The Best One Yet - 💎 “Insta-Pot Diamonds” — Pandora’s lab jewelry. Winnebago’s record record. Microsoft’s $2T platinum pegasus.

Episode Date: June 24, 2021

Already the world’s biggest jeweler, Pandora will never sell another real diamond again… only lab-grown ones. Winnebago is living its best life, so we’re looking at why its motor home stock isn���t. And Microsoft just became a Double-Platinum Pegasus with a $2 trillion valuation which begs 2 questions: Microsoft? How?$PANDY $WGO $MSFT Got 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 24th. Stocks inch down yesterday. But Bitcoin bounce back, baby. Wilder rolled over for the first time.

The kid's top heavy, Nick. It was just gravity doing its job. I'm not saying this is an insult. He did get your head. You do have a large forehead. Yes. He's 98th percent out. He's pretty top heavy.

110th for the head. This pod, by the way, this pod's like the best one we've ever done. This is way better than yesterday. For our first story, Pandora sells more jewelry than any. anyone in the world. But we notice that its next diamonds aren't coming out of a mine. They're coming out of a lab. For our second story, the answer.

Microsoft just hit a $2 trillion valuation. The question. How did Microsoft hit a $2 trillion valuation? For our third and final story, the American dream, it used to be about getting a home and then maybe a boat or a cottage someday. Throw it in. Now it's about getting to Winnebago, which just sold its motorhomes in record numbers. Snackers, before we hit those three stories. Honestly, this is the best.

I love this mix today, Jack. I love it. There's a new trend of theft on the rise from Mexico to Majorca. Here it is. Avocado thieves. Avocado thieves are coming for your toast. Avocados have become the green gold. Avocados are the bitcoins of brunch. The crystals of California rolls. Jack, a man's gone up.

The prices went up all along with it. And according to the Wall Street Journal, that spike in prices of avocado has led to brazen nighttime heists by organized crime. Aggressive. To steal avocados on mass. I mean, we looked into it more. we dove in snack style, instead of drive-by shootings, we're seeing drive-by pickings. And once those avos are laundered, they get sold into the black burrito market. Yeah, they do.

So farmers, they've had to respond. They're beefing up security ironically for the plant-based avocados. One farm in South Africa, where this is happening, like, really bad, has a hundred guards keeping guard. So snackers, you're enjoying lunch today. Maybe I don't know you're dabbling in a little green goddess dressing, Jack. Could be made with questionable avocados. It tastes so clean, but it feels so dirty. Even the guy selling you unlabeled avos in an alley knows.

Gwok is 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 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. Right. Snacks is digestible. Business news for you. Robberhood Financial, LLC, member Fenbra slash SIPC. For our first story, Pandora is going to stop selling real diamonds, Jack. It is all in on lab-grown diamonds instead, which needs a good marketing story. I mean, every kiss begins with Kay. Am I right?

Well, no, because Denmark's Pandora actually sells the most pieces of jewelry of any company in the world. I mean, we were shocked to hear that. De Beers sells the most diamonds, but like Pandora. Okay. And an even bigger surprise, Pandora announced in May that they're going to stop using mind, you know, normally mined diamonds in their jewelry. The reason here, ethics. We've all seen the movie Blood Diamond.

You know what happens occasionally. Yes. Pandora also pointed out environmental sustainability concerns of mining stuff from the earth. So instead, they're pulling a pivot. They're not going to Jared's and they're going to go full on lab grown for all the Pandora diamonds. Yes.

They want to become the beyond meat of the. of metal. They basically want to cut down on the carbon footprint of that lovely charm bracelet, Jack. Now, these lab-grown diamonds, they're going to have the same chemical and physical qualities of a normal geo-geo diamond. Let's call it. You just throw the word geo, and it sounds very, very official. Yeah, it's just going to be produced differently than a typical diamond. Right. You go into a lab, they take the crystal, which is the seed in this case. They heat like a furnace up to 1500 degrees. They add some gas and voila, a week a week of, later, what do you get, Jack? You get an Instapot diamond. Yeah, you do. I mean, do you care if your lunch

salad came from a rural farm or an urban greenhouse at the end of the day? Interesting point, Nick. Interesting point. I think that's fair. Now, Pandora isn't just a jewelry company. They're in the business of the affordable but still fancy jewelry. Here's a funny thing, Jack and I noticed about Pandora. They've got a little problem with the 85 million pieces of jewelry that they sold last year. The problem is diamonds are probably the most profitable kind of jewelry. Yeah, they are. only sold 50,000 jewelry items that had a diamond in it. That's 0.06% of all the jewelry they sold. That's 6% of 1%.

So diamonds are basically, they're too pricey for Pandora's target customer, so they think they may have found a solution here. In lab grown diamonds, which could be offered at a lower price because they cost a third to produce as a typical mine diamond does. But then that leads to another kind of funny problem because they don't want to price them too low and then lose all the flair and fun of a Diamond's brand. You don't want to buy two get three free diamonds.

