The Best One Yet - 🌝 “Oompa Loompa TV” — Princess Polly’s IPO. Netflix’s chocolate factory. Airbnb’s travel revolution.

Episode Date: September 23, 2021

Forget Fast Fashion and Second-Hand Clothing… Princess Polly and Culture Kings just IPO’d thanks to Real-Time Fashion (and micro-influencers). Netflix just made its biggest acquisition with “Charlie & The Chocolate Factory,” but the real story is that it’s building a factory. And Airbnb’s CEO snagged a podium and gave a speech on the future of travel: It’ll be bigger, longer, and different.$AKA $ABNB $NFLXGot 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 Thursday, the new Friday, September 23rd. Okay, first bit of news, Bob Dylan, he's alive. He is. If we cause you to grieve unnecessarily, we apologize deeply. Us implying he wasn't alive yesterday, that too is blowing in the wind.

Although, Jack, we should point out, his descendants are really happy about that $300 million deal. Today's pod is still the best one yet. Yeah, Jack, this is a T-B-O-Y. What's our first story by the? The company behind Princess Polly and Cultivism King's fashion. It just IPO. Snackers, Jack and I found the secret sauce. Micro is the new macro. For our second story, Nick, Airbnb's CEO, he talked yesterday about the travel revolution that he sees. Here's the thing, your future vacate, it's going to be bigger, it's going to be longer,

but it's going to be a little bit different. Those all sound good. Third and final story. Netflix just made its biggest acquisition ever. I know you're going to pronounce. I know you want to pronounce this. You've been rehearsing. This isn't German, Nick. It's a British guy. rolled doll. Netflix isn't just buying Charlie N the chocolate factory, although they are. They're going to build a factory. They're also buying fantastic

Mr. Fox. Full disclosure, I was Badger number five at my fifth grade play. I'm over here, Mom. Snackers, before we hit those three wonderful stories. This is my favorite pod we've done, Jack. Yesterday, we told you about the whitest white paint in the history of the world.

Purdue white, better known as Extreme Egg Show. But to every gin, Of course, there's a yang. Yeah. So Snackers, behold, Vanta Black, the blackest black paint in the history of black or paint, and Jack and I found it. Vanta Black is like staring into the soul of a black hole that's filled with coal. This thing is, it's like darker a shade than the sweaty inside of Darth Voldemort's suit.

Purdue White reflects 98% of all the light out there. But Vanta Black absorbs 99. 0.96% of light. So it's the opposite, but even more powerful. Like we said, for every yin, there's yin. Vanta black was developed by a British company for the military. Classic, by the way. Of course this is for the military.

Yeah, because this isn't just paint. It's basically magic and it's also dangerous. Get this, Snackers. Vanta black absorbs so much light that whatever it appears on appears to not exist. For example, if you paint the room you're standing in right now, Vanta Black? Why not do it? You won't even be able to tell that that's the corner of the room. It's just one black plane that you see. Jack, Vantam Black, it's the closest thing we've got to an invisibility cloak.

It's so freaky. It's illegal. Period. Yeah, it's not street legal. You can't go out on the street with those stuff. It's not a color. It's an outlaw. Yeah. Still your move. Penn State. Still your move. Let's in our three stories. You're tuned in this next daily. We spoke to the lawyers and we got to get something legal out the way. For 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 you know.

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. Robohood Financial, LLC, member Fenra slash SIPC. For our first story, Jack, strap on your romper.

AKA the fashion legend behind Princess Polly, it just IPOed. The company is called AKA, which is confusing. It is, AKA. But it's part of real-time fashion, which is having its Wall Street moment. Okay, first of all here, youngest company we've seen IPO this year, three years old, there you go. AKA has less than a billion of annual sales, but they're grown fast. And get this, just three years old, it's already profitable. Excuse me?

This is like a toddler who's already walking. What's going on, Jack? Now, we call it a fashion company. but AKA is really a finance company wearing fashion clothes. Or is it a newborn that's already walking? Do toddlers already walk? Yeah, toddlers walk. So the reason we think this is more of like a finance company than a fashion company,

it's because they buy up fashion brands and then like optimize them online. It's a well-dressed PE firm that's gone public now. It does. Jack and I jumped in snack style. They mentioned the word brand. Get this. 582 times in the IPO paperwork. That might be a record.

