The Best One Yet - “It’s wedding season for IPOs” — DoorDash’s stock surprise. Best Buy’s best life. Ball’s aluminum-ification.

Episode Date: August 26, 2020

Apparently DoorDash now wants to IPO this year because it’s wedding season to go public (we’re more interested in its hidden product). Best Buy was left for dead by Wall Street, but now it’s living its best life. And Ball’s cans make it possible for you to consume sparkling anything, but its stock is trying to keep up with the aluminum-ification of everything.$BBY $BLLWant a shoutout on the pod? We got the form for Snackers to fill out right here: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, August 26th. Snackers, it's a lucky day because this is the best one yet. T-B-O-Y, Jack, what do we got for our first story? DoorDash's stock is being delivered to public stock markets, ETA, this year. Basically wedding season for IPO season. For our second story, as Amazon Rose, Wall Street left Best Buy stockout for dead on the sidewalk outside the New York Stock Exchange. But instead ending up for sale for like nothing on Crave. Eggs list, Best Buy Stock is at a record high. For our third and final story, if you've popped a can of anything this summer, then you are a baller. We're talking ball corporation. It's leading the illumination of food and drinks, but its stock wasn't ready for the moment. Before we hit those three fantastic stories, we need to alert the snackers that we are experiencing the earliest ever return of PSL season. Yeah, apparently weather's getting warmer earlier, but cozy pumpkin spice is coming earlier, too? Sounds like it's opposite day. It's kind of like a climate change thing, I think.

Now, Duncan Donuts' rival beat Starbucks this year, launching their own pumpkin-spiced coffee on August 19th. Jack and I check the calendars, that is two days earlier than Duncan announced the same pumpkin spice. Last year feels like a low blow. Duncan's product strategy is do same thing as last year, but 48 hours earlier this time. Exactly. Now, Starbucks saw that happen. Howard Schultz choked on a scone. No, it's after. that, after we recovered from the scone injury, he put on a cable knit sweater and moved up PSL's launch by two days also, just like Dunkin' Donuts, to yesterday. Yesterday, and according to Snacker Eric Eisen, this is the earliest we've ever seen a PSL

weather pattern. We talked to a couple of seismologists. We've never seen PSL season begin so soon. Doesn't happen. Not ordinary. Now, apparently, a scalding hot latte beverage is perfect for 93 degree August. Is this the humidity or is that the cream? Oh, it's the cream. By the way, speaking to Duncan, did we mention Duncan Donuts's new beer collaboration with Harpoon Brewery? Tushay, Darlene! This guy wants an extra pump of hazel nut and his beer! 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 snacks about the hair rain food. It's air candy. They don't reflect the views of the

robberhood family. It's all informational. 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 Fenra slash SIPC. For our first story, DoorDash just had its biggest week of its life, including a hidden product. And it's not the only tech company rushing to IPO. No. Because the weather is perfect right. now for IPOs. A lot of rings getting put on it. Now, DoorDash heard Jack and I tell General Motors the other day to like do less. And they're like, no, we're going to do more. Yeah, they've been doing a lot more. Turns out of every two Carnay Asadas these days is getting

delivered by DoorDash. Jeez, um, Crow. That's right. DoorDash has 50% of the meal delivery market in the United States. Now, DoorDash recognizes it's got 50% of the delivery market right now, so it's added convenience store and pharmacy delivery just this year. But DoorDash execs are like, Hold on, guys. We're not just working an eight-hour day. No, we're not. Work five more hours because we're going to add grocery delivery right now because this is our moment. That's key because Instacard and Amazon, they're doing grocery delivery, but they stick you with like that. What are you ordering tonight, by the way, Jack? Collieflower, asparagus, and garlic sauce. Yeah, well, Instacart's going to give you the old 5 p.m. to 9 p.m. window, and they'll probably drop it off at 10 p.m.

