The Best One Yet - 🌜 “Ethereum goes Dogecoin on Bitcoin” — Ferrari’s hidden profit puppy. Ether’s $3K. Pfizer’s First & Fancy.

Episode Date: May 5, 2021

Ferrari doesn’t want to dilute its brand, so it whipped up a (literally) hidden profit puppy. Bitcoin’s dropping, Dogecoin’s surging, but Ethereum is now the most actively used crypto of them all. And Pfizer revealed a shocking ~$1B profit in the vaccine, but it’s all because of its First & Fancy strategy. $ETH $RACE $PFEGot a SnackFact? Tweet it @RobinhoodSnacks @JackKramer @NickOfNewYork Want a shoutout on the pod? Fill out this form:https://forms.gle/KhUAo31xmkSdeynD9 Got 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 your snacks daily. It is Wednesday Cinco de Mayo. Jack, what do we got? We got the best one yet. By the way, Jack, you know what I'm going to ask you? Because we just covered S.A. Lauder? No, I don't. Did you put the collagen in your latte this morning? That's not an S.A. Latter thing. I did use the eye cream, though. I know. You're like Botoxing your lattes over there. Very chugy of you. For our first story, Ethereum is the number two cryptocurrency. Behind Bitcoin, ahead of Doge. Bitcoin was the first mover, but Ether, they got the second shaker advantage. For our second story, Ferrari.

to mess with their exclusive brand. So they found a hidden growth engine underneath the chassis, literally. It's actually on the chassis. You go to school in Michigan for two years and you think you're missed a jiffy loop. For the final story. Pfizer has turned their vaccine into a profit puppy and serious brand booster. Oh, what vaccine did you get? I get the Pfizer.

Ah, he got the Pfizer. But Snackers, before you hit those three fantastic stories. Wonderful, mix. The lawyers over at Facebook, they're busy. They are. They keep the general counsel at Facebook plugged into a duracell battery. in the basement of Menlo Park. Well, Mars Brigley is a candy company.

Yeah. Their lawyers have a little more time on their hands than Facebook's do. They got their feet up on the desks. They're popping out some pez. But hey, over at Mars, they just took legal action for the first time in a while. Yes. Skittles, which is owned by Mars. Yes.

Is suing the owner of Skittles. Yes, Skittles is suing Zggittles. Now, Skittles is the rainbow colored candy that scares tooth enamel just by you looking at Skittles. The Surgeon General's not a huge fan. But Skittles is with a Z. It's a little different. It's kind of candy, Nick. It is kind of.

But actually, it's a strain of cannabis with flavors that scream, and we quote, tropical loud notes. Pineapple Express vibes going on. Exactly. One is it candy for small kids. One is it candy for big kids. Now, you ate Skiddle Snackers to taste the rainbow. But Jack, with Skittles, you felt the rainbow.

So our buddies at Skittles are suing Skittles for trademark infringement. And if Skittles loses, we know what's going to happen here. Jack, I know what you're thinking. They're just going to change the name to end. And it ends. At an end, sound like the M&Ms, also owned by Mars. 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 rain food is 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. Robahood Financial, LLC. member FINRA slash SIPC For our first story First of all, Skittles Skittles is hard to pronounce, Jack. Z is not often followed by a K. It isn't. It doesn't work for a candy.

But for our first story, Ethereum just passed $3,000 because it realized what it wants to be when it grows up. More importantly, Ethereum knocked Bitcoin below a big milestone. Okay, Snackers, little context we've got to sprinkle on here.

January 1st, Bitcoin is 70% of the total cryptocurrency market. That was January 1st. As of this weekend, not so much. Bitcoin is now under 50% of the entire value of the cryptocurrencies out there. You probably didn't see it happen, but it just kind of casually happened. Well, you saw this yesterday. Part of it is that Doge is passing Mars headed to the moon.

Jack, you know who's hosting SNL this weekend? What's that? It's a Shibuino. A Shibuino is doing. Musical gas, Elon. Musical guest is Elon. But the bigger part of why Bitcoin is now less than 50%. Yeah.