But 90% of their sales come from just two key brands that AKA owns. The first one is Princess Polly, which targets females age 15 to 25. And then the second one is Culture Kings, which targets males mostly age 18 to 35. And if you're trying to picture Princess Polly, Jack, what would you say? You got a picture like a, it's like if Urban Outfitters was reincarnated as an 18-year-old's crop top. But online only, not physical. Yeah, exactly. And if you're trying to picture Culture Kings, it's not strong.

streetwear, it's extreme streetwear. No tattoo, nowhere. Yeah, there is more ink than skin on every model on that side. The IPO was subdued yesterday. The stock didn't really jump. And so it's valued about $1.5 billion this company. Now, here's what Jack and I find fascinating about Princess Polly and the AKA team. We've gone through a fashion evolution and this is kind of the latest phase of it. All right. The first was fast fashion. Nick and I were covering it like six years ago on the pod. This is like Forever 21, H&M, Zara, Forever 21 is now bankrupt. Last year was all about secondhand online retail. Yeah, Threatup, Poshmark, and the Real Real, all of them went public in the last year, big moment. AKA is real-time fashion. This is the latest era. This is what we think is a new thing.

And we call it real-time fashion because AKA, get this, they pump out 500 to 800 styles of clothes every week. How is that even possible? Not even physically possible. Most of those styles miss, but the styles that stick can go viral online. And they know what sticks over at Princess Polly based on one day's worth of Instagram likes. They're that data efficient. AKA brands became shockingly efficient at tracking social media reaction to those 800 weekly new styles. But here's the thing about real-time fashion. It's pretty similar in the waste and sustainability issues as the old school fast fashion. Fast fashion went bankrupt, but AKA Brands is peaking in popularity despite the

sustainability problem. And the reason why is kind of our takeaway. Jack, what's the takeaway for our buddies over at AKA Brands? When they went macro, Princess Polly went micro. Snackers, we've talked to you before about the huge influencers. We're talking Rihanna, Kim, Messi, like the celebrpreneurs launching stuff. When you got 100 million followers, you can launch direct to consumers. or anything. Market the product by posting on Instagram and sell billions of that product.

You become a mother of unicorns. Instead of selling through those macro influencers, though, Princess Polly went micro. Yes, they went micro. They added 13,000 micro influencers to their platform like Tara Frederickson over in Milwaukee. She's got 8.3,000 Insta followers, not too shabby. Tara Fredrickson can make a couple thousand bucks with a promoted post of Princess Polly's latest Now our buddy, Tara, she's got fewer followers than Kim, but her followers are more engaged because Tara, she actually responds to your DMs. And those 13,000 micro-influencers that are kind of working for Princess Polly. Yeah. They need fresh content to post every day, aka delivers with their 800 new outfits they put out every week. So, Jack, an army of micro-influencers, that just gave

Princess Polly the same billion dollar valuation as one macro influencer. For our second story, Airbnb CEO, he sees a travel revolution happening right now. Here's the revolution. Yeah. Bigger travel, better travel. Nice. But totally different. Little scary.

Jack and I noticed that Airbnb CEO, Brian Chesky, not a snacker, maybe a snacker, spoke at a travel conference yesterday. By the way, Jack, did you see where the travel conference was? Wasn't it in New York? Yeah, it was at the TWA Hotel at JFK. Do you remember that? Oh. There's a scene from Catch Me If You Can there.

Yeah, but also, do you remember when our flight landed and we, like, had no time and we recorded a podcast from the TWA hotel when they just opened? People were moving around and checking in and we had an outlet and we're recording this podcast. The concierge's like, you want to do what? Like, can you guys turn it down? What are you doing? I think that pop was the best one, yeah, by the way. At the time, it was really good. But Brian Chesky, this CEO of Airbnb, he spoke at the travel conference.

His view, though, is like, it's kind of biased technically. Right. Because he's going to say things that are good for Airbus. Airbnb because he's the CEO of the CEO of Heinz Ketchup. What do you think of the burger industry? I think it's fantastic. But Brian Chesky also has data from Airbnb about how we are traveling. He can't lie. He can't not tell the truth. He'd get sued if you did. And here is what Airbnb's CEO said. He said before COVID, we lived in one place, worked in a second place, traveled to a third place. Well, now all three of those places are the same place. You can be anywhere doing the work, the living, and the travel.

