The Best One Yet - “Jay Z & Jack” - Tidal sold to Square. The She-cession. Carrier’s air-conditioned stock.

Episode Date: March 5, 2021

We told you in January that the most shocking deal of 2021 might happen… and now Jay-Z’s Tidal has been acquired by Jack Dorsey’s Square. We’re about to get February’s jobs report numbers, but we already know we’re in a She-cession. And Carrier, king of air conditioners, didn’t release an earnings report — it just released a weather report with 1 wild stat.$CARR $SQGot 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 Friday, March 5th. Snackers, stocks fell again yesterday with tech stocks taking the worst of the beating. All right, Jack, we got the NASDAQ. It's nearly 10% off its peak, but more importantly, happy birthday to my co-host over here. Thank you, Nick. 338. It was a day that goes down in some book. It's a great day. Snackers, here's what we're going to do. Okay, so Jack's Twitter handle is at Jack Kramer. We want you to tweet. Jack has no idea about this, but tweet him a picture of a Birkenstocks factory. Oh, please. Yeah.

The Willie Wonka equivalent for this guy is like a Birkenstocks fulfillment center. He loves it. I am facetiming with Nick right now. I am wearing Birkenstocks. He is. With darn tough Vermont socks. They've got fur in them, so technically they're furkenstocks. And Jack, today's is the best one yet.

Thank you for the warm welcoming two months after year to the Club 33. Welcome, Jack. It's a great time. First story, what do we got? It's official. Jay-Z's streaming service title is getting acquired by Square. Jack, I got 99 problems, but seamlessly paying for monthly streaming subscriptions ain't one of them. For a second story, Carrier Corporation is the king of the air conditioner, and their stock

has nearly tripled in the past year. Yeah, they didn't drop an earnings report on us. They just dropped a weather report. For a third and final story, nearly one year into the pandemic, the U.S. still has 10 million fewer jobs than when we started. The 2020 recession? it's really a she session. We're going to explain why. But Snackers, before we hit those three stories, smooth or chunky?

Skippys or GIFs, Jack, I know what you're thinking. Oily or not oily? Because I get like an arm workout mixing that oil. For my 4 p.m. peanut butter binging, I keep the Skippies in the freezer. Then it tastes like fudge. It's sweeter. It's better as fudge. In case you can't tell you at Snackers, this is a peanut butter intro. It is. And Hershey's is making an unprecedented change to Reese's its peanut butter product. Hershey's just launched the first Reese's peanut butter cup with no chocolate. We're talking to peanut butter cup with peanut butter filling.

Now, peanut butter cups from Reese's drives $2 billion of annual sales for Hershey's. Okay, so Jack and I jumped in snack style. Reesis is the top selling U.S. confectionery many years running. Recy's peanut butter cup is the crown jewel of every kid's Halloween trick-or-treat pillowcase. You get home, you're going to trade the nerd stuff. You're going to keep the peanut butter cups. Now, this peanut butter cup with no chocolate, it's like a peanut butter and jelly sandwich with no bread or jelly. It is. Jack, this is the Oreos cookies with the cream on the outside, too.

I'll take a scotch and water. Hold the scotch. Jack, there is just not enough chocolate lovers, though, for Hershey's lately. That's right. Hershey's stock is down in the past year, so they're doing the boldest move and candy with this peanut butter cup. This is an aggressive pandemic pivot. If you can't sell the product as a dessert, you just turn it into a breakfast. Because peanut butter cups are good as a chocolate cup. Maybe even in a bagel. 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 the hearing food is 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 LLZ Member Fenra slash SIPC For our first story The most interesting deal

of 2021 Just went down Jayze's title Yeah Is getting acquired By Jack Dorsey's Square All right Snackers

Full disclosure Jack I feel like we got to do a disclosure here We hate covering companies two times in one week It's like leftovers Again again We did cover Square on Wednesday

