The Best One Yet - “More election stock movers” — Tinder’s 6% pop. Nintendo’s Apple strategy. What else jumped/fell post-election.

Episode Date: November 6, 2020

It wasn’t just cannabis, sports betting, and Big Tech making moves after the election… we’ve got 2 more stock sectors shaking now. Match Group’s shares jumped 6% because Tinder powered through a pandemic, and Hinge made a comeback. And Nintendo sales surged, but we’ve seen their Switch strategy before.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, November 6th. Stock surged again yesterday, but we don't have time, Nick. We've got to get right to this one. Oh, this one, Jack. Is this better than yesterday's?

It feels better than yesterday's. This is the best one yet for our first story, Snackers. The election is continuing to impact stocks in a big way. We're talking the one industry that's soared and the one that sank since Tuesday. For our second story, Tinder stock surged 6% because love knows no quarantine boundaries. Jack, you're a poet. and match group is the real corporate Cupid. For our third and final story, Mario,

Super Mario, can finally afford some new overalls and a nice wrench. Someone could get them a razor while they're at it. Nintendo's profit just tripled, and Jack and I think, we have seen Nintendo's strategy before. But Snackers, before we hit those three fantastic stories, Wonderful Mix.

Thursday is usually the new Friday at Snacks Daily, but it didn't feel that way this week. Jack, it kind of felt like every day was 2 p.m. Monday, and you just had six Zoom meetings that you couldn't turn the camera off. for. It's like Groundhog Day, but like a horror show version of that. Oh my God, had this happen. We've looked at so many maps this week. We're an amateur cartographer at this point. Jack, this weekend, we got to rest our eyes, our brains, and our medulla oblongadas. I like that water boy

reference. Most of all, though, no matter what's finalized when, we are thankful and grateful and impressed by what's happened in the country this week. Snackers, Jack and I were getting ready for this pod, and the only thing we could think about for a while was we are thankful for 600. thousand United States postal workers who delivered ballots over the last couple months. Neither snow nor rain nor heat nor gloom of night nor deadly disease can stop our courier. In the meantime, by the way, Juan, who's our local male woman in Pacific Heights in San Francisco, thank you for your hustle the last couple months. My local male guy actually drives a Jeep, not even one of those white USBs.

Love his style. He doesn't even get out of the car. He always makes a perfect handoff to that mailbox. And these postal workers did all this in the middle of a pandemic. We're also thankful for the 500,000 poll workers who kept station smooth, sane, safe, sanitized, and equipped with plenty of those I voted stickers. You never want to run out of those, Jack. The majority of poll workers, by the way, they tend to be senior citizens. And those senior citizen poll workers are still counting ballots in four or five states in the middle of a pandemic. And Jack and I are also thankful for the burst of participation in our democracy over the last week. Nick, I remember when I was 12, Mrs. Van Wagoning,

My social studies teacher, she's great. She was upset because Americans only voted at a 50% participation rate. Jack, I remember how that made me feel in sixth grade. I was devastated. Had no idea was that long. This year, however, a record number of Americans have voted loudly and clearly. Well, not that clearly yet. No, no. But 150 million of us have cast ballots. That is the highest percentage turnout since 1900. We're talking 66% of eligible voters. Compare that to 2008, Jack, the numbers then? That was like a big turnout year, and that was 58%, not even close to this year. Many of you were waiting in line for six hours. This podcast is only 15 minutes. We couldn't even keep you company the whole time. You were also six feet apart from the person in front and behind you in line. Oh, and by the way,

this was in the middle of a pandemic. Snackers, we should be proud of this. We should remind our friends of this, and we should highlight this to a 12-year-old who's having questions about democracy. We just set a modern U.S. record for democracy. And it all happened in the middle of the of a pandemic. Let's hit our three stories. story, healthcare stocks exploded higher on Wednesday. And industrial stocks got crushed on Wednesday. All for the same reason? The election. Yep, the election in this one. Now, yesterday, Snackers, we discussed the divided government, which plays out, honestly, it's like, it's basically an easy math equation kind of a thing. Here we go. We got this on the white board. I got it here. Republican

Senate, plus Democratic House of Representatives, following you, equals gridlock for the next two years. Yeah, it's pretty straightforward. Now, investors, investors hate uncertainty. And even though the presidential situation remains uncertain as of this recording Thursday afternoon. Full disclosure, gridlock in Congress seems quite certain. Add that all up and basically Jack and I are thinking, we're not expecting any major legislation to come out of this situation. Unless Democrats somehow grabbed the Senate and have a blue wave supermajority, unlikely, but not impossible. Yesterday, we chatted about cannabis, sports betting, and big tech. Those were three big movers in the stock market because of the election. Yes. But today we had to tell you about two others.

