The Best One Yet - “It’s Cyber-bulling (not Cyber-bullying)” — Beyond Meat’s soda friend. Reddit’s stock pop. Johnson & Johnson’s tortoise vax.

Episode Date: January 27, 2021

Beyond Meat surged 20% on word it’s partnering up with Pepsi. Reddit’s driving Gamestop, BlackBerry, and Bed Bath & Beyond stocks through “Cyber-bulling” (not cyber-bullying). And Johnson & Johnson went more tortoise, less hare, with a new vaccine that it pre-announced as a “game-changer”.$BYND $GME $JNJGot a SnackFact? Tweet it @RobinhoodSnacks @JackKramer @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 Wednesday, January 27. We got the best one yet. We're jumping right into this T-Boy. T-B-O-Y, Jack. What do we got for a story? We've never seen anything like what's happening to GameStop stock pop. Was that GameStock Stop Pop or GameStock Stop Pop drop? It's cyberbullying. No, it's not. Second Story, Jack, what do we got? Beyond Meat just jumped 20% on a partnership with Pepsi. Jack, it's like we always said. Nothing washes down on plant-based meat. like a sugar-based soda. For our third and final story, Johnson and Johnson announced something it probably shouldn't pre-announce. Jack, can you say game-changer vaccine if it's your own vaccine? Johnson and Johnson just did.

But before we hit that wonderful mix of stories today, Jack, Pizza Hut just announced it's getting into Detroit-style pizza. It's the fastest growing type of pizza. Also funny because Detroit is known for the Coney Island hot dog. I spent a summer there, I can tell you, it's the slowest growing type of hot dog. This is basically a tube of meat with some sauerkrauts, some beans, some onions, some cheese, and then more meat on top. Now, the Coney Island hot dog, funny enough, was created in Detroit, but Coney Island isn't in Detroit. It's in Brooklyn, New York.

So Jack and I jumped in snack style. All this apparently makes sense because the first hot dog ever sold in the United States was by German immigrants in New York City. And what we call hot dogs, those early German immigrants, they actually called it a Frankfurter, what they were selling on the corner of like Wall and Water Street. So Jack and I jumped in snack style along with that random geography, and it turns out a Frankfurter is named after the German town of Frankfurt. Yes, but in Germany, Nick, if you want an American-style hot dog, you don't order a Frankfurter. What do you do, Jack? You order a Venerverstchen. But here's the think-snackers, and yes, Jack does speak German.

A Venerverstian literally in German means Vienna little sausage, not American hot dog. But Vienna is Austria. Yeah. So we've crossed the border. We're not in Germany anymore. But if you then go to Vienna and ask. for Austria's famous Vienna's little sausage, they don't call it that. They call it a Frankfurt or Wurstel. Which brings us back to Frankfurt, neither Austria nor the United States. We're back in German.

Which started this whole conversation talking about Detroit-style pizza. Let's enter three stories. You're tuned in the snacks daily. We spoke to the lawyers and we got to get something illegal out the way. The snacks about the hair 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. Right. Snacks is digestible. Business news for you. Robberhood Financial LLC, member FINRA slash SIPC. For our first story, GameStock stock just doubled again yesterday. Again, Jack. Pretty clear cut case of cyberbullying. Yep, cyberbullying. Not cyberbullying. It's a new dangerous phenomenon that is, you know,

it's basically 2021 in a nutshell. Yesterday, Nick and I opened up GameStop's stock price, and we realized what's happening to GameStop stock is above the fan investor phenomenon. We thought about it more, and it's actually above the whole cult stock phenomenon we told you about last week, too. Many people thought GameStop was the same as Blockbuster video, but for video games. They thought it was headed for bankruptcy. But now GameStock stock is doing the opposite of bankruptcy. It's exploded and it is breaking Wall Street. GameStop stock jumped 92% yesterday during the trading day, and then 40% more after Wall Street had closed down for the day. Jack, in the last week, Game Stock Stock Pop has been 300%. In the past six months, it jumped 3,300%. The only thing funny here is that Jack is clearly avoiding saying Game Stock Pop. Yes, I am. So Jack and I put our heads together in this, and here's what we're thinking the situation is. This is a case of cyberbulling.

