The Best One Yet - Facebook’s 2.2B fake accounts, Disney’s theme park record, and the “IPO of the Day” is a talent agency

Episode Date: May 24, 2019

You’ve heard about Disney+ streaming and Marvel Movies for months — But there’s a big story around its theme parks and its new Star Wars land. Facebook’s 3rd transparency report revealed it��s destroyed 2.2B fake accounts in the last three months. And our “IPO of the Day” is Endeavor, the 121-year-old talent agency behind most of the stars you’re watching.Learn 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. This is snacks daily. It's Friday. May 24th. And Jack, I got to tell you, it's my favorite one. This is a Friday, T-boy, the best one yet. Honestly, yesterday was okay. We really worked harder at this one. Markets sank 1% on more trade war anxiety. Markets weren't really working that hard. We were. What did we find, Jack? Facebook just issued its third transparency report. Do you know how many fake accounts they had to delete? Well, there are 7 billion people in the world, give or take, how many they delete? A number of billion fake accounts. It is kind of freaky. Second story is Disney. All we talk about is Disney Plus? Disney, Disney, Disney, Disney.

But can we talk about the theme parks? Finally, some Epcot Mexican restaurant love. Bringing it back to our childhood. They just set records and the Star Wars theme park is about to open. The third story is our IPO of the day, shocker. This one came out of nowhere. It's Endeavor, which is a talent and modeling agency featured in the TV show, Entourage. Not exactly.

That's kind of an accurate jack, but there's a little bit of truth to that. They also represented Charlie Chaplin. Now, before you get into those stories, can we talk about Nate Jones? It's about time we talked about Nate Jones. Nate just got a job offer. in New York. He's moving there from Texas. He's an avid snacker, according to his girlfriend. And we know this because Zenia, his girlfriend, also a snacker, reached out to us to say, hey, you guys were headquartered in New York. I was born and raised in New York, like, in one area

of Central Park. We got to help them out. Let's give some pro tips for anyone moving to New York. Nate, first of all, if you think you're walking too slowly, you probably are. Second, don't refer to the subway lines by the color. It's ACE or 123. You got to be colorblind with these things. Then celebrities, what's your plan? You're going to see celebrities. The A-listers, leave them alone. B-listers, you can give them a shout out there. I like that. Very cool.

The burger at Bar-Sardine, medium-rare, make it happen in the village. Finally, get dark clothes because you'll need them to fit in. It's the way things work. And then, you know, I just think we've got to throw this one in. It's a great time to be practicing your Metro card swipe right now. You do not want to hold up the line to get into the subline. Don't be that guy. You've got like a week before you start the job, Nate.

You might as well practice ASAP. We've heard that if you make it there, you can make it anywhere. It's a fun fact, actually. In the meantime, listen to these keys. where it's name. You're tuned in the snacks daily. We spoke to the lawyers and we got to get some 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. 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. Robahood Financial, LLC, member FINRA slash SIPC. For our first story, Facebook just released its third ever, it's thrice, transparency report. It was not fun. They announced, what are we got here? They had to delete 2.2 billion Facebook accounts in the first quarter. With the B, keep in mind, you don't have to watch Planet Earth to know that they're like 7 billion humans on Earth. And there's 2.2 billion fake accounts that were attempted to be made in the last quarter.

This is like multiple continents erased from Facebook. Now, by a coincidence, 2.2 billion is also the number of real users who use Facebook. So what does that mean if you break it down? every real human with a Facebook account, there was an attempt for a fake account last quarter. And these, you know, Facebook fake accounts tend to be bad people who are manipulating Facebook. Yeah, they're trying to do bad things on Facebook. So when you break down the math, you take the $2.2.2 billion, you divide it a little bit by like 90 days. 90 days in a quarter. Facebook deleted 24 million fake accounts per day. And if you jump through

these transparency reports, which is a lot of fun, by the way, it turns out that Facebook situation with this is actually getting worse. not better. Yeah, that is four times as many fake account deletions than last year. Now, there is a positive side to this. It's that Facebook is getting like really deep into the transparency, and we like that. Let's give them some credit. This is not good news, but Facebook announced it to the world and is letting us cover it on Snacks Daily. They started with these transparency reports like one to half years ago. Let's also give some credit to Facebook's artificial intelligence. It's like, thank you. Most of the fake accounts that were deleted were deleted within moments thanks to Facebook's artificial intelligence.

Right. It wasn't, you know, it noticed that Mr. Bob B. Bob didn't happen to be a real... Yeah, there was evidence that these things were obviously fake, so humans didn't even need to intervene, and the fake accounts didn't see the light of day. And this is why the AI is so focused on it. 65% of hate speech is deleted now before the post goes live. Again, well done artificial intelligence. But there's 20,000 human content moderators.

Again, a really, really big number. 20,000, that's insane. There's an army of Facebookers who are moderating your wall and taking down like edge cases that might be hate speech or might be like acceptable. I'm going to do a little unhappy speech. Pre-takeaway here, Facebook always involves big numbers. But Jack, what's the real takeaway? Because we wanted to go bold with this. This is a bold one.