Right. It's all because of work from home flexibility. And more flexibility has led to more travel, according to Airbnb's data. And more travel, interestingly, has led to longer stays. And that's the key. So here's the data. Half of all nights booked on Airbnb so far this year were for stays of a week or longer. Half. That is a big deal. That's a huge number for Airbnb. That is a long bleeder trip to like Idaho where you're working four days, skiing four days. That's how you blend the leisure with the business at app pray, Jack. You do it at app pray. And get this, one fifth of all Airbnb book nights were for stays longer than a month. One fifth. A huge number. So like you're letting your lease end. Maybe you try out living in the potato state, learn how to make some French fries.

All right. So that is the travel revolution. But Brian Chesky thinks it will continue into the future. It's not just a pandemic. Yeah, because Chesky, he's thinking that a CEO's who tried to get you to fully return to the office 100% of the time. he thinks they're going to lose. He thinks that employees are boss and they are scarce. There's a shortage of employees, talent rules. Yeah, you're not going in five days a week to hang out at the water cooler with Anna from accounting. And if your boss tries to get you to, you'll quit. And Anna's going to quit too.

So, Jack, what's the takeaway for our buddies over at Airbnb? This travel vision sounds great for Airbnb, but it's actually bad for hotels and airlines. Interesting distinction here, Snackers. You're month experiencing Idaho and all of its splendid Idahoian beauty. Airbnb CEO loves it. Delta's CEO hates it. It's bad for airlines because if you have the flexibility to book a trip for a whole month, you're going to book it on Tuesday morning and you're coming back Tuesday morning when fairs are cheapest.

Yeah. And those longer stays, that can mean fewer trips overall, which would mean fewer flights with the airlines. It's also bad news for hotels because they have to renovate each room to recognize that you're working there too. Hey, Hilton, I don't want a king-sized bed. I want a king-size bed. And it better be a standing work desk. Chesky's travel vision that he described, it's great for Airbnb. But it forces airlines and hotels to adapt ASAP.

For our third and final story, Jack, snobsberries or gobb stoppers? Wow. I know. I'm pretty on the spot. Tutsi rolls used to be two cents at my local store. I'd get a dime. I'd buy five. You a baby boomer?

What's going on over there? You old five and dime? Snackers, third story here. Netflix just acquired everything Rall Dahl has ever written ever. One of its biggest deals ever. Netflix is buying James and the Giant Peach because a strong offense is the best defense. Invention is 93% perspiration, 6% inspiration, 3% perspiration, and 2% butterscotch ripple. I think he said sweating twice. It's a Willie Wonka line so that probably doesn't even add up to 100% Jack.

Charlie and the Chocolate Factory, Matilda, James and the Giant Peach, the BFG, and of course, the fantastic Mr. Fox. I always forget about that one, Jack, and they're all written by Royal Doll 60 years ago. And Netflix just acquired the legal rights to Roald Doll's books. And the reason they're splurgeon and incredibly big sum on this content is because it's candy content. It has achieved candy appeal. Love for Roll Doll has no borders. No, it doesn't. It's been translated into 63 languages worldwide. And there's no age limit to loving these books.

Yeah, they still sell a new Rol Dahl book every 2.6 seconds to kids and to adults. Like candy, everyone likes it. All right, so Rol Dahl's books are good, clean, family fun, and that is good business. Just ask Mickey Mouse. So Netflix is buying the British writer's entire library. But here is what Jack and I found fascinating about this deal, Snackers. This isn't a content deal. this is a universe deal.

