The Best One Yet - 🛒 “I bought it at Netflix” — Netflix’s store. Tesla’s ultra-luxury car. DiDi’s $100B IPO.

Episode Date: June 14, 2021

Netflix just launched its 1st ever store, which we’re calling the path to Disney-fication. Tesla unveiled a $144K car because ultra-luxury helps you sell your cheapest products too: Peer Price Pressure. And DiDi (“the Uber of China”) filed for what may be the biggest IPO of the year because it does what Uber doesn’t.$DIDI $NFLX $TSLA $DISGot 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. Welcome back. It is Monday, June 14th, Jack. I had a great wedding on Long Island. And Nick, I miss you already. What a great week in New York City.

It was a fantastic week. I missed you too. But Jack, the wedding, a little bit louder now. A little bit louder now. A little bit louder now. A little bit louder now. This is the best one, yeah. TV-O-Y, Jack, what do we got for the first story?

Netflix just whipped up their first ever store. Bridget and Boxers are the first step to Disneyfication. For our second story, D.D. just filed for the biggest IPO of the year. The Uber of China is way more than just the Uber of China. And our third and final story is Tesla, which just unveiled a new and improved Model S makeover. Jack, it's so pricey, it exerts peer price pressure on its lower price Tesla brunties. Pure pressure of pricing.

Triple P's real thing. But Snackers, before we hit those three fantastic stories. Wonderful mix today, Jack. Great to be back. Let's open up the hoarder's almanac because it's weak. 65 of the pandemic. Toil paper and hand sanitizer. We used to be running out of those. Then lumber and labor.

And then chlorine and chicken wings. The newest item that this country is dangerously low in supply. Dangerously low. It may be something that is the most threatening of all things ever hoarded in the United States. It's time to have the talk about porta potties. Yep, Jack. We got a porta potty shortage. In the UK, they call them Porta Johns.

They do. Which offends me because my real name is John. For the rest of us, though, you want to go. You have to go. but the bathroom is gone when there's a porta potty shortage. There's a shortage of port-a-potties in this country because of a classic double-whammy situation. Jack, you got ourselves a new port-a-potty problem. What's the first part of this thing?

The first is a classic supply chain issue we've been seeing all year. All right, Jack, that part that connects to the urinal is stuck on a cargo ship and the straight-of-hormuz. And the second is a major, major demand surge because of hot backs something. You got the concerts, the graduations, the road races, all outdoors, all rescheduled to ASC. AP. And outdoor events require a porta potty or several. Yeah, they do. Oh, by the way, construction, yeah, that's bonkers right now. And construction sites are porta potty hogs. So Snackers, here's what Jack and I are thinking. The next time, you're at a wedding and a groom is about to give a big epic toast. Bolt to the bathroom. Yeah. Okay? Because you're going to get ahead of a line that's longer than the line for drinks after the reception. There's only one porta potty that wedding. And it's about to have an epic situation line. Rule of thumb, think two bathroom. breaks ahead. And we'll 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 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. Robberhood Financial, LLC, member Fembra, for our first story. Netflix just did its first truly physical-ish thing, Jack. Well, they ran a DVD business for like 10 years. That's true. That was adorable. That was a physical thing, technically. First physical thing since the dormant DVD business for Netflix. Netflix is coming out with a store. And it tells us Netflix's five-year plan.

All right, Jack, second half of 2020, can we talk about the saga that has been Netflix? After getting like 50 million people to sign up for Netflix at the beginning of the pandemic. Must be nice. The second half has been about slowing growth. Yeah, it has. Losing share of the streaming market to other streamers. Jack, I'm looking at this right now. Netflix is stock actually down this year.

Wow. Yeah. That's too bad. Well, Netflix only makes money off of subscriptions. That's true. Like HBO, which makes money on subscriptions and ads they're sticking in there. So, funny thing Jack and I've noticed that Netflix also did in the year 2020. They staffed up on this brand new team called

consumer products. Yeah. Led by a Nike executive who knows how to sell shoes and shorts and t-shirts and pants. They staff this thing up to 60 people and get this. Their new thing, their first big thing is store number one. It's called Netflix.com.com. You can go to there right now. There's no com or org or anything in there. It's dot shop. It's ahead of the game. And right now, you can find a bunch of t-shirts, hats, necklaces for two Netflix shows. They're called Eden and Yasuki. Very nice anniversary options, Jack.

