The Best One Yet - “E.T., 5G, phone hoooome” — Apple’s iPhone 12. NordicTrack’s future ab-cquisition. Delta’s Mighty Ducks drama.

Episode Date: October 14, 2020

Apple’s surprise product event may result in the biggest iPhone sales season ever thanks to 5G. We noticed that NordicTrack’s owner, Nautilus, and Hyperice just raised big money in a Peloton world — but we’re wondering what Big Tech company will acquire them. And a single line from Delta’s earnings report was enough to drop the stocks of entire industries.$AAPL $DAL $NLSGot 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 Wednesday, October 4th. For the second day in a row, a pharmaceutical company paused their COVID vaccine trials. Unsettling updates over here, scared investors, S&P 500 fell, but Jack, what did we decide to do? Snacks don't care. This is the best one yet. This is the best one yet. First story, Jack, what do we got over here? There's a new iPhone in town and it's called 12.

It speaks one language. 5G. 5G. Phone home. On the 5G. For our second story, Hyper Ice, Nordic Track, Nautilus. All three are trying to become the next Peloton stock. Jack, strap on your 5-pound glass slipper ankle weights because investors are looking for the Cinderella of fitness.

For our third and final story, we'll try to keep announcements to a minimum. This is your Delta CEO speaking. We're about to announce bad earnings. It may cause turbulence. It's covering a whole bunch of other industries. You're going to want to return you as soon as possible. But before we jump into all that wonderful stuff, Snackers, the literally biggest winner of the corona economy has arrived.

T-Rex. That's right. T-Rex, Tyrannosaurus Rex. The most expensive dinosaur bone ever, Jack and I just noticed it was auctioned off yesterday. This dinosaur skeleton is called Stan, and it's the most complete Tyrannosaurus Rex skeleton ever excavated. Take that, Braddy Kid.

who thinks it's a six-foot turkey. You know what we're talking about. It's actually a 67 million-year-old financial asset collector's item that just sold for $32 million, Braddy Kid from Jurassic Park. So Jack and I had to jump in snack style. Checked out the S-1. We got 188 bones, full skull, and get this, teeth are 11 inches long. Stan's skeleton has been chilling in a museum in South Dakota for years, but apparently that museum needed some cash, so they put Stan up for sale. It was found in 1987 in South Dakota by an amateur paleontal. took, get this, 30,000 hours to get Stan out of the ground. I think we can say the greatest find ever by an amateur paleontologist.

Yes, we can, Jack. That's a good takeaway. But in the meantime, we're thinking we wish there was a fractional share situation going on here. We'd love to get in on this thing like one bone in a time. Sotheby's estimated that all 188 bones that create Stan, they thought it was worth $8 million total. Hey, Sotheby's, do more because Stan ended up selling for four times. that since T-Rex bones are insanely rare. Only 50 T-Rex fossils have ever been discovered on planet Earth, and we're pretty sure they haven't been found on any other plans.

Jack, I'm looking at the details here. I think half of them are hoarded in Jeff Goldblum's Upper West Side Panic Apartment. Tyrannus, Rexius, $32 million. Winner of the Corona economy, let's hit our three stories. You're tuned in the snacks daily. We spoke to the lawyers and we got to get something illegal out the way. The snacks are about to hear rain food. candy. They don't reflect the views of the

Robin Hood family. It's all informational just so, you know, we're not recommending any securities. 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 FINRA slash SIPC. For our first story, Apple,

just upgraded the mothership of Club Apple. We're talking four different iPhone 12s, all with 5G connectivity. Full transparency snackers. Jack and I thought we like knew this story before the event because a reliable leaker dropped the details to the verge. So like six hours before the event started, we're like, okay, we got it. iPhone mini, iPhone 12, iPhone 12, Pro, iPhone 12, Pro Max.

This was all about the iPhone. The marketing team over at Apple is running out of suffixes. But then we actually saw the event. We were watching it live and apparently Apple has spent 10,000 hours mastering socially distant product events. Jack, the perfection in choreography at Steve Jobs Theater felt like Swan Lake. It was fantastic. The soundtrack was like Lion King on Broadway in person. Hompada, matada, matada. There was also an all-star studded cast.

Yes. It wasn't just Tim Cook, the CEO of Apple and his disciples that were presenting. They got an executive from Epic Games to come on saying that this was the first iPhone that can handle League of Legends. Then their buddies over at Corning Glass unveiled their nanosaramic crystals, which is a screen on the new iPhone with four times better drop performance. Yeah, the early takeaway here, you can throw the phone or use it as a weapon, and it will work, it will survive. I want to see a Rob Grankeowski spike-proof gorilla glass iPhone.

