdborn child. Virgin Galactic went public earlier this year, and they're burning through that cash really fast

because the business hasn't taken off yet. All 400 million of it, which brings us to the news from yesterday, Jack, the sexy headline. Virgin's calling it the private orbital astronaut readiness program, aka the world's worst acronym, Porp. It sounds way more technical than it is. When we looked into Porp further, we noticed that space tourists are basically a lot like land tourists. They want a variety of experiences. That's right. So NASA, meanwhile, has said, you know what, we want to start making some money off the International Space Station. Maybe we could partner with Virgin to make something happen. Virgin's into it. They see an opportunity to expand beyond their core business, which is suborbital flights, just below outer space. We're calling it inner space.

Get really far up and then you just kind of float around. That's pretty much it for five minutes. No gravity flights sound pretty awesome, but now Virgin will start offering private trips to the international space station. talking options here, people. So like when you go to Italy, you don't just stay at the hotel. You'll want the option for the private catamaranthorant, Toret Capri, an Alfresco dinner, and maybe even a vineyard tasting. To be clear, you could just stay at the end of the hotel, which is the equivalent of the suborbital spaceflight. It sounds awesome. But when you're splurgeon quarter million dollars, you kind of want to see what A, B, and C are when you talk to the

concierge. So Virgin's going to start offering flights to the ISS, but we don't have financial terms of the deal yet. No. That was like one of the couple asterics to Jack and I noticed was missing in this press release. And Virgin still hasn't even started developing the ship that would get to the international space station. So with our Italy analogy, it's as if, you know, Capri doesn't exist. I think the catamaran doesn't exist. It's a slightly exaggerated analogy check.

So the stock is up about 16% yesterday, just because this is a cool headline. So Jack, what's the takeaway for our buddies in a galaxy far, far away, over at Virgin Galactic? Virgin Galactic wants to pull a fancy to affordable strategy, but it might not have enough cash to do it. Snackers, that's when you start with a super expensive product to become an aspirational brand. And then you eventually offer an affordable mainstream version.

And you know what? Uber did it by starting with its fancy black limos before they came out with UberX for everyone. Tesla did it because the first version was like $100,000. Now finally, they have the $35,000 model 3. Now Virgin first has to execute the fancy part of space travel. And nobody's even doing it yet. They've only had five passengers. They're losing $60 million a quarter. And all that money could easily run out.

For our second story, Hey, tries to fix email for everyone. It's called, hey, it's a new email service by Basecamp, and it's in a huge fight against Apple's apptacks. Too many emails. That's the theme of your life. I have like six inboxes that I wake up at 3 a.m. and thinking about, and I really don't want it. I email Jack every morning saying, hey, we got to go through our emails later together. Hey promises to limit your inbox to three types of emails that actually matter and only three types of email. And that's because email is the biggest customer problem that has never been solved.

The first type of email that Hay will show in your inbox, emails you'll reply to. The second type you're getting is emails you will read. And the third type is emails that are pretty much just receipts for something you bought online and you might as well keep them. And then Hay eliminates everything else with like a bunch of smart filters. So if you get a first time email from an email address you've never seen. It goes into this holding folder that you don't need to worry about. Maybe once a week you can go through there and be like, oh yeah, that I want. Give it a thumbs up.

Let me get that in my inbox. Honestly, Jack, this kind of feels like an Amazon fulfillment center. Behind the scenes, though, you don't have to sort them. That's the beauty of it. I'm picturing like a bunch of hay engineers being like, and we're going to deposit this over here and we'll put this over here. Speaking of Amazon, they love the letter M. They're not calling it an inbox.

They're calling it an M-Box. In-box. You heard us correctly. your inbox is where important, immediate emails end up going. By the way, that's like base camps marketing. It's not what we think about this service. We actually think it sounds ridiculous. Now, Hey, it's kind of cool because it ends your need to unsubscribe from things

because you only start seeing them in your inbox when you've signaled that you actually want these emails. No more of like the journey to unsubscribe where you're surfing through the email trying to find the unsubscribe button. Let's say a busy email day for you today is like 300 emails that you have to go through before you go to bed. with Hay, that could drop to like 30 emails, the ones that actually matter. Business must be good, Jack, 300 emails, not bad. Now, Snackers, the reason we're even talking about Hey today is because they're getting a major publicity for their fight with Apple. Right. If you want to get famous, get in a fight with Apple.

Just like if you want to get Insta Famous, you punch Mike Tyson in the face and people are going to find out who you are. Hay is pretty much punching Apple in the face because it wants to charge customers $99 a year for this email service, and it wants to keep all $99 of year of that revenue. So instead of charging customers through the App Store, it actually directs you to its own website to pay once you've downloaded the app.

That's a backdoor to get around Apple because Apple typically takes 30% of revenues generated from the App Store. And Snackers, Jack and I like to call that 30% of revenues, the app tax. Apple's basically like, oh, you want to develop an app using our App Store? We'll take 30%.

If you subscribe to Disney Plus through the app store, Apple's taken a percentage of that $699. a month. So Hay is fighting against this and they're getting some really nice free PR because a lot of people are reporting, oh my God, somebody is fighting against Apple's app tax. It's fine paying a percentage of profits to the U.S. government, they think, but they don't want to pay a percentage of that revenue to Apple. Last week, Apple blocked this app from getting on the app store. They have unblocked it, but the fight continues. So Jack, what's the takeaway for our buddies over at Hay? The internet is splitting into a free internet with ads and a subscription internet with no ads.