Is Earth's second biggest cryptocurrency, Ethereum, aka Ether. Now, are you impressed that Bitcoin has doubled in price this year? Actually, not anymore because Ethereum's quadrupled in 2021 in price. And just this past Monday, Ethereum rose up past $3,000 per an ether for the first time ever. Now, Bitcoin has two life goals right now. First, Bitcoin is a store of value. It's an alternative investment. Man, wants to be like gold.

It's also aspiring to be a decentralized digital currency, like the US dollar, but digital and no government involved. That's the goal. Some traders and investors hold on. to Bitcoin, hoping its value goes up. And some hold on to Bitcoin, hoping that one day you can buy skittles or skittles with this thing. Ethereum has those same two ambitions, but also a third, which they're already doing. That's right. NFTs. NFTs are what's driving this demand for Ethereum. Non-fundable tokens. All that modern art and NBA rookie cards that are getting like digitized

and monetized, ether makes it all possible. Yep. Ether is basically, it's the paint, It's the gallery and it's the payment processor that's anonymously behind all these NFTs you've been seen. Yes. To make the NFT market happen, to make them non-fundable, unique, and trackable, there has to be Ethereum. They have to be on Ethereum. We jumped in snack style. We meant it to a podcast NFT. Yeah, we did. But we didn't realize we needed to own ether prior to the transaction. It was a wild weekend. It was kind of chilly. And we made this podcast into an NFT. Nick Venmo requested me for half of the ether gas fee, which is required. to link to the blockchain and prove the NFT podcast was our NFT podcast. Because it's been two months,

and Jack, you know what's happening. We're unfunged, baby. Snackers, as NFTs have surged in popularity, the underlying tech, ether, it has two. So Jack, what's the takeaway for our buddies over on the Ethereum blockchain? Bitcoin was the first mover. Ethereum is a second shaker. Ethereum launched in 2015, six years after Bitcoin. The creator is like now a Russian-Canadian billionaire, not too shabby. And the creator had six years to look at Bitcoin and realize that Ether should be built more flexibly. That's why Ethereum is a platform to build apps on today, like the App Store is. Just think of it like the App Store. And that is what has led to NFTs and decentralized finance apps.

It's this flexibility of the Ethereum network. It's also why Ether uses less energy per transaction than, say, Bitcoin. Now, Bitcoin did pioneer the whole crypto concept. And because of that, it moved first to earn the most recognized brand. But the ability to innovate second is why Ethereum. is the world's most actively used blockchain. Let that sink in. It's the most actively used blockchain. Four seconds story, Jack, you want to jump in? You want to take this thing for a ride? Well, what are you going to do? I can drive stick. Okay. Can you drive stick? I can drive stick.

But you can drive stick? I could, well, I mean, I know what a stick is. I know what this whole situation looks like. Ferrari Snackers, it is refusing to make club Ferrari bigger. Their growth engine isn't cars. It's the engines in the cars. I mean, best ticker symbol in the entire world right now? R-A-C-E. Race. You can't afford a Ferrari, but like, you can afford the stock apparently. Now, V-12 engines, 600 horsepower, Ferraris. That is the flagship product. But Snackers, there's an unwritten rule at this Italian company to keep Club Ferrari exclusive. They walk around the office, they're like, we're still doing this, right? Okay. In 2011 Snackers, Ferrari sold 7,200 Ferraris. Okay, 7,200 in 2011. Then in 2020, they only sold 9,000 Ferraris. Okay, as context,

Toyota sells about 10 million Toyotas per year. And as further context, that is just 2.5% growth per year for Ferrari in those nine years. That's less than the growth rate of millionaires across the world. Facebook's doing like 50% growth per year. Ferrari is doing two and a half percent per year. In the same amount of time, Facebook probably could have just zucked Karari come out of their own Ferrari car. Now, there's two reasons we see why growth in Ferrari sales are so slow. The first, we saw directly when we jumped in Snacks out to their earnings report.

They set it straight up. We design and build all our cars in Marinello, Italy, or as he'd say in Italian, Fato Amano. They're known to build their cars by hand. They're not doing Henry Ford's efficient assembly line. No. They're not using Elon Musk's Tesla robots. Honestly, the Ferrari operation is basically like your neighborhood cobbler. And the second reason Ferrari sales are so slow, they want to preserve the brand exclusivity.

