The Best One Yet - “I will protect this Peloton” — Under Armour’s shoe deal. Kustomer’s Facebook love. S&P Global’s $44B splurge.

Episode Date: December 1, 2020

Probably because they watched that Michael Jordan documentary, Under Armour is launching a Steph Curry shoe brand (but we’ve got a long-term solution for them). Facebook is reportedly dropping $1B for Kustomer because it’s the cherry on Zuck’s 2020 strategy sundae. And S&P Global whipped up the biggest deal of the year at a cool $44B.$UA $PTON $FB $SPGIGot a SnackFact? Tweet it @RobinhoodSnacks @TBOYJack @NickOfNewYorkWant a shoutout on the pod? Fill out this form: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 Tuesday, December 1st. Happy Teaboard Tuesday. Nick, would you look at that? The Dow just had its best month since 1987. Jack, we weren't even born yet.

We weren't even a thing back then. I guess we'll give credit to the election. Bitcoin, by the way, now a thing. Yeah, had the best month because people talked about it over Thanksgiving. Number one driver of Bitcoin, people talking at national holidays. Nick, this happens to be the best one yet. So I'm going to get into our first story. Under Armour must have been watching that Michael Jordan documentary on ESPN.

They're giving Steph Curry a shoe brand, but first, Jack and I've got a longer-term idea. For our second story is S&P Global. Our buddy Timmy used to work there, and they just dropped a huge $44 billion for the biggest acquisition of 2020. I mean, Jack and I saw so many superlives here. We had to cover us. We really had no other option, but we found a fantastic story in there for you. For our third and final story, in 2012, Facebook acquired Instagram for $1 billion. Well, now Facebook's buying customer with a customer.

K for $1 billion. And customer with a K reveals what Zuck is actually focused on. But Snackers, before we jump into that, honestly, Jack, a wonderful mix of stories today. Jack and I have got a breaking update for you. We're seeing a huge increase in testing this year at Chipotle. At Chipotle. Snackers, Chipotle has basically turned the United States into a regional petri dish of which Jack and I have jumped into snack style. Here's where it's going down. In Detroit and San Diego, they're testing Casso Blanca. Spanish for the white cheese, L white cheese. In Cleveland and Indianapolis, they're testing casidias. Honestly, we don't know what it took so long. This should have been product number one. This should have been their

first product. Nick out west in Colorado and Wisconsin, cilantro lime cauliflower rice. Collieflower taste just as good, but it's also a vegetable, but no one asked cauliflower if it like wanted to be all these things, by the way. It's a vegetable and taste like a meat. I'm a big fan. Someone should ask it. Well, meanwhile, Jack and I just noticed yesterday in Cincinnati and lovely Sacramento, Chipotle is testing smoked brisket starting this week. Now, they're starting in just two cities, Nick, because it takes approximately 17 hours to cook like one pound of brisket. And we all have one friend who will remind you of that every time they make you brisket.

Tex-Mex in Central Ohio, good call. But here's what Jack and I find fascinating about this. Between 2016 and 2019, Chipotle didn't add a single new menu item. But they've spent 2020 like the rest of us, playing chef boy in our kitchen, trying out new recipes. Which leads to the takeaway here, Jack, what's the one thing that is never going to change over at Chipotle? Gwok is always extra.

Snackers, in life, it's always extra. 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 are 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. Nope. 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 FINRA slash SIPC. For our first story, Under Armour just launched Curry Brand, hoping to achieve what Nike did with Michael Jordan.

We think, though, Under Armour should be spinning. Not playing basketball. Yes. More on that in a sec. In the meantime, though, Snack is if you're selling basketball shoes, you're basically thinking about one thing. You're focused on the cool factor. Will the other kids on the basketball court think I look cool in these shoes? That's my only question I asked the shoe guy. The second driver of the shoe market, peer pressure, powerful driver. Exactly. Now, Nike struck gold back in 1984

when they signed 21-year-old Michael Jordan before his six NBA finals and two gold medals. Second thing that's happened on this pod, Jack and I weren't born for it. But in the meantime, Under Armour is now trying to replicate that situation, but with Steph Curry, who happens to be a modern-day cool dude. He's not tall enough to dunk, so he just shoots threes. Honestly, any kid can relate to this. He went to Davidson, a small college in North Carolina. Yes, it is so small the campus shares like one Netflix pass. Which is definitely something any kid can relate to. So its new subbrand is going to be called curry. We're talking footwear, apparel, and accessories over at under. Not the flavor. We're talking the gear.

