The Best One Yet - MarketSnacks acquired, Pinterest’s IPO deets, Papa John signs Shaq, and Tiffany’s falls 5%

Episode Date: March 25, 2019

This is big. MarketSnacks has been acquired by Robinhood, and is now Snacks Daily -- Same digestible financial news, better everything else. Today, we jumped into Pinterest’s IPO filing material to discover they’re all about Millennial moms. Papa John just subbed in Shaq to be its “Pizza Wars” savior. And Tiffany’s falls even as it adds Lady Gaga to its fresh new line.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 Monday, March 25th. And I gotta tell you, Jack, this is my favorite snacks daily we've ever done. This is the best one yet. And this is Snacks Daily. This is your 15-minute podcast for all the business news you need to know.

Guess what? It's every day. And it's the best one we've ever done. Now, Jack and I were working all weekend. We cooked up three beautiful stories for you guys. The first story today is Pinterest. Finally. The not social social network just filed to IP.

And it kindly revealed its deepest and darkest secrets. Then we got Papa Johns. It just signed Shaquille O'Neal, aka Shaq, Shaq, to its board of directors. Just what they needed on that roster, a 7-foot-1 carboloading 290-pounder. Let's round that up to 300. Let's go with it.

Our third and final story is Tiffany's. Oh, my God. Shares fell 5% after its most recent earnings report. And it just got a fresh Lady Gaga hookup. Snackers, we have a big announcement for you. Market Snacks has been acquired by Robin Hood. Boom. Wow.

That sounds good. This is pretty meta we're reporting on this. And I am so proud we're reporting on this on Snacks Daily, which is a continuation of Market Snacks Daily as Robin. I love it. Jack, we should back up, though, give a little context to the scene. Long-time snackers know this story well. And we love our longtime snackers. For those of you who don't, Nick and I were freshman year roommates. Four years later, we're roommates again in New York City working in the financial industry. That's when we started Market Snacks in 2012. And we scaled Market Snacks from a daily email newsletter. into a news media company and have had so much fun along the way with you guys. And Market Snacks is worthy of Robin Hood's first acquisition. Now, we got to talk about this. What is Robin Hood? Glad you asked, it's an investing platform that's democratizing our financial system. That fits pretty nicely with what we were doing at Market Snacks, which was democratizing financial news. Wow.

It's a beautiful thing. That's a beautiful thing. That's like Yin and Yang Mission Alliance. Let's go with soulmates on this. Now, as part of Robin Hood, your snacks are going to reach more people than ever, are going to look sharper than ever and grow this wonderful business news snacking community even faster. And snackers, don't worry, my unwavering passion for the state of Vermont will continue on this podcast. We will also, we will continue to rip on Jack for that.

So what are you going to get every day on Snacks Daily? All right. You're going to get your top three news stories you want to know and need to know in 15 minutes, a beautiful mix of big companies, startups, trends, and takeaways. I feel a takeaway coming. Jack, what is the takeaway for this intro? Snacks Daily is digestible financial news. Wonderful.

Now, before we jump into the rest of the podcast, we got something important to keep in mind as you listen to your snacks. You're tuned in to snacks daily. 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. Snacks is digestible. Business news. You, rapperhood financial, LLC, member Fenra slash SIPC. For our first Snacks Daily story, we're talking about Pinterest here, which on Friday filed its IPO paperwork and basically told us all about itself. Sat down on the couch, poured some rosé and said, hey, here's my life. Speaking of Roseanne, I was at Nick's wedding last summer.

Yes, you were. And Pinterest was the best man of the wedding. You remember those bouquets? I do. I don't want to take, like, full credit for those things. They're beautiful. You can't take any credit, though. It was all Pinterest.

inspiration. That Clementine detail, that was kind of Pinterest. So, in Pinterest filing on Friday, we learned that Pinterest made $756 million of revenue last year. Wow. It's still not profitable. Okay. But revenues grew 60% from the previous year. Its last valuation was a cool like $12 billion. Now, you need some perspective here. You got a good number you can share with this? Pinterest has 265 million monthly active users. Reminds me of like another company. That is Twitter-ish, but slightly below Twitter's user rate. And what Pinterest just did because it wants to IPO this year is file its S-1, which is like a, it's like a college app meets a Tinder profile. Yeah, it's a jargon-packed term, but it's basically designed to help investors make informed

decisions, but companies want to look really good in the S-1. And that's going to be at its IPO. So the funny thing is Jack and I jumped into this wonderful S-1 of jargon for you guys. And we noticed that it's not calling itself a social network. No. It's calling itself a media-rich utility, which is the world's worst nickname. Fire the marketing department at Pinterest. But the really exciting thing we notice about Pinterest is that it is just crushing and living

its best life with moms, especially millennial ones. Our favorite stat in the S-1, oh my God. 80% of American women between the age of 18 and 64 who have children use Pinterest. Are you looking for like a romper for a toddler? There are 30,000 Pinterest pages for this thing probably. Half of American millennials use Pinterest. Do a little Venn diagram action there from high school and you get right in the middle, millennial moms are all over Pinterest.