that two other types of companies slipped in here. Case in point, a blue wave would have meant two profit plagues for health care stocks. Joe Biden has been campaigning for like a year about a public option in the health insurance market. You've heard the public option idea thrown out there. Now, if you're trying to understand the public option, basically think of it as like your current shipping situation from your house. FedEx and UPS are private companies that offer you shipping, but we also have a public option with the U.S. Postal Service. Another shoutout to Juan the mailwoman and Jack's cheap delivery mail guide. Joe Biden wanted the same situation we have for shipping options in the health insurance market

because he thought that could keep prices down of our health care. Yeah, he also wanted to cap prices of prescription drugs. But neither of those are going to happen if the Republicans control the Senate. That's why we noticed Sigma and Anthem and United Health, all those health insurance stocks surge 12 to 18 percent on Wednesday. And pharmaceutical stocks jumped too. Okay, so that was happening over in healthcare. Meanwhile, Jack and I noticed some things going on in like the infrastructure building stock situation.

Joe Biden also has been campaigning for a year about using a Democratic supermajority to push through long overdue upgrades and replacements to America's infrastructure. We're talking like the bridges that are creaking, the roads, the water treatment facilities, parks. Jack, what's happening with LaGuardia? Does anyone even know? I haven't been there because of the pandemic. But I hear they're making progress. As long as they keep the sandwich place in Terminal C, I'm going to be happy with LaGuardia.

Now, that would have been a big infrastructure bill. That would have been a new era of profits for materials companies that would have built the infrastructure. Materials companies, they're subtle, but the materials they're dealing with kind of fun. Concrete. Cement, asphalt, sand. Check. Get this. Rock dust.

Rock dust. And rock powder. Real products. Meanwhile, that meant stocks like Martin Marietta and Vulcan Industries dropped 10% on Wednesday. Martin Marietta is a connoisseur of rock dust. Vulcan, great name. So Jack, what's the takeaway for our buddies over in the rest of the stock market? One other big thing that won't happen because of this election, a big tax increase. Snackers, imagine overnight that you suddenly made 25% more money in your paycheck.

I'm thinking about it. Yep. I like it. I hear you. I like it a lot. Jack's smiling. That's a good luck. You're looking sharp over there. That is literally what happened for corporations. when Republicans passed a major tax cut back in 2017. Yeah, so Biden planned to increase taxes on corporations from 21% up to 28% as president. He also planned to increase taxes on people making over a million dollars for their stock investments. But that's not going to happen if Republicans control the Senate, which is what's expected to happen. If Joe Biden had taken over and Democrats had taken the House and the Senate, that 25% profit-boasting tax cut probably would have been partially undone. Not anymore, and that's why every stock on Wall Street basically benefits from

that. For our second story, Snackers, you've been hanging out on the couch. Nintendo stock just jumped 6% while you're doing that. But it's about to face 10 banana peels and three red shells. It's the worst. But wait, Jack, before we do this story, happy 35th birthday to Mario. 35 years ago, a Japanese designer created an Italian-American plumber named Mario, who is now beloved by video gamers globally. It's like it's a small world after all situation. It turns out Mario was actually born in the city of New York apparently. Lives in the fictional land of the mushroom kingdom, grew up off the Eltrain. He loves the sweet red sauce. Nintendo stock really enjoying the first half of 2020. Profits more than tripled for Nintendo, the Japanese publicly traded company, and sales

reached $7 billion. And all that good stuff was powered by the magical one-two punch combo of hardware and software. Let's start with the hardware. side. Please, Jack. Because that's the showstopper for Nintendo. Yeah. The Switch is the latest gaming console. It's a hybrid. You can play at home on your TV or you can take it on the go. Looks a lot like those sidekicks they used to have like 10 years ago. My sister had two of them. Both were stolen. And Nintendo is on its best year ever for switches. They've already sold 24 million, even though it's been around for three years. I'm starting to think about this, Jack. I think my sister lost both of those and said they were stolen. And on the software side, Animal Crossing is the simulation

game where you and your avatar can hang out with your anthropomorphic animal friends. Nothing more fun than the anthropomorphic was. Now, they've sold 14 million copies of this because it's a relaxing virtual island utopia in the middle of a pandemic. Sounds pretty nice. Yeah. And unlike its rivals, PlayStation and Xbox, Nintendo doesn't rely on others to develop the video games for their consoles. They do both. And that's a key distinction. We'll get to more of that in our takeaway. So it's been a great 2020 for Nintendo, but we're sure they're looking forward to the epic battle that's coming this holiday season.

Console conflict is coming to Nintendo. That's what we're calling it. Next week, we expect both Microsoft and Sony to launch their Nintendo Switch competitors. We're talking PlayStation 5, Xbox Series X, both of those coming out in just a few days.