But this leftovers Is like lasagna It's crispier It's like tastier. It gets better. This is like a truffled lasagna. Let's be honest, Jack. Truffle all over it. And this is why we're covering Square again. Square is dropping $297 million to acquire a majority of the music streaming app title. Plus there's some yonts involved. Yeah, there's a yance angle, so we had to cover it. Now for Square, JZ is going to join the board of Square, the payment process. And for title, the artists who own part of title along with Jay Z, they will continue to be co-owners even after this majority. acquisition from Square. Now here's the thing, Snackers. You're probably not listening to this podcast

on title. Not a thing. This podcast is not title, actually. No, it's not. But if you're trying to picture what title is, Jack and I like to think of it as like, what do we say, Jack? The sixth wheel of streaming. They last announced the number of subscribers in 2016. It was three million then. Compare that to Spotify, which has 150 million. Big people paying for it. Difference. And when it comes to this deal, we got to travel back to August of last year. Jack, what was going down in the Hamptons? This is when speculation began because Jay-Z, Beyonce, and Jack Dorsey were hanging out in the Hamptons on a yacht. Then, just a few months later, in November, over in Hawaii, you had a different situation. No, you had actually three of the same people, Jay-Z, Beyonce, and Jack Dorsey.

Plus Sean Penn. Yeah, tossing around the old pigskin on a beach in Hawaii. True story. That was the thing. And then, if so facto, three months later, Square has now acquired title. Jay-Z's title. Apparently that's how acquisitions happen. This is the alternative route off. Wall Street. Let's get off the beach. Let's get in the boardroom and try to answer, why is a

payment company acquiring a music company? We know that's what you're thinking. Why is Square acquiring title? Well, on January 5th, when rumors of this deal were first coming out because of the Hawaiian Hampton's thing, we asked the question on this pod, is Square trying to become a lifestyle brand? Yeah, this was our vision. Maybe, you know, Squares, cash app. If you used it five times, then they'd give you like an exclusive Beyonce album drop. But no, that's not what's happening, because the deal didn't suggest that at all in the announcement. All right, so then maybe Jack Square's acquiring title because they'll let it become a standalone music streaming business.

Technically, yeah, Square said that title would operate independently alongside its other businesses at Square. Which then begs the next question, Jack, so maybe title will become Square's profit puppy. No, actually, Square said there will be no material impact this year on revenues or profits from title coming in. Yeah, and Wall Street didn't seem to like the deal either. They dropped Square stock like 7% yesterday.

All right, so we don't fully have the answer. So we checked out at Jack, a coveted Twitter handle that Jack Dorsey has for his nine tweet thread of buzzwords. Okay. Basically, Jack went to his other platform that he also owns to tell us that this involved convergence and collaboration and complimentary. It finished with a picture of Jay Z and Jack Dorsey hanging out with two glasses of Cabernet, apparently signing the deal, and no food at the table. No food. Jack Dorsey only eats for five minutes. So investors don't seem to get this deal. Reporters aren't quite sure. And it took Jack Dorsey nine tweets to try to explain it. It did.

So Jack, this feels like a what's the takeaway for our buddies over at Title and Square? We think the future of FinTech is in alliances. Okay, so Dua Lepa, she's fantastic. Her business model, not that much different than your go-to bodega that you love around the corner. Doolipa sells tickets, merchandise, and streams her music. Bodegas sell lottery tickets, candy and salsa. Yeah, it's kind of the same thing.

Now Square's core product, it helps the mom and pop shops like that bodega sell their goods. And maybe musicians can use Square the same way. So Square, it now wants to help musicians grow their businesses just like bodegas. In exchange, maybe musicians will help Square grow their business. Well, Jack and I jumped in snack style. Look at Title's website. It shows at least 20 A-list musical artists who own part of title, which they still own part of. And now that Square owns the other part, these musicians will probably prefer

Square services, and maybe they'll drop a cash tag reference in the lyrics of their songs. Mr. Jack Dorsey, you give me the payment services. I'll give you the cultural relevance. Maybe that's the alliance being formed by Title and Square. And that could be the future of FinTech. For our second story, Carrier Global, the king of the air conditioner just gave us one wild number. Nick, as climate change doesn't change, unfortunately, Carrier is treating the symptom, not the disease. Okay, Snackers, climate change. When it comes to climate change, basically Jack and I see it, you've got two different types of businesses here. There's the business of stopping climate change like renewable energy. Right. And the business of adapting to climate change like carrier. Okay, that's the second one. Carrier Corp. They specialize in, you know, they make things cooler. That's what they do. They're not trying to fix climate change. They're just trying to help you when the climate gets warmer. Yeah, they're not getting like a metal for this. Now, the air conditioner was actually invented by a guy named Willis Carrier. back in 1902, sounds familiar, same carrier as carrier corp.