Now, I use Pinterest too. I'm planning a wedding right now. We're going with Boho Sheik as the dress code. It's a team effort. And if you have a crisis and don't realize like exactly what Boho Sheik looks like, type it into Pinterest. Jack's got a Mumford and Sons page going on right now that's very inspiring. The suspenders are key.

So, Jack, what's the takeaway for our buddies over at Pinterest? Nick, Pinterest is a shopping app, and so is Instagram. So true. the majority of revenue for Pinterest is promoted pins. And those are just advertisements that come up in your Pinsta feed and you click them and you buy something. The worst. Now, Instagram just added its own little seamless buying experience.

Which it should have called Instacart, but it didn't. And the fight of Pinterest life, it's like about to be against Zuck, Instagram, all of Zuck's Army, Facebook, the whole thing. It's competing with them for ad dollars. That is a brutal fight. That's tough. And next month, when Pinterest has its IPO, its shares will be available. For our second story, Shaq just joined the Papa John Board of Directors.

We're talking Shaquille O'Neal. Oh, yeah? We're talking a marketing agreement. Keep going. And we're talking a new brand ambassador for Papa Johns, which it really needs. We need, like, a signing ceremony with a flat for him, had, and a nice Sharpie Pengeck. We do. Now, you can't talk about Papa Johns without talking about the 12-year, aggressive pizza war happening

in the United States. A lot of Marinera's office has been spilt. Yeah. This thing has been rough. Now, at the superpower, this war is domino. Oh my God. It's a tech company that also happens to make pizza. And it's been crushing it.

In the middle of the pack, you got Pizza Hut. True. Pizza Hut, which recently realized that its beer sales better than its pizza pretty much. So it's now doing beer delivery with the pizza. Yep. And then at the bottom of the ticket, you got Papa John's. It's been brutal. The shares are down 50% in the past two years.

Sales are down to what level? They're back down to 2013 levels. Yeah, I don't even know what I was doing that. I wasn't eating Papa John pizza back then. It's important to know this isn't just a rebrand to Shaq. This shack-tastic moment, this is a huge culture shift, and he has a great quote about it. We'll get to that. Before we get to the quote, you all know Papa John's brand has been tainted by Papa John Schnatter.

True. The company founder who left in disgrace last year and just left the board this past month. Never a good thing to be CEO and accused of making racial slurs. Yeah. Now, Shaquille O'Neill, he's replacing Schnader as kind of the face of the company. He'll appear in commercials. he already owns nine Atlanta area Papa John's. Just like owning that, right?

And he's going to add more, apparently. This guy's going deep. Now, the quote, Jack, I love this quote, because this is the kind of thing that a true leader would say, a CEO. What did Shaq say? Shaquille O'Neal said, when I met with company leadership at Papa John, I said, we have to create a new culture

where there will always be love, respect, and culture. Oh, my God, throw that in an NBA case study. That's the kind of like new culture pivot this company desperately needs. And Shaq's bringing it. it. So Jack, what's the takeaway for our buddies at Papa John? Let's be honest. This deal is about the NBA. Entirely. Papa John lost its NFL deal just a few months ago, and it lost it to Pizza War Rival Pizza Hut. Remember all those Peyton Manning commercials with Papa Johns? That bromance is over.

So by signing Shaq, Papa Johns is getting access to NBA fans. And it's getting it like super cheap. Yeah. Let's be honest. Shaquille O'Neal is going to be working for the company, but he also has 11 million Instagram followers. He's on NBA on TNT. In a big way. Like literally. Like every night. Yeah. And the guys got a ton of business experience.

Great free agent signing right here. For our third and final story, Jack, I love this one. Tiffany's just fell 5% as it gets freakishly obsessed with millennials. You know what, Nick? It announced its fourth quarter earnings on Friday. Yeah. This is like playoff time. Oh yeah.