That would like destroy the brand. You can't be tossing these out like Oprah. So that leads to another solution which, Jack, what's a takeaway for our buddies over at Pandora? Pandora's Diamond is the ultimate case study in storytelling. Snackers, to launch a product, you need to tell a good story. To launch a product that represents the opposite of all of your expectations

about that product, it needs a great story. I mean, the words laboratory and romance, Jack, total conflict with each other. They don't work together. Because a real diamond is scarce, it's dangerous to obtain, and it's created over the course of millions of years. A lab diamond, on the other hand, it's unlimited a number, pumped out like software, and created in a week. So Pandora's not marketing this lab-grown diamond as a one-off bridal splurge for somebody

else, like traditional diamonds are marketed. No, no, no, no. We notice instead they're marketing this lab diamond. as a multi-occasion purchase for yourself. They're telling a story not about engagement rings or the ethics of this product. No, they're not. It's the ultimate treat yourself jewelry. It's treat yourself because storytelling has never mattered more than with a lab-grown diamond.

For our second story, Winnebago, just announced record like everything because RVs won the pandemic, basically. Get back in the Winnebago. The stock is down 25% though since May. So we're going to investigate why. Jack, I got to tell you saying here. I've never been to Eden Prairie, Minnesota, but it sounds lovely. They don't even drive cars there. They just drive Way to Vegas.

If Noah built his ark in 2020, he would have stuck two giraffes into an RV. And then he would have said, hey, giraffes, take these iPads and stop making so much noise. Just look at the iPads. You probably have a buddy who posted a picture on Instagram of one of those Cruise America RV rentals stuck in your classic Yellowstone bison traffic jam. They're bison everywhere. Or if you had toddlers and kids, you threw them in the back of an airstream,

gave them some Cheerios, and again, told them to play with their iPads. It was the pandemic. You wanted to get out of the house. You wanted the ability to work from the road because these things have like a built-in desk. In the meantime, Jack and I, currently not in Winnebago's,

notice that Winnebago reported earnings yesterday. We're talking the $2 billion number two-sized motorhome company in the United States. Yeah. It's only behind Thor. Thor Industries is number one. Yeah, Lightning God also apparently has an RV company. Now, there's two product lines at Winnebago, catering to two very different price points.

Yeah, first you got the motorhomes, which are houses on wheels that are, you know, give or take 35 feet long. This is twice the length of a Chevy Suburban, which is already huge. I mean, Jack, do they even use feet? I think they measure these things in acres. Notical miles, actually. Inspire is the top line motorhome at Winnebago. $300,000. Whoa, it sleeps five people.

The website, by the way, Jack, can you share what you know is about the website over there? They show off a floor plan of this vehicle. They're like, it's got two half bathrooms, it's got a powder room, it's got four bathrooms, a lot of bathrooms. Take this motorhome out of the Winnebago website, put it on street easy already. Okay, the second division is towables. For people who prefer hitching something to the back of the Tacoma, not splurging on an entire home on wheels. Now, again, this is a different price point.

Maybe you're going to opt for their top of the line micro mini towable. That's only $23,000. It comes with a bed, a kitchenette, a toilet. It's modest. We're not measuring this in lifts, Jack. How would you measure this in Suburbans, basically? This is about half the length of the Inspire House on Wheels we just described. It's like 18 feet long.

And honestly, the team at Winnebago, they deserve a vacation. They should get one because sales in the past 12 months are up four. 40% from the year before the pandemic. That's right. Winnebago announced yesterday their quarterly earnings and business looks good. Really good. Record revenue, record profits, record order backlog. I mean, Jack, I got a surprise for you.

Jumped in snack style. Guess how many times they said the word record. How many? They said it seven times, which is a record number of times to say the word record. You control F, the control F. I did, baby. Even Winnebago's market share grew. So, Jack, what's the takeaway for our buddies?

over Winnebago. Investors will believe it when they see it. Snackers, funny thing here, why? Despite this record everything over Winnebago is Winnebago stock down 25% since May? The short answer, stocks are about the future, not the past. Yeah, because between May and today, investors thought less about Winnebago's future. They were probably surprised by the effectiveness of these vaccines. Yeah, they were. And worried that people won't need the RV to escape their homes anymore. Also, they're kind of surprised that Winnebago hasn't figured out all its support. supply chain problems, yeah. Yeah, RV dealerships in this country.

They're out of Winnebago's because the company is barely keeping up with the surge in demand. So Winnebago thinks that it's going to do even better in 2021 than its record 2020. But investors are waiting to see it before they believe it. Winnebago. Get back in the Winnebago. For our third and final story, Microsoft is launching a whole new computer operating system Windows today. No big deal.

It also became the third company ever to do. reach a $2 trillion valuation. I mean, Jack, ring the bell. We got a whole new member of the Platinum Pegasus Club. Yeah, platinum Pegasus. That's a unicorn with wings and that is worth a trillion dollars. Many, many billions. Now, Microsoft is actually technically a double platinum Pegasus if we want to get specific, Jack.

