The Best One Yet - “Pimp Yo’ Crib” — Lowe’s megatrend. Facebook becomes a digital catalogue. Clubhouse hits $100M.

Episode Date: May 21, 2020

Fresh after the first wave of corona-conomy trends, we’re predicting the next megatrend: Pimping yo crib, Lowe’s style. Social network Clubhouse launched this year and just hit a $100M valuation�� with only 1,500 users. And Facebook’s newest product transforms instagram from digital magazine to digital department store (so who got Zuck’d this time?).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 Thursday, May 21st. Nick, you know sometimes the chef enjoys the food more than the person actually eating it? Those are my favorite kind of chefs, Jack. Feels like that today because today's stories are fantastic. Snackers, these aren't going to get served at any other spot on the street.

The first story of today, which is the best one yet. It is a tea boy. This is a tea boy. The latest megatrend in the coronavirus is brought to you by our buddy exhibit. Pimp, yo, crib. We're talking pimp yo crib because Lowe's earnings report showed how people aren't just working from home. They're nesting hardcore and with big money for the long term. Our second story, we tried to jump in snack style to this one.

In the end of the day, we didn't get an invite snackers. If you want to download the Clubhouse app, you can't because it's an elite 1,500 users been given access, and it still has a $100 million valuation. Its users could fit in your high school gym, but this company thinks they've pioneered the next phase of social media. Audio only. Audio only. For our third and final story, you know what they say about getting zucked. When you do get zucked, you didn't see it coming.

Case in point, the latest zucking. Facebook just launched a feature called Shops. Instagram's not a digital magazine anymore. It's a digital catalog. Should Shopify be afraid of this thing, