The Best One Yet - “Bumble stock makes the 1st move” — A Bumble IPO plan. Jack Daniel’s K-shaped recovery. Amazon innovation in Brooklyn.

Episode Date: September 3, 2020

Word from PFWTM is that dating app Bumble wants to IPO ASAP. Liquor legend Brown Forman saw shares jump 11% because its bourbon sales reflect our current unique economic reality. And Amazon just launched the most innovative thing in online grocery delivery yet: A ghost grocer grows in Brooklyn.$BF $AMZNWant a shoutout on the pod? We got the form for Snackers to fill out right here: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 Thursday, September 3rd. Nick, stocks rose quite a bit yesterday, but I heard that your portfolio fell. It was down 2.5% yesterday. Nick, what do you own stock in like Tuesday.com and it was Wednesday yesterday? I got to feng shui this thing, Jack. I'm always in balance.

Despite Nick's financial pain yesterday, this is the best one yet. T-B-O-Y, Jack, what do we got? First story over here. Bumble apparently wants to IPO before the end of this year. Yeah, we're going to have to wait. until they make the first move. That's how this goes down. Tushay. Second story, Brown Foreman is the liquor legend behind Jack Daniels and 50 Jack Daniels spin-off flavors. The stock just jumped 11% because bourbon is reflecting the current economic reality.

For our third and final story, Walmart's online grocery delivery strategy make shipping free. They announced it yesterday. Amazon's counter strategy, Jack, open a ghost grocery store in Brooklyn only for online grocery delivery unprecedented. And he quit that ghost grocery store with hundreds of Amazonians to prowl the aisles for you. Prow is the perfect, perfect verb there. I love that you did that. But Snackers, before we jump into those three great stories, 2020 has been a bad year for humanity. So true.

Great year for Michael Jordan, his earnest. Aggressively true. Already the world's richest athlete, Michael Jordan is worth $2.1 billion, a quarter of a lift. Then, earlier this year, he got paid $4 million to make a documentary for ESPN and Netflix because ESPN had no sports to show. Then his sneakers sold at a record auction price for the highest price ever, Jack, the number, $615,000 for a pair of Air Jordans.

We're talking about the same Air Jordans he wore in an exhibition game in Italy, 1985. Now, in that exhibition game in 1985, Michael Jordan broke the backboard when he slammed dunked, and apparently glass shattered down and ended up in those shoes. And remains in the shoes to this day. Now, yesterday we learned it's not over with Michael Jordan's fantastic year. He just became the investor and advisor to publicly traded sports betting company, Draft Kings. That news was enough to make the stock of Draft Kings jump by 8%. Jack and I haven't seen that kind of board member impact since, hands across America?

No, no, no, no. Since Oprah joined the board of Weight Watchers. Back then, like, the stock tripled at Weight Watchers because of the Oprah. We've said it before, we'll say it again, it's never been more true. Michael Jordan, the Oprah of Sports. Let's hit our three stories. You're tuned into 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. Robahood Financial, LLC. Member Fenra. For our first story, Bumble is reportedly planning to IPO at evaluation of $6 billion ASAP. So let's talk about what COVID-19 has done to the online dating scene. Snackers, did you know there's like a surge in dating apps going on right now? Nick and I did not know, full disclosure, we're happily married dudes. But here's the wild thing, Snackers.

You'd think since going on a date is like a health hazard, online dating would be totally down right now. Oh, excuse me, can I pause my Tinder gold account until Dr. Fowgli's he gives his blessing for my next date? No, Timmy. You can't, although that's very responsible. You'd be wrong if that's what you thought. Yeah, shocker. Jack and I noticed that carnal desires are more powerful than economic forces these days. Since everything is closed and people need to date, hinge or Bumble or Tinder are the only options for single people. Snackers, no eye contact across the dance floor situation. The only eye contact is with a Tinder profile pick. By the way, no soul cycle dates after you're done your like thighs and hammies ride.

