The Best One Yet - 🏂 “Coinbase just got 3 feet of fresh pow” — Coinbase’s 9X. Creator Inc. RPM’s dividend club.

Episode Date: April 8, 2021

Coinbase dropped some fresh numbers that are so heavy, it got us thinking about blizzards. Patreon, Cameo, and Substack all hit new unicorn valuations, so we’ve got a suggestion: a 3-way merger to form Creator Inc. And you may not recognize RPM’s acronym, but it polishes the chair you’re sitting on — and it’s a proud 47-year member of Club Dividend.$COIN $RPMGot 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. It is Thursday, the new Friday, April 8th. Thursday. Let's drink up some snacks, baby. Jack, did you build that bassinet yet? Let's just say it's ready.

If you build it, baby will come. I think that's how this works. Oh, this is also like a way better pod than what we did yesterday. For our first story, Coinbase is going public next week. So they're flaunting to investors. They're heaviest numbers right now. This isn't about crypto. This is about skiing.

For our second story, substack, cameo, and Patreon. They're all related. Yeah, they are. They all just hit gigantic fresh valuation. So Jack and I whipped up a suggestion to save them from zucking. Here it is, Creator Incorporated. Creator Inc. Creator Inc.

For our third and final story, RPM, used to be a client of mine. Full disclosure. Great acronym. They make the chair polish that you're sitting on. Classic. But they want more respect than just your butt. Snackers, you're seated on the proud 47-year member of Club Dividend. Club dividend.

Yeah. Friends with quarterly benefits. You got to have one. But Snackers, before we have. hit that wonderful mix of stories today, Jack. We got a warning for you. There is a new kind of theft on the rise. French police are investigating an international ring of thieves. Jack, the thieves target? Legos. Jack, they're a victim? People who own LEGOs. Too many LEGOs. Snackers, apparently like one group of robbers, settled in a Paris neighborhood and established trust.

And then they were scouting out local toy stores that specialized in limited edition Lego sets. And then this is the best part. They made off with thousands of plastic bricks, resold them all in Poland at a much higher price. What is this Duncan's toy chest? Two turtron dives? Get this. In the state of Oregon, $7,500 worth of Legos were just stolen from one man. Okay, it's official. Two is a trend. Yeah, two is a trend. But record Lego sales mid-pandemic, that's what's driving this surge in hardcore Lego collectors out there. So a Lego lover in Lafia is willing to pay up $3,500 for a Millennium Falcon. limited edition Lego set. If it's not opened, I don't even want to talk to it. NPR reports that a black market has emerged for stolen Lego set.

Snackers, hold on to your Beanie Babies. Let's hit our three Furbies. You're tuned in the snacks daily. We spoke to the lawyers and we got to get something legal out the way. It's snacks about to hear 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. Nope. It's not a research report. or investment advice. Not our offer or sale about security. Snacks is digestible. Business news for you. Robberhood Financial, LLC, member Fembra slash SIPC.

For our first story, Coinbase, it is going public next week. So this week, they're strutting their stuff. Yeah, they are. Like a Wall Street cat on the catwalk. Coinbase, the largest crypto exchange in the U.S. by volume of trades. They got like 11% of the whole crypto market check. It was founded eight years ago by Brian Armstrong. who thinks you should keep your politics at the door.

Don't ask Brian who we voted for, kind of a thing. So they're doing a direct listing next Wednesday. Yeah, they are. But we noticed in the last three months, half of Twitter added the word Bitcoin to their Twitter bottom. People are adding it to their resume jack. It's like accomplishments, Bitcoin. Extracurriculars, Bitcoin.

So the surge in crypto interest has boosted the number of verified users on Coinbase by 30%, just in the past three months, to 56 million people. 30%. That's impressive. It's nice. Get this. Revenue surged a whopping 9x for Coinbase to $1.8 billion in just the last three months. That's double the revenue that Airbnb did last quarter. And it's more in the last three months than Coinbase made in the entire year prior to that. Oh, and get this. Coinbase brought in $750 million of profit. Uber's like 20 years old. It's still never seen a profit.

