The Best One Yet - 🦍 “Free popcorn for the people” — AMC’s gorilla pivot. Etsy’s $1.6B wardrobe. Big Meat’s cyberattack.

Episode Date: June 3, 2021

Shares of AMC surged so much yesterday, they had to be halted by the New York Stock Exchange. 4 times. And then AMC’s CEO did something we’ve never seen before. Etsy dropped $1.6B for second-hand clothing app Depop, because that’s where TikTok shops. And Earth’s biggest meat icon was just hacked and only one hero can save it.$AMC $ETSY $JBSAYGot 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, June 3rd. Nick, what are you doing next week? Jack, I thought you never asked. Can I meet you over, I don't know, I'd say 14th Street over by Gonservort Street? My golly, we are potting together for the first time in over a year next week in the Big Apple.

In the flesh. I'm going to touch your skin. Is he real? We're going to celebrate a whole bunch of wins together. So Snackers, we're actually curious. Anybody got any New York City restaurant? recommendations. It's been a while. We could use some ideas. Tweet us at Jack Kramer, at Nick of New York. We want some. Meantime, we got the best one yet whipped up for you. Yeah, we do. This bar sardine.

Jack, what's our first story? AMC stock jumped so much yesterday. Yeah, it did. It had to be halted by the stock exchange four times. Feels like our record, Jack, the CEO of AMC. He cares more about apes than he does about Wall Street. For our second story, a quarter of America's beef, a fifth of America's pork, and a couple of chicken wings. They were all. all held hostage for two days. CyberTack Snackers, a huge corporate problem that requires one non-corporate solution. And Etsy just dropped $1.6 billion to acquire Gen Z's clothing app. Because Deepop is where TikTok shops.

But Snackers, before we hit those three fantastic stories. Such a good mix today, Jack. We all know Frapachinos. You know Frapachino, 600 calories, but it feels less guilty because technically it's coffee. You may also know it is Puppuccino. Yeah, it's just a cup of whipped cream and puffercios. Puppies love them. Your puppy's going to ask for it. Most Starbucks's will give them away for fair. But have you heard of an Appuccino? That's Appuccino. They're a nightmare apparently

sweeping across Starbucks nationwide, the old Apicino. Here's the situation. People with too much time and hungry for creativity, they order up a coffee with 13 modifications. And then when the annoyed barista hands you the obnoxious order, you posted on TikTok hoping to go viral ipso facto app Acino. For instance, the cap and crunch, it's a Frappuccino with two spoons of taffy syrup. Jack, can I interest you in the double chocolate chip white moca frappuccino venty, but it doesn't stop there? With five pumps of whipped cream crumble. I'm an upgrade to the Grande. Snackers, if you're ordering that, you're ordering a novel. You're not ordering a drink. Uh-uh. It's a whole paragraph. Apocino, Jack, they taste like Guy Fierry's brain. Daline, she's not a fan of these fancy drinks.

No, no, no. She's sticking with the Lodge regular. One styrofoam, one pole. 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 the hair 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. Snacks is digestible. Business news for you. Robahood Financial, LLC, member Fenra, slash SIP. For our first story, AMC stock searched so much yesterday. It got halted and then they did something we've never seen before. Got halted four times, Nick. This feels like a record. I'm going to keep on correcting you here. I mean, I'll take it.

The CEO of AMC, he stopped caring about Wall Street and he's friending little investors instead. Jack, he stopped caring four times. Now, Samc is the largest movie theater chain in the world. It's also the almost most bankrupt movie chain in the world. Yes, last year. Not anymore, though, as you'll hear from this story. No, not anymore because we got ourselves a little bit of like an anti-love story situation going on. Okay. Because a bunch of hedge funds thought that AMC stock was falling apart. Reddit loved AMC stock. I mean, Jack, got to whip up some Polly-Sai 101 on College Hill here.

The enemy of your enemy is your friend. I think that's how this works. Right. So 2020 was defined by hedge funds. Yeah, it was. Shorting AMC stock, GameStop, and a bunch of other. thinking that those stocks would fall to like zero. Which then brings us to 2021, this year when meme stockers band it together, to instead buy up all those stocks, backfiring on the hedge funds that had short bets and shooting the stocks up by thousands of percentage points. If you haven't heard that story that Nick just summarized, then you've been under a rock.