That's actually what they did. It's the last stage in the process. That's how they test these things. And then Hans comes on to the stage. He's the German CEO of Verizon. One name, like Cher. Because they wanted to clarify how good. this 5G connectivity will be on all of the iPhone 12.

It's not just that it's a 5G phone because this phone needs a 5G network. And that's what Verizon was bragging about. And that's the network that's going to connect your phone to your fridge to your car to self-drive and pick up a smoothie ingredient. But the star of this event was the hardware. The iPhone 12. Every one of them has 5G and insane camera, five colors, and they all have 5G. Not too shabby.

In the meantime, the other shocker here, Apple is going to have wireless charge. enabled on every one of these new iPhones. They've all got a little magnetic pad in the back of your iPhone 12. You like stick it close to the charger and it just like moves over there because the magnet. Because we've all lost one closet in our home these days to a bunch of white cords. The lowest price iPhone 12 is the Mini. The iPhone 12 Mini is $699. And the highest price iPhone 12 Pro Max is going to be $1,099. Now, Nick, if you include the lowest end iPhone, which is currently the SE, that's $399, ranging all the way up to $1099,

there's an iPhone for every price range. But once you were done being dazzled by the hardware, the folks over at Apple decided to focus on privacy, privacy, privacy, privacy. Privacy, privacy. Tim Cook loves showing off his southern accent. Jack, you say privacy three times fast, and someone at a genius bar gets an Apple T-shirt. Oh, yeah, Nick.

Also, the box is smaller. So why don't you tell us what's in the box? Yep. Well, there's no longer a dongle, and there are no longer going to include headphones that look like they're 12 years old. Those wireless headphones, honestly, who needs another pair of Apple wireless headphones? But the result here, interestingly, is that with the smaller box, you get a huge environmental benefit. Jack, the calculations? Are buddies at Apple calculated that removing the dongle and the headphones from the box

is the carbon equivalent of removing 450,000 cars that burn gasoline from planet Earth's roads? Honestly, Apple's got like one guy in Cooper Tino whose one job is to make random facts interesting and relatable. And instead of hiring that guy, we just equate things to lift. Yeah, it's pretty simple over at snacks. So, Jack, what's the takeaway for our buddies over at Apple? This could be the biggest iPhone upgrade cycle ever. Snackers, there was once a time when the iPhone was 70% of Apple's revenues. That was a few years ago, but last quarter, the most recent quarter, iPhone was just 44.

percent of Apple's total revenue. Now, honestly, Jack and I are looking at this. There is good to that and there is bad to that. The good is that it shows Apple's like making other things, not just the iPhone. They're not totally reliant on that one profit property. The bad is that people don't feel the need to upgrade their iPhone nearly as frequently. Back in the day, like we're talking like six, seven, and eight, iPhones got upgraded by iPhone users like every two years.

But now the average is closer to three years before an iPhone user thinks they have to upgrade. Or when FOMO sets in, which is. ever comes first. Meanwhile, Jack is working with like an iPod 4 over there. I'm actually about to upgrade from the 8 to the 12, which is 50% in terms of number models, you know, like from the 8 to 12. I think that is one lift, Jack. But when you get to know iPhone buyers, you recognize that they upgrade their old phones and waves rarely at the same time. But with 5G available for the first time, this is a new breed of iPhone that everybody's going to want now. That means this holiday season could

be iPhone Palooza like we've never seen before. We hope Santa and his elves have the right charging don't want to mess that up. For our second story, Delta just reminded us how absurdly abnormal our economy still is. And we're noticing reopening stocks fly together. All for one, one for fall, quack, quack, quack, Mr. Duxworth. Now, we are in the fourth quarter. It's October, which is the fourth quarter of the calendar year. Yeah, so the companies are looking at this and they're saying, hey, we're going to update everyone on our third quarter, ipso facto, this This is third quarter earning season. Just kicked off this week.

Apparently, Delta has platinum medallion boarding status for earnings season. You're going to have to wait through the side. Tech companies, please let the veterans' families and Delta board. Now, Delta announced yesterday what was not surprising at all. Another huge loss for the airline from July through September. Now, there was good and there was bad to this earnings, but the bad was terrible. Yeah, it went from profitability of $1.5 billion last year to losing $11 billion. over the last two quarters combined.

With the beat. Now, the good wasn't that great. It was just like marginally better. Marginally better from what the previous quarter was, which was really, really bad. Last quarter, Delta was burning through $27 million of cash a day. Now, they're just burning through $18 million of cash a day. And when we say cash burned, what we mean is CEO Ed Bastron checks out his bank account of like Delta Airlines. Let me just see here.

