The Best One Yet - “Happy TeslApple Day” — Tesla & Apple split their stocks. The Gap’s 1 hope. Abbott’s $5-15 minute Covid test.

Episode Date: August 31, 2020

In the rarest of moments in the universe, Tesla and Apple both decided to split their stocks today. The Gap basically became a fashionable facemask company last quarter, but its future depends on Athleta. And Abbott Labs stock jumped 8% last week not because of a vaccine, but because of “the $5 COVID credit card 15-minute” test.$TSLA $AAPL $GPS $ABTWant a shoutout on the pod? We got the form for Snackers to fill out right here: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 Monday, August 31st. Snackers, we know you're very much in the What Have You Done Late for Me? Type of podcast list. Jack and I couldn't sleep Saturday.

We were worried Fridays was the best ever. We couldn't beat that thing. Fortunately, though, today's is the best one yet. This one's actually a lot better than what we did on Friday. Jack, first story. The Gap started as a company for gold miners looking for jeans during the San Francisco 1849 gold rush. Mouthful, Jack.

Now it's whipping up dead of masks. We are more interested in Athleta. It's young Lulu. The force is strong with you, young Padawan. Second Story Jack, what do we got? Have you heard of the Abbott Labs' $5.00-19 credit card 15-minute test? That's a mouthful too, Nick. It's why Abbott's stock is up a cool 8% in the last week. And it could be why the stock market is up 8% this month.

Third and final, Story Jack, are we Paloozy? It is stock split a Palooza today. Congrats Snackers. Tesla and Apple didn't coordinate, but both stocks are getting spliced up into base. stocks today. We'll tell you how much it matters when a stock gets split. Spoiler, it doesn't matter. Doesn't matter at all. Should we keep going? Let's keep going. But Snackers, before we hit those stories, drape yourself in a bo-a-constrictor Britney Speer style and walk down the catwalk in some recycled plastic dress thing. Jack, it feels like New York Fashion Week is kicking off next week.

It is, it is, Nick. But big difference this year, first of all, we won't be there, even though we've never been there. Where's the invite? We're going to pretend it was an address issue. The other shocker, a surprise collaboration from Lowe's Home Improvement, the big box home improvement retail. Yeah, apparently the team over at Lowe's realized that since you're in a house 25-7 these days, you're not going to some random gala and home goods deserve the runway vibe treatment. Nick, the weekly team meeting does count as two hours, even though it's only 60 minutes. It tends to feel like three.

But the house is the new epicenter of fashion and self-expression. That's what Lowe just put out there. Yesterday I wore mismatching socks. Today I'm not wearing pants. I do love some good home fashion. Which is why designers Rebecca Minkoff, Jason Will, and Christian Seriano will weave Lowe's home goods in at the New York Fashion Week. I wonder how much Lowe's is paying for this, by the way. Aggressive, but all we can say, drop the handbag, grab a two by four.

That tuxedo could really use a little bit more lumber. Since you're not dressing up, you could dress up your house in a new hardware, and appliances, Lowe's would love that, apparently. Or if you don't want to spend money on, like, new Lowe's stuff, just move your couch to the other side of the room. Total life hack here. Why spend money when you can just push things? We could all use a change of scenery right now. Lift with your legs, now with your back. Let's hit our three stories. You're tuned into snacks 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. 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, the Gap's earnings just revealed it's actually a face mask company. Nick, the Gap's stock is depressed. It hurts.

But it has one hope to return to greatness, and it is not facemask. Help us over yoga pants. You're our only hope. Jack, I just walked in the changing room. I'm looking in the mirror. They tell me it doesn't lie, and these numbers don't lie. The Gap just announced earnings for the last three months, and their online sales doubled. Nice, not bad.