Only a virtual video call with some random stranger you've had like three messages with. Oh, and your new dinner night out, Jack, can you please picture it for us? Eating Trader Joe's pad tie and bet aggressively swiping through potential first dates. Are you even promoting yourself to get the shrimp these days? Few people are. This brings us to Bumble, the Beehive-themed dating app where girls have to make the first move by sending the first message. Now, Bumble's CEO and founder Whitney Heard also interestingly co-founded Tinder. Now, that relationship with Tinder didn't end well, so she launched Bumble a competing dating app.

We'll discuss it on a future pod. But funny, because Tindu's owner Match Group, which is publicly traded, offered to buy Bumble in 2017 for $450 million. Just a few years later, Bumble is getting ready to IPO at $6 billion. Big difference. That's basically a lift. Whitney Heard got the best of that breakup. But Match tried to buy Bumble because dating app companies, they got a thing for groups. Match Group owns everything. They own Tinder, hinge, plenty of fish, our time, OKCupid. Yeah, the whole family. Bumble, meanwhile, also owns other dating apps like Lumen for daters over 50. Or chappy. For same-sex date. And that Bumble family of dating apps has over like 100 million users now. Now, let's be honest, Snackers, for both Match Group and Bumble, all these apps use the same technology. They're just segmenting

the apps by customer type. It's the digital version of the gay bar, the sports bar, and the farmers-only bar all on the same block. And according to PFWTM, Bumble's stock will be available to retail investors like you and me in early 2021 after its IPO. So Jack, what's the takeaway for our buddies over at Bumble? Online dating's taboo is completely gone thanks to COVID. We mentioned yesterday that mini baby boomers are going to happen, those tiny generation of babies conceived during shelter in place. And the mini baby boomers, Isn't the only impact COVID has had on love in America? No, it's also crushed any remaining stigma that existed about online dating.

Because currently, 100% of dating is online dating. Which means we could have an entire generation of young couples that met exclusively online. Match Group's website claims that 40% of all relationships in the United States right now started online. And we're betting that's going to grow thanks to COVID's mainstreamification of online dating, another accelerated trend. investors think it'll be great for these companies. Look at Match Group stock. It's up 40% in 2020. That's probably why Bumble wants to join them on the public markets.

By the way, this is Nick, and my first date with my future wife was on ShakeShack. And that's why they adorably bought stock in ShakeShack. For our second story, Liquor Legend, Brown Form, and stock just jumped 11%. This is a bourbon company, and we see a reflection of the entire economic recovery if you look at their earnings report. Snackers, Jack and I are talking about Tennessee-based company that's both your parents' liquor cabinet and your spring break trip. Jack Daniels. Yep.

Finlandia. Not bad. Southern comfort. Indieson. Old Forrester. Okay. And something Nick jotted down in the notes here called Shambore? It's like a fermented raspberry syrup, you know?

This is one of those, if you know, you know situations. Absolutely. It comes in a velvety jacket. Great signal that it's interesting. Sales for Brown Foreman dropped by 2% to $753 million last quarter. How are we feeling about that, Jack? Yeah, kind of man, man. Middle of the road.

Jack, how did the CEO of Brown Foreman display his appreciation for the quarter? Quote unquote, I'm very pleased by our performance. Yeah, not too excited, but not too upset about it. And then the CFO steps up to the podium and he says, we had a solid quarter. Not huge, but not tiny either. Can we get these guys at this liquor company a drink?

Yeah, they sound like they need to loosen up. It's like 6 p.m. on a Tuesday over there. But what we just told you Snackers is that sales did. overall. The key here is that wasn't the case for all their labels. Let's start with the iconic Jack Daniels brand. Please, Jack Gramer. Which from my one trip to England is like a much bigger deal there than it is here in the States. There are also like a dozen spin-offs of Jack Daniels these days. You got Jack Daniels, Honey, Jack Daniels Apple, you got the whole thing going on. There's actually one Jack Daniels that was intended simply to stop Fireball from dominating the Boozmark. Honestly, it's like the Marvels franchise

over here. They're coming out with a new one every month. Now, sales of Jack Daniels, which is kind of their like mid-tier bourbon, they inched up by 3%. Nothing special. But Jack, that's the mid-tier stuff. How do the premium bourbons over at Brown Foreman do? Surged by 18%? Nicholas. The kind of stuff that you're going to order neat, you're not mixing in the ginger ale with that. We saw 14% sales growth for Woodford Reserve, which is that fancy looking bottle that looks like it should be on your mantle once it's empty. You toss a bow on it, boom, that thing could just be a wedding gift on its own. You don't need to do anything else. Old Forrester and Cooper Craft are two bourbons that round out their premium brand segment.