Now here's like the wildest part about the Snackers. This was just the last three months. So Jack and I were like, we got to jump back. into the old S1 paperwork here, Snackstyle, to figure out what else is going on with Coinbase. First, let's tell you the business model we notice. It's a simple cryptocurrency brokerage that charges fees. Yeah, they're going to charge you half a percentage point of a spread plus a buck or two more in fees for the transactions. But you don't come to Snacks Daily for the simple business model explanation. No, you don't. You come to Snacks Daily for the S1 gems. Case and point, we got a pro tip here for you. Go into their IPO paperwork. Turn to page three. It is a crypto dictionary. They'll tell you what a stable coin is.

Stable coin. Or what about Hodel? It's a misspelling of the word hold, actually. And then they have hot wallets, which are kind of like hot pockets, but for crypto. If you don't know, you can't afford it. But here's one of those shockers that they're not talking about with Coinbase. The fact that one of their key features is proprietary cold storage. Apparently, this is a server where your cryptocurrency can sit, like exist while you're not using it. And they basically unplug it to make sure no one can hack your crypto.

It's not connected to the internet, so a lot harder to have. hack. This is what Batman would put in his cave. Coinbase also offers users graduation gifts, if you will. Okay, so this is wild. You can earn cryptocurrencies on Coinbase if you watch their education videos. They're promoting education, which is great, but they're going to give you not Bitcoin. They're going to give you like blip coin. Yeah, it's something you haven't totally heard of. Finally, they highlighted one risk that was extremely unusual. If the identification of Satoshi Nakamoto, the creator of Bitcoin, is revealed that could cause Bitcoin's price to drop. It's like if Something happened to Santa.

Yeah, something. That could be problematic. That's basically what Coinbase is saying. Society-wide, we would have some issues. So, Jack, what's the takeaway for our buddies over at Coinbase? Coinbase is living the ski resort effect. Snackers over in Vale, Colorado, they make the most money when there's a Blizzard full winter. For Coinbase, they make the most money when everyone is adding Bitcoin to their Twitter profile.

Well, Vail can have bad winters. Coinbase can have bad winters too. For Coinbase, a bad winter is when Bitcoin has a downturn. and when people stop talking about crypto so much. Now, this has actually happened back in 2018 when Bitcoin's price fell from like $20,000 to $3,000. As a result of Bitcoin's downturn and people not talking about Bitcoin, the number of people active on Coinbase that year fell by 70%. So the opposite of what we've seen in the last three months when Bitcoin's enjoying a blizzard storm.

Exactly. So we're thinking, as long as Coinbase's business depends on fees from crypto trades, it'll depend on a Bitcoin buzzstorm like we're in right now. If Bitcoin bus storms never end, then Coinbase will be fine. For our second story, RPM isn't Home Depot, but RPM is in Home Depot. Yes, and this value stock is the number 42, most reliable stock in America. Jack, nothing gets me more excited than a top 50 list. RPM calls itself the world leader in specialty coatings and sealants.

Yeah, we got to assume like the mission here, Jack, coat specially and to seal specially. Yeah, Ohio. they do think straightforward. That's what Ohio does. Now, it was founded in 1947, RPM has a whopping, get this, 78 different brands that they sell. That's right. One of them? Crud cutter, both with K's. Yeah, eliminate that nasty crud in your shower. Rustolio. Jack, you got to finish that birch flooring so you can slide in the socks, you know, like the Tom Cruise, the risky business thing. I know your sunglasses, I got it, underwear, I got it. Carbo line is another RPM product. Yeah, not like a longitudinal lasagna. This is corrosion control and

fireproofing coding. Now, this line of brand sounds like a team of superheroes who are actually 1099 contractors. They unite together and then they take on your living room. But we think RPM is basically a publicly traded private equity company that owns 78 different companies. Now, Snackers, here's what we find fascinating about RPM. They just announced sales. The sales jumped 8% and they're now at a record $1.3 billion last quarter. And the stock closed close to a record high because you spent your last 13 months at home probably cocked some ground. And you needed one of those products we just described. I think I did that verb, but I don't know if I did it right.