I'll have what Simon Bassett's having. But they've also got some like non-standard fan merch coming to Netflix.com. Okay, get this. The French crime show Lupin, which is on Netflix and full disclosure, we haven't seen. They're doing something creative here. Netflix has partnered with the famous Louvre Museum of the Mona Lisa fame. They actually did. To create an end table that's featured in that show.

It's $150 and it's literally going to make you feel like you're in the show. Instead of dropping an entire Disney store online on day one, Netflix is dropping merchandise for fans one show at a time. And I've actually never seen any of these three shows we've talked about so far. I mean, they're doing this like Supreme. It's basically like a streetware drop, but it's for your shmovies. Here's the strategy, though, that really gets Netflix executive is excited about this. This is what Jack and I find fascinating here. Let's say you watch Bridgeton.

You've probably been season one. Let's be honest, you did it in one day. You didn't spread that out. no one has the patience. But if you then go and buy merchandise for Bridgeton, that gives that schmovie staying power for years to come. So Netflix makes a couple bucks and earns a walking billboard out of you for perpetuity.

Promoting shows on Netflix used to cost Netflix money through like ads. Now promoting shows makes Netflix money. Because you become their walking billboard. So Jack, what's the takeaway for our buddies over Netflix? This is Netflix's first step towards a Disneyfication. of their business model. Okay, Jack, CEO, Reid Hastings, he has resisted the urge for so long

to do something physical since the DVD. And now we're getting the Bridgerton Bathrow, but it's more about just sales of Bridgeton Bathurst. Yeah, we think this is the first step in the Disneyfication of Netflix shows and characters. Disney's core product is Mickey Mouse. And it makes money first through movies, but also through theme parks and experiences and products.

Jack, here's the cycle. You got people, fall in love with Disney's characters. That's the first step. And that motivates them to attend Disney World, buy a lunchbox, and play the video game. Netflix, though, finally moving beyond just Stranger Things streaming to Stranger Things Gear. Netflix has also recently hinted that video games are coming for Netflix. I mean, after that, Jack, maybe they buy a ghost town, throw in some AR goggles, scare the crap out of people in a physical Stranger Thames theme park in the middle of Nevada. Can you imagine an immersive theme park experience where a demigorgon comes out of the wall?

in a Netflix world, that could be the next step. Nick, I was about to try to impersonate the Demigorgon sound, but it's like impossible to make that. We would break our editor. Snackers, Netflix's IP just makes money right now through subscriptions, but not anymore. They are Disneyfying their business. By the way, Jack, the crown? Yeah. Like the crown from the crown. I know. Great show. They should sell that. Oh, as an NFT. For our second story, Didi, the Uber of China, just filed to go public in one of the biggest IPOs in history. D.D. hopes to raise $10 billion by getting a $100 billion stock valuation. I mean, Jack, this means we got to jump in snack style.

Can we share the founder's story here? We've got to talk about the founder's story. At the top of the S-1 IPO documentation, the founder tells the story when he was waiting for a cab in Beijing. He got really cold because he had to wait. So we started a ride hail company. Jack, can you share the more likely founder story here? He probably discovered the Uber app and decided to clone it for China. Dedi is now the biggest by far ride hell company in China, which means one thing, you'll want to compare this to Uber to see how it stacks up. DD has 50% more users than Uber does at 156 million. But Didi also has less than half the revenue

that Uber does. But Didi takes a bigger cut of each ride so it's more profitable on a per ride basis than Uber is. Okay. So, funny thing that we noticed about Didi, Didi already beat Uber. Didi Didi acquired Uber China in 2016 when Uber decided to abandon the Chinese market. So this leaves us with this funny situation. Didi's going to win big with an epic potential $100 billion IP. If that happens, their second biggest shareholder will win big too, which is Uber, owns 12% of Didi. But you can't call Didi just some Uber copycat because Didi has gone above and beyond what Uber is doing in any type of mobility.

In China, let's say you're out and you drink a little too much. You can hail D.D. Shofor, which is a designated driver. You're stumbling out of the bar. You get to your car. Maybe you stumble into your phone instead. You hail a D.D. Schofor and some guy shows up in a bike. Yeah. That bike folds up and he puts it in the back of your car.