It is time for social media, Facebook included, to start verifying users' accounts. Banks, when you want to get that checking account, they verify who you are with your real ID. Real ID, real social security number. Airlines. You're not boarding. Same story. You need an ID. You want to get yourself a little apparel spritz over there, Jack, like you do like every Tuesday?

Show me the ID. Exactly. You want to set up an Airbnb account to lease out your space. ID. You want an Apparel spritz at the Airbnb. It's like a double ID situation. Now, Facebook, on the other hand, Twitter, Instagram, all the accounts. You can set up an account anytime you want, fake name, whatever you want.

And the anonymity is a serious problem because a recent study showed that fake news gets four times more engagement than real news. And that fake news tends to come from fake accounts like Mr. Bob B. Bob. Right. And this person, whoever created 2.2 billion fake accounts, they're totally unaccountable. They can just keep on trying and there's no penalty. It's become clear that Facebook's big numbers mean it's too big to not take verification of IDs, seriously. If we start verifying and putting real names on accounts, people won't do as much bad stuff. I like this bold snacks daily take. Let's run with it. For our second story, Jack, whip out the pixie dust over here.

Disney is dominating the one area that no one is talking about. Theme parks. It is so true. Before we jump into this one, go to ride at Disney. I got you. Big Thunder Mountain Railroad. Jack, it's a trick question. The answer is, it's a small world after all.

If you don't like that, you don't have a soul. The four Kramer brothers were too macho for that. He couldn't fit all Kramer brothers in one of those rides. Now, theme park insider.com. Great website. Great stores for theme park information. Spend your week on there. You know, they had to fit all.

a really interesting breakdown here. Now, Disney has been getting all of this credit for Disney Plus and streaming. And the stock has risen 15% since announcing Disney Plus. And that's all the fancy tech stuff it's doing. But let's go back to the core Disney product. Get this. The top four theme parks for attendance based on theme parkinsider.com. In the world. Our Disney Resorts. Magic Kingdom. Disney World. A couple of foreign Disneyland. Yeah, the ones in Tokyo. Eight out of the top 10 theme parks on the world are Disney owned. Side note, the fastest growing theme park in the world is in China. Yeah, it's a dinosaur-themed one.

It's called like Dinosaurs Park. Changsiao Dinosaurs Park. We need a Robin Hood Snacks offsite there. I think we should probably be going there next week. Now, this happens to be perfect timing for the report because Disney, by chance, is unveiling a brand new park. The Star Wars expansion of Disneyland, which is called Galaxy's Edge. And it's opening on May 31st.

A week too late? Yeah, we'll have a Memorial Day. What's going on with that, Disney? But this is the largest expansion of a theme park in Disney's history. And of course, you know, it's models. after a trading post on planet Buttoe, and you can eat some fried Tandorian tip yap. Which is? It's like a galactic chicken.

I'm going to visit Tatouine. Which I think is where Luke is from. Jack, he knows where it is. He's pretending he does. But we're all curious about the souvenir. That's all anyone cares about. So if you're lucky enough, you can ask your mom and dad, and you too can get A? Well, I built my own teddy bear, but I want to build my own lightsaber, which costs up to $200.

Not too shabby. Now, there are insane synergies here. For example, if you're Adam Driver who, what character is he playing? He's the bad guy in the new Star Wars. Anyone wearing black in Disney. He's Darth Vader's like grandson. He's a bad guy in this one. He maybe one day appears on Jimmy Kimmel to promote the show.

On ABC. To promote the new Star Wars. And it turns out ABC is owned by Disney. And then you're watching Sports Center one day, which is on ESPN. Or Monday Night Football, which is on ESPN. And that's both owned by Disney. And then you're like, you know what? I think I'm going to get really deep into the Star Wars stuff.

I'll go to the theme park with a bunch of friends. Which is owned by? Obviously, Disney. It's crazy synergy. So, Jack, what's the takeaway for our buddies from Orlando to Anaheim? We need to talk about the Disney diagram. Please, we've been waiting to talk about this for so long. Walt Disney, back in 1957.

The OG, the real guy. He drew up with a number two pencil on a piece of paper, a diagram, which is essentially Disney's business plan that still exists today. We're taking some creative licensing there with the imagery, but you know what we're talking about. This business diagram, we'll tweet it out later today at Robin Hood Snacks. In the center of the diagram is the Disney characters that the world falls in love with through Disney movies. And it shows really core elements of Disney from 60 years ago. Outside of that core center is TV in one corner. Music at the top.

Merchadizing. Licensing. Theme parks. They all depend on those central Disney characters. Even 60 years ago, Walt knew that these would become the profit ecosystem of the whole company. He takes a movie like Star Wars and he turns it into everything. And he wasn't even a lie for buying Star Wars. And it's still happening today.

And it's all about the diagram. For our third and final story, this is a wild one. Talent Agency Endeavor is about to IPO. It just filed its paperwork. And this company goes back to 1898. Before entertainment was a thing. Charlie Chaplin. Pushing a ball down the hill.