So then you got to zoom out here. And about 30% of US theaters are still closed. Plus, he got like Disney Plus, HBO, bringing all these movies straight to streaming. not a great situation for theaters. And yet, AMC stock is at an all-time high as of yesterday. The fundamentals clearly don't support its stock price. So something just seems off. And then this happened yesterday.

AMC stock doubled in minutes so quickly. So fast. That the New York Stock Exchange halted, traded three times, four times. Four times. Snackers, AMC is now worth a whopping $28 billion. That is up from a half a billion dollars just one year ago. That is two lifts. Now, we've seen stocks go viral before.

What we haven't seen is this. Get this. AMC just turned its shareholders into loyalty program members. We're not making this up. They just launched a new platform on their website just for retail investors. It's called AMC Investor Connect. It's an exciting concept with an absolutely brutal name. It's one giant loyalty.

program that you can only get into if you own stock of AMC. I mean, we're trying to think of other names like EBITA Entertainment Club, stocks for flex. We need ideas. People send us your ideas. Yes. Now, here's the deal. If you're a shareholder of AMC, you can join this club and get exclusive screenings of movies.

You can get discounted soda while you're enjoying those movies. And one big free bucket of popcorn the next time you go to an AMC theory. This isn't like if you just like going to movies. This is if you own stock in AMC, ipso facto free popcorn. Yeah, the AMC company and AMC CEO, they're both donating $50,000 to a guerrilla wildlife fund. Jack, I'm sorry, just because people may have missed that, they may be driving, they may be distracted. Can you repeat that last line? Yes, the CEO and the company are donating to a gorilla wildlife fund.

This is all related. It's because AMC investors call themselves apes and they nicknamed the CEO of AMC after a type of gorilla. A silverback. So we know what you're thinking. Why is there's so much love in particular? for retail investors from AMC, it's because they saved AMC from bankruptcy. Yes, since December, AMC, the corporation, has sold new stock three times and brought in in return some desperately needed cash during the depths of the pandemic.

Yeah, the AMC stock is so high. They got $1.6 billion from selling their stock just to keep the company afloat during a pandemic. So the CEO is basically saying, you saved us from bankruptcy, retail investors. Here's some free goodies for you. And then, Jack, the retail investors were saying, Thank you for these free goodies. Thank you for thanking us. We'll buy up more of your stock. And then the exchanges had to stop trading four separate times. Three times.

So Jack, what's the takeaway for our buddies over at AMC? AMC CEO doesn't work for Wall Street. No. He works for the meme investors. All right, Snackers. The CEO of AMC, Adam Aaron, isn't focused on the big institutions on the quarterly earnings calls. Like most corporations.

Instead, he has a direct conversation with anyone willing to open up YouTube. And he's encouraging people to follow him on Twitter. And the reason is simple. The numbers tell the story. 80% of AMC stock is owned by 3.2 million individual investors. 80%. Now, for comparison, Cineworld is also a publicly traded movie company that owns regal theaters. You've probably been to one.

They run the same business. For them, just 33% of their stock are owned by individual investors. AMC went viral. Cineworld didn't go viral. And remember, shareholders. own the company. So retail investors now own 80% of AMC. Which led to this wild quote from AMC's CEO, these people are the owners of AMC. I work for them. Retail investors matter in finance more than ever before. And AMC just whipped up a playbook and how to convert their zeal into a stock price

gain. And maybe with this new loyalty program into paying customers as well. For our second story, Jack, medium or medium rare, by the way? Medium rare. Yeah, it's a good call. There's no trick question here. It's medium rare. Unless you're trying to prove you're tough and you're ordering rare, in which case you probably wish you had just got medium rare. Do less.

Round up. Medium rare. For our second story, America's beef industry just fell victim to ransomware in a big way. But it cauliflower is only cooked one way. So what are you even talking about? Is this a trick question? Jack, that's the takeaway for later. Snackers, we're looking at a new global pandemic.

If your business has a computer, it is at risk. of cybercrime. I mean, Jack, we got to travel back in time to, like, May 11th of this year. We covered a very scary story. Yeah, a cybercrime organization called Darkside. Hacked an oil pipeline. And here is our takeaway. Cybercrime has transformed from politically motivated to profit motivated. Whoa, by the way, that felt weird whipping up the takeaway solo. That was shame on you. Step on your toes. I'm sorry, Jack. Snackers, we later learned that Darkside received a $4.4 million rancers. some payment, denominated in Bitcoin. Yes, it was. To give back control of that pipe.

