The Best One Yet - “Elon’s 3 year hype” — Tesla’s un-Tesla Battery Day. GoodRX’s IPO prescription. General Mills’ innovation renovation.

Episode Date: September 24, 2020

Elon announced… big goals at Tesla’s Battery Day. And Tesla’s stock dropped because we didn’t see the Elon we were expecting. GoodRX shares popped 53% on IPO day because it’s the expedia.com of prescription drugs. And General Mills’ is so desperate to keep you buying cheap cereal that it’s making up business terms and mixing yogurt with candy.$TSLA $GDRX $GISGot 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. It is Thursday, September 24th. Nick, this is the best one yet. Jack, you're so right. T-B-O-Y. What do we got for our first story? Tesla finally had its hugely hyped battery day on Tuesday. Yes, it did, but that stock actually fell because Elon just wasn't being Elon. For our second story, it's the IPO of the day. Good R-X. Yeah. Has the prescription for prescription drug prices. Jack, here's how it goes. You prescribe online. Sell them. directly, hydrate, wait two to three days, and then pop 53% on the IPO. For our third and final story, General Mills is the cereal king, and they made a comeback during the pandemic.

But General Mills has got to keep you indulging, so they're making up business words and crossing yogurt with candy. Very intriguing, Nick. It's a wonderfully well-balanced mix of stories today, Jack. But before we jump into all that, can we talk emoji? Snackers, we do this about every year. We got new emoji coming in 2021. It's official. That's right. There are 217 new images that are going to be plopping down in your group chain in the next few months.

The Unicode Consortium is a secret nonprofit group based in Mountain View, California. We think their HQ boardroom is in a volcano. Nothing we're more skeptical of than a company who's based in a layer. Now, the goal of this consortium is let people of any language across the whole world communicate with a common language. And that's why the international sign language crew hates emoji. They're like, we're doing this like 100 years ago. It is for a while over here. By way, the members of that Unicode consortium,

it includes Apple, Google, Netflix, Facebook, Tinder. Also, the University of California, Emojopedia, and surprisingly, the Bangladesh Computer Council, no joke. We also noticed the government of India's involved. There's about 30 members, but the Unicode Technical Committee meets quarterly to decide what characters deserve to be enshrined

into the emoji keyboard on your phone. And once a quorum of one half of the consortium has voted yes, that their image thus become an emoji. And heretofore, thereby, the 2021 class of new emoji is all about inclusivity. Yeah, Jack and I jumped in Snacks Style. They're going to have dozens of versions of same-sex couples and a woman with a beard. There's going to be a heart between the same-sex couples. There's also a heart with a bandage on it and a head that is in some clouds, both of which sound concerning. Does a heart with a bandage on it mean my heart was broken, but I'm like healing? Or is the heart with the bandage related to the heart that already exists,

just cracked open. I don't know, but we're going to start lobbying the Bangladesh Computer Council to see if we can get T-boy enshrined in the emoji. Start answering our faxes. Let's hit 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 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. Nope. It's not a research report or investment advice. Not an offer or sale of us. security.

Right. Snacks is digestible. Business news for you. Robberhood Financial, LLC, member FINRA slash SIPC. For our first story, we got Tesla stock fell 10% after Battery Day, which had little substance just a whole bunch of words. But those words did show how Tesla could in 10 years. Maybe become the most profitable car company in the world.

Kind of Snackers, this is your classic, classic Hollywood tale of hype versus humble. On Tuesday, Tesla. announced a goal. It was just a goal. And that goal was to dramatically lower the cost of car batteries. They didn't unveil a Model 5 or a self-driving solar-powered podcast studio. Again, we've tweeted at this a bunch. It hasn't happened. We're shocked. It was all about batteries because in 2019, the average car battery for an electric car was $15,000, just the battery. And that's why those electric cars are so expensive. You got to put so many of the Duracel bunnies into the car. But Elon implied on Tuesday that in three years, Tesla will figure out how to cut the cost of a battery by 67% to just $5,000.

And that's a key change because it means that Tesla's affordable-ish car, which is $35,000, could drop down to $25,000. And then we could call it affordable with no need for an ish, no need for an asterisk. Nothing adjusted about it. So Snackers, that was the hype. That was the hype and it was all Tesla. In three years, Tesla will have games. changing battery technology. They announced that on Tuesday. But then came the humble, and the humble, didn't come from Tesla, came from our buddies over at Volkswagen. VW told us that this year, they will have an electric crossover SUV available. It's called the ID4. They're so humble,

they didn't even put any effort into the name. ID4. Jack, take me to your leader. Tesla announces something that's going to come in three years. Maybe Volkswagen announces something that's going to come in three months. Yes. Weird name, but it's your basic SUV. not a gas guzzler, all electric, $40,000. So Battery Day, which was on Tuesday, was all words from Elon, and his track record on words and honesty is kind of mixed. So Jack and I go over to our accountability board, where we tack on every single thing Elon Musk has tweeted to see if it actually happened a year later. Well, one big promise, he actually honored that he would have car factories for Tesla on three different continents. Yeah, you got a real thing today. You got one in the U.S.,

you got one in China, and you got like factory being worked on outside of Berlin. They're close to the ribbon cutting. But then other Tesla promises, we have actually covered on this podcast from the past. Yes, we have. And they are as empty as a hollow egg. Jack, can you bring me back to 2019? In April 2019, Elon said that there would be one million Tesla self-driving robotaxies on the road this year. Jack, could you fast forward then from there to April 2020? A year later. Elon doubled down on that promise despite the insanely unlikely odds it would come true. Jack, I'm looking at my window. I'm seeing a lot of scooters. I'm seeing no Tesla taxis. Elon, you got three months to get a million self-driving Tesla robo taxis on the road. And we'll put it on the whiteboard. So, Jack,

what's the takeaway for our buddies over Tesla? Tesla stock price today assumes perfection for the next 10 years. Snaggers, Tesla is already the most valuable car company in Earth worth $365 billion, translation, please? 40 lifts. That's what Tesla's worth. Yesterday, they showed how they can become the most profitable car company, not just the most valuable. Elon also predicted on Tuesday that they would make 20 million cars per year by the year 2030. Sprig a little context on this thing. Toyota, the most profitable car company on Earth, makes 10 million cars per year. Half of that. Tesla plans to make double what Toyota makes, and Toyota is, except for its stock price, the best car company in the world. And if Elon wants to get an A on our account of bill aboard, it's going to require 50% growth per year

for 10 straight years. Now, it is possible to grow 50% because Tesla did it from 2018 to 2019. They increase the number of cars produced by 50%. But each year, it's going to become harder and harder to match that 50% growth as you get bigger. Tesla is already the most valuable car company in the world. But to become the most profitable, it needs insane growth every year for a full decade. Sounds hypeish. For our second story, Good RX's stock searched. 53% on its IPO because it is the rare profitable tech company. It's the Expedia for healthcare because it allows comparison shopping for prescription drugs. But good RX is not to be confused with the RX bar. That's right. Good RX doesn't include three egg whites, eight almonds,

two dates, and nothing else. Full disclosure snacker, Jack and I have one of those maple RX bars. We have to delay the pod two hours because we can't open our mouths. I always ask, Nick, just wait until you're done chewing up before we keep time. date syrup, it really gets your jaw stuck. It really does. It really does. Now, prescription drug prices are like the most hated thing in the country behind like... I know what you're thinking. I know you're thinking. Having a typo in your password and then them asking you to refill your username and your password. But my username is my email. In this country, if you have insurance, one month's prescription caused just a $10 copet.

Oh, Jack, you don't have insurance? That'll be $781.43, which you'll have to pay over for installments. Yeah, we'll see here next month because you'll pay the same thing next month. But GoodRX is doing a price comparison app for prescription drugs at all your local pharmacies. It IPOed on Tuesday night, raising $1.14 billion from the VIP first dibs institutional investors, not including you, me, or us. Then on Wednesday, Good RX stock hit NASDAQ and your retail brokerage account. And the moment we had the opportunity to invest in Good RX, the stock was up about 40% finishing up 53% on IPO. Jack and I jumped in snacks out. We're curious how good R. X is making money. And really the main way,