Netflix isn't just going to create animated shows and live action films and TV shmubes and more books and even games with Roll Doll Stories. They're also doing video games and live theater productions and toys and get this, immersive experiences. I can't wait for a spin-off series about the origin story of the umpalumpas. This could be like a new eight-parts movie into Lumpa land. I have both really cool dreams and really scary. nightmares about the umpalumpas. Every child has been traumatized by that blueberry scene in Willie

Walker. We're also picturing a peach roller coaster so you can feel like James on a four-minute theme park ride. Jack, how about the Matilda experience, a virtual reality game where you're locked up by a teacher for like three days? That was also kind of a scary movie. In retrospect, all these things were extremely scary, Jack. But Netflix CEOs said it, they're not just doing video with Roll Dolls Collection. They're going to do all that other stuff too. So Jack, what's the takeaway for our buddies over at Netflix. The best defense is a strong offense. Is that the art of war sunsuit? What we got going on there? That's actually Peyton Manick. Fantastic. In the last year, Snackers, Netflix, it has been on the defense. Its stock is only up 13%. Low for Netflix. It's mostly because of Disney Plus, which has already grown to half the size of Netflix in a quarter of as long.

So this huge content deal, it's not just a content deal. It is Netflix doing a 100% Disney move. Taking one character and turning it into games, live action plays, shows, movies, and immersive experiences, that is the Walt Disney Playbook. So forget Disney World. Reed Hastings is build a nation Netflix. Netflix is going on the offense because it's the best defense. Jack, can you whip up the takeaways for the Umpalumpus? Princess Polly just IPOed under a company called AKA Brands.

Louis Vuitton pays for macro influencers. Princess Polly has an army of micro-wifference. influencers. Airbnb's business benefits from the longer stays and the bleasure travel. But airlines and hotel businesses, they don't benefit from that. Third and final story is that Netflix plans to turn Roald Dahl's books into Disney-style universes. Because a good offense is the best defense. Now, time for our snack fact of the day. This one tweeted in by Cameron Getz from lovely Portland, Oregon. Hi, Snackers. If you were to shuffle a deck of cards right now, the odds are that that sequence of cards has never been shuffled before. To put this in perspective, if you asked every single person

on Earth right now to shuffle a deck of cards once for every second that the universe has existed, the odds would still be one in a trillion, trillion, trillion chance of two of those decks matching up. Thank you, Nick and Jack. I think the math is 52 to the power of 52. That's the trillion, trillion, trillion number, he referred. Jack, I think if the cards were painted Vanta Black, we couldn't even see him. That's true. Snackers, you look fantastic today. When you're ordering like a salad at lunch, turn to the person right behind you and say, hey, by the way, have you had your snacks daily? And if you don't like talking to strangers, tell a buddy that. HY, HY, Y, Y, Y, Y, S day. Nick, I'll see you tomorrow. If you know, you know.

And before we go, congrats to Snackers, the Seam and Nevin, who we're having a week-long wedding celebration over in Chicago. Yes, Jack and I are both free. Logistics and epic celebrations. Yeah, I think those are one and the same in this case. Congratulations to Amanda and Jenny for launching a business together in Des Moines, Iowa. And happy birthday, Ben Stone, celebrating down in Mexico City. And Joey Berlin in Cincinnati. And Jennifer Marie Hancock, happy birthday in Philadelphia.

Happy birthday to big time snacker Morgan Beckwith in Austin, Texas. And Ryan C. and Emily, they just got married Jack over in lovely Cranberry Pennsylvania. Congrats on buying your first home, Dan Weckerly and Jenna Erica. in Fort Myers, Florida. And Ariel and Mariel, happy 15th wedding anniversary down in Miami. Have a fantastic trip. Anyone else celebrating something today? Make sure you make it a T-Boy. Celebrate the wins. This is Jack. Nick and I both own stock of Airbnb. I own stock of Netflix. Nick own stock of the Real Real. Robin Hood Snacks, Newsletters, and podcasts reflect the opinions of only the authors who are associated persons of Robin Hood Financial LLC and do not reflect the views

of Robin Hood Markets, Inc. or any of its subsidiaries or affiliates. They are meant for informational purposes only and are not a recommendation to buy or sell any security, cryptocurrency, or investment strategy in any account. This is not an offer or sale of a security, not a research report, and is not intended to serve on the basis for any investment decision. Any third-party information provided therein does not reflect the views of Robin Hood Markets, Inc., Robin Hood Financial LLC, or any of their subsidiaries or affiliates. All investments involve risk, including loss of principal.

and past performance does not guarantee future results. Robin Hood Financial LLC, member FINRA, SIPC. Did you have that prepared? That was really good. No, no. I didn't know you're going to ask me if I met Sun, you know. That was really good, yeah.