Snackers, it's kind of like the West Free Speech Internet versus the China censored internet that we told you about last week. There's another divide, one with ads and one without ads. So let's look at who Hay's number one Goliath competition is Gmail, which you're probably using. Gmail is the advertising-based version of email. It's free, but then it's using your data to like stick an ad for like a flower delivery company in your inbox because they know you've been searching for flowers on Google. Hey, is the no app version of email. They're charging you 99 bucks a year, but they're keeping your data sacredly untouched and without advertisements. That means Hayes targeting users

who are willing to pay to protect privacy and get a premium service. Gmail's targeting everybody else, like the billions of other people. Happy to look at ads as long as something is free. The free plus ads internet and the subscription plus no ads internet are our two internet. For our third and final story,

Canva just doubled its valuation in a year. It's all thanks to the taponomics of its business model. Happenomics. Now, Snackers, back in the day, you wanted your presentation to look sexy. You know how you did it? Animations. Animation. You add a little fade between the slides. A little ooh, a little awe action is what you're going to see. Today, it's not the animation. It's all about that Canva design, which is the PowerPoint for the social media era. People will be in the back room being like, did she use Canva? I think she used Canva. I'm pretty sure that's a Canva. Did you see the contour of those fonts?

I can't get over it. I have to step out of the room. Now, Canva is a unicorn which means it's worth over a billion dollars, but you can't buy the stock. No, Jack and I like to call this a sumo company because we're straight up missing out until this company IPOs. Private investors, though, who own Canvas stock, they are not missing out. The company just announced it raised $60 million at a $6 billion valuation up from the $3.2 billion it was worth last year. That means its private stock has nearly doubled in the past year, even though we public investors can't see it. We're straight up sumoing this one. And all this makes Canva the most valuable private tech company in Australia.

Now, Canva is crushing it because we're all becoming graphic designers. iPhones turned us all into NatGeo-level photographers in the last decade. This one's of Niagara Falls. Did you see what I did with the background? The resolution is powerful. Now, Canva has turned us all into artists on the iPhone 10 canvas. This company was founded in 2012 to help normal folks like us create. flyers and logos and social graphics and presentations. But now it is 30 million monthly active users

who are using its templates for Instagram stories, for YouTube thumbnail images, and for Facebook posts. Now, Canvas is offering a ton of things for free, but it has premium elements that it's really hoping to upsell yon. And a lot of people have upsold. 1.5 million are paying for premium templates or for the membership, which is called Canva Pro. It's probably like 10 bucks a month. That means Canvas comment straight at Adobe and Microsoft with a premium version that's got 1,000 options for fonts because we all don't need that. I actually love seeing those 1990s era clip art fonts. Those are my favorite.

Yes. I'm going to need the Sans Serif with extra without Sarah. So, Jack, can you script this in Helvetica and whip up the takeaway for our buddies over at Canva? We are in the era of taponomics. Taponomics. Snackers, the human buying and spending is in evolution. We've gone from buying physically in our... stores to tapping on our keyboards on our computers to tapping on our smartphone. Triassic to Jurassic to

Cretaceous. Straight over to Taponomics. The amount that people spend that results from tapping on smartphone screens is growing fast. And tapping is dominated by tapping on a few different apps like Instagram, Twitter, Snapchat, and YouTube. Canva, though, is the one that will make you and your business look sharply dressed on those apps. And sadly, we're all sumoing until at IPOs. Jack and you whip up the takeaways for us over there. Virgin Galactic just announced its second business line trips to the International Space Station. But so much has to go so right before a profit is possible. Our second story is, hey, which has become a symbol of the resistance to Apple's 30% app tax.

And its service is a symbol to crush email anxiety. Our third and final story is Canva. Its value has nearly doubled in one year as Taponomics continue to grow. Looking sharp on social media is a core. corporate imperative. Now, time for our snack fact of the day. This one sent in by both David Downey and Allison Harris in lovely Paris, France. Jack, what do we got? David and Allison are wearing some N95 masks because of the cruise ships run by Carnival. You may want to wear N95 masks over your entire body after you hear this. Get this. Cruises run by Carnival Corporation emit 10 times more

cancer-causing gases in Europe than all of the continent's passenger cars combined. That's according to the financial times. To emphasize, combined. I'll tell you, my investment goal with Carnival, which I don't own anymore, was to not own Carnival. Snackers, I know this strategy went down here. Jack purchased the stock so he could then say he divested of thy stock. It's a brag point.

Yeah, I just finished divesting from Carnival because they're too environmentally unfriendly. Now, before we leave, got to say a happy birthday to Megan in lovely Southborough, Massachusetts, which is just under Northborough. No relation to Brattleboro. Also, shout out to Valentina Martello. whose name sounds a lot like my co-host here. Could strangely be a distant Italian relative, but we were most impressed of her snacks challenge.

She did 10,000 jump ropes while listening to Snacks Daily one episode. We may have done some rounding on her behalf. By the way, we are killing the barking that occurs midway through the podcast because apparently it's really freaked out some people like running in the forest who suddenly hear some barking.

I think we're supposed to say, put to sleep, Jack. Yeah, we are. By the way, mom, sorry for freaking you out with the barking. I didn't think of that. Honestly, we were really scared. We scared Jack's mom on this one. All right, that's it for us. Everybody, if you got a buddy who should be snacking, ask them HY, HYSD. And then say, have you had your snacks daily so they know? We'll see you tomorrow. Because if they know, they know. 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, 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.