The Best One Yet - 🇺🇦 “Everything war touches” — Ukraine’s market waves. Netflix’s choose-your-adventure. Allbirds’ new flock.

Episode Date: February 25, 2022

When there’s war in a global economy, all markets are affected - so we’re looking at what goes up, what goes down, and the new Safe Haven. If you get to the end of Netflix, there’s something new waiting for you: Interactive Trivia. And Allbirds shoe stock jumped 5% because their flock just found a new tree.$BIRD $NFLX $BTCGot 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 Friday, the real Friday, February 25th. Today's pod is the best one. It is a T-B-O-Y. Jack, what's our first story today? Russia has now unleashed a full-on attack against Ukraine by air, land, and sea. Snackers, it is a war in Europe, so we're looking at how it affects every part of your portfolio. For our second story, if you've reached the end of Netflix, which is humanly possible? There's actually something new to watch now. Yeah, interactive trivia. Netflix says it's a part of their DNA. Our third and final story is Allbirds.

The only pure play, pure wool shoe stock. Their biggest test at Allbirds, it isn't sweaty socks. It's the comparison shopper. But Snackers, before we hit that wonderful mix. A fantastic mix before a weekend. For two days in a row on this pod, we've said that Putin is trying to rewrite history in real time. Yeah, we'll put that in more blunt terms.

Putin has been lying. Every day, he's been lying. And he counts on his state-controlled press, to spread those lies. So Jack and I were chatting before we jumped on the pod today. And we were thinking, we just want to share with you what's on our minds right now. Take a moment to focus on the facts about the attacks on Ukraine. Super early Thursday morning, Vladimir Putin all but declared war on Ukraine.

Putin says without evidence that Russia faces a permanent threat from Ukraine, that is not true. The truth is clearly the opposite. And the United States predicted this unprovoked attack by Russia against Ukraine. Over the last few weeks, we knew Putin would create false narratives to justify war. Our intelligence agencies, they nailed it. They perfectly predicted everything that would happen, and they told us about it weeks ago. Putin also claims that Ukraine is a country led by neo-Nazis bent on developing nuclear weapons.

This is also not true. The truth is that Ukraine's president is actually Jewish. Yeah. He even just said, how can the people who live? lost 8 million lives to defeat Nazis support Nazism. And then Putin finished his speech on Thursday morning with an ominous threat. Yeah, this was a dark video. Anyone who interferes will, according to Putin, face consequences that you have never experienced

in your history. Because of Putin's aggression and his hunger for more power, people are already done. Now, Snackers, yeah. We are worried about the price of gas and groceries too. And it's scary right now to look at your 401K too. But let's take a moment to think about the people in Ukraine. Let's take a moment for a fellow democracy that's under attack. Now, let's hit our three stories.

Thanks 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. 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 Fenbara slash SIPC. For our first story, the war in Ukraine, it doesn't just affect stocks. It affects literally all markets right now. Here are all the ways the war in Ukraine messes with your money.

Okay, so Snackers, you got missiles, you got tanks, you got soldiers, and you got cyber attacks. Russia is waging a full-on war against Ukraine right now. Now, first focus here is on the human hardship, on the innocent Ukrainians and the Russians, too. Second, the world is so economically connected. Totally connected. All markets are being pushed up or down because of this. So, Jack, how about we start wide on this one? And let's look at the broader stock market.

The S&P 500. Yes. The 500 biggest U.S. corporations with publicly traded stocks. Yeah, the S&P 500 is now down 11% from its all-time high. Understandable why. A new world order is forming with nuclear superpowers eyeing each other, arming up. Yeah, you don't need like PolySai 101.

that is Titanic uncertainty. So many investors are selling out of stocks right now and they're hanging out in cash instead. We're not at a bare market yet. That would be if stocks fall 20% from their all-time high. Good point. But the dip we had at the start of this year, it's accelerated because of Ukraine. Now, Jack, how about we sprinkle on a little context here? 11% down is bad.

Yeah. But in Russia, stocks have plummeted over 50% because of impending sanctions. Now, historically, geopolitical conflicts like this, they have a short-term effect on stocks. So things could bounce back if history is our guy. Now, that's the broader market, but there are some specific stock sectors that can actually gain from war. The obvious one is the defense stocks, the guys who make the guns and the missiles. Yeah, for example, you got Lockheed Martin, you got Northrop Grumman, B-A-E systems.