You got to show up. The holidays. Show up. You got to look sharp. You know what? They didn't show up. And it's actually specifically Chinese tourists who didn't show up. They called that out. Shares fell 5% because Chinese tourist spending dropped by 25% for Tiffany's.

Yeah, it's been a tough year for Chinese tours. They're like, should we still continue with that trip to the U.S.? Yeah, like the government shut down. The poor U.S. like tourism department had to deal with a shutdown and trade war. Yeah, and Chinese tourists like, I don't want to deal with this. I'm not going to come in and splurge. They didn't come and it hurt Tiffany's. But, yeah, we actually want to talk about the long-term strategy for Tiffany's, which is working. Despite Friday's drop, shares are up 20% so far this year. And there's one core reason. It's because Tiffany's has developed this like kind of creepy obsession with connecting with millennials. It's calling it hardware.

Yeah, it's got a new millennial-focused jewelry line, literally called hardware. It's trying to convince millennials just buy something that doesn't require a software update every six months. And it's saying that this line will quote unquote capture the energy of New York. Bold claim. Aggressive. It seems to be working. And Lady Gaga is promoting it. Now, Jack, do you remember when she walked out on stage at the Oscars?

Oh, that Bradley Cooper romance was so good. I mean, that's for another pod. But the necklace. The necklace was huge. Courtesy of? Tiffany. Wow. 128-carat piece she had on her at that Oscar celebration.

And that was courtesy of Tiffany. So she's launching the campaign. Yeah. And she's doing great. The hardware line starts at $165. Accessible. Yeah. But it goes all the way up to $3,000.

So like if you get this for Mr. or Mrs. Wright, you just got to hope they're not Googling which end of the spectrum you're on. Yeah. But what's nice is that now you can afford some of it. Just tell them you spent a couple paychecks on it. By the way, this looks like a, like a 90s punk meets Rosey brunch. It's got like a lot of chains on it. It's big. It's kind of aggressive. It's a great move. This latest millennial attempt comes after the last campaign, which used L. Fanning wearing a sweatshirt. Yeah, she's just like us, Jack. I can relate to that. Totally. Tiffany's is just doing whatever they can to connect. neck with us. So Jack, what's the takeaway for our buddies over at Tiffany's? Tiffany's has the greatest

challenge of all, Nick. Being exclusive, but also being forever. Yeah, the new CEO, he's getting creative to make the brand approachable, but at the same time, he's got to keep in that high-end status. He wants to keep it like right in reach and then ridiculously far away. It's brutal. They're offering breakfast at Tiffany's like literally bacon and eggs. Yeah, you can do with that. Because millennials love experiences. They're starting to give, you know, offer engagement rings that won't make you, I don't know, take out a third student debt. Yeah, basically. And finally, they're expanding to key cities that are accessible to millennials that don't have huge incomes yet. Yeah, totally. You know, in D.C., they're growing the store there. We don't know what's going on

in Cleveland, but we're hoping they open there. So it's not just Beverly Hills and Upper East Side. They're finding the other places millennials are living. Jack, why don't you whip up the takeaways from today's snacks daily? Gotcha. Pinterest is a shopping app. So is Instagram. So watch out for suck. Put this pot in your Pinstafeed, by the way. Papa John's deal with Shaq is all about the NBA. And he is just simply the best quote I heard all week. And for Tiffany's the greatest challenge of all, being exclusive, but also being fearful. I mean, I don't know what to say other than, like, good luck with that, guys. That sounds pretty hard. Now, time for a snack fact of the day. Jack, what do we got? Well, we got March

Madness. We got the NCAA tournament. We got the Sweet 16. I like where you're on. We got go blue, by the way. Okay. Now, bringing in $800 million, March Madness brings in almost the entire budget for the NCAA every year. We're talking about 75% of the NCAA's revenues

come out of this month. That's a lot of Mullah. That's insane. Now, guys, we loved having you on the Snacks Daily Pot with us. A few other things you've got to keep an eye out for today. Well, first of all, we've got a lot going on this week. Today, Apple unveils its new TV

and premium news products. Friday, we're expecting Lyft's IPO. For more about the Robin acquisition of market snacks, check out the exclusive article in Fortune magazine. And then make sure to check out the Snacks Daily Newsletter, which you can sign up for at Snacks.robinhood.com. Finally, if you like today's podcast, why don't you go ahead and tap the subscribe? Guys, click subscribe. We'll be right up there in your pod feed tomorrow.

We can't wait to hang out. Talk to you tomorrow. 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.