And also performed extremely well last quarter. So Jack, what's the takeaway for our buddies over at Brown Forman? The alcohol industry nicely illustrates the K-shaped economic recovery that everyone's talking about. All right, snackers, we've got to talk alphabet shapes over here. Jack, V-shaped recovery. What does it look like? It's when the market tanks really hard, but then comes back really hard. Jack W-shaped recovery. It's when the economy tanks and then comes back a little and then tanks and then comes back really bad. Jack, can I buy a vowel? You-shaped recovery. What do we got? All right. This is when everything goes to crap? Yeah. You stay in the basement for a while, but eventually make a comeback. Looks like a you. Snackers, the K-shaped recovery is a little bit different

than all of those. This is the recovery that Christopher Sims or journalist at the Wall Street Journal claims we're experiencing in the labor market right now. This is when the recovery looks really good for some workers, but just isn't helping a whole bunch of other workers. Imagine the situation for hospitality workers, janitors, people who work on food trucks, they are not taking part in the recovery, and they're still collecting unemployment. But then picture the people working at big tech, in finance, the lawyers. They may end up way better off when this is all said and done. That's right. They may end up better off than before COVID thanks to a booming stock market. No commute. Gotcha. No gas you have to pay. And money saved on not vacationing to Greece in June.

like you had planned. You missed out on that, you're saving about 10 grand on that thing. Now, we're seeing that K-shaped recovery in sales of consumer products just like this booze company. The cheap stuff, it's selling fine, it's doing well, it's got a new audience for itself. But the expensive stuff is selling better than ever before. For our third and final story, Whole Foods just opened a grocery store that grocery shoppers aren't allowed in. We're talking the first delivery-only grocery store has arrived, and we're calling it a ghost grocery store. By the way, that did not take long. Amazon's already stolen Walmart's thunder. Snackers, like less than 24 hours ago, Jack and I were here talking to the microphones in you about

Monday's Walmart plus news that was big for rural and suburban Americans. You remember, $98 a year membership for unlimited free shipping and grocery orders as long as they're over $35. Great if you're living in the burbs. But yesterday's Whole Foods news is huge for urban Americans. Urban Americans who have no time to grocery shop because they're trying to catch the four train to the 930 dinner reservation. It's the only time you can get. It's the earliest thing possible. As a reminder here, Snackers, in 2017, Amazon acquired Whole Foods for $14 billion. It was a big deal. And it has done nothing with Whole Foods since. We're calling it one of the most disappointing acquisitions ever. Jack and I covered this when it happened, and we were excited for it. We were expecting the grocery delivery market to, like, get flipped upside down by drones.

Yeah, we thought the food was going to be delivering itself to us before we knew we had to order it. The only difference we've seen in the past three years is like 10% off for prime members, maybe. You go to like check out our Whole Foods and you find out that that didn't even apply to the four pounds of Montchega. Which brings us to yesterday. Finally, we got news of real innovation coming to Whole Foods thanks to Amazon. In Brooklyn, Amazon just built a giant Whole Foods grocery store. But only people allowed inside are Amazon Fresh Delivery Grocers. Snackers, we've told you about Ghost Kitchens before on this podcast. This is a ghost grocery store, 100% designed and built for online orders.

You walk into this thing, which by the way, you can't walk into this. You can't walk into this thing, actually. But talk to someone who works there, and they'll tell you, there are no like old ladies walk around squeezing mangoes or clueless guys on the phone with their moms about the vegetables. There's no one trying to decide if mom asked for tuna fish in olive oil or tuna fish in water in Isle six blocking the ray for everyone else? Is this parsley or is this cilantro?