They mentioned the word record five times in the earnings report. So like, great, good for them. Yeah. But the sexiest part of, let's be honest, this very unsexy company. Very honest. Isn't the record financial numbers actually? No, it's not. And this is the real fascinating part.

Jack, what's the takeaway for our buddies over at RPM? It's the most faithful member of club dividend. Yeah, it is. It's never missed a meeting. Snackers, value stock RPM. It's all about the reliable cash dividend, a friend with benefits every three months. This is wild. Yeah.

RPM loves bragging that each of the last 47 years, they have increased the dividend that they pay to shareholders. Growing profits, ipso facto, growing cash checks sent out to shareholders every quarter. RPM's dividend has grown from like a few cents per share back in 1973. to a $1.52 per share this year. Now, the site then brags a little bit further, Jack, because they go on to say, they're the number 42 on the list of the most reliable corporate dividend players in the U.S. Number 42 is not something you usually brag about?

No, not typically. But one author publishes every year the dividend achievers list. Real thing. We'll tweet this out from at Jack Kramer and at Nick of New York, because this is worth a read. And we did the math. If they're number 42, only 41 companies have a lot. longer dividend increasing streak than RPM does. Jack, can you share who number one is because it

gets me every time? We're not going to share all 41. Number one, though, is American States water. A water supply business because there's nothing more reliable than a product that is 99% of your body. Now, retirees snackers, they love themselves some stable dividend income. Yeah, they do. But RPM has been aggressively stated. Yeah. And honestly, Jack, 34-year-old Chad from yesterday, he loves the SaaS, AR, VR, our social media stocks, but aggressive investors can benefit from a boring, dependable stock like RPM. RPM's the reliable Ricky Ed is to offset adrenaline. For our third and final story, we got the big three here.

Patreon, cameo, substack, all of them just had mega fundraisers. We got a big plan for the big three of the creator economy. Jack, celebs. Celebs. They're just like us in 2020. They eat hot dogs in a park just like us. like us. They're cooking every night in their kitchen with 12 different stove tops. Yeah, they have enormous ranges based on their Instagram profiles. Oh, here's my other crucettes. Snackers, 2020, though,

they were stuck at home because TV and movie studios, concert venues, comedy clubs, they're all closed. Yeah. So creators are like, okay, if I can't use those middlemen, I'm just going to cut out the middlemen, go right to the consumer. They went directly to their audience to monetize their talents using the creator economy. That was like the theme of 2020. And that is why we just saw a company called Cameo hit a billion dollar valuation last week. And a company called Substack hit a $650 million valuation this month. And a company called Patreon hit a $4 billion valuation just yesterday. All right.

We're going to start at the top of the police roundup here. Police Jack. Cameo. You could pay a B-Less celebrity, $200, and they will jump in and give your 13-year-old buddy a bar mitzvice shout-out. The bar mitz of life. You know, if you want to keep things a little cheaper, $20, you get a Cillist celebrity. Kevin Malone, great guy from the office. Hopefully a snacker.

He monetized that legendary character with a million dollars worth of cameo shoutouts last year. So that's cameo, but then you got Substack, which is less video, more text. Let's say you only read one journalist column. Yeah. At a news agency. Well, with Substack, you can just pay for that one column. Yeah. Take Tech reporter Casey Newton, for example.

He left The Verge where he was writing. And now, get this, he's making more money from just his substack newsletter. Okay. The final of the big three is. Patreon because Issa Ray can't make a show on HBO right now because of the pandemic. No, she can't. So she launched a Patreon page. So five bucks a month, 2,000 people are paying so far, and they're getting exclusive premium videos straight from Issa Ray. Issa Ray is capitalizing on her knowledge and monetizing it directly to an audience. And you're paying for Issa to be Issa.

