The Best One Yet - 🐝 “Hot Vax Summer” — Bumble’s friend zone. Bitcoin’s Hummer of crypto. Hertz’s 50% comeback.

Episode Date: May 14, 2021

Bumble’s first ever earnings report reveals it’s pivoting from finding you true love to finding you a friend. Bitcoin plummeted 15% because Elon’s on the hunt for the Tesla of crypto. And Hertz stock miraculously rebounded 50% this week after it pulled off the most unique bankruptcy we’ve ever seen (but you still can’t rent a Corolla this weekend under $2K). $BMBL $BTC $ETH $TSLA $HTZGQGot 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, May 14th. Kick it off with some bad news. Bad news. Taxes, they're due on Monday.

Followed up with some good news. This is actually our best pod yet, the best one we've ever done. Death, taxes, and T-boys. For our first story, the CDC just announced that fully vaccinated people don't need to wear masks or socially distance in most situations. The early takeaway here, Jack, hot vac summer is coming, baby. So we jumped into dating app Bumbles's latest earnings. Got a second story, Jack. What do we got? Bitcoin dropped 15% because Elon Musk, he's flip-flopped on his love for Bitcoin. Okay, but here's the real story here that we found. It's the search

for the Tesla of crypto. Third and final story, hurts. The rental car company stock jumped 50% yesterday because bankruptcy isn't the end. No, it's not. It's the new beginning. But you still can't get a corolla this weekend for under like $2,000. That's the problem, Jack. Never prepay for gas. But before we hit that wonderful mix of stories today, Jack, is little river in the room? Is the puppy in the room? River bark twice if you're in Milwaukee. Actually, no, you're going to have to cover ears for this one. Snackers, we told you last year about a pandemic, adopt a pet, a paloosa, which I part took in.

Yes, Jack, I remember it like it was last year. Record dog adoptions for 2020. Even your cat rescued an iguana. That's adorable. But then get this, Snackers. Jack and I just noticed that we have now set a record for pet returns. It's an unfortunate bit of news, but pet surrenders at dog shelter. have nearly doubled so far in 2021 compared to last year. Sorry, sir. What's your Rottweiler return policy over here?

Well, if you return a puppy, you must delete her Instagram account. That's a must. If you ditch the dog, you've got to forfeiter followers. Everyone knows that. Non-negotiable. Now, sadly, Snackers, this isn't a big surprise because dog parenting, it isn't that easy. And not just any pandemic pooper can get on board.

No, the poop bags, the 2 a.m., the 20 degrees out, you've been there. We've been there. It is so hard. to open a poop bag in the middle of the night. Okay, so I don't want to get all like Sarah McLaughlin on us here, but we kind of need a second wave of adopt a pet paloosa right now. Snackers, the silver lining here, if you felt that you missed the rescue a puppy moment from last year,

well, then there may be a refurbished pre-owned certified pup with your name on it. Parents, assemble. Not a chewy ad. 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. It's actually about to hear rain food. air candy. They don't reflect the views of the Rob of Hood family. It's all informational just so.

We're not recommending any securities. Nope. 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 Fenra slash SIPC. For our first story, Bumble just dropped its first ever earnings report after that IPO. Bumble is showing that dating apps eventually must be social media apps. Based in Austin, Bumble, they let women make the first move and apparently Jack, they drop absurdly big numbers in their first ever earnings report. Okay, you can download and date on Bumble for free, but total paying users surged 30% to 2.8 million people. And those paying users drove a 40% revenue surge over at Bumble. Again, a lot of free users,

but the paying ones are spending 10 bucks a month on average. Are you going to do Netflix, or are you going to find the love of your life, different values? And yet, But despite those fabulous numbers, the stock fell 16%. And now it's down 50% from the all-time high after the IPO. We repeat, the stock has lost half of its value from the highest it had ever been over at Bumble. We're thinking the reason, expectations for dating this summer are so high. Even from the suits on Wall Street, they're expecting a hot back summer. Like your aunt who's like, when are you going to get married?