Prior to the air conditioner, we were importing ice from like up north. That was an industry. It's in the movie frozen. I mean, Jack, air conditioner, top five invention of the last century. Without an air conditioner, there is no Phoenix, Arizona. That's a great point. And now Carrier is based in Florida, where every day they're reminded of how hot and humid it is. Every day.

Now, carrier stock, this is kind of wild. Carrier stock has tripled in the last year, even though you don't pay attention to like your air conditioner or your refrigerator. But according to slide five of carrier's latest earnings presentation, you should care about your air conditioner and refrigerator. Here is what you're going to find on slide five of carrier's earnings. Two big words, global megatrend. Big words from a cool company. And they claim that those global megatrends will support carrier corps growth for decades to come. So here are the three megatrends. They're climate change, urbanization, and a growing middle class. I feel like that. I feel

like there should have been more punch to those, yeah, well, the world's getting warmer. That's punchy. People are living closer together in cities, that is, too. The middle class earns more money, especially in China and India, and then they're more likely to splurge on more comforts. So the reason these megatrends are great for Carrier is because people are going to upgrade to a nicer fridge. Yes, they are. They get their kids' bedroom in air conditioning so they can improve their quality of life. So Jack, what's the mega trending takeaway for our buddies over at Carrier? The power of a simple message. Okay, Snackers. Carrier Corp, it lists these megatrends because it wants to convince Wall Street analysts that it's a good investment.

That's why it has the big bold words. But they also want to convince regular people, retail investors, employees, customers, they want them to get excited too. So Jack and I jumped in further snack style. And instead of just like industry metrics and complicated data, Carrier also found one simple, fascinating number. A powerful statistic they displayed. The number of days per year that. that the temperature in New York City is above 70 degrees. Okay, first of all, to my mom and dad, like 93rd Street, it's going to get hot. In 2000, there were 111 days when the temperature in NYC

was above 70 degrees. By 2020, it had grown to 141 days. Jack, in 2050, it's going to be 184 days over 70 degrees in New York. Get me down to Chelsea Pierce. Snackers, if you consider 70 degrees hot and worthy of air conditioning, it will be hot in New York City. Seventy three more days per year than it used to. The power, the beautiful power of a simple stat on a simple slide. For our third and final story, Jack, it is Jobs Report Friday. The economic recession has technically ended already. But the pandemic's economic damage to women in particular, it continues and it's hidden in the

jobs numbers. This morning Snackers, at 8.30 a.m., we get to learn how the U.S. economy did jobs-wise in February. Okay, full disclosure. We're recording this pod a few hours before that. We haven't seen the numbers yet. But we already saw a clear trend in October, November, December, and January, which had virtually no net growth in jobs. So the fundamentals of the U.S. economy, they didn't change much in February. We don't expect them to change much in the last month. Experts expect the unemployment rate

in February to be 6.3%, which is unchanged from the month before. We got to sprinkle of context on this. During the same period last year, the unemployment rate was only. only three and a half percent. But there's something major that's hidden from the official unemployment numbers. All right, Snackers, if you dive into the numbers, you're going to find some stuff that's hidden. Historically, recessions tend to hit men the hardest. Right, because construction jobs and manufacturing jobs, those are the ones that dry up during a recession typically. So in 2008, the 2008 recession, you often hear it referred to as like the man session tended to hit guys the most. But the 2020 recession is being referred to as a she session because women have been hit the hardest.

Okay, let's check out, for example, leisure and hospitality jobs. We're talking restaurants, hotels, travel. The numbers show those jobs tend to skew toward women. And the leisure and hospitality sector is still in the most pain as of January. Okay, get this. The number of jobs in the leisure and hospitality sector is still 23% below its peak before the pandemic. And then you've got a separate issue that affects women, which is that schools are still largely shut.