You're like, I don't want to go home. The D.D. Driver takes your keys and says, you're not driving. I don't want to go home. He puts the bike in the back of the car, drives you home. Yes, he does. Hucks you in. Gives you a glass of water. Uncertain about the last two.

And then jumps on his bike that was in the car and bikes home. If he pours you the water, you're given five stars in that D.D. chauffeur ride. And hopefully you're texting him the next morning and thanking him for giving you a ride home. D.D. chauffeur, that's not something that Uber does. But, Nick, another something Uber does. doesn't do is lose sleep about the Chinese government. Yeah, Jack and I noticed that if you jump into the IPO paperwork, Didi mentions the word

government 140 times, specifically China's. A major uncertainty for Didi is the Chinese legal system, which could hurt Dedy. Because remember, the government for the People's Republic of China turned against another tech company, Ant Financial last year and basically decided they had too much power. So they canceled Ant Financial's IPO. They added a bunch of layers of regulation for Ant Financial. financial and all of that crushed ants stock price. And that is still a risk for Didi. So, Jack, what's the takeaway for our buddies over at Didi? Everyone calls it to Uber of China. We think it

could be the Amazon of the world. Snackers, another funny thing, Jack, and I noticed, five percent of Dedy's business is other initiatives. But those other initiatives turn Didi from a ride app into your life app. If you open up the D D D D.D. app, you see a map. And if you tap on that map, the map becomes a store for just about anything. you're looking at it right now, you got food, you got groceries, you got electronics, you got home goods, Jack. D.D. Drivers will deliver it all to you, whether it's Sprite, a falafel, or a mop to clean your floor. Oh, wait, there's more. Didi also leases 600,000 cars and co-developed its very own electric car

that it then leases to drivers. If you want to become a Didi driver, you can lease a car from Didi. Oh, and Jack, let's say you're a driver. You need to fill up the tank before the next run. D.D. owns 8,000 gas stations. That was the biggest shocker in my view, because that's as many gas stations as there are Starbucks is in the United States. And he can pass because Didi is doing all this globally, baby. Saudi Arabia, Brazil, Japan, Mexico. These are the growth countries for Didi. Pretty much everywhere but the United States and the European Union.

So, Didi, it's not just the Uber of China. This could grow to become the Amazon of the world. And that is the bullish story that DEDA hopes will convince investors to give them $100 billion value. For our third and final story, Tesla just unveiled an $144,000 new toy. It's way more than a toy. For the low price of just four Bitcoin. Yes. One incredibly pricey car can lift prices, actually, for the entire Tesla fleet.

Jack Tesla, the profit streak continues. Seven straight quarters of profits. The last few, though, Nick, have been thanks to something other than the core business. Last quarter, Tesla benefited because of the rise of all the Bitcoins it holds. And the few quarters before that, Tesla benefited by selling regulatory renewable energy credits to other car companies. But Snackers, don't expect either of those two things to continue long term in the future. Tesla needs the car business to become the profit public. Now, you know the classic $70,000 model S Tesla OG sedan? It's been around since 2012.

It was the electric car that for the first time for electric cars was actually good looking and high performing. But then last week, Tesla unveiled the brand new Model S plaid, which is slightly different. Double the price, basically, with capabilities of the old Model S that are just ridiculous. So Snackers, here's how you got to think about Tesla. Think of Tesla as a company that sells computers. The cars are basically a computer. And this new product, it's the same Mac computer. but with blinged out processing capabilities.

So it's really not a new product. It's basically just a whole bunch of new features. The look hasn't really changed, but they've aggressively amped up the model as his performance. Yeah, can I interest you in three motors? Because, you know, one wasn't enough. Maybe 1,000 horsepower. How about zero to 60 in under two seconds?

Snackers, when I was a kid, I got those like car magazines. I've never seen zero to 60 in under two seconds until this car. McLaren, Aston Martin, The only other place I've seen this, Jack, is SpaceX. I'm pretty sure you get G-forces going zero to 60 in under two seconds. You're going to pull a hammy just by sitting there. Oh, it also has a market-leading battery range of 390 miles on one charge. So, Jack, you can go from SF to L.A. on the PCH, NBD.