They're making the missiles. They're making the weapons. Jack, how did their stocks do yesterday? They were up 3, 4, and 5%. And energy stocks, they're up too, because oil just passed 100 bucks a barrel for the first time since 2014. Exxon Mobil and Chevron love that. Their stocks are up 12 and 18% this year.

$6 gasoline. Oil companies like that. On the other hand, you got some Western businesses with stocks over here that are actually part Russian. Right. This part's less obvious because you may not know the makeup of these companies, but a lot of financial institutions, they're kind of part Russian. Barclays, the British bank, their stock fell 7% yesterday.

Yeah, JP Morgan, the biggest American bank. It is down 5% this week because banks do business across borders. And banks, American, British, European, they tend to do business in Russia and sanctions are going to hurt that business. They follow the money. And there's some money in Russia. Finally, Stalantis. Yes. The Greek named, just a terrible name.

They make Jeeps. They make Jeeps. They make Jeeps. And Chrysler and Fiatts. They have a plant in Russia. They do. And their stock is down 6% because they have a plant in Russia. Okay.

So that's the broader stock market and specific stocks. But what about interest rates? The Fed was planning to raise interest rates as the economy. reopens from COVID and to fight inflation. But here's the big question now. Will the nation's central bank raise interest rates if the economy is now affected by war? Experts think probably just at a more slow pace. Exactly.

So Jack, what's the takeaway for all of our buddies who are investors? What is a safe haven these days? You know what? It's what people know. Snacker, safe havens, those are the comfortable places where investors put money when the world is feeling uncomfortable. Unsafe moments like right now. are when it's clear what the safe haven assets are.

Okay, so besides government bonds, Jack, the classic save haven, it's gold. Gold prices are up 5% in the past month. They're out of one year high. Bitcoin, on the other hand, the digital gold is actually down 30% the past three months. Some thought that Bitcoin would become the digital equivalent of gold. Exactly. The place where investors move their money when the stock market and rest of the economy is uncertain.

Yeah, because when governments fight each other, you may want to go to the currency that's not controlled by any government. Now, Bitcoin did jump out of nowhere yesterday afternoon by 10% like Bitcoin sometimes does, but it hasn't been acting like a safe haven recently. No, Bitcoin's price has been more correlated actually to tech stocks than it has to the classic safe haven of gold. In times of uncertainty, investors and all people, they crave comfort. Cash and gold, they've been the places of comfort, not crypto. For our second story, Netflix, they have a new thing and it is.

It isn't a movie. It isn't a show. It isn't a shmovie. It isn't even a video game. It is interactive. Just when you ran out of schmovies to watch. Exactly. Netflix is pioneering a new thing to watch. Oh my God. The existential question of our time, Jack. What lies at the end of Netflix? Jack, I think it's at the end of Netflix, what lies? Actually, this just happens. Is CEO Reid Hastings going to pop up? Be like, hey there, get a popcorn trophy?

Congratulations. You watched everything on Netflix. You should actually get out there. Did you end up finding a new show, by the way, or no? Yes, Mrs. Maisel Season 4. Okay, there you go. Perfect timing. It always comes right at the right time. And peeky blinders.

All right, there you go. The guy from Christopher Nolan's movies, you know? He's always kind of scary, but he's kind of cool. Snackers, you already know Netflix is going into gaming. They got 14 mobile games ready for your phone. I tried the stranger things. Yeah. It's kind of fun.

Okay, cool. But there is a new thing from Netflix and it's different. Interactive TV shows. Netflix has been quietly dropping these interactive. of TV shows every three months. The latest one is called Cat Burglar. It's a 15-minute show, but you're involved as the viewer. It's got like a Looney Tunes vibe, like aesthetically kind of daffy-done.

It's a cartoon. Yeah, Bugs Bunny-ish. You got like a pinky in the brain feeling. And the protagonist of the show is Rowdy Cat. Routy Cat. And you've got to help Rowdy Cat outsmart a security guard who goes by... Peanut. Peanut, the security pup.

But here's the catch. You have three lives to steal the painting in the show. cat burglar and you got to answer questions as you go. So like after the cat like wipes away her paw prints so the cops can't catch her. And like an Acme Anvil Falls. You have to tell her whether to like break open the lock next. Exactly. Or like disable the security care.

And you control this with your remote. Now Snackers, here's what Jack and I find fascinating about the power of interactive content. It's repeatable. Totally. It is the opposite of like every other type of content out there. The typical Netflix show, except the best ones. Right. You only watch them once.