But overall sales, weighted down by stores which were closed, fell by 18%. Brutal classic gap. Now, we're thinking you should bring back the size 16 husky sweatshirt with a giant G-A-P right on the chest. It's like it's yelling at you. That thing is basically a comfortable hazmat suit. It would be perfect for this moment. Every middle schooler alive in the 90s had one of these sweatshers. Jack's got a dozen photos. I even have photos of Jack in that shirt. But Snackers, here's the shocker

that Jack and I noticed in this Gap earnings report. The Gap sold $130 million last quarter of face masks. We're talking just face masks in three months. That like feels like it's almost a lift even though it isn't. Now, they key to their success, Nick, they sold face masks like in singles, like if you wanted to buy one face mask and in bulk. Yeah, the state of New York purchased a whole bunch of face masks. Kaiser Permanente, the health insurance firm, purchased a whole bunch of Gap face masks. The Gap is originally a denim company, and they pivoted last quarter from jeans to faces. You look at those high-rise jeans these days,

there's a lot of face max potential just above the butt area. And they led a massive fashion upgrade for the whole world. In March, everyone was wearing those blue medical masks like Gray's Anatomy. In April, Gapshawken, Sweatwick, and Searsucker head turners as masks,

and that's all you can see. Yeah, you can stand out in the socially distanced crowd. This is how insane things got for Gap's mask situation. On the earnings call, they pointed out that you should Google Face Mask Style Guide. So we're going to ask you to Google Face Mask Style Guide right now. We'll give you a second. And you're going to notice that Face Mask Style Guide is still the number one hit on Google for Gap's web page on it. That's right.

The Gap was bragging about their SEO for Face Mask Style Guide. The company's based in San Francisco, this is the most techish thing they've ever done. Yes, it is. Camo, floral, Tardin, Gaelic. They're showing you the whole head start on options you could do for non-regular blue face masks. Tardin Gaelic, apparently Nick did go to Fashion Week last year. By the way, Snackers, to keep their SEO game up, if you've got videos for, how do I wear glasses with my face mask? Because that actually is an issue. That's right. Safety first. And it's all explained by a master of public health degree holder, which is a great degree. The old MPH, she's helping to get through the mask fog factor with the glasses. But one part of Gap's earnings reports that had nothing to do with face masks?

Nope. Athleta. It was the only division in Gap's earnings that actually increased sales overall. So, Jack, what's the takeaway for our buddies over at the Gap? Lulu Lemon's success shows the Gap's potential. Snackers, recently Gap's profit puppy has just been Old Navy. Right. Low-cost sells.

But the Gap also owns an aphleisure brand called Athleta, which is living its best life while you're living your sweats life. And Athleta should trademark that sentence. But Gap projects that athletic sales are going to double as it expands abroad and you wear more sweats. Snackers. Right now, Lulu Lemon's biggest competitors in Athleisure are Under Armour and Nike, but let's be honest, those aren't really

athleisure companies. No, that's the ex-football players who just started doing Downward Dog and someone who just wants to shred and rip their t-shirt off. Gap should position Athleta as Lulu's true number one competitor in the ath leisure space that has room to grow. And the reason we're pointing this out is that Lulu Lemon's stock is worth eight times what Gaps is. Lulu Lemon stock has tripled this year while Gap Stock has stayed flat. The more Gap can lean into Athleta, the more Gap Stock price could mimic Lulu Lemons. And then the stock price could move one vertebra at a time up to Lulu Lemons.

For our second story, Abbott Laboratory stock jumped 8% last week, but not because of a vaccine. was because of a unique, novel, rapid test for COVID-19 that just got approval. Sounds aggressive. Snackers, let's travel back to 1888, Chicago. Abbott Laboratories has found it to pump out morphine. But Cubs fans and Ernie Banks to advise the company move to something a little more wholesome. Yeah. So now they make pediolite. A lot more charming. Now, here's the thing, Snackers right now. Treatments and vaccines, they're getting all the attention. They're getting all the love. Team Remdesivir brags every day about saving COVID patients at some test in China. Team Mederana seems to just be buying up press releases because that's all they seem

to do these days. But Abbott Laboratories just got a whole bunch of love for a test to confirm whether or not you have COVID-19. That is exactly right. Abbott just got emergency FDA approval for the Binax now COVID-19 ad card. Now, we need to subway $5 foot long this thing. We're going to call it instead the 15-minute $5 COVID credit card. And here's why we're calling it that Snackers. This is a COVID test that delivers results in just 15 minutes. And it's only $5 and it's the size of a credit card. So a health care worker actually is to get your nasal sample. They do it with a long Q-tip and then they stick it in this card-shaped card.