Are you going to get married? Where are the kids? I want the kids. Pfizer Flanks, the early 2021 word of the year. You know they're coming. Basically, what they're hoping for at Bumble is there is an entire generation coming of Bumble boomers. So Wall Street's hard to please. Yeah, they are. But meanwhile, we're seeing a subtle Bumble makeover that's underway. That's right, because Jack and I got curious, we jumped in Snackstyle and noticed that Bumble mentioned dating 13 times on their

earnings call, but they mentioned friend also 13 times on their earnings call. The Bumble CEO said they see early signs that the friendship space is the next social growth horizon. I mean, Jack, we know people out there, they're a little skeptical. Get this. The data is showing there are spikes in demand for friend finding on Bumble that are similar to the trends that Bumble saw with dating a decade ago. That's why their 2021 focus is Bumble BFF. That's their friend discovery app for finding a buddy to work out with or a gal to watch a movie with.

Basically a friend zone version of Tinder. Bumble BFF already exists. And in the first quarter, 90% of women who used it found a match. In other words, like started chatting with a potential friend. I mean, honestly, Snackers, if you're using this, we'd like to know because apparently the time spent on Bumbo BFF jumped 44% for women. It nearly doubled for men. And we understand why. In the past year, we've been cooped up.

How many friends have you made in the past year? Okay. Here's a little game. Turn to the person next to you who you definitely have known for more than a year and ask, name one new name that you're even aware of this year. I met someone in my birthing class, which occurred on Zoom. And I bumped into them in a bookstore a couple weeks later. Literally 90% of my day is talking to you on this podcast. That's true.

Our friendship, dear. Wow. Now, Snackers, just like we expect the surge in relationships and romance this summer, Bumble is preparing for a, quote, surge in platonic relationships too. Waiting for the first podcast co-host to come out at Bumble BFF. That's why the bull case for Bumble stock is that they will find just as much success in friendship as they already have so far in dating.

So, Jack, what's the takeaway for our buddies over at Bumble? There are no more dating apps. Dating apps must become social media apps. Here's the thing, Snackers. For most people, dating is a small portion of your life, maybe like a couple decades of your life. Unless you're Samantha. Yes. Then a little longer. But for friendships, that's like a lifetime thing. We're talking, you can be doing that for decades, 6, 7, 8, as many as you want. If you're lucky. And remember, the existential issue when it comes to dating apps, when they succeed, the customer rewards you by deleting the app. Boom, you found Mr. Mrs. Wright. Purge your iPhone of the hinge, the Tinder, the snack, the Bumble dating apps. Bumble is now focused on Friends because Friends can keep you on Bumble for a few more decades.

All right, so Jack and I are expecting, we're going to see this kind of chatter about friends more on other dating apps. And if a dating app pivots to friending, then it's not really a dating app anymore. No, no, no, no, no. Jack, that is a social media app. After all, the best dates are the ones that lead to your lifelong best friend. Boom, like a poet. Jack like a poem. For our second story, Elon's tweet destroyed, get this, a quarter trillion with a T

T dollars of crypto value in like hours. The story starts with Bitcoin. It does. It ends with alt coins. I like a little bit of a hookjack, a little bit of a tease. Now, we got to travel back way back to February 9th. Do you remember where you were? I was at home.

We were probably recording this spot. Bitcoin jumped 20% on where Tesla is going to extend. the cryptocurrency as payment for cars. Okay, so you want one model Y with a long range battery, I wouldn't. Fancy rims, white trim. Let's do it. That'll be one Bitcoin, please.

Well, that was February 9th. And on Wednesday this week, Elon did a complete 180 on that decision. Yes, he did. He said that Bitcoin will no longer be accepted for payment at Tesla. Really only took like three months and three days for them to reverse that decision. That was a heck of a three months and three days. If you bought a Tesla with Bitcoin, that's a collector's item. That is a good story.

Keep that receipt. Now, as Jack and I discussed right here on our Earth Day pod, computers used to mine Bitcoin, they consume an immense amount of electricity. That's why Elon tweeted on Wednesday. He's concerned by the rapidly increasing use of fossil fuels, especially coal for Bitcoin mining and transactions. And then he cited Cambridge University data basically just like we did, Jack, when we covered this. Yeah, which pointed out that the amount of electricity consumed by the Bitcoin network

is more than the country of Sweden. All of Sweden. Now, sure, some Bitcoin miners are plugged into an electricity source that comes from renewable energy, like solar, hydro, or wind. But that is like your mom and pop miners. The Foxcons of Bitcoin mining, they're running on a much dirtier mix of energy use. So it turns out Bitcoin is at odds with Tesla's mission statement, which is to accelerate the world's transition to sustainable energy.