not cyberbullying, cyberbullying. Cyberbulling is when a band of Reddit users decide to target one company in a mass campaign of bullish buying of the stock. All right, so this story really begins with Wall Street bets, which is a Reddit channel, it's a place that describes itself as like a 4chan found a Bloomberg terminal. It's got 2.4 million subscribers, and every day, the conversation seems to focus on one single company and that company's stock. And once that company is picked, everyone on the channel of Wall Street Betts buys that stock, ipso facto, cyberbullying. We jumped in snack style to Wall Street Betts, and we saw that there were 150,000 comments on a Wall Street Betts channel solely dedicated to GameStop stock yesterday.

And that was just yesterday up until the time we started recording this here podcast. The result was a classic cyberbullying. It doubled a stock that had already doubled four times since August. So what we got here is a pretty clear-cut case of cyberbullying. But cyberbullying is really fueled by four contemporary forces. The first social force behind this is populism. Okay, so this one's wild. Basically, if you go on Wall Street bets,

you're going to notice that people who bought GameStock stock are showing images of their gains having bought the stock. Look how much money I have made with my GameStop investment. And then they're paying off their student loans with those gains and posting a screenshot of the receipt. Oh, and if you don't own, agree with them on being bullish and buying the GameStop stock, you might get some hate comments. You're either with us or you're against us, and those who are against these Wall Street

Betts, Reddlers, are the rich hedge funds who had shorted the stock, hoping that GameStop would fall. Okay, so first factor you got was populism. The second factor fueling cyberbulling is nostalgia. The companies getting cyber-bolled, they're the same companies that were mall staples when the millennials on Wall Street bets were kids. Some other cyber-bolded stock. Express, Blackberry, Bedbath and Beyond, AMC, it's like Short Hills, New Jersey. We assume the next company to get Cyberbold is anti-Ams. Best smell in the mall. So you got populism, you got nostalgia.

The third variable here is FOMA. People are hearing about their buddies making money on GameStop stock, so then they're jumping on and trying to do the same. And then the fourth and final force here, retail investing. Last year, millions of investors got accounts for the first time, adding a whole bunch of new buyers to the stock market. So Jack, what's the takeaway for our buddy's cyberbullying on GameStop? Cyberbullying is a form of momentum investing, and momentum investing is dangerous.

Snackers, Gamestock stock, it's propped up by momentum. It stands on a foundation of guys, Reddit guys. And if you ride the momentum, you could make some big gains like those people paying off their student loans. But finance textbooks are quick to point out that stock prices are justified long term by the company's future profits. It's hard for Nick and me as snack hosts to figure out the profit future for GameStop and the other companies getting CyberBold. Yeah, unless these companies can show some kind of profit foundation and make it appear out of nowhere, the momentum will probably end and the stock will probably drop. And that could crush the investors that have cyberbolled into this momentum investing scheme. Because when the momentum ends, GameStock, stock, the pop would drop.

For our second story, Beyond Beyond B. All right, Jack's microphone almost broke his nose off just there. For our second story, Beyond Meat and Pepsi are partnering up on a joint plant-based venture, Jack. Are you recovered? Are you okay? No numbers. No monies. No details, except the detail that my nose is fine, even though my mic just hit me in the face. He almost dropped the mic front. But all we got from Pepsi and Beyond Meat was like a weird name for this new company and a stock jump. Snackers Beyond Meat sales slowed last quarter. And that's why the stock fell 40. percent since October. So then Jack and I wake up. Jack's on the East Coast. I'm on the West.