So it should be of no surprise that another gang of cyber criminals heard about that ransom and made another huge attack over the weekend. They want that big Bitcoin booty. They do. Now, the victim here, it's JBS. A company you never heard of that happens to be the biggest meat company by sales in the world. It's based in Brazil, but they have nine factories in the United States and a few more in Canada. One out of every four burgers you're chopping on Jack, that's a JBS produced meat burger. And one out of every five pork hot dogs is a JBS pork hot dogs. And they also do a whole bunch of chicken tube, but we don't have the numbers for that.

Now, on Monday, during Memorial Day, JBS had the unfortunate pleasure of announcing that their computers were hijacked by cyber criminals. So while you're face deep in a pulled pork sandwich over Memorial Day, the biggest meat company in the world had to shut down all nine U.S. factories. Because they were locked out of their computers, the computers that do the sales, the order, the shipping. Jack, you know, the big red button. Every meat factory, Jack, has a big red button that just stops everything really quickly. And just one day after announcing the ransomware attack, JBS announced on Tuesday that everything would be resolved by Wednesday. Yeah, they did. So we know what you're

thinking. What does this mean for us? Let's say you're a meat eater, Jack. What does it mean for the meat eaters out there? It caused a minor disturbance, just a 1% increase in prices of meat because the hacking was just a day or two. Let's say you're an investor. What does this mean for the meet investors out there. JBS stock fell by 1.4%. And Pilgrim's Pride, which is partially owned by JBS, fell by a percent. And then you're going to wonder, what does it mean for all the concerned citizens out there? You're thinking, is there any industry that cyber hackers can't hold hostage? This is a meat company. Which feels like, Jack, what's the takeaway for the entire U.S. corporate world? This is a corporate problem that may require a government solution. Snackers, the White House and the FBI,

are aggressively involved in response to this specific crime. Because the three solutions we see for solving this are all beyond corporations. No matter how good their malware internet protection happens to be. The first part of a solution could be cryptocurrency. Yeah, because the hackers, they demand ransom in Bitcoin, which is anonymous and like really hard to trace, which is kind of the point of Bitcoin. That's why a cybersecurity expert calls cryptocurrencies, the oxygen that fuels this ransomware fire.

All right. And then you got domestic policy. that's another solution here. Because each time a corporation pays the ransom to the terrorists, like colonial pipeline did, it encourages more attacks to happen in the future. So maybe the government could intervene forbid companies from paying ransoms, which could then prevent further ransom situations from happening. It would choke off the incentive for these criminals. And then a third potential government solution here is you could have a foreign policy solution. The evidence, according to the White House, is that the hackers of JBS reside in Russia.

Jack, if you're a corporation based in the middle of the United States, you can't pressure Putin to stop doing cybercrime. Only the White House can do that. Ransomware has become a growing problem for any U.S. business that happens to have, you know, at least one computer. And that huge corporate problem looks like it needs a government solution. For our third and final story, Etsy just dropped $1.6 billion to buy Deepop, Gen Z's used clothing app go-to. Deepop is where TikTok shops. Etsy, it's your go-to marketplace for the custom embroidered craft holiday decor for the bachelor, bachelor, bachelorette wedding, and it's got to be, Jack, it's got to be written in script.

True. It's got to be written it. You don't want embroidery written in like Andy. Deepop, not so much. Founded in 2011, this is a secondhand online marketplace. It's the eBay for used clothes, but it was raised in the Soho district. Right, right. Like, it feels like Deepop knows how to do graffiti, and like I would not feel comfortable doing graffiti. Nick and I had jumped in snacks. out for this app. And the first thing you're greeted with is a number of questions, which will be chugged into an algorithm, which will determine your secondhand fashion DNA. They're like, Nick, are you more streetwear? Jack, are you more of a thrifter? I'm thrift through and through.

Maybe you're more chugie retro, this fashion DNA is going to figure it out. And after it figures it out, it's going to match you with unique secondhand items from unique secondhand shops. Jack, first match for me, kind of a surprise, but kind of loved it. NASCAR Hawaiian shirt, paired with a Converse tie-dye sneaker. I would take that. Okay. I can't pull it off. That's discovery you can't buy. I would try it. I would probably return it. 26 million people are using this app. Yeah. 90% are under the age of 26. Now that is the key. 90% are under the age of 26. This is the 10th most used app by Gen Z. Is that right? That is right, check. And it's still a tiny company. They're only making 70 million revenue in the past year. But that did double during the pandemic year.