They do. There's like a sense of eliteness that comes with the Ferrari. I mean, Jack, how do you charge $300,000 per car? It's got to be a status symbol. Yeah, that's what the buyer has to be thinking. You want to be able to say that your Ferrari was delayed because Enzo sprained a thumb. They got to shut down the production line. You want to be able to say, I'm the only person in my zip code driving a Ferrari.

So Snackers last quarter, the number of Ferrari sold worldwide grew just 1% that was it. And that's 1% on a small number. It's only 33 more Ferraris produced than last year. And then Jack and I are looking at this situation. And yet, despite that, profits of Ferrari grew 24%, which is pretty big. Okay, cars sold up 1%. Profits up 24%. There's a missback. Can we have a hint dropped here? They didn't increase prices by 24%. Feels like a takeaway. So, Jack, what's the takeaway for our buddies over at Ferrari? To preserve their external brand, Ferrari sells their internal goods. Snackers, Ferrari's growth engine, it's literally the engine of their cars.

Ferrari has a deal to produce engines. Forget this. A competitor, Maserati through the year 2023. And guess what? Also, Ferrari, They lend other F1 racing teams their Ferrari mock speed engine technology. The engines are the profit puppy. Last quarter, sales in Ferrari's engine segment surged by 38% from the year before. Okay, similarly, Tesla, CEO Elon Musk said he's open to selling Tesla's batteries to other companies too, just like Ferrari sells its engine. Now, Ferrari's stock has quadrupled in the past five years, even though the number of Ferrari sold in the past five years is only up 16%. Because Ferrari has found ways to make money without making more of its best known. product. For our third and final story, Pfizer just confirmed in their earning something that no

other pharmaceutical company has been able to do, Jack. Their COVID vaccines become their top profit puppy. Now, Snackers, a little update for you here. 31% of Americans are now fully vaxed. Including 100% of the co-host of Snacks Daily podcast. This is Nick and I've been One Shot J&J. This is Jack. I still have a Band-Aid on my left bice. Honestly, Jack wasn't feeling that well today, but we're just so happy we're both faxed. It's fantastic. Dude, I'm at 80% Snackers, I hope you don't feel it, but I'm at 80%. Jack, you look 110%. You're glowing.

You're glowing right now. Now, the global vaccine effort, though, Snackers, it's basically been like a, it's a Captain Planet Kumbaya situation. Johnson and Johnson and AstraZeneca, they're both pulling into UNICEF. They announced they're selling their vaccine at a no-profit price

for the duration of the pandemic. On the other end of the spectrum, though, you got Pfizer. It just announced $3.5 billion of revenue in the first quarter just on sales of the vaccine. That's right. One quarter of Pfizer's, revenues, that came from just the vaccine.

900 million was the profit just on the vaccine, which is the biggest source of profit and revenue of any product for Pfizer last quarter. In just three months, they whipped up $900 million in profit over at Pfizer. Meanwhile, Johnson and Johnson, zero. All right. So the whole world is struggling with the pandemic. Pfizer's taken home some bank, and we call their strategy the first and fancy strategy. We kind of got to call it out here.

And that's what we're going to call it. First and fancy. And here's why. They were the first on the market. getting FDA emergency authorization on December 11th, 2020. Yep. And now 53% of U.S. doses so far, those are Pfizer doses. Because rich countries were chomping at the syringe back in December. They were the first in line. They were the most willing to pay for vaccines.

And that is why Pfizer mostly sold first so far to fancy places. The United States pays 1950 a dose. Israel pays $30 a dose. And the EU, we don't know how much they're paying, but they've bought $1.8 billion doses of Pfizer's vaccine. Now, we should point out that Pfizer is technically selling some doses at no profit cost to poor nations, but there's an asterisk here. They won't tell us how, Matt? No, they won't. And we're hoping they send some to India soon. But for the reasons we just stated, the Pfizer vaccine has actually become like a viral online thing in rich nations like the U.S.

