The Best One Yet - 🎳 “El Duderino of the Pins” — Bowlero’s $2.6B. Peloton’s 1st video game. Moderna’s Arya Stark.

Episode Date: July 21, 2021

Peloton just announced a video game because it needs you to stay on the bike like Donkey Kong is forcing you to. The biggest bowling alley on Earth is going public because the casual athlete has become king. And Moderna just joined the S&P 500 because it’s copy/pasting its vaccine strategy to hunt down other viruses.$BOWL $ISOS $PTON $MRNAGot 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 Wednesday, midweek, July 21st. Nick, we got a yo-yo week on Wall Street. We totally do. Dow. It fell 700 points on Monday.

The Dow jumped almost 600 points yesterday. You know what? This is the best one yet of all our pods. Why? We're recording live from a tractor supply petting zoo. These chicklets are these chicklets. Jack, first story. What do we get?

Bolero is going public as the biggest bowling alley in the world. I mean, Jack, welcome to the era of the casual athlete. thing. For our second story, at arcades, you used to tap the buttons as fast as possible to get the top score. But with Peloton's new cycling video game, yeah, that's a thing. You pedal as hard as you can. Think Mario, but with huge quads. Peloton has a video game. Third and final story, Moderna joins the S&P 500 today. Nick, congratulations. The COVID vaccine was just the beginning. I mean, Moderna, it's become the Aria Stark of Medicine. That's what we're calling it. But before we hit those three stories. It's a great mix today, Jack. I love this one.

Mata Prouder and two things. Two things. First thing, calling her, call your mother today. Pause the pod, call your mother. Second, if you go into business with your sibling, your mom will be thrilled. She'll be so happy, which brings us to the big news, Jack and I noticed.

Peyton Manning and Eli Manning will co-host Monday night football games together. Not on ESPN The O Show. We're talking ESPN 2, 10 games over the next three seasons. Stop poking me, Peyton. This is my microphone. Eli, does dad text you T. T.Y instead of thank you.

What is Dad's deal? Dad doesn't know how to text. I'll tell you, this duo, most combined victories against Tom Brady of any media duo ever. Jack, I'm checking out the whiteboard here, 13 feet at total broadcasting height. Largest combined forehead surface area in sports broadcasting history. But here's the thing, Snackers. Sibling duos, they're now a scalable trend. You got Elon and Kimball Musk.

Yeah, you do. Investing in each other's businesses, both now worth billions. You got the whole Kardashian clan has been showing us. for 20 years. Jack, Kim and Kylie, they both raised unicorn companies, not too shabby. Not to mention Kendall and Chloe. Then you got Stripe. Yeah, you do. The most valuable pre-IPO startup in the U.S. founded by two Irish brothers, a whole bunch freckles. Bring it over to Gen TikTok. Yeah. The D'emiliot sisters. Please, they're the content queens of TikTok where content is king. And of course, straight out of Boston, you got the wall bags. Mackie Mock and

the other brothers. They're doing something in big U.S. and business together. So, Jack, what's the takeaway when it comes to our buddies who are sibling duos? I just realized we forgot the Winklevite. We forgot the Winklevite. They became their own name and a term. It's not co-founders. It's bro founders. They channel the sibling rivalry into marketing energy.

Not seed invest, cis invest. And not friends and family rounds. They're just doing family rounds. 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 hair ain't food. It's egg candy.

They don't reflect the views of the. 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. Right.

Snacks is digestible. Business news for you. Robberhood Financial, LLC, member Fenra slash SIPC. For our first story, Bolaro is going public at a $2.6 billion dollar evaluation for a bowling alley. America's bowling market is 3,000 mom and pops. And ball around. Nick, I throw a 14 pound ball. What do you throw? You seem like a 10 pound guy out of me. First of all, I get distracted by the shoes. I'm wondering who was in these things. And then they're spraying the shoes with something. I don't know what it is. Nick, if your fingers get stuck in the ball, it's a kid's ball.

