The Best One Yet - Last pod of 2019: Our 3 bold wishes for 2020

Episode Date: December 20, 2019

In our last pod of 2019 (we’re taking a 2-week break until Monday, January 6th), we’re going digestibly bold: Our 3 bold predictions for 2020. Will Apple buy Tesla? Can Amazon eliminate boxes? And does Chipotle really need tables, or can it just do delivery and pickup? We’ll see you Snackers again in 2020.Learn 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, December 20th. This is definitely the best one yet. Snackers, this is the best snacks daily. We have ever done for a specific reason. We have a special breed of T-Boy for you today.

This is actually called Snacks Tomorrow. We're not talking about like the news that happened just now yesterday, like a typical snacks. No, we love doing that. No. We have so much news context that we're thinking about the future. This is the last Snacks pot of 2019. We're calling this one Snacks Tomorrow.

We're giving a wish list of the new stories we want to happen in 2020. Jack, first story we wish would happen in 2020. Tesla lives by the seat of its rims. And if things go south in 2020, we wish that Apple would acquire Tesla. We're calling this the Icar early. But would Elon be like down with not being CEO? I don't know. I don't think so.

No one really knows. Second story, Amazon sends boxes. Lots of boxes. They're covering your lobby right now. You're probably just moving them out of the way. And this year, Jeff Bezos boldly created the climate pledge to fight global warming. wish that Amazon would encourage shoppers to go naked shipping. Shipping without the box. Jack, third and final wish? Chipotle's stock has almost doubled in 2019. In 2020, we wish it will

become the first major food chain to eliminate tables from the restaurant. Chipotle could go 100% curbside. We're talking pickup delivery only. No dine in at Chipotle. Now, Snackers, before we jump into those three snacks wishes, this is our last pod for the next two weeks. We come back Monday, January 6th, which will be the best one yet in January 6th. It's going to be hard for us in the meantime. So we've got a surprise for our snackers that we've got waiting on social media at Robin Hood Snacks. We're calling you to action right now to follow us on Twitter and on Instagram at Robin Hood Snacks because we are giving away the best one yet T-boy T-Boid T-Shirts every day, the 12 days of T-boy.

It's the 12 days of T-boy. Jack and I are dishing them out, Oprah style. You're getting the medium. You're getting the large. You're getting the small. Starts December 25th. ends the day we come back. Exactly. January 6th.

You're going to get, we're going to be giving out like 24 shirts in this easy. Yeah, one for Twitter, one for Instagram, each day, the 12 days of T-Buy. Snackers, follow us at Robin Hood Snacks while we're gone. We're going to miss you in the meantime. Let's get to our three stories. The snacks about to hear ain't food. It's air candy. They don't reflect the views of the Robin Hood family.

It's all informational just so. 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 Fenra slash SIPC. For our first story, Tesla could run into trouble in 2020,

and Apple could get tempted by the low stock price to buy Tesla. Remember, Snackers, this is snacks tomorrow. We're not predicting this will happen. We're not even hoping that it would happen. Not in this case. But if Tesla does get into trouble, it would be awesome if Apple acquired it. Snackers, Tesla has some big, items up on the fridge. It's got to take care of over the weekend. The to-do list for 2020 is pretty

intense. You look at this thing and you're kind of like, I mean, you won't come to work tomorrow. Number one, launch model Y, Tesla's fourth major model, which is a crossover SUV. Yeah, the other thing they got in the list, you know, get a whole battery gigafactory up and running in China, which happens to be its biggest future market for electric cars. They're not just making batteries there. They're making cars, too. Also, don't let the trade war with China ruin your growing China business. Oh, Jack, by the way, once you're done with that gigafactory in China, can you build one in Berlin for me? Yes. Oh, and by the way, if you have time, there's still the Tesla semi-truck, the Tesla Roadster version two, and the Tesla cyber truck, none of which have launched. Oh, by the way, by the way,

Elon Musk is going to be side hustling by running a space company and a tunnel company and a hyperloop company when he is time because he's the CEO of all of those pretty much. Okay. So there's a lot of opportunities for things to slip out of control for Tesla next year. If any of these things kind of go south, that could affect Tesla stock potentially. Now, we've seen before, investor sentiment about Tesla swing wildly from Tesla is going to save the world. And then you got Tesla is going bankrupt yesterday. We've seen the sentiment change in like the course of two weeks. Tesla's value right now, it's currently worth about $65 billion. So we've seen Tesla's stock drop by 50% like that is not unheard of at all. So if it happens again, then Tesla's worth like $30 billion or so.

Or if we had to interpret that, that's about two lifts. Yes. Apple could acquire two lifts with its spare change. Apple's like, let's not bring on a few interns this year. Let's just acquire Tesla instead. Apple has $245 billion of cash on hand right now. And Tesla is a tech car already. So it's like a good, easy place for Apple to just jump right into the assembly line. Think about it. It's not too crazy. iPhone sales are shrinking. Apple could replace those iPhone sales with Icar sales. By the way, the two headquarters, they're only like nine miles apart. So like easy logistics here and getting used to each other. Easy all hand meetings. And you have cars. you could zip back and go. At a holiday party, just do it in the middle near Fremont.