Wait 15 minutes and then you get a very clear positive or a very clear negative result just like a pregnancy test. The key, though, is that it then links to a phone to send the message to an app that says, all clear, you're good to go. No more COVID. TSA pre-check style. That's right. It's done through a QR code of some sort,

and we're thinking Tinder should do a cross-promotion to let Tinder daters know whether they can actually see each other for a day. Feels like the only thing they should be focusing on right now. Now, the benefits to this novel new test are time and convenience. Yeah, Jack and I notice Bank from America Stadium is doing mass testing right now. That can take days to get results from. Right, because your sample might get taken in the parking lot at that stadium, but it has to go to a lab.

Yes. And then get diagnosed by a machine that's the size. of a baseball student. Yeah, this thing looks like an HP printer from 1996. If you want proof that this new test from Abbott Labs is a big deal, just look at the White House. The Trump administration just wrote a $750 million check to buy up $150 million of those Abbott tests. We're excited because these tests can be done at any doctor's office and even the school nurse's office at the elementary school. The one caveat, it's not like a pregnancy test in that you need a health professional with you spotting you along the way. You can't just buy this out of the CVS and do it in the

So Jack, what's the takeaway for our buddies over at Abbott Labs? This is great news for Abbott Labs, and it could be great news for the entire economy. Snackers, medical experts have said from the beginning that testing is key to stopping the spread. And with a fast, low-cost test like this one, we could reduce the accidental spread of the disease that happens every day. So you've got lots of Americans right now. They're spreading by accident because they don't think they actually have the disease.

You got silent spreader Steve and super spreader Sarah going outside like being kind of wrecked. Worst couple ever. But with an easy test, you'll have no excuse on finding out whether you're a carrier. And if you are, you're going to stay home. So a vaccine is the best COVID-crusher. But until then, testing is the king. For our third and final story, we got our first ever great problem to have of the day. Tesla and Apple stocks have risen too high. Yeah, they're splitting their stocks up today, effective today, into tinier little stock slices. Everybody don't panic. Tesla stock did not fall by 80% today. Apple then pull off the old pivot from phones to scones. That would be bad for Apple's share price. I'm pretty sure. It'd be kind of painful.

But for the last 15-year Snackers, Tesla was like, it was kind of like Walter White, we're thinking. It had a fantastic product. No one could argue with. Great stuff. But it seemed constantly on the brink of doom. Well, Tesla just finished its first full year of profits since being created back in 2003. And prior to that, when it was unprofitable consistently,

it always had to ask investors with a tin cup for more millions of dollars. Every six months, Elon would put on a fancy new shirt, go to investors, sell new shares, and ask for new loans. He's like, I'm good for it. I'm a good guy. And every time, you wondered if investors would finally say, no, I am done giving you money, but they never did. Never did. And now you got a situation where Tesla has blue skies ahead, it's firmly a viable car company, the biggest in the world by market cap value. And that relief from Wall Street has manifested itself in a gigantic stock price boom. It was $225 a year ago. It is $2,200 today. Its stock price is too high now. It's a nice problem to have. Which brings us a little further in the area to Apple,

which transformed from iPhone Maker to Tech Club for the world's high income. Remember when Steve Jobs turned Apple into the most valuable public company in the world with the iPhone and then the iPad? Jack remember it well and then unfortunately he passed away. When he passed away, everyone waited for his successor, Tim Cook, the current CEO, for him to finally unveil like the next big thing from Apple. Everyone thought it was going to be a car, but no big thing ever came. Didn't even end up matter. Yeah, because iPhone users become Apple fanboys for life. And fanboys love an ecosystem club. So when you buy the headphones in the computer and the services, you're doing it all because of iPhone. And Club Apple is now this informal thing that costs about $1,000 a year as the price of admission because you're spending so much money on all these different Apple ecosystem products. Half of them are dongles. Now, that loyalty has blown Apple stock to new heights. From $208 a year ago to $500 today.