Apple was the first company ever to reach $2 trillion. Saudi Arabia's Aramco oil company also used to be worth $2 trillion. Yeah, but you know, oil prices, they do their thing. And this week, Microsoft joined the club. Can you sprinkle little context on us there for us like Salpay, Jack? Microsoft is worth more than Google, double Facebook, and a hundred lifts. Oh, that is so good. It's satisfying.

Oh, by the way, Microsoft's stock is worth 92% of all of Germany's stock. I mean, Avita Zen, Mockenzie Schnell, and Avita Zen all over again, Jack. We think, though, this is particularly good timing for a party in Seattle because Microsoft is also launching a new computer operating system, Windows 10. It's going to be called Windows 11. And we don't know why it's called that because we remember Windows 95. Which was a great name and a great throwback. I think a lot of people appreciate that.

In the olden days, speaking of throwback, in 2009, Windows was running 95% of the world's computers. Well, as of last month, Windows still runs on computers just 74% of the world's computers. They've lost a lot of the market to MacBooks and Chromebooks. Now, here was the core failure of Microsoft. They didn't integrate their operating system with other devices besides the desktop computer. Yeah, the Microsoft computer files were landlocked on your laptop. And everyone obviously wants to access their files from their phone. So to recap the rise and fall of Microsoft, when made Bill Gates rich, then faced a vicious 12-year decline in brand relevance.

And that brand decline continues to today. So how did Microsoft just hit double platinum Pegasus $2 trillion status? Jack, what's the takeaway for our $2 trillion buddies over at Microsoft? The rest of tech focuses on delight. Microsoft focuses on dependence. Snackers, check out Microsoft's revenue streams. There are millions of businesses that are dependent on all three. The first division is one third of the business.

It's called cloud, or as they call it, intelligent cloud. Basically, all the apps you're working with, they run on cloud, your files are saved on the cloud, and Microsoft's Azure Cloud is number two in cloud. Another third of their business is basically Microsoft Office, or as they call it, productivity and business processes. I mean, look, Jack, your mom's accounting firm. They're not switching from Word, Excel, and PowerPoint anytime soon. The final third is Microsoft run computers, or as they call it, more personal computing.

We're talking to Windows, Surface tablets, even some Xboxes. Those are things you depend on in there. While Apple's building devices, you want to like that you do. And Google grows its emoji collection. Microsoft has become a balanced biz of basics that businesses totally depend on. It doesn't matter that Windows. is way past its prime as an operating system. Business dependence is how Microsoft just hit $2 trillion.

Jack, can you whip up the takeaways for us over there? Pandora's marketers are trying to redefine the diamond. Loudgrown diamonds that are lower price require a really good story. Winnebago is the vehicle of 2020. So investors are waiting to see if it's actually the vehicle of 2021. Microsoft is now worth $2 trillion. They're losing Windows, but businesses still depend. on the clouds and the offices out there.

The Microsoft offices. Now, time for our snack fact of the day. This one tweeted in by John Cashick from lovely Hazleton, Pennsylvania. Turns out there are only 25 functioning blimps in the world. That's it. And apparently like half of those blimps are just for advertising, like the OG Goodyear. I'm wondering about the German zeppelins. I think they still got some antiques over there.

I don't even know if we're allowed to say Zeppelin. It's scary. And only 128 people in the U.S. are even licensed to fly these nearly obsolete aerial vehicles. If you, if someone listening, if you have one of these licenses or you know someone who does, please send us a fixture of this, please. Also, apply to Delta because they're paying a lot of money for pilots right now. They're paying a lot.

If you want to fly, go apply. Snackers, you'll look fantastic day, Jack. Instapot diamonds. It's gold. Snackers, we would love if you would share your snacks today on Instagram and tag Robin Hood Snacks. Tag Robin Hood Snacks, tag T-Boy Jack, tag Nick.of. Dot of. New York. And we'll see tomorrow. And before we go, happy birthday to snacker Stephen McAllister from lovely Dublin, Ireland.

And MJ Roberson in Atlanta, Georgia. And Diana Cohane in Rockville, Maryland. And Brooke in A. Claire, Wisconsin. And Eliza Tan, turn in 28 down in Brooklyn. And Bobby Torres in Durango, Colorado. And Mayor, congrats on the graduation over in Pittsburgh, New York. And happy birthday to E.J. Misigel, who's celebrating in Seattle with their boyfriends family.

And Dionne and Megan Redmond just had baby boy Carter, the wonderful baby IPO in Austin, Texas. Congrats to Sancet Cash, who just got promoted in Bangkok Times. Sancent! Congrats on the promotion. Ben, he's doing the movie. Ben, he's doing the movie. This is Jack, Nick on stock of Apple and Beyond Me.

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.

Great work, did it. That, that, that was flawless. That was great. You see what I did there? See what I did there? I like what you did.