Right. And an unspecified percentage of revenue of curry brand gear is going to be, quote, unquote, invested in under-resourced communities. Now, they did unspecify that, so Jack and I are going to give them some credit, but we're not going to give them full credit quite yet. I hope it's not like less than 1%. Come on, guys. No, we don't want a rounding situation here.

We want a full situation. We want a full absolute number. But Nick, Michael Jordan was 21 when he got signed. They bought low, if you will. Steph Curry's 32. So Jack and I were thinking, they're going to milk maybe a couple years out of these shoes. We're talking less franchise, more one to two-year opportunity.

Peak years of productivity are in his review. you, man. But Snackers, here's what Jack and I find fascinating to focus on about Under Armour. This company needs a spark, and we've been saying it now for a little bit too longer than we're comfortable with. Under Armour became famous by decking out big high school football and the cross players with spandex so they could show off their muscles to everybody. I will protect this house. We will wick your sweat. But performance gear is out. Chill gear is in. Under Armour is too much aft, not enough leisure. Jack, you count your steps. You don't count your hand cleanses. Look sharp. over play sharp. Technically, if you look sharp, you play sharp. That's true. Now, Under Armour stock is down

63% in the past five years. And it's a straight up fair comparison here, Snackers. Rivals Nike and Lulu Lemon, they're up 100% and 600% in that same time period. As we said, Under Armour needs a spark. So, Jack, what's the takeaway for our Baltimore buddies over an Under Armour? The perfect place for Under Armour is Pelotom. Snackers last year, Under Armour's founder, Kevin Plank, said something that honestly, it completely shocked Jack and I. Jack, the honors on the quote. He said we need to become a louder brand. Sorry, Kevin. I didn't know the volume stick toggle went up that much. That's insane. We expected the opposite. It's like, chill out, Under Armour. Be a little more like Lulu Lemon or Nike. Do less. Do less. But if you're going to be louder, Jack and I think we found

the perfect customer for Under Armour's obsession with exercise and performance. And that customer who's perfect would be Peloton. Pelotoners exercised from home. Yeah, where looks aren't as important as like performance because you're not seeing anyone else at home. And Pelotoners are focused on like rankings and calorie burning data. So that's the kind of person who would enjoy, you know, some performance gear. Also, Mirror, which is a Peloton competitor, just got acquired by an apparel company Lulule lemon. And Lulu Lemon happens to be Under Armour's main competition. We think Under Armour should partner or get acquired by Peloton. And honestly, Jack and I checked out the numbers, Peloton can afford it.

There were $34 billion. Under Armour's worth only $7 billion based on yesterday's stock prices. As a case study here, SoulCycle, another Peloton competitor, they were making 20 to 40% of their revenue on apparel, and Peloton doesn't even sell apparel yet. So apparel is a fantastic high margin way to make more money off of a rapidly loyal user base, which Peloton happens to have. And on the Under Armour sign with Peloton,

under Armour wouldn't have to compete one-on-one against Michael Jordan, something you don't want to do. For our second story, Facebook's latest acquisition is for a straight-up cool $1 billion. The startup is called customer, customer with a K, and it reveals where Facebook is actually focused right now. All right, snack, because he just got back from like, or you just finished, just hung up on your Zoom Thanksgiving. And honestly, there's probably like one movie that was brought up, two movies that you were yelled at for watching. What do you think was brought up, Nick? Honestly, he was like, have you watched the Queens Gamut or are you watching the Crown? If it's not across the pond, it didn't count. Everyone in my family is also obsessed with English royalty.

The best part is like, we already know what's going to happen, and yet we still don't want to know what's going to happen. But another leading contender for Thanksgiving conversations was the movie, The Social Dilemma. It's a charming Netflix documentary about how, you know, Facebook and social media companies may be stalking you, maybe getting you addicted, and maybe hurting you, it's a laugh right. Yeah, I've talked about it with a bunch of people and other dominant stories of Facebook in 2020, moneyneck. You know, misinformation, disinformation, political ads, tech addiction, and I'm thinking anti-competitive behavior. A.k.a. crushing the competition by acting like a monopoly. That's right. So Snackers, you know, you add that all up. Maybe those people Jack just said he's talking to about

