The Best One Yet - “No Watch? No weights.” — Apple’s Fitness+ unveil. Opendoor’s home-flipping SPAC. Carnival’s $1B life jacket.

Episode Date: September 16, 2020

We’ll be honest with you, Snackers — the big Apple event was kinda boring… except for a brand new fitness club they just unveiled for Club Apple. “Unicorn of the Day” Opendoor is going public via SPAC because it can flip homes at scale. And Carnival Cruise’s stock plummeted because it’s grabbing a $1B life jacket at the worst (and most costly) moment.$AAPL $CCL $IPOCWant 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, September 16th. It's the first waiver-wire Wednesday of the fantasy football season. Good point, Jack. Make sure to make some roster tinkers while you're getting paid to work. That's the way to do it.

That's the way to have the best one yet fantasy season. This happens to be the best one yet, Snacks Daily. T-B-O-I, Jack, what have we got as the first story? 55 minutes into the hour-long Apple product unveil didn't matter at all. No. Didn't matter at all. But in those last five minutes, they unveiled Apple Fitness Plus, and that's what Jack and I want to talk about. For our second story, Open Door thinks it can buy and sell homes better than human beings can.

Honestly, it's basically techified feng shui, and this house flipping stock is going public. It's a house flipping stock. Third and final story, Jack, what do we got? Carnival Cruises actually has paying customers on one cruise that is cruising right now. No doctor signed off on this. Carnival is also selling its own stock at the worst and most desktable. Sprit possible moment. I think the ship is called Super Spreader of the Seas.

The old SS quarantine. But Snackers, before we hit those three great stories, for the first time since before Nick and I were born, vinyl records are outselling compact discs. Snackers, this hasn't happened in like 34 years since Hands Across America. The last time this happened was 1986. We looked into it, jumped in Snacks out, also the year Oprah's TV show debuted. Now, personally, I have no idea why someone would prefer vinyl when you got CDs or MP3s available. Do you heard Jimmy Page on Zeppelin on vinyl? Because that's how you hear it on vinyl.

Everyone has that friend. Snackers, people spent $232 million on vinyl records in just the first half of this year. Jack, it feels like, can we get like a vinyl screech thing from our production team? Can we add that into the park? There we go. Turns out for CDs, people spend $130 million this year, much less begs the question, who's buying CDs? Well, I don't know, but records are crushing CDs this year. And most popular vinyl, Jack goes to Envelope. Abbey Road by the Beatles. Classic. The big question, are they all shoeless or is just one of the Beatles shoeless on that album cover?

I honestly thought they all had shoes on it now. There's definitely somebody shoeless on that cover. But Snackers, Jack and I got a sprinkle little context on this thing if we're going to snackify it. In 2005, which was Peak CD, only 14 million of vinyl records were sold. This is 20 times that for vinyl records. And just for the first half of the year so far. So kind of 40 times that. But before you get vinyl fanatized, remember that streaming is at an all-time high,

85% of music sales. You're stuck at home, you're going crazy, welcome for distraction. Finally, get some records to play on Nana's record player. That's the move. That was the answer for a whole bunch of Americans. 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 hair ain't food. It's air candy. They don't reflect the views of the robberhood family. It's all informational just so. recommending any securities. Nope. It's not a research report or investment advice. Not an offer or sale about security.

Right. Snacks is digestible. Business news for you. Robberhood Financial, LLC, member FINRA slash SIPC. For our first story, Apple just had its big September product unveil. They didn't announce an iPhone, but they did announce Apple Fitness Plus. Okay, Jack. Let's just get this out of the way over here.

All right. New iPad. Yep. New Apple Watch. Okay. new cheaper watch. Decent. No new iPhone. No new TV. No new surprise crazy thing like a new car. Jack, what about the cords, donglegate? What's going on? We have to change things up that we plug in.

Actually, Apple Watch will not include a USB cord anymore. You need to buy it separately. Must be nice. All right, that's the stuff that like Apple did. It didn't do that. It didn't matter. It kind of didn't matter. But the biggest surprise was Apple Fitness Plus coming out at the end of this year. This is a streaming fitness subscription for $10 a month. Had less than Netflix. Taddle. less than Peloton if you get the no bike version. And you could do anything with this. You could do yoga. You could do body weight squats. You could do spin class. You could do dance. You could do hit. You could row. You could run. I'm just enjoying seeing you come up with new things out top of your head. This is beautiful. And Nick, because it's 2020, yeah, that was all off the top of the head.