Exactly. Like season one of the crown was fantastic, but you're not jumping back in to see like Elizabeth's childhood drama two years later. Speak for yourself. It is good. But interactive shows, they have multiple storylines. They're kind of create your own adventure. Totally. They're only like 15 minutes of this new show Cat Burgler, but there are dozens of outcomes. There are permutations. Yes. That'll get your stats professor excited. Totally. It's not exactly like a Spielberg quality movie, but it's like a Rubik's cube of content. And since there's so many outcomes, you can watch Cat Burglar eight different Saturdays in a row and get eight different viewing experiences. You can watch it three times in one night and you're not going to be disappointed.

So Cat Burglar sounds cool like I'm looking forward to watching. What I'm more excited about is the interactive trivia shows coming to Netflix. That's what Jack and I got curious about because the Netflix executive told the verge that that's what's coming next. What we want to see is Netflix interactive jeopardy. Yeah. It's like three contestants and then that's like you, Jack. It's just, you're right there. The viewer can be the fourth contestant on Jeopardy.

Boom, I beat Ken Jennings last night on Netflix Jeopardy. How'd you do, Karen from accounting? Did you beat Ken Jennings? What is Marcus Aurelius for $500? This could be the next world. It could. Everyone in the office is like, how'd you do on Jeopardy last night? Did you beat Ken Jennings?

No, I did. So, Jack, what's the takeaway for our buddies over Netflix? Check the corporate DNA test. Snackers, here's the quote. can't do this on any other streamer. That's what a Netflix executive said. You can only do this interactive show on Netflix because, as the executive said, we are a tech company.

Tech is in our DNA. HBO Max, Disney, Hulu, Paramount, Little Peacock, Quibi, RIPB. They haven't done interactive stuff like this. Because those companies are media companies. If you look at their DNA, it's going to say media first. World Wrestling Entertainment, for example, they also are a media company. They did launch their own streamer, but they've found. folded it because of tech issues.

Building a streaming platform is hard enough for a media company. Building an interactive streaming platform, like, that's not happening. But Netflix, they're based in Silicon Valley. They built an interactive show a year ago. They've been experimenting, tweaking already on Face 2. So Snackers, check the corporate DNA. Netflix is a tech company first, and that's rare in streaming. For our third and final story, Allberts, their stock shone 5% after their earnings,

Because they're pulling a pivot. Now, Allbirds is spreading their wings. Yeah. Possibly right into Amazon's nest. Honestly, Jack, like, never thought I'd see the day. You want to know how Auburn says what it is that they do? Make footwear. No.

Make better footwear and apparel products in a better way. Better. Better. Now, that is how all birds open their earnings report. And they do it with shoes that are made out of sheep wool and plants. And colors that are, see, foam, oatmeal, earthy tone colors that you want to just eat it up. Like a millennial skittles, like the only shoe you're going to eat.

By the way, a great potting shoe. Like, I have these on. This is great for like, because we're like dancing around. You know, we're pretty active on the pot. You know, I'm wearing Birkenstocks. There's no question what I'm standing on me. We do need support though. Jack, I had to apologize to our neighbor.

We hit a takeaway very hard. But when it comes to Nick and me, there seems to be three ways that customers learn about all bird shoes. First, a product manager at your company wears them to work. Naturally. Second, you saw an Instagram or Facebook ad for Allbirds Shoes. Or third, Auburts opens a new store near you. All right, PMs still love wearing Auburts. You're still swipe at Instagram. So we're going to focus on number three, the physical store. The stores, because Snackers, Alberts, they are an OG of DTC. They are an OG of direct to consumer.

You can only buy Allbirds directly from Albirds. They are direct to consumer. Don't ask questions. No exceptions. And last quarter, they announced that revenues jumped 23%. Investors were pleased. They were. The stock jumped 5% Thursday, too. But Albert still lost money and its stock is still down from its IPO. It's way down.

And a big reason Albird stock is down so much is the unprofitability. Totally. Albers, they're a profit version. They never made a profit. Because what costs more than making sustainable shoes, Nick? Well, Jack, sustainable stores. That costs more. In 2021, Allbirds whipped up.

up 13 brand new Allbird stores. Boom. And they're all in fancy suburbs and expensive neighborhoods and cities. Honestly, these things are reproducing like pigeons. They're everywhere. The online shoe company now has 37 physical stores worldwide. Totally. And these aren't just stores.