I have alerts and many texts from Jack saying, Beyond Meat is up 40 percent today. I actually said, congrats Nick on not selling Beyond because the stock is up. Thank you, Jack. It's because of this Beyond and Pepsi joint venture. And a joint venture snacker is basically co-parenting, like Gwyneth and Chris Martin. Yeah, we wish them the best, by the way. It's like commitment. There's commitment here, but like it's not full commitment. Pepsi and Beyond just announced the new company, is called planet, an awkward mix of capital and non-capital letters. It's weird. They made the E lowercase, so it looks like plant from a distance, but the word is actually planet all uppercase. No, it looks like plant! Because it's all uppercase, except the E is lower case. It's an abuse of

the font Helvetica. And the goal of this new joint venture flood the food market with new brands of plant-based snacks and plant-based beverages. Jack, would you like some chia and your soda? Why not? How about some pea protein jerky? That actually sounds really. really good. Can I interest you in an RTD ready to drink gazpacho? I'm not Italian, but I think gazpacho is the only soup best served cold. Jack, I am Italian and it's a Spanish soup. Now, the war snackers, and this is the key, the war is in the stores. Thanks for privately letting me know about my mistake, not in front of all the snackers, Nick. You're welcome, Jack. Now, with grocery store sales up 10% in 2020, grocery store shelf real estate is more critical.

than ever. Beyond Meat is the best known plant-based meat brand, but it only has 13% of the market in America for alternative meat. Jack and I were kind of shocked how small that is because its brand is like punching way above its weight. It still has a whole bunch of market share to gain. That's why it's doing this new strategy, meeting consumers right at their decision point. Oh yeah. Right at the eye level shelf, Nick, at Isle 6. And guess who knows that better than anyone else? Pepsi. Because Pepsi knows the drink guy and the food guy at every grocery store from Safeway to Fairway. Pepsi can operate the forklift itself. So Jack, what's the takeaway for our buddies over at Beyond Beat and Pepsi? Get used to the snackers, CNAS. It's another example of carbon neutrality as a service.

Okay, on the one hand, Pepsi's going to get some new customers out of this, you know, like the reducetarians and the flexitarians of the world like us. Cool Ranch P Doritos, Nick, is a gateway snack to a veggie-based lifestyle. Yes, it is. But the real reason Jack and I are thinking there's this joint venture, Pepsi needs carbon neutral help. PepsiCo. Science. a pledge from the United Nations in 2019 to cut their CO2 emissions because get this, one third of global greenhouse gas emissions are related to food production. Well, it turns out Beyond Meat's number one value proposition is making food that normally is bad for the environment, now guilt-free. Pepsi doesn't want Beyond Meets customers. No, it doesn't. Pepsi wants Beyond CNAS. Carbon neutrality as a service.

For our third and final story. Johnson and Johnson's earnings were, they were solid. They were decently solid. Then they got the entire country hopeful about a game changer vaccine that could save our slow vaccine rollout. No big deal. Johnson and Johnson, New Jersey-based company, it's huge. It's worth like nearly half a trillion dollars. It's worth like 30 lifts.

And they just reported that their fourth quarter was solid. Sales rose by 8%. These are selling pharmaceuticals over the counter. medicines, medical devices, pretty standard stuff. They got some top brands. We're talking bandade, Tylenol. You don't want, like, the generic adhesive bandage. No, no, no, no, you don't.

So everything was going like pretty usual. And then we noticed that they pre-announce something, you probably shouldn't pre-announce, Jack. They pre-announce that they have a COVID vaccine that is substantially better than what's out there. All right, Jack, let me run these off you off the whiteboard. This new vaccine from Johnson & Johnson, it wouldn't require ultimate zero freezer transport like the Pfizer vaccine does.

It just requires a normal fridge. It's sitting next to your 12 pack. Okay, Jack, it also doesn't require two doses one month apart like the Moderna vaccine does. One injection and see you never. Oh wait, Jack, there's more. They can produce this thing way faster than the Moderna or the Pfizer vaccines. J&J plans to produce 100 million doses just for the United States by June. Okay, let's sprinkle a little context here. so far in the United States, in two months, we vaccinated about three and a half million Americans.

