The Best One Yet - 💍 “Engagement Rings for Men” — Tiffany’s pivot. DoorDash’s $8B empty calories. I******n.

Episode Date: November 11, 2021

Tiffany’s latest pivot to younger jewelry lovers: A Supreme streetwear collab… and engagement rings for men. DoorDash just made its biggest acquisition ever — $8B for we think empty calories. And inflation just jumped by its highest rate in 31 years (but the secret to ending inflation is don’t talk about i*******n).$LVMUY $DASHGot 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, November 11th. Those stock market eyes we mentioned yesterday? I think we're jinxed up. I mean, this pod, that was still like the best one yet, though. Markets are down, but this pod is the best one yet.

It's a TBOI. Jack, what do we got for the first story? Tiffany's jewelry is making a pivot to people who can't afford a $5,000 bracelet. And it all begins with streetwear and engagement rings for men. For our second story, DoorDash is so hungry. It just splurged on its biggest acquisition yet. Jack and I are looking at this, and we think it's $8 billion of empty calories. For our third and final story, prices on everything. All the things.

We've bought in this economy rose the most in the past year than in the past 31 years. The secret to ending mega inflation is the not. We need to stop talking about inflation. And the pot. In the pot. Cut the pot. But Snackers, before we hit that wonderful mix of three stories. I love these stories.

Nick and I want to ask you to take out the phone. phone in your pocket. Take out your phone, the one you're probably listening to us on right now. We'll give you a second. There you go. Are you enjoying the internet that is beam down to your phone? Do you like that Google can tell you how to get home when you're clearly lost? How about that you can ask Siri to play Snacks Daily and Snacks Daily will start playing? Hey, Alexa, can you ask Siri to play Snacks Daily for us? Well, it turns out the United States military is responsible for so much of the tech in your smartphone. It's actually freaky Jack. How about the internet? Where did the internet?

That was created by DARPA, a military project. Jack, how about GPS? Where's the GPS coming from? The Navy did that one. What about cell service? That was the arm. How about the touch screen? Also military.

Probably the Coast Guard, maybe the Air Force. Okay, just to bring things full circle here, how about Siri? Where did Siri come from? Actually, I'm not here, but definitely Department of Defense. Yeah, Siri, thank you for your service. Snackers, if it weren't for U.S. military funded research projects, your smartphone would be a dumb brick. Yeah, without vets.

The iPhone would just be an expensive. paperways. Steve Jobs invented the iPhone. We all know that. General Eisenhower invented the ingredients. So happy Veterans Day to all the snackers and all the non-snackers for that matter who have served in the military. From Major Tony Nash to Captain West Pritchell. Or the many vets working with us here at Robin Hood. You're not just serving our country and keeping us safe. You're also leading all the companies that we love to cover too. And you're behind the breakthrough technology that we use to talk into this podcast daily. Honestly, this T-Boy would reach like one listener and maybe both of our moms if it weren't for you guys. My dog would listen to Snacks Daily.

Everyone else would be able to. Jack, let's hit our three-star stories. You're tuned in to Snacks Daily. We spoke to the lawyers and we got to get something illegal out the way. The snacks are 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.

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. Robberhood Financial, LLC, member Fenra slash SIPC. For our first story, Tiffany just partnered with Supreme, and it's already launched Men's Engagement Rings. That is Tiffany's biggest play yet in the economy.

Tiffany, classic Tiffany. They've been crafting a thousand dollar sterling silver plates for 184 years, Jack. What do you need a plate like that for? So you can put it up. Well, one year ago, Tiffany's got acquired by LVMH, the French company that is the biggest luxury conglomerate on Earth. And they said, Tiffany's come on over here. We're going to do a little nip and tuck and give you a facelift and makeover as soon as possible. The goal was to cater to people 18, not people from the 1800s.

If you go to the Tiffany's website now, the first thing you're going to see is like Beyonce and Jay-Z. They have taken over tiffany.com. They look gorgeous because they just dropped this like love product. I'm sorry, Tiffany, have you been drinking from the fountain of youth? But today, Tiffany's drops a new collaboration with streetwear icon Supreme. They're kicking things up a notch and it's all part of their new, not your mother's Tiffany's pivot, which is how they describe the pivot. That's their ad campaign.

And it refers to a necklace that's $54, not $540. Yeah, they're doing more pearls and less platinum for this. They're doing t-shirts and they're doing necklaces and bracelets, not just for women, but for guys too. But here's what Jack and I find fascinating about Tiffany's right now. They actually did something bigger earlier this year. Engagement rings for men. We're talking man engagement rings over there.

Engagement rings are Tiffany's hero product. They represent 26% of total sales. But there's a problem with that hero product. What's that problem, Jack? They're only targeting women's fingers. That's it. So in April, Tiffany's dropped the first line that they've ever done of, and these are their words, men's engagement ring.