the movie social dilemma. You may be surprised what Facebook just dropped a billion dollars on. Customer. Customer with a K. With a K. Very 2000s. They had to do the K. Snackers, customer isn't for you, but you may be interacting with it across one of Facebook's apps. And that's because customer takes a company's customer service chatbots that you may be interacting with on social media and it unifies them in a single cockpit. Let's say, Sam Slammin' Samin' Sweeters is trying to boost sales by selling them online on these apps. So it's going to have an ad in Instagram. Maybe it offers like a discount code on Facebook, but then they're going to actually complete sales, maybe on WhatsApp, all of which are owned by Facebook. With customer, customer with a K, Facebook can help

one chatbot conversation that started on Instagram about a Facebook purchase, get resolved on WhatsApp. And the reason why Jack and I thought this smaller $1 billion acquisition was so important is because we've noticed Facebook has been building out an e-commerce focused ice cream Sunday. And customer, customer with a K, is the cherry on top of that e-commerce ice cream Sunday. Like, every time I say my last name, Kramer, I say Kramer with a K. But the CEO of customer was really happy we covered this company, is now really unhappy we covered this company. Earlier this year, Snackers, Facebook announced shops to get Sam selling his slam and salmon sweater across Zuck's empire of apps. But now Facebook needs customer service

skills to keep Sam selling those slam and Sam and sweaters across Zuck's empire of apps. Nick, I'll tell you that, Slam and Sam is a splendid sunny. So, Jack, what's the takeaway for our buddies over at Facebook? Facebook's next billion users, their businesses. They're businesses. Snackers, Facebook loves to talk about reaching the next billion. Facebook has 2.7 billion users right now. So if you're like talking India, Africa, Latin America, those are the emerging market opportunities that you typically think Facebook's focusing on getting into.

But Facebook's moves in 2020, they're all about making the next billion users, companies, not humans. And after a brutal year of PR, Jack and I are thinking that supporting a billion businesses would actually be a thoughtful, strategical for Facebook instead. It could change the narrative by diverse, diversifying revenues away from addicting like creepy ads to e-commerce fees instead.

And they'd be supporting mom and pop shops. Facebook's got 200 million businesses so far on Facebook's apps. And business services like customer with a K could help get that up to a billion. For our third and final story, we've got ourselves the biggest acquisition of 2020. And it's all about one thing. It's all around the D word data. S&P Global is snatching up a minor financial data for $44 billion. billion dollars. Forty-four billion dollars. Snackers, we got to rewind to 1980. Another thing we weren't

a lot for. This podcast, it's keeping me young jack. Mikey Bloomberg just launched the terminal. A special computer with a fancy keyboard that people like to post on Instagram to prove that they work at a top financial institution. Press the red buttons and then press the green buttons and you look like you know you're doing. That's how you do it. Snacker, the Bloomberg terminals is legendary. It costs like $100,000 and like $3,000 a year. It gives you top data for finance professionals. And it matches with like every TV commercial you saw out there growing up, including before Jack and I were born, which was all about having an edge.

Every finance company, they're like, with us, you'll get that edge that you need. You're probably a guy, you're probably have gray hair and you're going to want an edge. Now, besides Bloomberg, which is a privately held company, mostly by Mike Bloomberg, former mayor of New York City, S&P Global is the number one biggest financial information company, a.k.a. Finfo. Finfo. Financial info. Financial info company. So standard and pores, which are the S&P and S&P, they get to spend their time rating countries, rating companies, rating institutions. They're rating how likely these places are to actually pay you back for the money they're borrowing.

For a hefty subscription fee, S&P will also equip like equity analysts, stock managers, fund managers with the top financial data. And back when Jack and I worked on Wall Street and had to shave on a daily basis, S&P was also charging us for like real-time data to their S&P 500 stock market index, which you know so well. Now S&P Global is snatching up a company with the worst name ever, IHS Market. And because in our previous story, they spelled customer with a K, IHS Market spells Market M-A-R-K-I-T, as well as having an acronym in the prefix of their name.

It's a brutal name. Now, this company is based in London. Finfo company. They're publicly traded and the stock jump 7% on news they were getting acquired by SMP Global. And honestly, Jack and I checked out the company further. Most Wall Street firms are using IHS market for information on prices and trades as stocks and bonds. More Finfo financial info. But it's not just Wall Street. No, Snackers, you actually are more connected to IHS market than you realize. Big banks do use IHS market to get data for companies that are about to IPO. So, for example, we've been talking about how Airbnb is likely going to go public next month.