Silent films. Like mimes on TV. He was like, he was represented by. by this talent agency. The Marks brothers, Groucho Marx, not Carl Marx. Let's go with that one. They were agented by Endeavor. Now, what does a town agency do? It's basically, this is a Jerry Maguire situation. If you've seen Jerry McGuire, you know, if you haven't seen Jerry McGuire, these guys are representing the talent. Right. So an athlete, you know, he needs $300 million over 10 years. She's got to get that major deal. No trade clause. Not at all. Show me the money. They're the ballbusters who

are getting money for the talent. Technically, this company is the result of, like, a bunch of talent agency mergers over the years. Yeah, we're talking William Morris, Endeavor Talent, IMG modeling. They've all kind of been merged together to create this talent representing behemoth. It's like A.B. Inbev on the beer side, but for agencies. Exactly. Now, how well are they doing financially? $3.6 billion in annual revenues. Wow. Getting actors to make sure that their trailers are perfectly situated.

The co-CEO of the company is named Ari Emanuel. And he's like the star of this whole thing. He's the brother of Rahm Emanuel, who is the Chicago mayor. And the former chief of staff to President Obama. And then this is the real kicker here. He is the inspiration for Ari Gold. Ari Fing Gold. The guy who was honestly the most interesting character.

The main character from Entourage. Really the best character on Entourage. Now, the IPO is based not just on traditional talent representation. No, exactly. What they're trying to do at endeavor is to infiltrate the entire entertainment industry. The company believes that content is king. They said content is no longer in traditional categories. And what they're saying now is that wherever you are in the world, quote unquote, Endeavor plays a role if you're engaging in content.

Right. It's not just agents. The example, it just acquired Ultimate Fighting Championship in the Octagon for $4 billion. Yes, that was in 2016. And then it's also bought Pro Bull Riding. It's bought Miss Universe. It's bought the Freeze Art Fair. It also has a partnership with World Wrestling Entertainment. This is like ESPN8, The Ocho, by the way. Endeavor wanted to show off a little bit more. Just so you can. can tell. Endeavor is touching everything you're integrating with right now. Yeah, like live music, live concerts, live wrestling, live bull riding. They're showing that they have a role in like 300 TV shows. If you go to a concert, by the way, a music festival. Exactly. There's a 60% chance. The headliner for that music festival is represented by Endeavor. Seven out of the ten highest paid

models in the world, their endeavor. Their endeavor. I actually am feeling a little awkward that we have now connected. Yeah. Call us, please. We're right here. Our people will talk to your people. That's how this out goes down, I think. I'm pretty sure. So, Jack, what's the takeaway with our buddies over an endeavor? This is really a media company, not just a talent company. It's not typical that a professional services company, like a professional services industry would go into an IPO. You don't have like any, many law firms that have done an IPO, but this isn't a traditional professional service. It's tied to the media industry. Court cutting, streaming, Netflix, Disney Plus, media in general is all focused on one thing, content. Yes. The content,

that we love consuming when we Netflix and chill, that we love watching at professional bull riding. And now Endeavor is positioning itself as the enabler of all that content that you are increasingly consuming. We will cover it again when the IPO happens. Let's book it. Jack, before the weekend, can you whip up the takeaways for us?

Facebook, thank you for destroying 2.2 billion fake accounts. But if you just require IDs, it might be a better solution. Get a few bouncers. They can squeeze them to make sure they're not fake. You know what I'm talking about? Disney's theme park success is just one hour,

aspect of Walt's famous 1957 diagram. We're going to be tweeting this thing out from at Robin Hood Snacks. Third and final story, Endeavor, the biggest talent company is planning an IPO. But we've decided over here at Snacks Daily that it's really a media company. Now, snack fact of the day, this one sent in by a great snacker for a long-time snacker, like many, many months now. Jessica Cho. Fantastic, Jessica. Where is she from?

She's from the Bay Area. I'm pretty sure she's from California based on this. This was a bold fact. The Golden State Warriors. came from Philadelphia in 1962. They used to be the Philadelphia Warriors. Not many people realize that. We're talking pre-sixers.

And they are now the hometown glory of San Francisco. Her words, not ours on that one. And just reached their fifth straight NBA final. Jessica, we know what you're doing for the next couple weeks. We do. Good luck. Now, a couple other fantastic stories we're covering in our daily newsletter, Robin Hood Snacks. There is a new gene publicly traded company out there.

It's called Lee and Wrangler, and it just got spun off from its parent company. And then yesterday we told you about Uber Eats. Well, turns out its big competitor, DoorDash, just hit a $12.6 billion valuation. Snackers, it was our pleasure getting a couple of snackers involved in today's pot. Love doing it. Remember to get us some snack facts at Robin Hood Snacks.

And in the meantime this weekend, when you're jumping through your Spotify playlist, check out Snacks Daily on Spotify. And share us with a friend if you're feeling generous. Have a fantastic Memorial Day weekend. We are taking it off as well, so we will talk to you again Tuesday. 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.