It's the first console upgrade for those gaming companies in seven years, and it's just in time for the holiday season. The last time they did these console upgrades, the word selfie had just been added to the dictionary. As if that wasn't enough competition, they also have Amazon and Google trying to enter the gaming space too. You've got the democratization of gaming, including cloud based on Facebook. That's a pretty big threat to these incumbents. Yeah, the incumbents being Sony's PlayStation,

Microsoft's Xbox, and Nintendo Switch. So Jack, what's the takeaway for our buddies? Over at Nintendo. Nintendo's differentiator, it's the Apple of gaming. Snackers, remember those old classic ads? I'm a Mac. I'm a PC. One guy was like a cool skater. The other was a poindexter like from office space. He had the V-neck t-shirt. He seemed relatable. You'd want to hang out with the guy.

Apple was the cool buddy. Yeah, he got you. You could tell you were just going to get along with Apple. Well, Nintendo's trying to be that Apple. It's family first. It's easy to use. It's casual. It's not business.

And it's not going to confuse you. The newest game displays that. It's called Super Mario, the Origami King. Not some shooting game with blood and gore. No blood, no gore. you're going to be making, I assume, foldable things, cranes? It sounds like good, clean family fun. It's good, clean, family fun.

Nintendo even has a similar product strategy as Apple. Yeah, get this, Switch is kind of like Nintendo's iPhone, and it's games like Animal Crossing, they're kind of like Apple's services. Because remember, Nintendo's the only major gaming console that makes both the hardware and the software, which also reminds us a lot of Apple. Gaming World right now, it's getting crowded,

and it's about to face a console conflict. So Nintendo needs to be the Apple of that industry. It needs to be the Apple. For our third and final story, Tinder's parent company jumped 5% yesterday because it's winning. Honestly, this is kind of sad, but it's winning on pandemic loneliness right now.

We are focusing, though, on Hinge, which is Match Group's company that went from not to hot. Jack, I'm going to say it. I'm going to say it. You better get a lawyer. Swipe. Because Swipe is a registered trademark

of Match Group. which owns both Tinder and Hinge. All right, so Snackers, Jack and I were thinking about this. If you swipe money from someone's purse, you could be breaking two laws. Only though if you announce, I'm swiping your purse. That's two felonies right there. That's going to get the criminal lawyers involved and the patent lawyers involved. Dangerous combo.

Now, you wouldn't think, Snackers, that a dating app would get a lot of traffic when dating isn't possible. It's a health risk. Or maybe you would. You know, different strokes for different folks. Who knows? To each his own. Matches, sales grew.

18% last quarter, and we're talking about the company that owns Tinder and, you know, just like three dozen other dating apps. It's actually kind of logical. 2020 has been a good year for Match Group. The stock is up 62% because meeting at a bar, at a bowling alley, at a beer festival, not possible. A little spoiler here. Jack and I try to fit into a three-part all of Aliteration into every podcast. Basically, all of Match Group's competition, which is real life, is canceled.

So it's been a good year. It's an Easter egg for Jack and me. Match just announced that things are better today. than they've ever been before. Yeah, Tinder messages and swipes have surpassed pre-pandemic levels. And here's what Jack and I find fascinating about their latest earnings. Two-thirds of Match's businesses, Tinder, but all the growth, it's really coming from these non-Tinder apps right now.

And we're going to focus on the biggest success story of Match, which is Hinge. Hinge. The other dating app. 2018, Match comes along and says, you know what, we're going to buy 51% of Hinge. Then they bought 100% of the company the next year. The second investment was kind of like going on a... second date. That was commitment. You take it home, you meet the founder's parents. That's how these things go down. The thing is, though, Hinge is kind of Match Group's pet project. It's Match

Group's fixer-upper, if you will. Honestly, this is a tying clueless situation. I really wish I had a clueless quote. I could drop right now, but I don't. It's also like every house in HGTV's like Fixer Upper situation. This is the plot of She's All That, but in an acquisition. The reason we say this was a fixer-upper, over at Hinge before the acquisition from Match Group, app downloads were declining, and partly because people weren't using Facebook as much. They were moving away from the book. So that part is key because Hinge recommended dates based on your mutual friends. You know, Julie knows Jeff who was in her sorority and they know each other they met for lunch.

And that all depends on Facebook. So Hinge became kind of Plan C for every online data. Jack, how did you stack this up? Like a default is Tinder, you try Bumble, your resort to Hinge. Your resort to Hinge. But post-Makeover, Hinge is living its best. life, Jack and I just saw that downloads up 82% so far this year. And Match credits that to its practice of leveraging its best practices from all of its dating apps and applying them to Hinge.