Well, they've already started sharing information publicly with potential investors through their S-1 paperwork, which Jack and I jumped into snack style just a couple weeks ago. In the S-1, you see something like the travel market is $1.5 billion, a lot of space for Airbnb to make money. Well, that helpful information was put in there by the investment banks helping Airbnb go public, and they probably got that data from IHS market. You may decide to buy or not buy Airbnb stock, thanks to data coming from IHS market. So Jack, what's the takeaway for the biggest acquisition of 2020? In finance, data and information are the best competitive advantages. Snackers, lots of people think they can beat the stock market, but honestly, most people are not going to

beat the stock market. Those who do are probably the ones that had the best information and the best data. And that's why the big people up in finance are investing billions of dollars every day in data. They're happy to pay millions. on top of that for top data to ensure that they're making good investments with the billions of dollars they're responsible for so that they can earn more billions. Well, Snackers, another company that provides CIA quality data is when we talked about recently called Palantir. It stock just hit a record high. It's up 50% just last week. And that's because companies like IHS market and Palantir, they know who their customer is. If you're selling financial information

and data to finance companies, those finance companies will be willing to pay a lot for for it. An S&P global stock is at a record high and can afford the biggest acquisition of 2020 because big Wall Street money wants a big competitive advantage. They want the edge. Jack, can you whip up the takeaways for us over there? Under Armour just launched the Curry brand to play one-on-one against Air Jordan and basketball. Yeah, instead, we think they should tap into the rabbit and swall Peloton user base. For our second story, Facebook has 2.7 billion users so far, and it's looking at the next billion. For that, it's focused on businesses, not humans. For our third Final Story, S&P Global is the biggest

Finfo stock there is. KYC, know your customer, sell financial Finfo to Wall Street for a very high price. Now, time for our snack fact of the day, which is actually a correction from yesterday. We promoted this one. Yeah, Michelle Borman, we're going to assume

in Los Angeles. She pointed out that yesterday we said Salesforce Tower was the tallest building west of the Mississippi. Right. It's in San Francisco and it's the global headquarters of Salesforce. Turns out Jack and I got two things wrong here. First, Wilshire Grand Tower in Los Angeles is taller and by 30 feet, and it's also west of the Mississippi. And second, Salesforce doesn't own the Salesforce Tower, like we said. It's just named after Salesforce.

They're probably paying millions for that. Naming rights. It's owned by Boston properties. And that's why today's podcast is better than yesterday's podcast. Thank you, Kevin Bennett for that second correction. Oh, by the way, Nick, how many buildings in New York City are taller than neither of these buildings? And we don't want to brag here, but it's like, it's like eight. It's eight. And two of those were built before World War II, right? They're probably building another one right now. Snackers, you looked fantastic on T-Boy Tuesday. We can't wait through this tomorrow.

Jack, Slammon, Sam, and it's going to be great. Always slamming salmon. We'll see you there, Snackers. Can't wait. And before we go, Snackers, big congrats to Snackers, Ken and Sandy, who are just kicking off the Around the World trip starting in Dubai. Impressive. Congrats Jacqueline Helpern, who's just kicked off a new job at Salesforce.

Perfect timing. This is great, Kevin. You're listening to yesterday's pop. And congrats, Erica and Michael Kellam, Go Blue from Discovery Bay, California, who just got engaged on Thanksgiving. And happy birthday to Jose Renato di Camaragos in Belarusonte, Brazil. Herzich and gluck vunct to Laura for tubing in Germany. And happy birthday, Sunny Aliguala, from London, England.

And Scott Jordan from Mayfield, Pennsylvania, and Anthony Whitlow in Syracuse, New York. And Casil Crystal in Scottsdale, Arizona. And congrats Alfred and Fario, who just got engaged while being MBA students in Texas. Happy three-year anniversary to Michelle Benz and Jane Thompson in Boston. and two-year anniversary over to Buns and Caitlin in D.C. Happy six and a half to John and Emily in Los Angeles. And Tanner and Crystal Wright just got engaged in the lovely mountains of New Mexico. And congrats on landing a new humble abode to Chris Bearcaboscovich in Orlando, Florida.

This is Jack, Nick Own Stock of Lulu Lemon and Chipotle. 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.