referral fees. Drugs aren't usually bought on like Amazon, and you don't really check to see if Walmart's offering it for less. You know, you walk out of the doctor's office. They ask what your like favorite pharmacies. You're like, I don't know, there's probably a Dwayne Reed on every single corner. See, yeah, down to Dwayne Reed, and there's a paper bag behind the pharmacist's desk just waiting for you. Yeah, lack of comparison shopping, though, that is a huge reason why prescription drug prices are so high. You don't even know what you're paying, and you don't even think of it. about going somewhere besides where the doctor told you to go. So that's where Good RX comes in. Jack, can we talk about that thing on your thigh? Boundaries, Nick. Boundaries. Well, it turns out Snackers. Jack just

needed, you know, a casual little ointment for that thing on his thigh. So Good RX tells you it's $10 at Costco, $30 at R8, and $15 at Dutton's drugs on Main Street, just a couple miles from it. So you know what you're going to do? You're going to click and buy it at Costco because that's the cheapest. and then Costco pays Good RX a tiny little referral fee. That's how Good RX makes money. It's basically Expedia.com, but instead of hotels and flights, it's prescription ointment for that thing on your thigh.

And a whole lot of people got things on their thighs, so it's the most downloaded medical app with 4.9 million monthly active users according to its IPO filing paperwork. This podcast is not approved by HIPAA. So, Jack, what's the takeaway for our buddies over at Good RX? Healthcare is one of the last frontiers of tech disruption. Snackers, American healthcare, it is insanely expensive when you look at the numbers.

Partly because it's an industry still filling out paperwork, still asking for like your fax number. And if someone figures out how to undercut those prices, there's actually a huge opportunity there. Dr. Thatcher, just email me the information. I don't want to log into your online portal. No one does. Now, the fact that American health care is so undigitized is a key reason why it's the most expensive in the world. It's also a key reason why Apple and Google are trying to launch health-related consumer tech products. So get these number snackers back in 2018, Americans spent on average per person $11,200 on health care spending.

Other developed countries spend almost half that $6,000 per person on health care expenses. So if companies like Good RX can figure out how to save consumers 50%, they can keep part of that savings as profit and still save us consumers' money. Good RX is worth $18 billion now. Two lifts. Because the potential to undercut prices in American health care is so huge. And remember, if you do have a thing on your thigh lasting for more than four hours, you should log into your online port. For our third and final story, General Mills sales surged last quarter. But the exec's up in Minneapolis, Minnesota, they're so desperate to keep you now

that they're making up words and making up food. Snackers, just forget this earnings report for a second, by the way. General Mills also happened to announce same day that they're bringing back your childhood cereal favorites. Golden Grams with the original recipe. Jack, Tricks with the original shapes. Coco Puffs, more cocoa.

That just sounds like an improvement. I don't know what they're doing with that thing. They're also bringing back the Tricks Rabbit, the Cookie Crisp Wolf mascot. Forgotty was a wolf. Even Sonny, the Coco Puffs cuckoo bird. Sonny kind of had a problem, Jack. He was a little too cucko for the cocoa puffs. So Snackers, this is a 92-year-old company,

and it's in the best shape of its life. It's like a senior Bowflex infomercial over there. I'm 55 years old. I'm telling you, you could have the body of your dreams. I could kill the version of me that was 30. General Mills announced yesterday that sales jumped by 10% in the third quarter, and profits jumped 22%. Insane for a company this old.

And there's cereal sales, by the way. That's been falling for like a decade. Serial sales searched 10%. That's because there is unprecedented eating at home going on during the pandemic, which is good for banana growers, even better for Betty Crocker and her pantry pals. So Jack and I got curious, we dove in snack style into the earnings report and noticed some interesting stuff going on on slide number 11. The title of this slide was, increase the stickiness of demand. It's a corporate priority for the next quarter. That's because the pandemic got you eating General Mills food.