Post dinner. And again, we mentioned the Door Dash execs are aggressive. They have announced they're doing one hour delivery for grocery orders. That's insane. Oh, and because they want to do more and more, they've raised $400 million this year, hit a $16 billion valuation. And Jack, according to PFWTM, what are we just here? Their stocks are coming to public stock markets by this year, 2020, 2020, according to people familiar with the matter. So that's what everybody can see if they like Google DoorDash right now. That's the headline you're going to see. Really nice. But what excites Jack and I is what you don't see. The hidden platform, which is DoorDash's side hustle. Yeah, it turns out this DoorDash side hustle is their technology that powers grocery delivery,

which they don't keep to themselves. They're also licensing their core delivery and logistics technology to other stores to use for themselves if they don't want to be in DoorDash's app. Classic white labeling situation, but instead of almond butter, we're dealing with software. We actually just saw an article on Eater.com. It is rumored that Trader Joe's is crunchy, crispy, crispy chocolate chip cookies are actually made by Tates of Southampton, which happened to be crunchy and crispy chocolate chip cookies. And it turns out the delivery you're getting from Walmart, that's actually made by DoorDash. Yeah, we learned that the critical step for DoorDash to attract America's huge grocery chains was giving them its huge grocery technology. Walmart wants to do

delivery, but they don't want to play the rat race of being on the DoorDash app. No. And having people compare Walmart to Target to Wegmans to CVS. It's like a stuffy, air-conditioned elevator in there. Walmart wants their own app. So DoorDash Drive is basically DoorDash's logistics and delivery technology, but it runs on Walmart's own app. So Walmart gets to slap its own brand on its delivery app and DoorDash technology can handle the rest. And DoorDash isn't UNICEF, so they're charging for this, which is why it's DoorDash's nice little side hustle business. Couldn't have said it better, Jack. So Jack, what's the takeaway for our buddies over at DoorDash? We are experiencing the IPO wedding season this fall and winter.

Snackers, it's Wednesday. First thing Jack and I open up, bridal guide 2020. Jack, one of the three most popular months to get married this year? I didn't know this because I got married in August, but apparently it's June, September, and October. You got the early summer and the early fall. If you're going to commit to an outdoor ceremony, you pick the best weather.

The same goes for IPOs. When you're going to commit to publicly traded stock for the first time, you go with the best financial weather. You want to IPO when the investor birds are chirping and mutual funds are loving the suns out, guns out, beautiful stock market weather. It's like poetry. Now, in the first half of 2020, it was basically raining on Wall Street because of coronavirus, so IPOs got canceled. But today, there is a window of sunshine as stock markets reach record highs across the board. And that's why DoorDash just moved up its IPO day. And five other tech companies, including Asana, also announced on Monday that they're going to IPO hopefully before the end of the year. think now is the time to get down on one knee and unleash their stock on the New York Stock

Exchange or NASDAQ. Because they think now is the right market for them to get a high stock price when they do. For our second story, Best Buy was left for dead by Wall Street. But now Best Buy is stronger than ever. Full disclosure here, Jack and are trying to find the perfect analogy for Best Buy. We thought of a couple options. Well, we could have gone with Cinderella or like Rudy Rudeger. Would have been nice. But a more original take is like Lance Armstrong. But But then we realized Lance Armstrong kind of dequalified from being considered an analogy on Snacks Daily now. He started at the bottom. Yes, he did.

And then he got seven tainted tours de France. Doesn't work in the podcast circles these days. But Snackers, Best Buy slogan clearly has Amazon in mind. Jack, not like back of the mind, right? Best Buy slogan has Amazon in the very front of its mind. It's aggressive. Borderline stocking. Here's what it is. Expert service, unbeatable price.

Here's what Best Buy is promising consumers. We will match Amazon's prices, which, everyone knows is industry lowest and provide humans for better service than Amazon can. Now, it sounds too good to be true, so we decided to jump into the number of snack style. But apparently, it's not too good to be true. Here's what's wild. Best Buy stores were closed in March and April and May, and it was deemed non-essential. Even though its stores were deemed non-essential and were shut down, so insulting.