Now, we looked at the website in the men's, men's engagement ring section. And they look like they were designed by Thor's cousin. I'm sorry. Is that a ring or is that a hammer? They're huge and they're implanted with like an infinity star. They look like they were inspired by a toolbox in some way. Now, these got a splash recently when the Jonas brothers wore them at the Met Gallagall. Well, you got more same-sex proposals. You got more women proposing a men and you got more gender fluid relationships. Tiffany's is responding in kind. In fact, other jewelers are adding gender neutral engagement rings. So Jack, What's the takeaway for our buddies over Tiffany's?

Tiffany's is targeting the he economy because men are consuming new products once thought to be for women. Snackers, last summer, we talked about the rise of the pin dude. We're talking more men going on Pinterest more often. Pinterest was historically female dominated, but last summer, the number of men on Pinterest searched. They're looking for home goods, clothes, or in my case, I know you're doing. The perfect soft part haircut, not hard part. And you have nailed it, Jack. It is not just Pinterest.

Lulu Lemon, they plan to double their men's business in just the next two years. Their priority is to get more men in more yoga clothes. And Jack, can we talk about the owner of Botox? What's going on with our buddies of Botox? Advi says that they're doing more Botox treatment for men than ever before. So male consumers are flexing their wallets into more goods and more different goods. Like engagement rings and streetwear jewelry. And that is the heat economy.

For our second story, DoorDash, they just made their biggest acquisition. ever. History of DoorDash. But we're asking, is it a superfood they acquired or is it empty calories? Also, number one, most popular, most ordered food on DoorDash last year? I know what you think. It's got to be Pat Ty. You'd think it'd be Pat Ty. You've never had a bad Pat Ty. No. It even, it gets better with delivery because it tastes better as it's getting delivered to you. Like the spices set in. But I know it's not Pat Thai. You already told me. What is it? It's chicken fingers. It's chicken fingers and French fries. I only order them at sports venues and they're always delicious. It's less eventful when it's chicken fingers, but DoorDash was more eventful yesterday because they just announced earnings.

And they're warning you that things are going to slow down at DoorDash. In the first quarter of this year, sales at DoorDash surge 222% from the year before. The next quarter, though, they only grew 70%. And this most recent quarter, they announced yesterday, they're warning you. Sales grew only 45%. Yeah, because you're having fewer couch dumplings more like going out to Benihana with a group of seven throwing fish in your face. But the stock jumped 10% despite major slowdown because they announced their biggest acquisition yet.

DoorDash just splurged a whopping $8 billion to buy the DoorDash of Finland, which is called Walt. This is a feast for DoorDash. $8 billion. Compare that to their valuation of $70 billion before the deal. It's like DoorDash didn't dabble in like some Euro expansion. No. They stuck their hands behind their back and put their face into the food. Can we get this guy a bib?

The ocean called The Running Out of Shrimp. Now, here's the thing, Stackers. Whenever Jack and I see a deal like this, we have a checklist on our whiteboard of things that, you know, make an acquisition interesting, exciting, worthy of being on the pod. For instance, innovation. Is there some new cool tech that DoorDash gets? Well, in this case, no, because Walt is the same technology as DoorDash. What about diversification? Does DoorDash expand to a new business line?

Well, no, because Walt is the exact same business as DoorDash. All right. Consolidation. Does Doordash take a bigger share of the market? No, not even the case here. Because Walt is literally just a different market. It's Finland. All right.

There's synergies. Can DoorDash save money by like, you know, having one department instead of two departments? No, not seeing any signs at all that Walt saves DoorDash money long term. All right. Well, at least this is good PR. Well, no, because you haven't heard of Walt and it's not even the biggest food delivery in Europe. Snackers, this feels like empty calories to Nick and me. Maybe we're wrong because the stock rose 10%.

It's kind of like a muffin. Looks exciting, but it's just a Muffet. So, Jack, what's the takeaway for our buddies over at Dordash? DoorDash has only one goal right now, that is growth. But buying growth is expensive. Snackers, Dordash's growth of American customers, it's slowing. So it's acquiring new European customers instead. We just told you.

DoorDash's revenues grew just 45% last quarter in the intensely competitive American delivery market. But Walt, the company Dordash just bought, grew 130 percent. because Europe's food delivery scene, it's just younger. DoorDash is clinging to an unproven idea that someday they will grow to be big enough to dictate prices, bring up fees, and make a profit. And then when it's all huge and grown enough, DoorDash would finally become a profitable business. But buying that growth caused DoorDash 10% of their valuation this week. And buying growth is expensive.

For our third and final story, it's not inflation. We got megaflation. Inflation just hit a 31 year high. Here's the dirty secret to fixing inflation. Just don't talk about it. In the meantime, though, inflation, it's kind of gone viral. Yeah, people are talking about it. People are doing the opposite of everything we just said they should do.