So, Jack, what's the takeaway for our buddies over at Apple and Tesla? What about Elon? Could Tesla exist without Elon Musk as the CEO? Elon probably loves Snacks Daily of the podcast, but Jack and I haven't met him personally. We get the sense that he's not the kind of guy who wants a boss. Yeah, he wasn't thrilled when lawyers were required to review his tweets. So in this case, if Apple acquired Tesla, he'd probably have to forfeit his leadership position over to Apple. Yeah, the bright side, he has a couple other companies.

companies that he could still be the CEO of like SpaceX and the boring company. True. In the meantime, Elon's leadership was critical. It's what got Tesla to become Tesla. In 2006, Elon wrote the master plan part one, which you can still see on the company website. It's very fancy. In 2016, the master plan part due, this is why Tesla is Tesla. Apple could end up bringing stability to the company, but possibly downgrade its ambitions. You're not going to get like a cool hexagon truck out of Apple. For our second story, in 2020, Amazon should wage a wore on boxes. It should offer naked shipping. We're saying it. Bezos needs to go naked and this needs to happen now. Nick, my wife bought me these awesome blundstone shoes. I thought you were a

sketchers guy, but we'll let it say. It came in a shoebox. The shoebox came in another box. In the winter, I wear an overcoat. All the time, shoeboxes wear overboxes. It's like an inception. You got like a dream within a shoebox within a dream. It's very Russian nesting doll. It's very inefficient. Where's Leo DiCaprio when you need them? Amazon chips, 10 billion packages per year. a B, and that's why it's also created something called the Climate Pledge. This is the Paris Climate Accord, but 10 years ahead of schedule. And Snackers, we've shared with you that they're basically investing in 100,000 electric vans to like drive around and drop your stuff off. But what about the boxes? Boxes. They're made a cardboard. Cardboard. Cardboard equals paper. Ipsophato paper

equals trees. Trees by global warming. Do the math. It's a problem. If Amazon gets rid of some of the boxes, it'll reduce its carbon impact. It'll get to carbon neutrality quicker. All right. So when Amazon is sending you that little something. They've got a prime shipping option. They've got a one-day shipping option. They've got a no-rush shipping option. Jack, where are we going with this? They should have a naked shipping option. The option to get your package delivered, Sons box. Yes, we all know Amazon boxes. They're everywhere. They're brown. They have blue tape. Or they might be like a soft envelope with a bubble wrap with white and blue letters. They're not that exciting as well. They're not that exciting. No, they're nothing special. Now, actually, Amazon sort of has some packages that are

already ship in own container. Not as cool sounding as naked. It's called ship in own container. We prefer naked. And that has reduced packaging by 25% since 2015. Now, in 2020, Amazon should incentivize this further by offering $1 off if you select naked delivery. $1 off if you go naked.

That's partly because Amazon doesn't need to produce a box and partly because you're helping it reach its climate goals, which costs money. Now, Snackers, we know what you're thinking here. Jack and I, we're humans like you. Not everything should be naked eligible. You might want some privacy so that everyone on the block doesn't see that package waiting for you on the front stoop. Right. An extension for your razor so you can shave the heart to reach places on your body.

Yeah. We've been there. Something like that. You hit 30 of these things happen. You want some privacy. So not everything is going to be naked eligible. But if you choose nakedness, you should get a rebate. Now, retailers will want to become naked eligible.

Right. Because customers will be like, I save a buck if the thing is naked eligible. Exactly. Now, other companies like Tide, they've actually changed their laundry detergent to become in a shippable box instead of like some awkward plastic jug. Right. Those plastic jugs are awkward. They're not good naked.

No. But these boxes are so Tide can change. This naked thing is like, it's just catching off. Better than fetch. I'll tell you that. So, Jack, what's the takeaway for our buddies over at Amazon? Achieving carbon neutrality isn't cheap. Snackers, most economists agree.

greenhouse gas emissions are pollution and should have like a carbon tax or some way to incentivize reducing that pollution. It's economics. When there's pollution, you tax it to get rid of it. But politics has prevented that from happening. So for companies to reduce their carbon footprints, we need to spend a little money voluntarily. Amazon is voluntarily buying 100,000 electric delivery vans, and it should voluntarily spend a little bit more money to make its climate pledge. Right. We admire the companies that are making the climate pledge. This is a way to make this progress happen a little bit faster and a little bit cooler. Amazon actually has an 85-person team that's just focused on optimizing packaging. Amazon, go naked. For our third and final story of 2019, about 2020,