This is a date-night opportunity. They're experiential. You remember the one in Sewer had that hamster wheel? Do they still have that? You try on shoes and you can try them out in the human-sized hamster wheel. Pretty fun. That's not a store. That's Disney World.

I would hurt myself. I'll try a size 12. the defibrillator. Bring your own helmet. Walk in for the shoes, walk out with a stretcher. So, Jack, what's the takeaway for our buddies over at Albers? Albers, his biggest test lies ahead. And that test is the comparison shopper. Now, Snackers, there is a pill. There is a fix. There is a solution here for Alberts. They can grow shoe sales in new stores without having to build expensive new stores. And the CEO just announced that solution yesterday, Jack. They're going to start selling their Albert shoes in other company's stores. Yeah, that's it.

This is called third-party store sales. Pretty straightforward, actually. In fact, they may even start selling Allbirds at their enemy, Amazon, in order to reach new customers. Until now, you can only get Allbirds at Allbirds.com or at an Allbirds store, which there are 37. That was it. Direct consumer only from Alvards. But now you might find them at Foot Locker. You might seem alongside NewBounds, Nike, Crocs, Lower Price Skechers, all in the same store.

That means competition. Going third party means you're just one All-Bird shoe among a fly. of other competitive shoes for consumers to check out. And that means Allbirds' biggest test is you, the comparison shopper. Jack, can you whip up the takeaways for us before the weekend? Russia's war in Ukraine has affected just about every market. Yeah, we're seeing gold treated like a safe haven. Bitcoin, not really.

For our second story, Netflix just teased interactive trivia show. Yes, Snackers, check the corporate DNA. Netflix, it's a tech company. Our third and final story is Allbirds. They got 37 stores. They want more stores? They just don't want to build them. So they're going third party,

which means a whole flock of comparison shoppers. Now, time for our snack fact of the day. Send in by audio legend Mike Mooney from lovely Los Angeles. Jack, in the spirit of Netflix, should we do this as a trivia? Should we pivot this? I'll take Academy Awards for 500. Great choice, sir.

Great choice. Jack, who is the first ever black actor to be nominated for an Oscar in five different decades? You know, I know the answer. It's right. It is Denzel Washington, who has eight best actor or best supporting actor Oscar nominations. Okay, throwback to the 1980s, you got Cry Freedom. In the 1990s, you have Malcolm X and Glort.

2000s, Training Day and the Hurricane. In 2010s, fences and flight. And in the 2020s, boom, this year, here we go. McBeth. I've seen all of them but one. And Nick, trivia on your trivia. Double trivia? Which of those eight nominations did he win Oscars?

All of the above, always the answer. Glory and Training Day. Snackers, Jack and I loved being with you this week. A big week. A huge week. It's our pleasure doing this pod and we're going to do it again next week. We can't wait to see you guys on Monday. Celebrate some wins this week.

And before we go, can we pause the pod and say congratulations to Kate Frick and Harmon for landing a new job over at Pirate Studios. And congrats to Hannah and Pete. on having a baby boy, John Franco. Oh, yeah. Also known as Jack. And Lucia is on the way to school right now in Houston. Happy birthday, Lucia.

And happy birthday to Juan Manuel Pena from San Domingo, Dominican Republic. And shade and nosy over in Lagos, Nigeria. Happy birthday to Sankat in Utaport, India. And Burke, happy birthday in Charlotte, North Carolina. Big ups to new dad, Jeremy Kelly, in Richmond, Virginia. And happy birthday, Joanne Ma, over in Sugar Land, Texas. Happy 31st to Felipe in Medford, Max. And Chris, happy birthday and new job in Germany and anniversary with your girlfriend in Germany.

Congrats to Sarah Simmons for getting promoted in Columbus, Ohio. And John and Nicole Nash, happy big first wedding anniversary over in New Jersey. Elizabeth Quark Hendry just finished radiation therapy. Down in New Jersey, congratulations. Antoni Jackson, a two-year anniversary of a successful bone marrow transplant celebrate the win over in Queens. Incredible. And thank you to Christina Deegan for coming up with the idea that Pixar employees, they're animates. Animates. This is Jack. Nick and I both own some Bitcoin. Nick own stock of Apple. I own stock of Amazon,

Netflix, Disney, and Crocs. And I own a pair of crocs. 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.

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