Nice problem to have. Since both company stock prices were so high, Today, wildly at the same time, they are splitting. On Friday, one Tesla stock was $2,200. Today, that same Tesla stock got broken into five pieces for $440 each. On Friday, one Apple stock was $500, but today it's broken into four Apple shares for $125 each. So, Jack, what's the takeaway for our buddies over Tesla and Apple? This stock split has no impact on anything except optics.

Yep, nothing. And optics shouldn't matter. Tesla stock has climbed 63% since announcing the stock split just on August 11th. Now, if that 63% gain is because of this perception that Tesla stock is now more affordable, then that means investors are misunderstanding the situation. Yeah, Snackers, after a stock split, shares are at a lower price, but you own proportionally a smaller piece of the same company. This stock split is effectively like, it used to be a six pack for $6. Not bad. And now suddenly you can buy just one of them for $1 because it's the same thing. You're getting the same value for each share of Tesla and Apple, but it's coming in a smaller proportional ownership of the company. In fact, to emphasize even further how no impact this stock's but technically should be, the whole splitting wasn't even necessary because of fractional shares.

Fractional shares is widespread available now. So you could buy like any amount of Tesla or any amount of Apple that you want. Yeah, not just the nice whole round number. The only thing different is like the psychological effect when we have to see a certain stock price at a specific number. But that shouldn't matter because stock can be split into any size, which will change the price. Jack, can you whip up the takeaways for us to start the week, please? The gap managed to sell $130 million of face masks last quarter. But its real value is in Athleta, which could be the lift to Lulu Lemons Uber. Second story, Abbott Labs is selling a $5 COVID test that shows results in 15 minutes. Vaccines are the COVID crusher, but testing is king until then. Tesla just cut each share today into

five smaller ones, and Apple did the same into four smaller ones. But nothing has changed except the optics. Now, time for our snack fact of the day. This one sent in by Nikki Bogopolskaya. As a Cabot-Chatter fan, it hurts me to say this, but the world. The world's most expensive cheese is a cheese called puel. Yeah, it rolls off the tongue, just pure. It retails at a minimum of, you know, give or take $600 a pound. Now, I'm wondering if it's supposed to be called mule cheese, because this comes from the milk of an endangered Serbian donkey. It actually sounds like a joke, because you'd think this would come from an endangered Serbian monarchy, and it does. Before we go, Snackers, Jocelyn and Jake just got engaged

in New York City. Congrats, Snackers. Congrats to Nate Goopman for graduating with a master's in sports business. And Laurel Hammond's first day at B school in Charlotte, North Carolina. Happy getting into law school, Camilla Payas from Miami, Florida. And Scott got his first day of senior year at George Washington, but he's from Newton, Pennsylvania. Xavier Hernandez is definitely one of those Apple fan boys. It's his birthday and Apple stock.

He owns one share. Now he owns four shares. Happy birthday to Tate Steinauer in Richmond, Virginia. And Theron in Sterling Heights, Michigan. And Cordell Zelensky in Lane, Oklahoma. and Rihani Arya in Chandigar, India, and Bargaret Burling Game in Indianapolis, Indiana, and Parker Steinberg in Boulder, Colorado.

And happy birthday, Mary Cologne in San Francisco, California. Nick, I think the Snackers are satisfied, because that was a little better than Friday snacks. Jack, it's about these marginal improvements we make every week. Snackers, if you got a buddy who's not snacking yet, ask them H-Y-H-Y-S-D. To have you had your snacks daily. And we'll see you tomorrow. If you know, you know.

This is Jack. Nick and I both own stock. of Lou Lemon and Nick on stock of Apple. 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.