The Best One Yet - “Dip, dodge, dive, duck, Doordash” — DoorDash’s IPO. Disney’s stock defiance. Google’s unlimited strategy.

Episode Date: November 16, 2020

We ordered some noodles and jumped into DoorDash’s fresh IPO paperwork… but there’s one problem that they mentioned 649 times. DisneyLand shut down, no new movies, and stores closed? Didn’t stop Disney stock from jumping after its earnings. And we’ve finally ID’d Google’s strategy to get you hooked: “The 5-year Free Unlimited.”$DASH $GOOG $DISGot 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. Welcome back. It is Monday, November 16th. Snackers, it's Friday afternoon for Nick and me. And as we whip up these snacks, my home state of Vermont instituted a ban on multi-house household gatherings to lockdown code.

Snackers, Jack and I are thinking of you. We know every state is experiencing spikes right now. You might have woken up this morning, whipped on your flannel, and checked out a new restriction from the state house. So Jack and I just chewed up a couple RX bars and decided we're going to make this our best snacks daily yet for all of you. Do it for the Snackers for our first story. DoorDash took a break from dropping off your dumplings this week. Jack, they just dropped off the IPO paperwork. Looks like a side of fees.

Hold the profit. No profit in this one. For our second story, Disney cannot open Disneyland. They can't open movie theaters and they can't even open their stores. But Jack, it's stock. It's like a Disney story. You have to believe in the Disney stock. And people are believing right now.

Third and final story, Jack, when we got in this carpet ride. Google's winning strategy. to get you hook. That's what we got. Yeah, you heard of the $5 foot lump. Say hello to the five-year free sample. Google drops it. Those are three fantastic stories. But first, our buddies at Digi Day noticed a new workplace trend. We got to share with you. Yeah, Jack and I were looking at this. We've decided we're going to call it a side hustle for your full hustle. Here's what's going down. A bunch of retail chains are giving their employees bonuses if they act as social media influencers for the company. We can't make this up. Apparently bosses are creating internal

leaderboards to see which employees social media posts about that company get the most love online these days. Now, when I was a waiter at the Olive Garden, we did have a leaderboard to see who was wine salesman of the month. I was usually at the top. Every time we start this pod, Jack's like, do you want a Keani? What can I do to get you in this Napa? I actually call it cabs off. But the scoreboard in this case is the likes you're rack it up on social. And as you rack up these likes, let's say for the company you're working for, they're going to give you gift cards or free lunches or maybe tickets to the hockey game. who knows if you're lucky. That is the reason your buddy who works at Dell is posting hashtags, hashtag I Work for

Adele, hashtag Dell's a fun place to work. Yeah, and maybe a final, dude, you're working for Dell. There's some great specific success stories here. Ricky Federici, he works in the back at the kitchen at Wendy's. He also happens to do Baconator tutorials on TikTok for 70,000 followers. The guy can juggle quarter pounders. Jack, across the street over at Duncan, Duncan baristas are getting perks for pumping up Duncan. You just got to post some step-by-step macho latte videos on Snapchat. That's specifically what

Duncan is looking for. That's all you got to do. So Snackers, Jack and I jumped in Snacks style and tried to analyze if this makes sense. And here's the math we're thinking. Let's say your average employee has, you know, a thousand followers total across their social media accounts. And your chain has 10,000 employees. If one-tenth of those employees participate and become micro-influencers for the company, that's a million followers you have checking out your corporate hashtags. And that's probably more than the total number of followers your brand social media account has itself. So we're thinking if Darlene's brother Danny is cooking hash browns for Denny's, Danny should get paid for hash brown hashtags. Let's let that sink in. And let's in 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 hearing food is ear 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. Nope. 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 FINRA slash SIPC.

For our first story, DoorDash just filed publicly to IPO. But there's one big elephant in the room that was mentioned 649 times in their surprise Friday morning IPO paperwork. Honestly, it was kind of awkward for us. But before we jump into that, DoorDash, we're going to speak directly. to you right now. You kind of missed a huge opportunity, Jack and I are thinking. You could have put a promo code in that S1 IPO paperwork. Yeah. Why not drop like a use code EBDA for 15% off your next meal in the middle of the IPO paper. What have been a nice Easter egg for the financially savvy DoorDashers. Yeah, also would have gotten people to actually read this thing, do their

research. Just next time tweet us before you drop one of these. Now, we did read this thing. We did do our research. And our early takeaway of DoorDash's S1, the honors, I want you to drop a jack. You got to Drop the cake one. DoorDash wants you to believe that they're unisaffed. Yeah, basically, Jack and I are reading this thing. The first page, second page, they mentioned small businesses four times. The founder said his mom used to work at a Chinese restaurant and he roots for the underdog. Yeah, it is nice. We get it. You guys think that you're just one of the rest of us. But that's really awkward because there's also articles out there that have a lot of Dordash hate bait. Yeah, basically, if you're a restaurant, you're also not a fan of Dordash. There's