Best Buy managed to increase its revenues last quarter, which is incredible. We repeat, they increased revenues even though. stores were closed. Here's how, if you went to best buy.com on like April 15th, it would show you that all of its locations are closed. However, all 977 locations had activated curbside pickup so you could order online and go pick it up. Activate curbside pickup. That is an incredible logistics pivot to one of the best non-holiday quarters ever for Best Buy. That's right. Usually Best Buy's performance requires Santa Claus to impress investors. He's critical. But now you just need a curb next to the this tree. It's so simple. Snackers, here's the key about stocks. If a stock sinks, it's because investors

think the profits will fall and not grow. But investors can be wrong. Comebacks can happen. Situations for companies can change. Case and point we got ourselves here, 2012, Best Buy stock was a mayor $11 a share. Since then, Best Buy has proven a ton of people wrong that its share price shouldn't have been so low. Over the last six months, it is the only place where you're going to get video gaming and computers and home entertainment ASAP. The only issue with Best Buy is you don't want to walk in there with a blue polo shirt. They're going to be like, excuse me, where is the appliances for whatever? And you're going to be like, I'm never going to wear this shirt ever again. Sony pixel ratios, I'm sorry I don't work here. During the Corona economy, products like Chromebooks

and appliances like freezers have sold out because Best Buy is the only place you can get it fast. You're trying to snag that, you know, like 72 inch TV, two-day prime shipping, not going to be fast enough for that thing. Amazon Prime isn't going to send Toby from the Geek Squad to install your Dolby surround sound stereo, which you needed for last night's movie. And that's why Snackers in 2012, Best Buy stock was $11. Today, it's $11. We checked with the Anti-Doping Society. Best Buy passed all its tests. You're in test this thing. So Jack, what's the takeaway for our buddies over at Best Buy? Any company that survives COVID-19 is probably better off today than they were before COVID. Snackers, since the pandemic started, it is a battle of retail attrition out there. This is crucial to

understand because it's transformed our economy in profound ways. Insane numbers here, Snackers, get this. 80,000 small businesses have permanently closed from March 1st to July 5th, according to Yale. And if you just look at the shopping and retail industry, 26,000 businesses that used to compete with Best Buy were open on March 1st, but are closed today. And the wild thing is that the devastation to small and medium businesses across America is actually this huge boon to the big corporations. Case in point, consulting company Deloitte recently surveyed the CEOs of 100 large American corporations. Yes, 60% of them are more confident in their company's growth today than they were before COVID, and we're still mid-pandemic.

How could that possibly be that CEOs are more confident post-COVID than they were before when things were seemingly really good? Basically, COVID has improved the business outlook for America's biggest corporations simply because its smallest corporations are gone. Sad, but critical not to forget that. For our third and final story, this one's wild. Without Ball Corporation, you don't get LaCroix, you don't get White Claw, and you don't get Annie's creamy tomato.

But Ball Corporation's stock was not ready for the aluminum paloosa of the coronavirus. Which leads us to the weirdest corona economy megatrend beside like the surge in lavender sales. More aluminum cans, less everything else. Snackers, you're not posting up at the cocktail bar saying, hey, Garsohn, an apparel spritz for one over here. And you're not asking Jennifer for another pint of switchback IPA because you're not seeing Jennifer these days. Instead, you and not Jennifer apparently are getting a concocted six pack of some vodka soda mix from the grocery store that came into like a bunch of cans. Or you're going to like the wine store and you're grabbing a three pack of rosé, which also comes in aluminum.

Now, Snackers, because Jack and I are human, we know you can't just drink things, you have to eat things too. But you're also not grabbing the half sandwich and tomato soup combo over at Panera these days. You're cracking open another Annie's creamy tomato soup from the pantry. Which comes in another aluminum can. Which brings us to Ball Corporation, which stands to benefit from the aluminumification of the drinking and eating habits of Americans. Snackers, we're talking Ball Corporation based in Colorado with the Lomomification. leader when it comes to aluminum cans in the United States. South Park episodes in aluminum cans. That's what Central Colorado does. And we're doing a little

experiment on snacks daily. If you're drinking out of an aluminum can right now, look at the label. Scroll your eyes down to like the small part of the cans back essentially. Right next to the barcode, you're probably going to see a little ball tattoo written there. It's written kind of like a baseball player's autograph. 12 ounce soda cans, white cloths lymphic cans, Campbell's Soup Pops Tart cans, they've all got this Ball logo. Now, we're looking at this company. We assume the stock's ticker symbol is jar or can. It would make too much

sense. That's what they're supposed to do. Turns out legal was probably involved in the decision though, so it's B-LL. That's exactly the situation. Oh, by the way, when Jack and I were researching this company, Ball apparently also has a second division that doesn't do cans for sodas. They do high-tech aerospace.