Each of those private companies have experienced valuation ballooning because of the creator economy proliferating during the pandemic. So Jack, what's the takeaway for our buddies in the whole creator economy. We think the next step is to merge and become creator ink. Okay, so Snackers, independently, each of these companies right now, they're like totally getting zucked. They're getting copied by big tech almost on a daily basis. In December, we learned that Facebook, the zucking master, is working on a feature to pay celebrities to give shoutouts in a FaceTime video conversation. And then in February, we learned Twitter was launching its first paid newsletter product, which they did. Any small startup in the digital space is vulnerable to zucking for big tech. So

here is how the creator economy startups can protect themselves from big tech copying them. Here's what we're thinking. Patreon, Substack, Cameo, you should merge into one company, Creator, Inc. All three companies offer your complementary services. So there's no conflict and they can enhance their product offering together. All three companies are targeting the same kind of customers. So you can cut your marketing costs and deepen relationships with existing customers together. If this happens, Matthew McConaughey, can launch his own paid newsletter. That's a great guy. Using the substack tool of Creator Inc.

I would read it. Then he could monetize his podcast, charging like three bucks a month, using the Patreon tool of Creator Inc. Voice of an Angel. And he could drop into a cameo at every Austin, Texas Bachelor party using the cameo tool of Creator Inc.

All on Creator Inc. Bundle those services together into one platform with one dashboard and one monthly fee and McCona Hay will be happy. Jack, we just whipped up a life jacket for zuckable companies right here. right, all right, all right.

McConaughey won't leave Creator Inc. Jack, can you whip up the takeaways for us over there? Coinbase is riding high just as it enters the public stock markets. The master crypto is really actually all about skiing. For our second story, RPM is a publicly traded company operating as 78 different brands. It is the most faithful member of Club dividend. You love that dedication. For our third and final story, we think Patreon substack and cameo should do the first ever that we're aware of, three-way corporate merger.

heard of this in sports, never heard of this outside of sports. It'd be unprecedented. No precedent, baby. And it would let them defend themselves collectively from getting zucked by big tech. Now, time for our snack fact of the day. This one sent in by John Killen Jr. from lovely Minnesota, although he's technically a Kansas Jayhawk originally. He's a Kansas Jayhawk. Nick, it turns out the number 6453. Great numbers. typed out on a keypad, spells out N-I-K-E. Nike. That's Nike. Now, in reverse, that number is 3-5. That's not just a number. No, it's not. It's the best mile time of famous legendary runner Steve Prefontein, who was an early wear of Nike shoes from Bowerman himself. We repeat three minutes and 54.6 seconds

backwards is Nike spelled out on a keypad? Down to a tenth of a second without limits. Without limits. Snackers, you look fantastic. Jack, Thursday's still the new Friday, so we should do this tomorrow. It really is. I hope I'm here tomorrow. by the snackers, I hope I see it tomorrow. I hope I see you. Actually, I'd be fine if I didn't see it tomorrow because it means I just became a dad. That's true. That's a great thing too. That would be the best one, yeah. Either way, thanks for snacking today. And before we go, happy birthday to snacker Vic Gwa in Belmont, Mass, who also shared a crazy style with us, Jack. Vic Gwa happens to be like the Massachusetts state record holder of a mile time with four minutes, five seconds,

14-hundredths of a second. We did not plan this podcast to have anything to do with running. Happy birthday, Vic. And happy birthday to Cliff A from Seattle, Washington. And Chris Leacock over in Miami. And Colin Spillane from Somerville, Mass. And Mike Cadigan from Sudbury, Massachusetts. And on Darka Chudessie in Atlanta, Georgia. And Eddie Cohan turning 57 in Los Angeles.

And Ricky Graz in Memphis, Tennessee. And Joe Marr, happy birthday in Richmond, California. Happy birthday, Andrew Selway in Orange County, California. Jack, apparently Booth must have sent out their invites because Francisco is heading to Chicago Booth for school. on that wait list. Yeah. Still on that wait list. Matt Hargo. Congrats on the new job in Portland, Oregon. And Maddie G. Happy 221 days saving lives in New York City. And Alexis Torhan, happy one-year snack anniversary in North Carolina. And to anyone else, celebrating anything at all. Make today a T-Bor. Celebrate the wins. 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.