Because prices of everything are going up in this economy. New government data just came out that the government checked the prices on 80,000 things that you buy. And on average, those 80,000 things are 6.2% higher than the same time last year. And for some of those things, there's a clear reason why they're more expensive. Used car prices are up 26% because there's a shortage of chips, which means there's a shortage of new cars, which means people are looking for used cars more than usual. Jack, looking here, gasoline prices are up 50% because the economy is revving up, but oil production isn't revving up.

But also, anything that requires a ship, a truck, or human labor to get to you, those prices are up too. And I'm sorry, let me take out a loan to enjoy this bacon egg sandwich. Bacon prices up 20% people. Egg prices are up 11%. Salad dressing prices in case you want to throw that on the sandwich are up 8%. And hotel prices are up 25%. Because you're going to want to escape that sandwich and go to a hotel, but it's going to be more expensive than the sandwich.

So we've covered six things. There's 79,994. You're so close. You had it. Oh. And Snackers, this is bad news because inflation, it makes us all poorer. Yes. We have to buy certain things every month, no matter what. We don't have a choice. And that monthly bill of essential things is 6% higher than last year. And wages are up too, but not enough to pay for

that higher bill. Now, if the global economy balances itself out, then inflation might chill out to. Yeah. But if it doesn't, then the Federal Reserve might have to get more involved and jack up interest rates. Which would be bad. So Jack, what's the takeaway? But necessary. For our buddies over everywhere, paying more for bacon. The more we talk about. The more we talk about inflation, the more inflation happens. It's basically like fight club. And the first rule of fight club is you don't talk about inflation. Snackers, inflation can be a self-fulfilling prophecy. If we expect it to happen, it will happen. Jack, if you say inflation one more time, Brad Pitt is going to throw a bar of soap at you. Here's why. It's just like if everyone says to

show up early to the game because it's going to be packed, come on down. Then guess what? Everyone does show up early and it is packed. And it's the same thing with buying things. And inflation. If you expect that bacon prices are going to rise like crazy next month, you're going to buy bacon this month before it gets more expensive. And all that demand for bacon means higher prices for bacon. Also, if you expect prices to rise, you may demand a pay raise from your boss because things are more expensive. And then here's where things get twisted. Because to pay you more money, that boss is going to raise prices on all the stuff your company is selling, which makes it more expensive for everyone.

Around and around we go. This is called the wage price spiral. And Treasury Secretary Janet Yellen on Tuesday said, we need to avoid this. So one strange way to fight inflation snackers is to stop talking about inflation. Because then we'll expect inflation. I just said it. I just said it. Let's go to the takeaways.

Jack, can you whip up the takeaways for us over there? Tiffany's is dropping a new collaboration with Supreme today. They also launched men's engagement rings targeting the he economy. just made their biggest acquisition ever. It's the DoorDash of Finland because DoorDash is buying growth and that's expensive. Inflation just hit its highest level in 31 years. And I'm not going to say what Jack thinks I'm going to say. Showing not telling.

There we go, baby. Now, time for our snack fact of the day. This one sent in by legendary snacker, Odie Tackett. In honor of Veterans Day, I wanted to highlight a few businesses that were founded by military veterans. Walmart and Sam's Club were founded by Sam Walton, who served in the Army and his brother. brother bud who served in the navy. Nike was co-founded by Phil Knight who enlisted in the army and continued serving the army reserves. FedEx was founded by Frederick Smith who served in the Marines, and Interprey's Renacar was founded by Jack Taylor, a WW2 Navy pilot. Because of their leadership,

these businesses are household names today. Thank you to all who have served. Happy Veterans Day to all the vets and all the families. Thanks for making this a T-boy. And before we go, happy birthday to Kim Friday, the Real Friday, in Pensacola, Florida. Oysterland. And happy birthday to Ryan in Eagle River, Alaska. And David in Garden Grove, California. And Andy in Washington, D.C. And Morgan, wiki, happy birthday down in Denver. And happy birthday to Amar Korik of the University of Illinois Champagne. And Riley, congrats on getting married in Kenosha, Wisconsin. We don't know who it's due, but we're happy you are doing it. And to anyone else celebrating today, make it a tea boy. Celebrate the wins.

This is Jack, Nick on Stock of Lulu Lemon. Robin Hood Snacks, Newsletters, and podcasts, reflect the opinions of only the authors who are associated persons of Robin Hood Financial LLC and do not reflect the views of Robin Hood Markets Inc. or any of its subsidiaries or affiliates. They are meant for informational purposes only and are not a recommendation to buy or sell any security, cryptocurrency, or investment strategy in any account. This is not an offer or sale of a security, not a research report, and is not intended to serve as the basis for any investment decision. Any third-party information provided therein does not reflect the views of Robinood Markets Inc, Robinto Financial LLC, or any of their subsidiaries or affiliates. All investments involve risk,

including loss of principle and past performance, does not guarantee future results. Robin Hood Financial LLC, member Finra, SIPC. That's good. That's really good. That's really clever. Did you have that plan the whole time? Yeah.