like this pizzerie in Kansas. What did they say, Jack again? This pizza owner in Kansas hated DoorDash so much. He figured out his scheme to buy his own pizza through DoorDash, and it was an arbitrage that made money, and he just tossed the pizzas away. He made more money buying his own pizza than he did selling it through DoorDash, not a good luck. And again, the motivation wasn't to make money. It was because he hated DoorDash. Also, Snackers, you know, Jack and I, you know when we jump into these IPO paperwork. This is not a tech IPO unless they drop, you know, casual half dozen cliches into the first 12 pages that Jack and I noticed. Dream big. Yeah, start small. Check about this one. Get 1% better every day. The spirit of Adam Newman

is strong in DoorDash. Honestly, they sound like a personal trainer. I don't know what they're going for here. Now, this company is a $25 billion company now that delivers food to anybody who wants it, but it started seven years ago as a lowly startup at Stanford University. It's actually wildly impressive what they've done in just seven years. They now have 18 million customers, a million independent contractors, aka dashers, who deliver your food, and 400,000 restaurants signed up. We did some Control F, though, in this S-1, and we noticed food was mentioned 169 times. True. But logistics was mentioned more than that.

200 times. Interesting. So that may seem just casual to you, but Jack and I are seeing that, that is a straight-up signal. It means don't think food delivery when you think of a DoorDash stock. No, no, no. Think anything delivery when you think of DoorDash stock. That's where they're going, and that's what they discussed in the rest of their IP. paperwork. Naturally, though, we saw a big COVID bump for DoorDash. Yeah, when we check out the

financials revenues over at DoorDash triple to $675 million so far this year. And get this, they squeaked out a little quarterly profit of $23 million. I think that's the first quarterly profit for any gig company ever, and they didn't even adjust it. Honestly, it's adorable. They've got to put this thing up on a pedestal. But Snackers don't get to use to it. They never had a full year profit, and it's probably going to be a while before we see it. this again. Neither has Lyft, neither has Uber, not even adjusted. But here's what fascinated Jack and I. COVID didn't just bump up Doordash. It actually bumped up all food delivery. So how did DoorDash go from owning one-third of the food delivery market to one-half of the delivery market in the U.S. just this year?

They followed a fascinating strategy, a path less traveled, if you will. They focused on expanding in the suburbs of America while all of Doordash's rivals were hitting up cities. Yeah, if your postmates, Uber-Eats, grew up, you're battling over Chicago, New York, L.A., San Francisco, but they're like, wait a second here. We got Fairfield County. They eat food too. They stayed out of the rat race of the cities and checked out the cul-de-sax instead. Your buddy Dave and New Caney Connect can't just pop out to a bodega at 6 a.m. He's got to order DoorDash instead. Before we hit the takeaway, Nick, we noticed food was mentioned 169 times, logistics 200 times, but the number one most mentioned like unique word besides the or A was Dasher with 649 mentions.

Jack Perfect Lead. So what's the takeaway for our buddies over at DoorDash? There's only one way to make the economics of the gig economy work, and that is sadly to cut out the gig. Snackers, Uber, Lyft, DoorDash. They grew over the last decade, thanks to the part-time independent contractors delivering your food, in this case known as Dashers. Yes, dashers are the people you actually see at your front door who hand you the bag of Pad Ty. and they're essential to DoorDash. They're the backbone of that $25 billion valuation. And they're

essential workers literally right now. So Jack and I noticed on page one, when they first mentioned these dashers, DoorDash says, quote unquote, we're inspired by dashers. But then flip 42 pages later, and you see a major risk that DoorDash wants investors to know about is that the failure to develop and successfully commercialize autonomous or drone delivery technologies, that could be a problem. That could be a big problem. They're showing us their cards that they plan to cut out the dashers by replacing them with robotic transport deliveries. They're literally saying if we don't get drones, we will have a problem. Drones, self-driving cars, ghost kitchens, they all sadly cut out human deliverers, aka dashers.

But replacing dashers with drones seems critical to get indoor dashed that elusive first-time full year profit. For our second story, Disney's business just suffered badly. but investors has apparently only care about one part about Disney. Disney apparently has a hero and that is Disney Plus. Perfectly put, Jack.