Most California thing I ever heard. And the infotainment system in this new car, it makes you feel like Tony Stark inside his Iron Man suit. Yes, it does. Jarvis, I'm going to be home in 10 minutes. Why don't you preheat the oven for me? Oh, Jack, I'm about the non-circular yoke steering wheel. You feel like the second coming of Michael Schumacher. The steering wheel, it's not circular snackers.

It's got like an oblonged line on the top. I don't know why they call it yoke. It's actually kind of awkward. And you add all of that up, it's going to cost you $144,000. The fully maxed out Tesla Model S Plaid is $144,000. And it's not about the new things. It's just more absurd things. So, Jack, what's the takeaway for our buddies over Tesla?

Tesla needs an ultra luxury car to boost prices of its cheaper cars. Snackers, Tesla, it's achieved mainstreamification. The Model 3, the Model Y, they're no longer rare. You've seen them a bunch of times. Last year, 89% of Teslas were those lower-priced Model 3 and Model Y cars. They started $39,000 and $52,000, and they are barely profitable based on last year's Tesla results. So the beauty of this new expensive model as Plaid, it isn't that it's going to sell a bunch of new cars for Tesla. No, no, no, no.

We think the beauty of this crazy priced new plaid car is that it reframes consumers' decisions on how they think about the lower price Tesla cars. Because of this crazy new Tesla, a Model 3 buyer might be like, sure, I can splurge $2,500 for the fancy red paint because it's still only a third of the price of the highest end Tesla. I mean, relatively speaking, I'm sorry. still kind of being reasonable. Honey, it's $50,000, not $144,000. Come on. We've seen this before. Chevrolet's expensive Corvette and their gigantic Hummer,

that helps boost prices of their cheaper Chevy Ampala and Chevy Suburban. Super expensive products can lift the whole price ceiling for the lower price products. Jack, can you whip up the takeaways for us to start the week? Netflix's store is the first step to Disney-Fi the revenues beyond streaming video. Video games or theme parks, one could be next. Kind of wish were the theme parks. For our second story, Diddy's S-1 is out there. It's the final step to IPOing the stock on U.S. stock markets.

The Uber of China could become the Amazon for the world. Tesla's 9-year-old Model S just got a ridiculous makeover. Mentally, you're more open to upgrading your Model 3 if it's way more reasonable than the new Model S platt. Honey, it's only 50,000. It's all about mind games when it comes to price. Now, time for our snack fact of the day. This one sent in by both Yage and Samar both on Twitter. Blue-colored berries are called blueberries. Yeah, and technically black-colored berries are black berries. So why are red-colored berries called raspberries and not red berries? Yeah, first of all,

not all raspberries are technically red. You do have some yellow ones. You do have some cute orange and pink ones. And if you don't eat them after three weeks, they become white. But the rasp part of raspberries, that annoying pee, that always kind of finds its way in there, that's related to an old English word rasp, which means rough. Unlike a smooth blueberry, the raspberry's exterior is rough and bumpy. Hence the rasp, hence the raspberry. The next time you have a fruit and yogurt parfe, you're going to be a little smarter. Also, Jack, I think the real takeaway from this podcast, think two bathroom breaks ahead.

You're welcome, Snackers. Nick and I love potting with you. We'll see you tomorrow. We'll see you tomorrow. And if you know, you know. And before we go, happy birthday to Anna over in Hoboken, New Jersey. And Morven Dixon in Wosan, Ohio. And Megan Lee over in Toronto.

And Brenda Barrio in San Diego, California. And happy birthday, Ron Pensari in Draper, Utah. And Mike Esparza in Seattle, Washington. And Rafa Rivera over at Bain, turning 30, put it in a PowerPoint. Happy anniversary to Ashley and Chris in San Diego, California. And to Ellie and Shippa anniversary over in Boston. And happy anniversary to James and Jennifer in Huston. Siena Heights, not sure what state.

No one out. Kelly Tassos, congrats on graduating down in Brooklyn. Congrats to Natalie Agues and Krishna Somajulna for graduating from the Kellogg School in Northwestern. And the entire Kellogg class. And shout out to Ron Reichenbach, whose son has been working on a farm in Hawaii. They haven't seen each other in months, but they're both snacking together. Fantastic story. And to anyone else celebrating anything today, make it a T-Bor.

Celebrate the wins. This is Jack, Island Stock of Netflix and Amazon. 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.

like I'll have what Simon Bass that's having.