Which is also kind of a strange, awkward situation then. Yeah, because everything we just explained was also true. on February 9th when Tesla started accepting Bitcoins. So like, what's the new info here? But here's the funny thing about Bitcoin Snackers. Bitcoin's price, it's extremely sensitive specifically to Elon's tweets. Yeah, on February 9th, it popped 20%, Bitcoin did. Yes, it did. On May 12th, it sank by 15% both because of Elon's tweets. Oh, yeah, it wasn't just Bitcoin. The whole overall crypto market plummeted, lost $300 billion worth of value in the last day. We're talking half of Facebook. Don't even tell us about the And that drop is because Elon's actions on Wednesday highlighted cryptocurrency's new conflict.

And here's the conflict. CFOs of all these corporations, they're under pressure to diversify their assets by embracing Bitcoin. But those same CFOs are also under pressure to reduce their carbon footprint. Now, Elon still thinks that crypto is a good idea, which leads to the four most important words in Elon's Bitcoin tweet. He finished off his tweet with, we are looking at other cryptocurrencies. Key words that use less energy. Bitcoin. Looking at other cryptocurrencies. So, Jack, what's the takeaway for our buddies who are all the cryptocurrencies? Bitcoin may be the gas guzzler of cryptocurrencies. But there may be Prius is out there, too. Also on our Earth Daypot, we wondered if Bitcoin was the gas guzzler of our generation.

Elon basically called it there. He said Bitcoin is a Chevy suburban. I'm not happy with the 9 miles per gallon. So he's looking for the Prius option. His tweet led to a surge of interest in other cryptocurrencies with smaller carbon footprints just in the last 48 hours. Which coin will Elon choose for Tesla to replace Bitcoin as Tesla's preferred cryptocurrency? Fantastic beginning to new bachelor series. Crypto is ironically like cars. It is. Some cryptocurrencies require huge amounts of energy to move.

Others require less. Like you got Chia, for example, which is a new lower energy use coin that's been getting a lot of buzz. Or Ethereum 2.0, another cryptocurrency that requires less energy than Bitcoin. So Elon's tweet, that tweet hurt Bitcoin. But it also highlighted the hunt for more sustainable alt coins. Our third and final story before the weekend, Hertz didn't just surge 5%, 10%. It surged 50% last week.

The rental car company had the most unprecedented bankruptcy exit we've ever seen. Here's the funny thing about Hertz. A couple months ago, you could buy Hertz stock for like, honestly, a couple quarters. Snackers, it was bankrupt. That's why it was so cheap. It was one of the biggest Chapter 11 bankruptcies of the pandemic. Pretty straightforward, ipso facto here. Lockdowns led to no traffic.

travel, which led to no jumping into a disappointing mid-sized sedan rental. So Hertz declared bankruptcy in May of last year. They told the judge that we have more debt that we can repay. So a judge, we are at your mercy. Tell us what to do. I asked for the G. Patriot, this looks like a carola. They say or similar. It's their version of adjusted jack. So after you put yourself at the judge's mercy, the judge prioritizes always during bankruptcy hearings paying back the lenders. That's the first priority. That's just how it goes. That's the way it goes. It's like an evil sorting hat kind of a thing. But quickly, as the bankruptcy court proceedings transpired,

this was weird. It became clear that Hertz rental cars value, which continued operating during the bankruptcy, was soaring. We've never really seen anything like this before. The rental car demand was coming back fast and big just as Hertz was going through bankruptcy. So in Hertz's particular situation, the bankruptcy was no longer just about trying to pay back the IOUs. No, no, no, no, it was different. It became an auction to control Hertz and it was going to the highest bidder.

And that's what led to this week when two investment firms with cliche private equity names jumped in to acquire Hertz with a shocking $6 billion plan that we've never seen before. One week ago before the deal was announced, Hertz stock was trading at $3.50. Okay, now get this. This deal to acquire Hertz, pay stockholders $8 a share. Now, we have to rewind again. Please, Jack. Because during bankruptcy last year, Hertz's his stock.

was having a moment. It blew up on trades from retail investors for no particular reason. I mean, Jack, we just have to call it like it is. The press was calling Hertz the original meme stock. Analysts ridiculed these traders who were buying Hertz because it was in bankruptcy. They actually just got mean about it. And in the original meme craze of Hertz summer 2020, the stock peaked at an interesting $6 a share. Well, today, it's above that. It's $6.40. If so facto, it looks like the meme traders were actually right all along. So, Jack, what's the takeaway for our buddies over at Hertz? A perfect storm of forces led to this unprecedented bankruptcy. Okay, Snaggers, funny thing here about Hertz, rental cars, they become like the toilet paper of travel.