Hey, Jack, they all bump off the bumpers the same way. But the real story here is two big words. Casual athletics. New thing feels like a contradiction. Casual athletic. Sports when you also want to be drinking alcohol. talking top golf axe throwing bowling. They're all having a moment right now because you don't want to be sweating on a Saturday. Bowling. The only sport with an ashtray built into the equipment. Exactly. Which is why you kind of got to love Bolero, the world's biggest bowling alley company with some big news. They operate under three brands, Ballmore, Bolero, and AMF across the country. The first one goes back to, I remember this Greenwich Village in New York. They had one in the area for like apparently 80 years. 1938. It's called Bullmore Lane. Now they got 300.

121 of these bad boys across the country. They're profitable. They made 275 million last year on 900 million of revenue. And now the time has come for bowling with this casual athletics trend. They're going public with a SPAC through ISO's Acquisition Corp. We jumped in snack style to their investor presentation and we're shocked because everything and anything that touches the game of bowling, Bolero owns it. Literally.

This is what Jack and I find fascinating about Bolero, a shockingly diversified business. Bolero owns the land that the bowling alley sits on. Yeah, so they're not leasing this from a mall that the landlords. Bolero enjoys recurring revenue from local bowling leagues. They're like consistent old timers with the matching tops. Every Wednesday. See you there. Each bowling alley also has an arcade, a bar, and a kitchen.

Their profit puppy is those amusements. You spent 20 bucks on bowling, but then you spent 40 on chicken fingers, a big Diet Coke, and big buck hunter. Big buck hunter. Oh, and by the way, Bolero also owns a sauce. software they created, which you can sell to independent mom and pop alleys. And get this. This is quite a finisher. They own the PBA.

Yeah. Professional Bowling Association. That's them. They acquired it in 2019. Add it all up. Media, real estate, hospitality, food and beverage, software as a service, professional sports broadcasting and growing gambling revenues. That's Bolaro, all those business lines in one lane.

And that's how Bolero enjoys fatter profit margins than competitors like. like AMC and movie theaters or top golf and Dave and Busters in like the adult Chuckie Cheese category. Or I hate to tell you this, Jack, they're even more profitable than the Olive Garden. No. Those unlimited breadsticks are a real profit crusher. So what's the takeaway for our buddies over at Bolaro? In fragmentation, there is opportunity.

Snackers, Bolero is huge. They own eight times as many bowling alleys as the number two competitor in the U.S. Yeah, Jack, you know Lucky Strike? Times Square? Yeah, there are like 20 lucky strikes. There are 321 Bolaroos a lot more. 321 is a lot of bowling alleys. But in context, Bolro is still really tiny. It's huge, but it's tiny. There are 3,500 independent bowling alleys in this country doing their own thing. That's 10 times as many as there are Bolaro.

So the huge part of Bolero's growth strategy is acquiring from this massive amount of independent bowling out. They've been doing it for years. They approach a mom and pop who own a bowling alley. They offer mom and pop a fat check, and then they expand their empire to that bowling out. And then they sprinkle on a little of Bolero's secret profitability sauce. This is how Bolero figured out the opportunity in fragmentation. For our second story, Peloton is launching its first ever. This is wild. Get this.

Video game. Snackers, a lot of exciting new stuff. For us, consumers, is coming in the post-couch era. It's all about the PCE. Now, Jack, 2020, looking at the Peloton stock chart here, they searched 400% in one year. Since I bought the stock? Yeah. Peloton stock has pulled a hammy neck.

Full disclosure, I bought the stock than I pulled a hammy on myself. Peloton stock is down 20% from its like January, February winter peak. Pretty straightforward. Investors think, you know, Peloton's joyride is over because Jim's in the world are reopening. So, they're not happy. One analyst last week specifically challenged Peloton to, generate new momentum through savvy new products. Jack, funny timing on that kind of mean comment.