And it's kind of summed up from the CEO here with this one quote. You come for the clothes, you stay for the culture. This is where TikTok does it shop. It's so TikToky. You can even negotiate on price and postage with the seller via DMs, not some obscure corporate email situation. Now, Etsy finds itself searching for allies to compete against the big, giant elephant, the Amazon.

Now, Deepop is the complimentary fit to Etsy for this existential battle against Amazon. At their core, Etsy and Deepop, they're the same companies. They're two-sided online marketplaces. But Etsy's, customer is an older user base. Deepop, it's a much younger user base. And that part's the key. Etsy reaches a 42-year-old who's looking for another acorn-scented candle for the bathroom.

Jackie, you've got to compete that collection. You've already got six of the 43 different nuts. Deep up, on the other hand, they're reaching the 18-year-old who wants a purse made out of Kit-Cat wrappers. Nothing but Kit-Cat rappers. Also got served to us. So, Jack, what's the takeaway for our buddies over at Etsy and Deep-P? Wait a minute. A second-hand kit-cat wrapper purse is actually third hand because the rapper was used originally for candy and then a purse and now your purse. Are you trying to tell me that AMC stock was stopped five times, Jack? Four. It was four times. So what's the takeaway for our buddies over at Etsy and Deepop? Secondhand shopping killed Fast Fashion. This is the final blow.

2017 Snackers, Fast Fashion was living its best life. They were pumping out new patterns every week, Jack. People flocked to Zara for a $12 pair of shorts to replace the $12 pair of shorts they bought a month ago. Yeah, and Zara was the world's biggest apparel retailer. Just four years after Fast Fashion was living its best life, Forever 21 is now bankrupt. H&M is still sitting on billions of dollars of unsold clothes. They're like burning some of them in Swedish factories to stay warm. That's because it's all about the secondhand resale marketplaces, which have been validated by the stock market of late. All right, Jack.

So you got Threat up. Posh Market. the real real. All of them went public just in the last year. Levi's launched their own secondhand clothing operation for Levi's jeans, and Lulu Lemons doing the same thing. So Etsy's $1.6 billion splurge on Deepop, we think that's the final nail in that velvet-lined fashion coffin. Certified officially pre-owned velvet-lined coffin. Jack, can you whip up the takeaways for us over there? AMC theater stock is more viral than ever, turning shareholders into loyalty members.

But meme stocks, they can swoon just as fast as they moon. JBS had to shut down their nine U.S. slaughterhouses and meatpacking plants. Cybercrime, it's a corporate problem that probably requires a government solution. Deep Pop just got bought by Etsy because it's the TikTok for shop. A.k.a. Fast fashion's cootigra. Now, time for our snack fact that. Hey, this one's submitted by Nick and Jack, as in Jack and me, us too. Yeah, hometown. Let's just say New York will be next week. We'll see you there. Again, we need the restaurant racks.

Apple CEO Tim Cook gets a lot of attention as an openly gay leader of the most valuable publicly traded company in the world. But Snackers, have you heard of Beth Fort, the CEO of Lando Lakes, the dairy legend? She's the first openly gay female CEO of a Fortune 500 company. Yes, she is. When she took over in 2018. She also happens to be married to another CEO, Jill Shirts, feels like a power company. Snackers, happy Pride Month. We want your LGBTQ plus snackbacks.

right here for this pod. Easy to do, submit yours using the link in the notes of this pod episode. Just scroll up a little bit. Click on the link. Happy Pride Month, everybody. Jack, let's do this tomorrow. And before we go, shout out to Lauren Jarvis, the Paul McCartney of podcasting. We set it.

The Ringo star of getting the ringer at Spotify. She's all four Beatles in one plus the fifth beetle, and she's leaving Spotify after five years. Congrats to Avery Bolanos for getting a new job at Amazon. And to Emily, who's kicking off five. final exams over at Oxford. Happy birthday to Ryan Davidson in New York City. And to Wendy over in Cherry Hill, New Jersey. And Sean in Chicago.

And happy birthday, Katie McKinnon in Atlanta, Georgia. And James S. in Lansing, Michigan. And to anyone else celebrating anything today, make it a T-Boy. Celebrate the wins. This is Jack. I own stock of Levi and Amazon. Nick own stock of Lulu Lemon, The Real Real and Apple. And we both own stock of Spotify.

The Robin Hood Snacks podcast you just heard reflects the opinions of only the host 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. This is where TikTok does its shop.