Because 2020, you can also do a mindful meditation cool down. McConaughey included, because McConaughey's not speaking yet. Is it really mindful? I think McConaughey is exclusive with a calm app. But in the meantime, Apple said we don't need McConaughey. We're going to do our own original. content, this part's wild. That's right. You cannot find any of these classes anywhere else. It's not like Apple is just sourcing the best fitness content out there and paying for a bundle. No. These are Apple's own trainers. It is employing trainers. This isn't a platform connecting you to other fitness studios. Here at Apple, we employ the best engineers and the best designers in the world. And also Cindy, who has the best course strength we've ever seen.

Cindy like shows up. She's got 14 abs. Apple's giving her a whole like 12-year contract. It's funny she works at Apple now. And of course, there's also a burn bar. So you can see how many calories you burn. So I could take the hit class, show you how many calories I burned, and you can take the hit class and try to be. Because you're not working out for yourself. You're working out to tell other people you just worked out.

Now, those features aren't incredibly innovative, but how Apple makes you use them is. Get this Snackers. You must, we repeat, must have an Apple Watch to use Apple Fitness Plus. So we said it was $10 a month. it's actually $400 and then $10 a month. That's the guy that's not even in the fine print. So you're going to watch your fitness class on your iPhone or your iPad or your Apple TV. Throw another 400 bucks on, Jack.

But then your whole fitness exercise is going to be tracked through the Apple Watch through your wrist. So the trainer says like get your heart rate up and then your Apple Watch, unjudgingly in real time, throws your heart rate up onto the screen of whatever you're watching this on. Timmy, you're only at 110 beats per minute. You should be at 150 based on your 8.5. age and your BMI right now. Nothing like technology giving you an unhealthy obsession with counting something. And then Apple is going to force you into its ecosystem of other paid services. Snackers, we've all been here. They're going to integrate Apple music directly into Apple Fitness Plus,

so it's just a one-click situation for you to hear stuff. I'm a huge fan of Tone It Up. My one big complaint, when you're listening to Spotify and then you open up the Tone It Up app, the music stops. Jack gets that kind of interruption from the Whitney Houston song. He can't even continue with the push-ups. But without... Apple Fitness plus the audio background sinks perfectly with the instructor so you don't have to keep classic pausing pause and pay. Boom, you keep doing buck kicks at the same rate. So Jack, what's the takeaway for our buddies over at Apple? Apple has become Club Apple. Snackers, you could pay 10 bucks a month for an Apple trainer to gently yell at you all the way from Cooper Tina.

Or you can now bundle it in with a half a dozen other paid services from Apple for $30 a month, aka Club Apple. This has been hinted at before and now it's official. you can pay the monthly fee for News Plus, Apple TV Plus, Arcade, Apple Music, Cloud Storage, all the Apple stuff. The whole thing is called Apple One. It was announced yesterday. It's six products of bundle. It's a growing bundle that probably will get bigger every year, including content, computing, health, so on and so forth. Great work to say bundle. Now Apple knows you're spending eight hours a day on its core products, the MacBook and an iPhone. So they're turning those eight hours into a paid lifestyle with bougie services from Apple. And since he can now pay one fee to be a part of that, it's not really a bundle.

It's a club. It's club Apple. The only thing missing is hot eucalyptus scented towels. ASMR, ASMR. For our second story, Carnival Cruises stock just plummeted. Because it's selling its own stock at the worst possible time. Snackers, you want to have a fun weekend. Go bid yourself on a Carnival Cruises. ship. The garage sails open. That's right. A 727-foot 12-deck, 1,800 passenger Carnival Cruise ship is for sale

to the highest bidder. They're being very ambiguous with the valuation we notice. They're saying it's going to go for several millions. They're expecting it goes for several millions unless someone only offers several thousands, in which case it goes for several thousands. Oh, and by the way, Jack and I jumped in Snacks now. Notice Carnival has one ship sailing right now. Who is on that ship? I don't know, but it's a seven-day cruise in Italy. It's on the seas right now, and it's featuring the Purole Primavera. Jack, that sounds like an appetizer at the Olive Garden. Don't you dare. Wine salesman of the year, 2012. But Snackers, let's get back to Carnival, which is losing almost a billion dollars a month, and we noticed only has $8 billion of cash left on board. By the way, it was wine salesman