Johnson and Johnson could do a third of this country, over 100 million, in as little as five months. Okay, a little further context here, this drug from Johnson and Johnson, it isn't approved yet. But the CEO announced yesterday, he is optimistic about the results of a 45,000 person clinical trial. Yeah, it's a big trial and approval could come within just like a few weeks. Nick and I are thinking he's kind of pre-posting on Instagram that he proposed to his girlfriend before she's responded. It feels like a situation where you wait for Ms. FDA to say yes before you tell the world you're spending your life together. Don't pre-post a picture of the ring. So Jack, what's the takeaway for our buddies over at Johnson & Johnson?

J&J's vaccine could be a game changer for the world, but not for J&J stock. Snackers, Johnson and Johnson was a tortoise when it came to approaching this vaccine race. took its time, didn't even use MRI technology like all the other ones. Pfizer and Moderna went full on hair. They snagged emerging approval from the FDA like ridiculously fast. But unlike those two pharmaceutical companies,

Johnson and Johnson promised it's not even going to take a profit off this vaccine. It's just going to sell the vaccine at cost. Johnson and Johnson isn't UNICEF. No, it's not. But it's kind of acting like UNICEF with the vaccine. In March, when they announced this whole thing, Jack and I called this the biggest nonprofit puppy ever. Also, J&J is such a huge company.

It brings in $100 billion in revenue a year. It's huge. These vaccine sales probably won't even make it dense. So Johnson and Johnson's vaccine could be a game changer for the world, but not at stock. Jack, can you whip up the takeaways for us over there? GameStop stock pop drop is the target of a cyberbullying campaign. You make it look so easy, man. Game stock. It's defying the logic of finance and could crash when the momentum runs out. Beyond Me and Pepsi are co-parenting a new joint venture that's probably going to make gazpacho, gazpacho. Honestly, Pepsi just wants some snass, CNAS carbon neutrality as a service. Johnson and Johnson pre-announced a game-changing vaccine yesterday. But then they're going to pull a UNICEF not making any profit off this thing.

Now time for our snack fact of the day. This one sent in by Kelsey Black from lovely oxen, Texas in honor of International Holocaust Remembrance Day, which is today. And one of the best ways to remember, no matter how old you are, is Anne Frank and her diary. Before she was killed in a concentration camp, Anne Frank spent two years hiding in a secret annex in the back of a warehouse in Amsterdam. She spent over 700 days in a row without going outside, without getting any fresh air, without stretching. Now, she was killed in a concentration camp, but if she were still alive today, she would be 92. Thanks, Kelsey, for the amazing snack fact. Snackers, if you want to send us a snack fact,

do it at Robin Hood Snacks on Twitter. We want to see them. We want to get them on the pod. And if you want a shout-out on this pod, we have a link to a Google form in the description of this episode. Just tell your friends, H-Y-H-Y-S-D. Have you had your snacks game? We'll see you tomorrow if you know, you know.

And before we go, big congrats to Vujani, who just started a new job in Pretoria, South Africa. Happy anniversary to Heidi Grutter and Jimmy Kahn. in San Diego. And happy birthday to Austin Jacobs in lovely San Jose. Congrats to Giann Yun, who just got a new job in New Jersey, maybe a Johnson and Johnson. And Johnny Garibay, first investment. He just made it down in Houston.

Johnny, tweet us what that first investment is. We're very curious. And happy birthday, Anna Euchick in Chicago. And happy birthday, Beth and Peters, also in Chicago. And happy birthday, Mani Herrera, turning 21, also in Chicago. Happy 21st, because Chicago does logistics. This is Jack. Nick and I both own stock of Beyond Meat. 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 it to serve as the basis of any investment decision. Robin Hood Financial LLC, member FINRA, SIPC.