And that's a compliment. We're going to walk through a sequence of events that led to rental cars prices soaring to 250 bucks a day right now. Jack, apparently in Hawaii, people are renting U-Hauls because they can't get rental cars. First, let's look at the supply of rental cars. Please. Chip shortages in the auto industry have boosted the demand for used cars. Just last month, the price of a used car jumped by 10%. So rental agencies, they sold to huge numbers of their fleets of cars to take advantage

of that price search. Okay, so not enough rental cars. On the demand side, people are dying to travel right now, but locally, not international. Yeah, you can't pop over to Paraguay, so you need a rental car so you can drive around Philadelphia. Recap. Unprecedented pandemic caused an unprecedented shortage of rental cars, which led to an unprecedented demand for rental cars. Which leads to the result, Jack, unprecedented bankruptcy where shareholders actually won.

Jack, can you whip up the takeaways for us before the weekend, please? Bumble's got 2.8 million people paying for that dating app. Dating's just the beginning. Dating apps are becoming friends apps. Elon must tweet that Tesla is no longer accepting Bitcoin. Send Bitcoin down 15. And Tesla, it's looking for the Tesla of crypto. For our third and final story, Hertz's rental car is back, baby. Yes, it is. A perfect storm of forces led to this honestly unprecedented bankruptcy.

Now, time for our snack fact of the day. Jack, this one sent in by a legendary snacker, Tiffany Schmidt from lovely Ann Arbor, Michigan. Tiffany, take it from here. Hey, snackers, dropping a snack fact about Asian Greek life. Many of these Asian American fraternities and sororities formed in the early part of the 20th century. as people of color have historically been excluded from a quintessential part of the American College experience, Greek life. The first Rerosa fraternity founded at Cornell in 1916 and

Kaya Alpha Delta sorority at UCLA founded in 1928. Fast forward to today, there are over 60 Asian Greek interests fraternities and sororities that continue to drive a sense of belonging and hold important space for Asian American students. Snackers, we want you to keep those snack facts come and send them our way. We got a form in the notes of this podcast episode. Just click the link, upload your file, and you'll be into my hot pod. By the way, Jack, it's Friday. We got to celebrate the wins. You know what, when we're celebrating, right? I'm not sure. I think this was our best week of podcast downloads ever. It was. That is true. We just acknowledged that ourselves. Yeah, baby. It's a big number. I'm pretty pumped about it. Snackers, thanks for taking part.

Let's go get some Robux. And before we go, congrats to Snacker at Madison Wade, who just got nominated for an Emmy in Sacramento. And big ups to Eric Saliba, who just got a pilot's license in Tennessee. And Devin Bradford, new job with the Seattle Sounders soccer team. Happy anniversary to Ben and Noel in Carson, California. And Tyler Yidey first week as a paramedic in California. Nate and Marin Burton just got married on Thursday in Wilton, California.

And happy birthday to Ryan Davidson in lovely Cincinnati. And Banco Maja in Richardson, Texas. And John Galardi in Wilmington, North Carolina. Mike Pittman and Devante Lee. Yep. Don't know if they're twins, but they both are celebrating something. in Houston, Texas. Not even related.

Shweddy Mani. Happy birthday in Mumbai, India. Happy birthday, Tyler Erickson in Charleston, South Carolina. And Luna, Goodale, in San Francisco. I can see ya, waving. And Mia Chow in Los Angeles. And Rich Up in the Bay Area. And Bryce Gooden in Bartlesville, Oklahoma.

I love that name. And Sawyer Guard Side in Hooper, Utah. And Lee Rose Bloom in Boyden, Iowa. Happy birthday. And Alex Froaning, happy birthday. We know you're on your way to a celebration in Napa for some wine. Sip it well. Yes.

Alex. Sip it well. This is Jack. I own stock a Bumble, and Nick owns an Ethereum named Ethel. 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, 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.