Okay, so for this, Jack, then you've got more. more women taking on extra child care than men are right now. That's why women's participation rate in the economy, which means the number of women having jobs or looking for jobs, is at the lowest point since 1987. Okay, a little more context since before Jack and I were even born. So Jack, what's the takeaway for our buddies over in the entire U.S. economy? The headline economic numbers are very misleading right now. All right, Snackers, because of this she session, the new Treasury Secretary, Janet Yellen, she thinks the unemployment rate is kind of off. It's technically 6.3%, as we already said. Technically. But Janet Yellen said last month,

it's actually in reality, closer to 10%. Okay, so last year it was 3.5%. This year, it's 6.3%. In reality, it's probably like 10%. That's because 2.5 million women have dropped out of the labor force since February of 2020. Huge number. Which is a lot more than 1.8 million men who have. Oh, and by the way, Jack, they're facing the old double whammy. Jobs aren't coming back. And, you've got to deal with the child care issue. So Snackers, when someone tells you maybe that we don't need economic stimulus, the economy's fine. The unemployment rate is 6.3%. You know that the official number is missing a whole bunch of women who probably rather be working right now, but can't. Jack, can you whip up the takeaways for us for your birthday? This is for you. Thank you,

Nick. This is for you. This is for you. Square has acquired Jayze's title for reasons not obviously clear. Music and Square could be an alliance, a Pintech Alliance. For a second story, Carrier Global is the inventor and king of the air conditioner. They like things set at 62, and they like simple, powerful numbers. For our third and final story, the economic recession is over, but women are still in a much tougher place jobs wise. Snackers, the unemployment rate that you're seeing today, it's misleading. Now, time for our snack fact of the day.

This one sent in by the birthday boy, Jack Kramer, from Brattlebro. Is it Brattlebro, Massachusetts, or how does that work? It's Brattlebro, Vermont, Nick. I think you should know, because you coined the phrase, the sixth. Burrow. It is. Rounding up from Staten Island. Now, Nick and I were freshman near a roommate at Middlebury College. I were. I brought with me season three of Seinfeld, DVD style. He brought season four. Yeah, I did. Season four VHS. So Nick, here's the terrific question. First of all, who are the four main characters on Seinfeld? Okay. So you got Jerry, you got Elaine, you got Kramer, and you got George. That's right. Who is the fifth character on Seinfeld as measured by most airtime outside of those four characters across the nine series of Seinfeld? First of all, Mrs. Seinfeld, fantastic. She's great. Was going to say Mrs. Seinfeld.

It is not Mrs. Seinfeld or Mr. Seinfeld. Uncle Leo? Not Uncle Leo. It is the cashier at Monks, the coffee shop. Oh my God. She's in the background of like every episode. Perfect snack fact. I can't believe I didn't miss that one.

All right, you should probably do another one for Monday. That was really good. Snackers, have a fantastic weekend. Jack and I can't wait to see him Monday. These pretzels are making me thirsty. See you then. And before we go, congrats to Snacker Joseph Valencia. He is running a marathon tomorrow in Texas.

Snackers, tweet us what episodes he should listen to. He's going to need a whole bunch of episodes. He needs a soundtrack. And congratulations to Kyle and Sarah, who just got married in Las Vegas. And Rebecca and Simon Reed just had their first baby down in Brooklyn. Congrats on getting your first internship to Diana and Natalie in Oakland, California. And Rich Inman and Whitney or Elena just booked the wedding in San Diego. It's going to be lovely.

Happy birthday to Will Isagara in Caracas Venezuela. And Kayla Simmons in Utah. And big shout out to Snacker Aden, who just turned 12. Great birthday, by the way, in Charlotte, North Carolina. And Chandra Hasagata over in Hernd in Virginia. And Tom Balls in Phoenix, Arizona, which needs air conditioning to survive. It's a dry heat. And Sidney White over in Cape Elizabeth, Maine, must be lovely there.

And Riley Penter in Cambridge, Mass. And Shristi Shrivastava in Chicago. Happy birthday to Ben Collins and the guys that stock true in London, UK. And happy birthday, Andrew Butler down in Oakland. And Kelly Bonzani in Boston Mass. And David, the PMS, down in Coconut. And to anybody else celebrating with me today, making a T-boy, celebrate the wins.

This is Jack. Nick owned stock of Square, and we both own stock of Spotify. 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. 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.