Chipotle could become the first major U.S. restaurant chain to eliminate tables. They're going to go 100% pickup, takeout, to go, or delivery. And that's because aggressive convenience is changing retail. Walmart is kind of crushing. Walmart is kind of crushing. it right now because it's offered free curbside grocery pickup. Right. That's like when you're a little too lazy to get in the store there. Do you have to get out of your car with curbside pickup? Get the keen wall walk to me at this point. I'm not sure if the Walmart people bring it to your car or if you have to walk to the car. And like, is there an awkward eye interaction where it's like, I don't know where we're supposed to stop, but can you get a little closer? Touch the person's finger. A lot of questions,

Walmart. A lot of questions. Target is also at a record high. Target stock, largely because of its convenience options like curbside pickup. So that agrees. We've been seeing in like big box retail. We've seen that now carry over into restaurants. There was a big deep dive in the Atlantic magazine earlier this year. Next year in 2020, half of restaurant spending is expected to happen in takeout and delivery and to go. In other words, not dine in the restaurant. No, it's happening outside the restaurant, which has led to another new trend of ghost kitchen.

Yes, some restaurants don't even let you dine in. They don't even tell you the address. They are delivery only. Silent is a ghost. Delivery is the rage, but pickup in food is just beginning. Right. Starbucks, for example, it's like testing out a new pickup only store. Right. You order a head on the app and you pick up and it's right there. You just got to find the cup with your name.

No opportunity that means to do the fake name thing when you go to Starbucks. Okay, so pickup is huge in big box retail, but it's barely just beginning in food. I'm Bruce Wayne and I'm here for my Vente Latte. So our bold wish, Chipotle should make every store pre-order for pickup or delivery only. And that's because we've noticed digital sales that Chipotle. like they've nearly doubled last quarter from last year. People aren't wanting to dine into the restaurant. No.

Nick, there was a Chipotle on 14th Street. I remember it well. Between our Union Square, 456. It was a go-to. And our third avenue apartment, it was incredible place. I never wanted to stop in. I just wanted to grab and go as quickly as possible. Right.

And you get, well, we know guac is extra. That's an interaction we don't need anymore. But the way that busy millennials want to eat more often is ordering ahead, taking it home and eating it in front of Netflix, or just bringing it back to the office and eating it at lunch. But it's not just about the country. customers for Chipotle, it is an expensive waste of space to have these big physical stores chopping up avocados. That 14th Street location. From 2 to 5 p.m., it's completely empty.

Right. And then all morning, it's completely empty. I mean, then it'll do breakfast really yet. New York real estate is expensive. So they can scale faster in cities if they don't need all the space for the tables. You don't need those benches. You go in there. They've still got like the metal sheets of like with a Mayan kind of style. You're not going on a date there. And if you are, it could be a red flag. Plus, I think the CEO might be into this. Right. He is into Testing new things. He's a new guy. The new carne Asada item on the menu, which is grilled steak.

That was him. So, Jack, what's the takeaway for our buddies over Chipotle? Going 100% table-free will be Chipotle's ultimate differentiator. Chipotle, you're facing fresh, fast, casual food competition everywhere. Nick, we're huge fans of sweet grain, which does have a good takeout option. You got Kaiva, which is like the... The Chipotle of the Mediterranean. Right.

You got Shake Shack, which isn't healthy, but it's pretty casual. And even on the underbelly, Chipotle is getting attacked by fast food. restaurants like McDonald's, which has spent in $6 billion to spruce itself up. Chipotle, now is your chance to differentiate from that entire industry. Get rid of the tables. In 2020. Jack, can you whip up the 2020 takeaways for us over there? If things don't work out for Tesla next year, it could become a 50% off bargain for Apple

to acquire. But is Tesla really Tesla without Elon, even if it's an Icar? Second story, Amazon makes move towards its climate pledge by offering naked shipping in 2020. Amazon produces a ton of waste. They want to become a climate leader. Going naked is how. More and more people want to grab food and eat it at home. Chipotle should do only that.

Chipotle, getting rid of the tables will give you a cost and convenience advantage. Guacca's extra. Now, time for our snack fact of the day. This one sent in, this was sent in by Jack and me, actually. Yeah, this is in our Snacks Daily newsletter, which you can find at Snacks. Snacks.com and which we're going to continue to produce the next two weeks. We thought this would be a nice little finish to not just the year, but, you know, The decade. The four most downloaded apps of the decade globally are all owned by Facebook.

Facebook, Instagram, Facebook Messenger, WhatsApp. They are all owned by Facebook, which is arguably the first global monopoly. Snackers, loved having you with us for this like this snack tomorrow kind of of a snack tomorrow. It was kind of fun. You should do this every year. I'll do it. Let's do it tomorrow. Follow us at Robin and Snacks on both Twitter and Instagram because we're giving away these T-Boy shirts. And we're going to catch you guys again on Monday, January 6th. It's been a great year. Thank you for every day of snacking with us. Snackers, we love spending time with you every day.

We'll miss you and we'll see you in January. Snackers, this is Nick and both Jack and I own chairs of Tesla and Jack own shares of Amazon. 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, 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.