Peloton just confirmed this week. They're working on a video game built into the famous Peloton bikes. This is not going to be your classic like instructor-led Peloton class, right, Jack? You're not going to get that. Allie Love is not going to serenade you with lyrics from Lizzo. No, she's not. By the way, you feel like a 30-minute pop-oride kind of a guy. I hate to brag here, but I've been taking German language Peloton classes because I can.

They got a bunch of German instructors. New business line, educational training on the Peloton. Cycling snacks? You're welcome, Peloton business development team. But the focus here is a video game that you play while peddling on the Peloton bike. Okay. So, like, the work name for this is Lane Break. And it basically looks like Tron, but it feels like 1986.

Picture Mario Kart, but the A&B buttons don't make your gun. No. Your quads and your hams do. Right. So, like, it's like Donkey Kong started going a soul cycle and then started his own thing. Exactly. When you're starting this game, you select the music that you want to ride to, and then you pick the resistance level, and then you start pedaling for points. Yeah, you're getting points, your dodge and obstacles, and that's the goal for Peloton. They want you to be motivated by, like, getting these points. There's a banana peel in the road. You steer around the banana peel.

The goal here motivates you to get back on the bike, get up all these points without like Alex Tussain, yelling at you the whole time. They're trying to spice things up. You're getting in third's position. So they're testing it out right now with a thousand exclusive Peloton members. Nick and I weren't invited. It's weird. And the full launch comes early 2022 to anyone who has a Peloton bike. Jack, also funny thing about the timing on this because what did Netflix announce last week? Video games, they hope to launch next year. Netflix and Peloton. So Jack, what's the takeaway for our buddies over at Peloton? The post-couch era means some exciting new things. for us. Yeah, Snackers, we've moved beyond the quarantine couch. The United States is more open,

even though we're dealing with the Delta variant. It's the post-couch era. We can go outside. We can meet people in person to do things. That's fresh competition for our time. And any kind of competition, that drives innovation. Peloton knows for fitness, you could ride an actual bike or join that baseball league you haven't been to for two years. Netflix knows you could go out with friends or watch a movie in a theater instead of staying on the couch. The post-couch era has brought new competition for your attention. So pandemic winners like your Netflix's and now Peloton need to innovate to stay on top of your mind. That both are doing that with video games. For our third and final story today, Moderna, huge day at Moderna, they're entering the S&P 500. Congratulations. The success Moderna had with

their COVID vaccine, they're copying and pasting it to other diseases. If you're copying and pasting, can we call the self-sucking? I don't have a good answer for you. It feels like a good thing. It's a positive self-zucking. You can suck thyself. Snackers, we're talking about Moderna, a moonshot company. Yeah, they believed revolutionary biotechnology could save millions of lives. That was the goal. Yep, they were founded in 2010, just outside of Boston.

Every biotech. And their goal was to modify RNA. Chicago does logistics. Boston does health stuff. Hence their ticker symbol, MRNA.A. Uh-huh. First messenger RNA vaccine. That was them, and they used it for COVID.

It's worked out pretty well. Yeah. They brought in $1.7 billion in sales of their vaccine already with plenty more coming to the rest of the world and for booster shots. Pretty pretty good. But the craziest part about this company, the breakthrough wasn't the COVID vaccine. No, the breakthrough was that the COVID vaccine was an MRI vaccine. Which is really an any vaccine. A&Y. Right. The first slide of Moderna's investor presentation. I love this slide. says MRNA is a platform.

It can be used to build different drugs for different diseases. This is the iPhone of vaccines. It's a platform for anything. Any app could go on the iPhone. Any vaccine can apparently go in this. Fresh off their COVID when Moderna is now chasing other viruses that could use an MRI vaccine. Yeah, because apparently 80 viruses have been discovered since 1980, which is concerning.