I'll get both, no one will know. The point of these ghost grocery stores is that there's no regular shoppers like you and me standing in the way of people trying to make a delivery order. So Jack and I are expecting them to sprout up in a bunch of cities where Amazon primers mainly live. So Jack, what's the takeaway for our buddies over at Whole Foods? This is Amazon's advantage over DoorDash, Instacart, and Walmart Plus. Yeah, the other grocery delivery apps, they send the gig workers into the grocery stores to shop for you just like you would shop.

If you order something on Instacart, somebody is going to go to Safeway and find your stuff. Yes, they will. Bag your stuff and then jump in the car and bring it to you. Amazon's dedicated an entire online-only grocery store to just doing fulfillment. You're going to have one Amazon worker just focused on finding the items. Another just focused on bagging the items. Another Amazonian just focused on delivering the bags to you. You add all that up, and this could make Amazon fresh, more profitable, more reliable, and lower cost.

Think about the reliability aspect. Sometimes they bring you the brocolini because the broccoli you ordered is out. And that won't happen when Amazon is monitoring the grocery store and knows exactly who's taking one. Think about the cost and speed. Fulfilling your order will be quicker with this Amazon thing because there's fewer people in the way blocking IL6. And then think about prices. This is just objectively more efficient shopping and it lets Amazon either lower prices or take more profits. DoorDash, Instacart, Walmart, they simply aren't doing this.

Jack Kenyo, whip up the takeaways for us over there. Bumble will become the second dating app company with a publicly traded stock. Yeah, nice timing because the stigma for dating apps officially gone. Brown Foreman's earnings show us that cheap booze sales are doing okay as we shelter in place. Expensive booth sales, they're soaring because some are better off after COVID. For our third and final story, Amazon just built its first Whole Foods just for delivery of online-made orders. Nobody is blocking the tuna fish aisle so your groceries will arrive quicker. By the way, always get tuna fish in olive oil. It's way better.

That's their natural swimming habitat in the Mediterranean. Now, time bar, snack fact of the day. This one sent in by Nick of New York and Jack of Brattleboro, Vermont. Interesting. We'll get to that in a minute. Now, yesterday marked the 75-year anniversary of the official end of World War II that came with Japan's ultimate surrender. And Jack and I noticed that it also marked the first time since World War II that the U.S. government debt is now more than our GDP. Yeah, the U.S. government debt more than our GDP. Kind of like like your personal debt exceeding your annual income for the first time. Not one of those records you're going to brag about or one you want to have. Yeah. The U.S., though, we kind of get an exception to any consequences, so we're not really paying for it. Unless we

pass it on to future generations like our grandkids and grandkids, grandkids, grandkids. By the way, that's from Jack and me because we need your snack fact, snackers. Please send us your snack fact to the day at Robin Hood Snacks on Twitter. go. Congrats to Gina and Cameron in Michigan who just got hitched. And Daniel and Laura, third anniversary Omaha, Nebraska. Kevin and Christina, happy fourth anniversary in Fort Smith,

Arkansas. Caroline and John, not impressed. Their 30th anniversary out in Wayne, Pennsylvania. Jeez. And happy birthday to Stephanie Soe just turned 30. And Jack Hoppy, happy birthday in Pittsburgh, Pennsylvania. Patrick Wu, 26 in Torrance, California. Ryan

Donovan in Philadelphia. Matt Borden, Gainesville, Florida. Go Gator. and happy birthday to the baby snacker, Aidan Ortiz in New York City. First birthday for Aiden, Jessica Hammock, Jacksonville, Florida, happy birthday. Go Gators, Jessica, and happy birthday Eddie Espeniza in Redlands, California. And Michael Tejad in Denver, Colorado. And Mark Miller in Evanston, Illinois. Laura, San Jose, Costa Rica.

Miram Moskowitz in Monsey, New York. And Sean Olson, Santa Barbara, California. Nick, I'm sorry your portfolio fell today, but that was the best one yet. This definitely felt better than what we did. Yesterday, Jack. Snackers, if you got buddies not snacking yet, please ask them, HY, HYS Day. It's weird they're not snacking. Have you had your snacks daily? Ask them. Nick and I, I'll see you tomorrow. Can't wait. If you know, you know. 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 in 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.