This is a bizarre thing. It really shouldn't even be a thing, but there's a new thing and that thing is called Pfizer files. Smugness that you get the Pfizer Vax. There's like SpongeBob memes about this. This is a thing. Now, partly for that reason, you're seeing higher demand. man for these Pfizer shots. That's why Pfizer also yesterday announced they have nearly doubled their expectations of revenues they'll make from the vaccine this year to $26 billion for 2021. And for that reason, Pfizer stock is up 15% in just the last three months. Now, to be clear, Snackers, the CDC says all the approved vaccines are safe and effective. They are. Now, the best vaccine you can get by far is

just whatever vaccine you can get immediately. Whatever has the closest appointment. So, Jack, what is the takeaway for our buddies over Pfizer. Pfizer could be the first big pharma company to become a loved consumer brand. Yeah, Snackers, a little history, Jack and I jumped into snack style here. Pfizer was actually critical to developing penicillin back in the 1940s. But most of us don't connect Pfizer this big pharma with one of the world's most important antibiotics. Oh, by the way, Pfizer?

They also make Advil and Robitussin and Viagra. But when you think of those medicine cabinet staples, you don't think Pfizer. And then funny thing here, technically, this COVID vaccine from Pfizer is actually the Pfizer-BionTech vaccine because they developed it with a company called Buy-OnTech. But everyone just says the Pfizer vaccine. So in addition to like all these absurd nearly billion dollars of profits, Pfizer's gained a whole brand booster with this vaccine as well.

Usually Pfizer just puts their little logo in a tiny little place next to the barcode on the products that they sell. But now Jack and I have a big question for the future of Pfizer. Will they start incorporating the Pfizer name and branding now that it's got this vaccine boost into all their other products? Jack, can you whip up the takeaways for us over there? Ethereum has quadrupled and priced in 2021. Thanks to its second shaker status, it's able to be the backbone of the NFT.

Ferrari has an unwritten role not to make too many Ferraris. They do. It's a thing. Now, they grew last quarter by selling more engines, not more Ferraris. Big difference. Pfizer is a corporation, not really a consumer brand. But we're thinking that could change after its first and fancy strategy. Now, time for the snack fact of the day. This one's sent in by Ladin,

which is the Latino and Hispanic employee group over Robin Hood. Okay, today is Cinco de Mayo. Get this. Only one out of every 10 Americans actually know why Cinco de Mayo is celebrated. And then here's the wild thing. Seven out of 10 Americans, they still plan to celebrate it. Yeah, so we're going to spend a minute and figure this out here. Now, most Americans wrongly think that Cinco de Mayo is a celebration of Mexican Independence Day.

Right. You're going to have to fast forward a few months. That's September 16th when Hidalgo started an 11-year struggle for Mexican independence from Spain. Cinco de Mayo is actually commemorating a day of a Mexican military victory over France. You got head over to Puebla in 1862. 4,000 Mexicans defeated 8,000 well-armed French soldiers just outside of Mexico City. A major early moment for the young Mexican nation actually led to a military alliance with the U.S. at the time, too. Okay. Cinco de Mayo, tacos are best without cheese.

Yes. And Margaret is our best with extra salt. Everyone knows that. Snackers, now that you know, feel free to celebrate. And by the way, if you're running to someone today, you should ask them, HY, HYSD. Have you had your snacks daily? Happy Cinco tomorrow. We'll see you tomorrow.

If you know, you know. And before we go, congrats and thanks to Daniel Kahn, a snacker in New York City, who had some helpful Ethereum info for today. Happy birthday to Kim in Akken, Germany. And happy birthday to Sky Brink celebrating with the pancakes on the island of Nantuckucket. And happy birthday, Andrew J. Ling, in Nairobi, Kenya. And A leash in Lagos, Nigeria. And Ethan Travers in Garden Valley. And Abbey in New York City.

in Seattle, Washington, and Alan Martino in San Jose, and Azaria Cunningham in Patterson, New Jersey. And happy birthday, Sarah Gross down in Nashville. Congrats to Maggie Ruth Fent, who's graduating in Florida. And Elise Good You and Nick Campbell just got engaged in lovely Ann Arbor. Big ups to Jeanette Williams, who's snacking on the Sunshine Coast in Kuroi, Queensland, Australia. You know what you're doing, Jeanette. And to anyone else celebrating anything today, make it a tea boy. Celebrate the wins.

This is Jack. Nick owns Ethereum. Its name is Ethel. We did it for the NFD. 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. Thank you.