According to Moderna. And only three of them have vaccines. Even more concerning. That's why Moderna. Adela is targeting all 77 of the remaining diseases with no vaccine, including 10 that it's already developed that are heading for human trials like as we speak, probably outside of Boston. According to the CEO, that includes three COVID booster shots, a flu vaccine, and even treatments for HIV.

Jack, we're talking about Moderna like it's, it's the Arias Stark of vaccines, baby. It's got a list. Yeah, it does. Hunting them down. Oh, yeah, it is. It wants to kill all 77 diseases. It does. Medina also has drugs and trials right now for heart disease and cancer too.

So the long-term goal of Moderna is an annual vaccine to protect against all common viruses. It's crazy. This is what the CEO told Bloomberg this week, one shot to rule them all. We just do a Game of Thrones and a Lord of the Rings crossover in a single story, Jack. That's why a lot of nerds listen to our pod. So, Jack, what's the takeaway for our buddies over and more to a daughter? No, Moderna. Snackers, without long-term R&D, moonshots don't happen.

Yeah, some wild numbers for you, Snackers. Jack and I just whip these up. From 2010 to 2020, Moderna had virtually no revenues. In fact, they wrapped up $2 billion of losses. Because Boston's an expensive city to do R&D. Plus, private investors, they got stuck with those losses. So they infused Moderna with $2.7 billion in cash. Venture capital and private investors, they stuck with Madero.

They kept it alive and they put moderna in a position to capitalize on Operation Warp Speed last year. That's when the U.S. government gave Moderna an additional $2.5 billion to keep on researching and keep on developing in 2020. 10 years of patience and over $5 billion of money. So get this. Moderna was worth just $6 billion before COVID based purely on potential. Then it became worth $70 billion after a huge stock price jump when the FDA emergency authorized its COVID vaccine. And today, Moderna is worth nearly $123 billion because Wall Street's realizing MRNA is a platform. Jack, can you whip up the takeaways for us over there?

Bolaro, which I keep wanting to call Bolaroo. I do too. I really do. It's a pure play bowling alley stock. The bowling industry is fragmented and that is Bolero's opportunity. Peloton is developing a video game to spice things up with its members. Basically because it has to because we're in the post couch era. MRNA is Moderna's platform. Instead of apps, they're building life-saving drugs on that platform.

Now, time for a snack fact. I believe, Jack, the third snack fact that we've received from Tiffany Schmidt, born and raised in lovely Los Angeles, now in Ann Arbor. The most popular car color in the U.S. I know this because I used to have a car that's this color. Last year, for the 10th year in a row, The award goes to white. Ironic because white is not a color.

It's technically the absence of color. Jack, how about the second and third most popular car colors? Black and gray, which is also ironic because they're also not colors. They're shades. So when it comes to actual colors, blue is number four overall. But that's the top color. Magenta is way down the list. Snackers, you'll look fantastic today.

After this pot, if you have not yet, call your mother. That's it. Yeah. That's all we got. Snackers, Nick and I'll see you tomorrow. Yeah, can't wait. And before we go, happy birthday to Roshan Chandina from Atherton, California. And happy birthday to cookie legend Lizzie B. in Foothill Ranch, California. And Jessica Cap in Palos Heights, Illinois.

Happy birthday to George Laddie in New York City. Only listens to this project. That's all he listens to. And happy birthday to Baby Blake Hummel in Nashville, Tennessee. And Alex Mickelson in Lake Mills, Wisconsin. And Finn, the Portuguese water dog. Happy birthday in Chicago. I-5-5-5-5. Congrats to the new job to Justine in Denver, Colorado.

And Tamara Abusini quit her toxic job, started a new one at Rackadin in San Francisco. That's terrific. And congrats on the new job to Nadine Kossam in Calgary, Canada. And Jack, Ryan Brown in Washington, left his job after 20 years. Ryan Brown, you got this. This is Jack. As I mentioned, Nick and I both on Stock of Pelton.

Life's about timing. The Robin Hood Snobot. Max 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.

next.