of the month, and it was 2007. Full disclosure, this is Nick, I have seen the plaque. Now, what is the opposite of social distancing, Nick? Great question, Jack. It seems like it would be isolating yourself on a boat with 4,000 other humans. Now, I think the reason Carnival can operate cruises is because there's no rules forbidding gatherings greater than 50 people on the open sea. That's right. High seas. Once they're out of port, they just run with this thing. And unless an all-you-can-eat-chromed like starts curing COVID, they're going to be out of cash by April. So Carnival is selling the only thing it has left to sell, its own stock. So when you're down to just like one boat that you have left to sell, then you can start getting a little more creative.

and create new stock out of thin air and then start selling that. Different company. Tesla actually did this. They weren't out of things to sell. No. But they did sell their stock at an optimal time. Yeah, Tesla did this last month. Stock was at a record high.

Good time to capitalize. It made them $5 billion selling their stock. Carnival, on the other hand, is doing this at the worst possible time. Let's check out the charts jack. Stock has fallen 75% from its high. It's at its lowest point since 1997, and they only got $1 billion from selling. Tesla sold high, which is what you want to do, Carnival sold low. Not a good look. This is a classic case of guac is always extra because there's a downside to selling your own stock.

It's not that easy. With a stock sale, suddenly more shares are available so your existing ones become worthless. Now, if you're really trying to feel what this stock situation is like, imagine you're on board. It's a nice evening. The moon's out. You're splitting a bottle of Chardonnay with a couple other buddies on board. Nice scene. Then suddenly two strangers show up out of nowhere. empty glasses and demand getting in on that bottle too. The scene just became less fun, and you're getting a little less of the 98 chilled chardonnay. Boom, that stock dilution. So, Jack, what's the takeaway for our buddies over Carnival?

Everything that happened to Carnival yesterday shows that markets are actually rational. Snackers, Carnival just sold a billion dollars of its own stock, a.k.a. 113th of Carnival's total value, or about 8% of their total value. So how much did the stock price fall after that bad news? about 8%. Exactly. The stock fell by almost the exact amount that it got diluted by. It makes perfect sense. Markets can feel like they're crazy. They're all over the place. They're unjustified. Like they're a ship just doing something random at sea and a party. But specific corporate actions like yesterday show how rational investors can be. There's a method to Wall Street's madness.

For our third and final story, we've got our unicorn of the day, open door its stock is going public. And this will be the first pure play house flipping stock we've ever seen. Which means, Jack, I think we should go back to like a Sunday afternoon 4 p.m. You know the feeling you start going through the house fantasy. Honey, it's a fixer-upper, I know, but it could be ours. It just needs a little bit of work. Adorable. Jack, it's got such good bones. This could be our project.

Jack, I got an unused coupon from Lowe's and I'm pretty sure we got some registry money saved away. Nick, if we knocked down the wall, replace the bathtub and finish the basement, that haunted house could really be nice. The best part of all these home fantasies is that you're envisioning the montage while you're envisioning the home fantasy. Yeah, it's a real growing period in your life with your partner.

But then you remember, you both struggle to assemble the IKEA dresser, so maybe this isn't your project. When Jack and I lived on 14th Street in East Village, we literally had two other roommates and a task rabbit who would come in probably every month. Home flipping isn't for everyone.

But Open Door is doing something a little related to this. It's letting you invest in how, slipping without ever picking up a hammer and it's doing it at scale. Open Door is a private company founded in 2014 and it has risen to unicorn status over a billion dollars. Basically, they ask investors for a bunch of money, basically billions of more dollars, and then they spend that on buying houses directly. You might have a buddy trying to sell their home right now. Open Door might buy that home. Like your buddy hosts the open house, Open Door shows up and buys the home. Yeah, this is a process known as

eye buyer as an instant buyer. It's when a company like Open Door buys up a bunch of homes and makes that their business mom. They don't even care about the cookies or the good smell. After accumulating a bunch of homes, Open Door lists those houses on their website just like Trulia and looks for interested home buyers to come buy the thing that they just bought. But unlike Trulia, it now owns the homes that are listed for sale. It's not just connecting people. The extremely simple goal that determines Open Door success, will they sell the house for a higher price than they bought it for it. So if Open Door does a good job here, then they can pay back their investors and they can take home a profit, but it's all about how they're selling the house. Right. Are they flipping the