Now, Snackers, remember, when we're talking about Disney, Disney's basically got four parts and two of those parts have been, what's the right verb here, Jack, destroyed? They've been annihilated

or crushed or a combo of the two. Profits in Disney's movie studio fell 61% because theaters are closed. And profits at the theme parks of Disney, they disappeared because the theme parks disappeared.

Now, if we look back on the theme parks, by the way, they got a billion dollars in profit last year and had a billion dollar loss this year. Overall profits for Disney fell by 82% this fall from July to September, which is even worse than the 72% drop from the previous quarter. Imagine you had a cookie and someone ate 82% of your cookie. You got a chip left.

That's what you're left with. You got a chip in a crumb. You're going to be having a bad day. And get this, because of all that lost profit that's just not happening, Disney decided to cancel the scheduled dividend that was going to be mailed to every single shareholder next summer. Now, Snackers, here's where this gets wild. Think about everything Jack and I just said, from profits to losses to cookie crumbs. Disney stock actually rose after it announced earnings last week.

And it's even near its all-time high. It's a bizarre situation. We think investors are just given Disney a COVID-pass. They're basically like, I don't care what happened in 2020. It doesn't matter. What is 2020? I don't know. We're moving on.

Don't worry about it. But it turns out they're also, let's say, excited but also distracted by Disney Plus. They're probably too excited. They're a little like, back off, man. Step back a few feet here. They're too excited. They're awkwardly excited. They're please step away excited.

Snackers, we said last week that Disney Plus is actually the most stolen streaming network, aka more people share passwords for Disney Plus than anything else. And yet Disney just announced they, They hit 74 million Disney Plus subscribers, which is up, Jack, give or take, infinity percentage from last year. Yeah, they were not around a year ago. So 74 million divided by zero is infinity. But Snackers, as you know and it's like Jack and I like to say, life isn't about the absolute numbers. It's about expectations.

When Disney launched Disney Plus in November of 2019, their goal was to hit 60 to 90 million subscribers in five years, a.k.a. by 2024. Well, Disney Plus just exceeded its five-year goal in less than a year. So, Jack, what's the takeaway for our buddies over at Disney? Disney Plus is horribly unprofitable right now. But the stock is like a Disney store. You have to believe. I mean, Jack, this thing's like Narnia. And like a paperback version of Lime Witch and the wardrobe, Disney Plus is actually dirt cheap. It is. It's only seven bucks a month. Like, I mean, it's paying you at this point. And get this. The actual price that Disney collects from all those Disney Plus subscribers, is even less than seven bucks a month.

Yeah. Because approximately 20% are getting Disney Plus free with their Verizon Wireless plan. And that's just in the U.S. Turns out 26% of Disney's 74 million Disney Plus subscribers are in India where they're only charging a dollar a month. So clearly they're making less than $7 a month on average. That's a small number.

Plus, Disney is cannibalizing sales of other things like movies and cable revenue with Disney Plus. A bunch of Disney's new subscribers. used to have cable, and cables like Disney's historic profit puppy in that industry, in the media industry. Another historic profit puffy is sales of movies like an $80-9 movie DVD set of Star Wars. Yeah. But you're not going to buy that anymore because it comes with Disney Plus for seven bucks a month. You're streaming it on Disney Plus. But over time, Disney investors are thinking people will pay 15 bucks a month for all three of Disney streaming services.

Right. ESPN Plus and Hulu. And investors are ignoring losses today believing in that feel-good stock Disney story. It's a whole new world, a dazzling place I never knew. For our third and final story, Google is ending its free unlimited Google Photos cloud storage. That's a mouthful. We're looking at the five-year free sample playbook of big tech. Now, Snackas, before we jump into this, close your eyes. Okay, your buddy just found a cliff, and he wants to do a gainer. So you skied down, found the perfect. position to take a video and you holler up to him. It's good. I'm ready. Go. So you press record and your phone says you must delete files. There's insufficient data storage. Timmy breaks up with you.

You ruined the moment. You ruined the moment, perhaps the entire weekend. It's true. It happens. Now, that happens because you're running out of data on your phone and it's absolutely the worst thing. We have taken so many photos and videos. How many have you taken Jack? Nick, I actually have a buddy who's a photographer, and it's like a tough situation for photographers because every year we take more photos in this world than all of the previous photos taken by humanity until that point. Yeah, Jack, you individually probably have taken more photos

than the entire 19th century. I think it's like a logarithm or exponential. There's a math thing involved. It feels like exponentially logarithmic, yeah. But Snackers, that's exactly why the world's two big operating systems are offering cloud backup specifically for photos. Right. So that your iPhone doesn't get filled up,

Apple offers you iCloud. Right. And then you got your Android doesn't want to get filled up, so you got Google Photos. Now, Apple offers five gigs free to anybody with an Apple account. It's nice. It's kind of generous of Apple.