Now, General Mills wants to keep you as a customer. And to do that, they're going to introduce meaningful renovation of certain products, essentially an update of that product. then also relevant innovation of other food products, aka improving that product. So they basically have just made up business school terms here. They could have said update or improve. Instead, they said meaningful renovation and relevant innovation. Now, the cool thing, though, was that then they showed examples of what this looks like, and the contrast was wild. So if Yoplai yogurt is going to add real fruit instead of artificial fruit from the past, what's that called? That's a meaningful renovation, and that's a real thing that's happening. Another real thing that's

happening with YoPlay yogurt, is they're introducing a flavor called pink strawberry starburst? What is that called? That is a relevant innovation. It's an improvement on the product and also a real thing. Now, we noticed in the deck that this relevant innovation, in other words, improving certain products to like modern tastes, that's what they're obsessed with in the future. That's because they know no one really likes the yellow starburst and you're lukewarm on the red one, so why not take the pink one and turn that into a yogurt? One relevant innovation that caught our eye is from old El Paso, a brand owned by General Mills. Instead of just your usual El Paso Taco,

they're giving you the Meal Kit version because you can meal kitify anything these days with some beef and some salsa. I'm much more into the Taco Shell meal kit idea than the Starburst Yogurt idea, by the way. The Starburst yogurt idea feels like it could hurt somebody. So Jack, what's the takeaway for our buddies over at General Mills making up things?

General Mills is incredibly not confident that you're going to stick around with them after the pandemic. So true. know that because of one big expense in their income statement. Snackers, like General Mills, Netflix sales have surged during the pandemic. But unlike General Mills, Netflix is confident that you're going to stick around as a Netflixer for the long term. Yeah, so if you jump into Netflix's earnings, it's spending a lot less on marketing than it did last quarter or even last year. They're riding a wave and they're confident that customer wave is long and sticky

for Netflix. But General Mills is doing the exact opposite. They just jacked up their marketing spending. Johnson, I better have a plan for 18 to 55 year old suburban customers on my desk tomorrow. And that's because Johnson and the whole rest of that General Mills team are afraid, you're already planning to ditch Yoplai and cinnamon Cheerios as soon as this pandemic ends. That's probably why they're bringing the serial mascots back so that you remember them when you're walking down the aisle. Jack, and you'll whip up the takeaways for us over there. Tesla announced on Tuesday, big things are happening with batteries in three years. And Tesla showed its 10-year plan to justify today's sky-high stock price. Good R-X. Noz America spends way too much

on prescription drugs. It's open you save 50 percent. Oh, and it'll keep some of those savings for itself. For a third and final story, General Mills is thrilled you're buying their packaged food, but terrified that you'll stop post-pandemic. So it's splurging big on marketing to increase customer stickiness. Now, time for our snack fact day. Separately tweeted in by Ari Rubin, Emily Mullen, Tyler Silva and the legend Justin Cascal. This week, we talked about Rocky Aoki, the legendary Japanese American who founded the restaurant chain, Benny Hanna. Well, things got intense with his family.

He ultimately had to sue four of his kids over his estate and like a whole bunch of other stuff. He also gave birth to a famous DJ you may have heard of Steve Aoki. Epic, family, and great at throwing things. But before we go, Snackers, quick congratulations to Alec Mayo, a snacker in New York City who just got promoted. And to Apple Crichter just past the CFP in lovely Minneapolis, Minnesota. And happy getting engaged to Julian and Brooke in Hoboken, New Jersey. He already did it right by the river.

And happy birthday to Michelle from San Mateo. Thanks for getting Cliff snacking already, by the way. And happy birthday, Sydney, Sir Ron Gaharan in Miami, Florida. And to Grace Lewin in Shanghai, China. And to Mary Freaky in Idaho Falls, Idaho. And to Fola Aminu in Lagos, Nigeria. And to Nick Gwist in Muskego, Wisconsin. Every day's Nick Toverfest for Nick Gwitz.

and to Haley Snacks Williams in Brandon, Florida, and Grace Nye in New York City. And happy birthday to Zach Krantz in Elgin, Illinois. And Jennifer Fitzgibbon in Leesburg, Virginia. Snackers, you guys all look fantastic today. We'd love if you could ask your buddies H.Y.HY's D since you look so good. Just say, have you had your snacks daily? It's a totally fair question. Nick and I'll see you tomorrow.

Gail wait. If you know, you know. This is Jack, Nick owns stock and apple. 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, 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.