Let me just check this out. And then he checks it out the next day. It's $18 million less than the day, for it. They're losing that much cash per day. Ed's not happy. Says, hey, Jerry, can you get in here? What's the reason again? It's pretty clear. Air travel is still just 36% on Monday, what it was last year on Monday, according to TSA data. Same issue every Monday. But Snackers, the numbers revealed some, but this one particular line that CEO Ed Bastion said said everything we needed to hear. He didn't sugarcoat this. He said it could take two years or more for air travel.

industry to return to normal. Jack, remember the like sunflower butter snacks they would give you on JFK to SFO flights? Big fan. Not coming back anytime soon. I know. So somehow, Delta through this crisis has avoided laying people off, partly because 18,000 workers have recently voluntarily retired instead. So the way they pulled this off is that companies will offer cash payouts in order to avoid having to lay people off. Yeah. This way, people who are close to retiring anyway, say like Bob, who's 65, he can be nudged to retirement with a little bit of a cash bonus from Delta. And Julie, who does need to keep her job and probably has been performing pretty well, she can stay in the job.

It's a pretty nice outcome for Delta. The other airlines, though, they haven't announced earnings yet. We're expecting them to be even worse than what Delta just announced. Yeah, United and American, they entered the crisis a lot less profitable than Delta was, so not in an easy situation right now. And they both announced in the past few weeks, tens of thousands of people getting late. it off. So Jack, what's the takeaway for our buddies over at Delta, actually everywhere? Reopening stocks fly together. Snackers, we saw the tough Delta news. We checked the Delta stock price. It was down 2%.

That makes sense. It was a terrible earnings report. What about the other airline stock prices? So, Jack and I jumped in Snacks style, you got United Airlines. You got Southwest Airlines. You got American Airlines all down 1% to like 4% yesterday. That also makes sense because the pain Delta felt last quarter. It's probably an industry-wide thing, so their earnings are going to be bad, too. But then Jack and I got curious er, and we checked out the cruise lines, the hotels, the movie theaters. They were all down even worse on Tuesday. Marriott Hotels fell by 2% yesterday. Carnival Cruises dropped 7% yesterday. AMC, the movie theater Jane, dropped 13% yesterday. Investors aren't discriminating between any of these reopening stocks, no matter what the industry is. Companies that require a full

economic reopening with no COVID to be concerned about, their stocks are moving together. For our third and final story, three fitness companies just made big moves. They're all trying to be the fitness diamond in the workout from home rough. Now, Snackers, let's travel back a year ago. Jack and I were down over at NASDAQ, across from like the Olive Garden Times Square. We were interviewing Pelotons co-founder after we just had some great Greenwich Village pizza at Emily. We were stuffed full of breadsticks. All you from the Olive Garden, and we noticed that Peloton was worth $7 billion on IPO day, but that same day, the stock dropped on day one. Since then, Peloton stock has quintupled. It's now worth $40 billion,

translation Jack. Started from the bottom now I'm here, five lifts higher than my first day of trade. Not too shabby, but in the last week, Snackers, Jack and I noticed three other at-home fitness alternatives have made some subtle but powerful moves. Hyperrise is one of a it just did a $700 million valuation powered by professional athlete endorsement. Yeah, basically their core product here is HyperVolt, this aggressive massager, which of course comes with an app. It's one of those things that like if you put it on your thigh, you're going to watch the flesh rippling out as it vibrates your leg.

There's definitely a guy at the back of your gym who's grunting like using this thing. Tenderizing muscles is what Hyperize is all about. They've also tenderized $200 million worth of quads in the past year, which is expected to double this year. I'm not a unicorn, almost worth a billion dollars, thanks to Russell Westbrook from the NBA, Patrick Mahomes from the NFL, and Naomi Osaka from the tennis world. And then the NFL and the NBA also invested in Hyper Ice when they heard it was like, you know, pitched as a health tech startup. Oh, by the way, those three athletes, they're all like official endorses of this product on their website.

You get hurt. You get back faster when you're using Hyper Ice. The second Peloton alternative we're looking at is Nordic track still kicking, full disclosure, My mom had one, and I'd try it out when I was like, hey, my mom, too, you'd be like, I want dinner. She'd be like, this thing was supposed to emulate cross-country skiing in your living room, and it's still owned today by a company called ICOM, which just raised $200 billion to hit is $7 billion valuation. The OG Peloton, known as ICON, is profitable and did a billion dollars in revenue last year. They're not just doing that cross-country Nordic track thing.

They do all sorts of at-home equipment, and they're planning to IPO next year. Unlike Peloton, they're actually accessible at $799 a bike, which is about half the Peloton price. Icon also has their own streaming subscription for at-home fitness classes under the brand I Fit. Lowercase I, very shocking that the lawyers over at Apple didn't grab that. The third Peloton alternative we're talking about is Nautilus. It's the only one that already has a publicly traded stock. And it turns out when Jack and I checked out the stock, it is up a whopping 1,600% in the last year. It coined circa 2017.