But since 2015, Google has given away unlimited free storage for Google Photos. That's insane. Emphasis on unlimited. It's like they're giving away free data candy for free to anyone always, forever. Because Google knows your photos are the addictive sugar of what you like to store.

But last week on Wednesday, Google announced a big change. This is huge. Now, from going forward, your pictures are getting paywalled by Google. That's right. No more free unlimited data. If you want that first date selfie you took back in 2012, great selfie. You're going to have to cough up a subscription. No more free candy starting June 1st, 2021. All the photos you've taken until June 1st, they'll get grandfathered in, but then after that there's a cap of 15 gigs for all Google photos accounts. Then you're going to have to pay two bucks a month for storage on Google beyond that. And that's two bucks a month for Google times like a billion people times forever. A lot of revenue we're talking about. So Jack, what's the takeaway for our buddies over at Google?

This is how big tech crushes competition. Snackers in the past five years, entrepreneurs have had ideas for apps to help organize and back up all your photos. It's a big customer problem, so it makes sense a startup, would try to solve it. And they probably didn't launch them, and they definitely didn't succeed in the last few years. Remember Flickr? No, it's like the original drop the vowel, like startup name.

We're just going to get rid of the ease, and we should be totally good after that. It was a free photo hosting service founded in 2004. It got acquired by Yahoo and basically has slowly died after a thousand acquisitions. Yeah, not a good situation. So the big question here, how can you compete when Google's given away unlimited amounts of stuff for free. Flickr couldn't compete when the biggest tech company offered its core product for free.

A five-year free trial that is now over. But in the meantime, Google got a billion people hooked on that free service, and now Google's got itself a new profit puppy. Snackers, imagine other companies who have an individual product that's free with no competition and hooks you into its ecosystem. We could imagine a world where Amazon starts charging you a dollar a month for Alexa, your buddy you've become addicted to. Yeah, Bezos is like, What are you going to do? And then Apple's like, hey, we're going to charge $10 a year for Find My iPhone. Or what if Google starts paywalling Google Maps, the thing you depend on to get everywhere?

What are you going to do? Beware of the five-year free trial. Jack, can you whip up the takeaways for us to start the weekend? DoorDash is finally IPOing, and you'll probably see the stock within the next month. Companies inspired by Dashers, the profitability is not, though. For our second story, Disney's profits look horrible. Yeah, they do. But shareholders are ignoring 2020.

They're looking at 74 million streamers who, hopefully pay 15 bucks a month. For our third in final story, Google has generously given way unlimited cloud storage data for photos for free for five years now. That's just, you know, prevent a competition, got a billion people hooked, and is now their new profit puppy. Congratulations. That's the playbook. Now, time for our snack fact of the day.

This one sent in by like a snack fact legend, Kelsey Black over in Austin, Texas. She's got like, we had too many options here. It was fantastic. We've heard of a computer bug. It's when like you freeze, you push escape, nothing happens, you push the key, nothing happens. As you said, Jack, we've heard of a computer bug. The first instance, however, of a computer bug occurred at 3.45 p.m. Eastern Time, September 9th, 1947. Yeah, apparently the Harvard faculty at the Harvard Computation Laboratory,

noticed there was an error, which they traced back to a moth that was trapped in a 23-ton calculator. That's why we call it a bug. because the first one ever was a bug. And that moth has been preserved for all time. I believe it's now at the Smithsonian. I think it's actually the word is posterity, Nick. It's been preserved for posterity. Snackers, we hope you're going to have a fantastic week.

In the meantime, ask your buddies, H-Y-H-Y-S-D. Have you had your snacks daily? We'll see you tomorrow. We can't wait. And you know, you know. And Snackers, before we go, big congrats to Sergio and Tatiana Babi Kovha, new parents over in Sweden.

And happy birthday to Shrishdi Chada in Bhopal India. And happy birthday to Tantran in Fountain Valley, California. And Mills Culver in Atlanta. And James Hanneman in Philly. And Roshmi in Dallas, Texas. And Nick in Akron, Ohio. And Megan Brinkley in Kill Devil Hills, North Carolina. And congrats Jappers on the new job over in the Department of Veteran Affairs.

And happy four year anniversary to Ben and Brianna Richards in San Antonio, Texas. And Caleb and Tierra hope it was a fantastic wedding down in Arkansas. This is Jack. I own stock of Amazon. Nick own stock of Apple. And Jack, you want to do the other disclosure? About Jasmine? Princess Jasmine stole my heart.

And I think everybody's heart who's ever seen that movie. 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.