house well? Are they selling it for more than their bottom? And Open Door thinks they've optimized this sales process better than a real estate agent. For instance, they claim they're the masters of staging. You go to Open Door, you're going to see picks that make a 10 by 10 third bedroom look ridiculously spacious online. And we're pretty sure Open Door is a bunch of drones because you can't list a house these days without a gorgeous panoramic drone shot. No, no, no, no, no, no, you can't. Well, it turns out they also are masters of, like, the high return renovation. They know that if you invest $10,000 in that main bedroom, it boosts the house price by

$20,000. Honestly, you can't list a house these days unless he got a fig tree in a white pot. And I assume this company's based in California, I haven't checked, but it's very techified, and they know these tricks because they have so much data from selling homes. It's basically the Silicon Valley version of an HG TV show. Open Door flipped 18,000 homes last year and is now worth $4.8 billion. And now it's going public by merging with a sh-back. So, Jack, what's the takeaway for our buddies over at Open Door?

As long as prices keep rising. That is the caveat you need to remember before you get too excited about Open Door stock. Snackers, if home prices continue to rise overall like they have in the last decade, it's a lot easier to return a profit if you're a company like Open Door. But Open Door hangs on to homes on average for 90 days between the buying the selling, and a lot can happen during those 90 days. Yeah, key risk here, we have another housing downturn like we had from 2006 to 2010. Then the house that Open Door just bought, it's probably going to sell for less in 90 days because the housing market is going down.

So investing in Open Door stock is basically like indirectly investing in those underlying homes. And if home prices fall, that investment would fall too. Jack Kenyo, whip up the takeaways for us over there. Club Apple now has a fitness center. Club Apple is official, that Apple One's bundle has officially arrived. Second story, Carnival Cruises, is selling its own stock at the very worst time. Yeah, if each shareholder has a cabin on the cruise ship and some rando stranger now gets to share your cabin, that is dilution. That is dilution.

Third and final story. Open Door is the first pure play house flipping stock. Buy house, make it look nice, put in the fig tree, sell the house. That's the whole business model. Now, time for our snack fact of the day. This one tweeted in by a whole family that snacks together. Luis, Vanessa, and Cruz Lera in lovely Jolie, Illinois. Yesterday, it was the first day of Hispanic Heritage Month in the United States, September 15th.

Now, interesting thing here, only official month month that we can think of that starts mid-month. That's because a whole bunch of countries celebrated their independence on September 15th. It's kind of wild. It's a lot of Latin America. You got Guatemala, Honduras, El Salvador, Nicaragua, Costa Rica, all Independence Days, all September 15th. Few other countries were like, this looks. fun. Mexico celebrates its Independence Day the next day, today, September 16th. And Chile is on the 18th, and Belize rounds things out on the 21st. That's right. Cinco de Mayo? Not Mexico's Independence Day.

No. Now, Snackers, before we go, we got to say congrats to Kapisi and Vapult, married as Snackers in Mumbai, India. And Jose and Brooke, who just got married in Cape Coral, Florida. And Lane and Taylor, who decided to get engaged in the most stunning waters of the world, Lake Tahoe. Arsh and Kina, Happy third anniversary from Bartlett, Illinois. And Haley and Jack second anniversary, Grand Rapids, Michigan. And happy birthday to Brian McCoy from Pensacola, Florida. And John Meekle in Caracas, Venezuela. And we got a rebel from South Burlington, Vermont.

Brendan Day, happy birthday. And Brooke Griffin, Seattle, Washington, and Alex Kemple in Houston, Texas. And Dustin, Sisson in La Mesa, California. And Kimbersmith in St. Peter's, Missouri. And happy birthday to Jose Andres in Berkeley, California. Snackers, happy Hispanic Heritage Month. a buddy not snack and ask them HY HYS-D.

They'll be a little confused to then clarify, have you had your snacks daily? It's worth asking. By the way, thanks to everybody who subscribed yesterday to Robin Hood Snacks on Instagram to check out our videos. Jack and I are going to remove the mascara. We'll see you guys tomorrow. This is Nick and I bundled together shares of Apple.

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. 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.