You probably know Nautilus from its mention in the Oscar-winning movie Goodwill Hunting. What, you lift? Yeah. No, Nautilus? No, free weights. A bench 350. Jack, it's not your fault. Nautilus is worth less than a billion dollars, but its equipment is a quarter-the-price of a Peloton bike.

No screen on this thing. You're just getting the bike, but you can get some duct tape on an iPad and you're basically in the same zone. Of all the three Peloton-type companies here, this is the least technical. the most basic, the lowest price, and it's also seen the biggest stock gain. Fascinating. So Jack, what's the takeaway for our buddies who are trying to catch up to Pelton over in fitness? The line between fitness and health has blurred. Snackers Fitbit got acquired by Google just this year for $2 billion. But Fitbit is trying to expand to health insurance companies as its big customers. Meanwhile, Apple is launching its own fitness program so you stream the yoga from your Apple TV.

But Apple Fitness Plus connects to the Apple Watch and tracks your heart weight. very techy, very healthy. Fitness tech is health tech, and big tech is craving health tech right now. Tech, tech, tech, tech, tech, tech, tack, mattress, mattress, mattress, mattress, mattress, mattress, mattress, now big tech companies like Apple and Google, they probably would love to own Peloton, but it's become too expensive at $40 billion. In the meantime, hyper-ice, nautilus, icon, they're all following in Peloton's footsteps, but at a fraction of the price. If private venture capitalists are investing in those three companies right now, then big tech, we think, could be eyeing them for acquisition too. Jack, can you whip up the takeaways for us after you beat Timmy at fantasy football this week?

Yes, full disclosure, Snackers, I beat our buddy Timmy in fantasy by 0.48 points. He's going to have to buy you a candidate goose jacket. It all came down to a down and out by Hunter Henry. First takeaway, Jack? Apple just upgraded the mothership of Club Apple. Snackers, the 5G iPhone 12 could spur more upgrades than ever. For our second story, Delta just announced an awful quarter. And since reopening stocks fly together, hotels, cruise lines, movie theaters, their stocks fell too.

For our third and final story, it's not just Peloton, taking advantage of the at-home fitness boom. Nautilus, icon, hyper-ice, they're all getting swole as fitness and health merge. Now, time for our snack fact of the day. This one tweeted in by Claire because her sister Haley tweeted one in from Dallas, Texas the other day, and sisters who snack together are the coolest kind of sisters. Is Claire from Dallas, Texas, too? we're going to round up and say yes. Now, Claire's snack fact is focused on the complexity of the game of chess.

Now, it turns out after both players have made their first move, 400 different board setups exist for what like the next two moves could look like. Not too complex. Each player can move 20 different things, 20 times 2400. But after the second move, 200,000 board setups potentially exist. And after both players have made three moves, there are 121 million. different board layouts that could be there on your board. So if you just played a game of chess, first of all, stand up, stretch out, go to the bathroom.

Second, that board setup you have at the end of the game was probably never played exactly like that before. It's like a fingerprint or a snowflake. Yes. No two are exactly alike. Kind of like sisters, Claire and Haley. Snackers, before you go, we all want to grow snacks. So ask your friends, H-Y-H-Y-S-D.

Have you had your snacks daily? Nick and I'll see you tomorrow. And before we go, Ali Brejack and Jesse Gray, they met in New York City three years ago. Congrats, they're now married. Congrats also to Darius Reg, who managed to keep his sloppy-toppy food truck open during COVID-19. And congrats to Javier Creada, who finished med school down in Guatemala. Happy Anniversary to Nick and Susie Sorensky in Cleveland, Ohio. And congrats Happy and Nivelli, happy anniversary down in Houston.

And happy anniversary to Josh and Monica, also in Houston. Also an anniversary. Happy birthday to Heyman Chung over in Seoul, South Korea. birthday to Haley Bartolome in St. John, Indiana. And Tommy Ruggles in Weston, Massachusetts. And Andrew Mecca in Des Moines, Iowa, and Ottawa, and Otto Ramirez in Louisville, Kentucky. Ahma and Ali. And Sam Grozwell in Atlanta, Georgia. And Sarah Weber in Ann Arbor, Michigan, go blue. And Francisco Flores in Southgate, California. And Jake Fisher in Lynchburg, Virginia. And Zach Rich, who didn't want to get too specific from the Bay Area of California.

We'll see you tomorrow. This is Nick, and I own shares of Apple and a Bitcoin, a single Bitcoin named Ben. This is Jack. I'm expecting a Peloton bike on December 3rd. 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.