16% of their business is aerospace. It's a classic corporate non-sequiturter. Yeah, it doesn't makes sense. They're also doing satellites. Doesn't fit with the aluminum can business that much. Kind of looks like they might want to split that up into a separate company because it doesn't belong next to the aluminum cans. And the lawyers will definitely name that Ball Industries. So Nick, Ball's enjoying a once-in-a-lifetime spike in demand for aluminum cans. Must be nice. But sales fell last quarter somehow. So Jack, what's the takeaway for our buddies over at Ball?

Perfect business opportunities can be missed if you're not ready. Snackers, Jack and I covered Moleson course just a couple months ago, and the big complaint of their earnings was they're running out of cans. If you bring your own containers to their breweries, they'll probably let you take as much Coors Light as you want because they have a surplus of beer and a shortage of cans. It's going B.Y.O. over there. Meanwhile, Coca-Cola just suspended production of its Minutemate Zero Sugar Lemonade because it needs to use those cans for more popular drink cans. Right now, Balls should be raising prices on their aluminum cans and popping glass bottles to celebrate record sales. But Ball wasn't ready for this. It's like still opening up two factories in Texas and Georgia, ASAP, to try to keep up.

It's scrambling to increase production to meet this unexpected demand. Ball is literally buying cans from around the world instead of making its own cans right now, which is a problem. This was a perfect growth opportunity, but Ball was already at max capacity. They weren't ready for more. Dropped the ball. Jack, can you whip up the takeaways for us over there? DoorDash thinks it's the perfect time for an ice. It was rating in the first half of 2020, Suns out, S-1s-out, second half of 2020.

For a second story, Best Buy was written off for dead by Wall Street back in 2012. But it's proven Amazon proof, and its stock has 10xed since 2012. For our third and final story, Ball Corporation is the aluminum can company. And aluminum cans are having a moment which Ball wasn't ready for. Now, time for our snack fact. This one sent in by a legendary, Snacker, OG Snacker, Michelle Beckwith in lovely Houston, Texas. Nick, Michelle heard our story about Blackberry the other day and wondered if we knew where the name Blackberry came from. Full disclosure, we didn't. Apparently, when Blackberry launched in 1999, they decided to hire a California-based

marketing firm to invent a new name for this new product. And this California-based marketing firm had quite a track record because they came up with the name of Swiffer, that lovely little mop that's so much more easier to use than a normal mom. And they also did Coca-Cola's Desani Water and Verizon's Fio. So they're good with coming up with random things. So they looked at a Blackberry and they thought to themselves, you know, the keys on this keyboard kind of look like the little dimples on like a raspberry. They're really annoying, but they're very delicious looking.

So somebody's like, let's call it strawberry. Yeah. Because the keys kind of make it look like a fruit. But then they thought the straw was like too drawn out. And then someone said, let's go with Blackberry. And Blackberry stuck. Now Snackers, before we go, congrats to Afghani and many Snackers

who just moved in together into a new apartment in Brooklyn. And congrats on graduation, Mickey Mola from Arlington, Virginia. Sawyer and Addison are starting high school and college senior years in Utah. Jim and Catherine Magiano.

Happy first year anniversary out in Rochester, New York. Dr. Lee's working hard on the front lines in Hawaii at Maui ER. Sounds like a TV show. And then Snacker birthdays is kicking it off with Chris Jordan in Palo Alto, California. And Julia Pistrope and St.

Peters, Missouri. Rajan Patel in Houston, Texas. Kelly Gamble also in Houston, Texas, right down the street. Val LaRoche, happy 27th over in Boston. And Matt Silvo, Boulevard, Ohio. And finally, James Shepard, New Non, Georgia, happy birthday snacker. Snackers, we all want to keep growing snacks,

so remember to tell your friends, H-Y-H-S-D. It means, have you had your snacks daily? I can't wait to see you tomorrow. If you know, you know. This is Jack. I own stock of 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. Thank you.