Jack, I do feel a little frustrated that they won't tell us what those best practices were. They didn't elaborate on the tricks that Hinge has learned from other match apps. But Jack and I think a lot of it has to do with this marketing campaign where the dating app Hinge was basically designed to be deleted. It's pretty hilarious. There's actually an app, like the app icon you see on your phone. It's adorable. It's a little like creature and it's walking around town. It's a little freaky. And it's getting killed once relationships like form. Because here's what's wild about the dating app industry. It's the only one we can think of where if the product is successful, you stop using the product.

Right after that ad campaign, hinge downloads jump 45%. So Jack, what's the takeaway for our buddies over at Match? without video or audio, it's not really social. Nah, Snackers, we're about to enter that dark, cold COVID winter where like you're running out of things to watch on Netflix. Yeah. And people are going to crave human connection more than ever because we're all quarantining at home during the spike. Zoom succeeded earlier in the pandemic, but Zoom is for work and people who you already know now.

Maybe in April you are as VP'd yes to the Zoom bachelor party. You're not doing it anymore in April. No, you're definitely not. And despite Facebook's obsession with like connecting, connecting, connecting people, social media, it just isn't a real connection. That's why we think companies can succeed in the pandemic if they find a way to facilitate face-to-face or voice-to-voice interactions online. Case and point, we're thinking day-naps, they have enabled spontaneous connections plus video.

And the video game streamers, they let you like storm a bunker in Call of Duty with your buddies, everyone wearing a headset. Casual Tuesday night. So Snackers, think beyond Zoom. beyond social media. We're looking for companies to innovate with face-to-face or voice-to-voice this pandemic winter. Otherwise, it's not really social. Jack, and you'll whip up the takeaways for us before this much-needed weekend. The election results are good for health insurance companies and bad for materials companies. But overall, good for stocks because lower taxes mean more

profits. For a second story, Nintendo's big differentiator is that it does both the hardware and the software. That's why Nintendo's making its video games feel as simple, easy, and convenient as an Apple product. Dude, you're getting an Apple product. Third and final story, Match Group has given Hinge a major makeover. Dating apps, they're winning mid-pandemic because they connect people with video. Video or voice, that's what's real connection. It's the key. Now, Snackers, time for our snack factor today. Sent in by a fantastic group, Kelly M. and the Bradley University's social media class. Turns out the term podcasting was coined in 2004 by a journalist named Ben Hammersley. Yeah, he was writing an article for The Guardian about the potential for like a boom and amateur radio stuff.

Yeah, I wouldn't call what we're doing right now amateur radio. No. I'm glad he switched the name to podcasting because that's a little more respectful. Yeah, we couldn't put amateur radio on our LinkedIn's. Now, the term podcast originates because people originally broadcasted them to iPods, which to you youngsters out there was the predecessor of the iPhone. Didn't make phone calls, though. on my iPhone. But by 2005, boom, the word podcast, word of the year, thanks to the Oxford Dictionary. Now, Nick and I happen to know a guy named Patrick McGuinness who invented the term FOMO. Great guy. We might want to put the FOMO creator in touch with the podcast creator. Feels like this an exclusive group. You got people familiar with the matter, PFWTMs, and people who invented words. People who invented terms. Snackers, have a fantastic weekend and be grateful for this outpouring of democracy. Whatever happens this weekend, Nick and I will see you Monday morning. We always

can't wait for it. This is Jack, I own stock of Amazon, nickel and stock of Apple. And before we go, shout out to Snacker Shire and Nerebelay, who just got her ACL surgery down in San Jose. And happy birthday to Heather Robinson at Washington, D.C. And to Libby Shrank over in Ann Arbor. And Cassie Nelson in Golden Beach, Florida.

And Raven Rollosa over in San Francisco. And Yoni Cohen in Orange County, California. And Nate Mamujer in Cambridge, Massachusetts. James Byers in Lancaster, Pennsylvania. And Reverend Ryan Crune over in Nashville, Tennessee. And Emma Parisse in St. Cloud, Minnesota. Big hockey. And happy birthday, Roxanne Shave in Madison, Wisconsin. And Nick, did you hear Sebastian and Julia got engaged in Akron, Ohio, which I think they call Rubber City? Jack, I'm hoping we get the invites. And congrats to Ian and Tori Kessler for getting

hitched Saturday in California. Anta Juan and Marcella a five-year anniversary in Rocky Mountain, North Carolina. And Jen and Stephen Litzass, they got a new baby in Denver, Colorado. Well, we got a good plaintiff for you because Miguel and Bruno, they got a new baby Raphael over in Miami. And finally, our Pete Agarwal, congratulations on surviving for a year in the city that never sleeps of New York. 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.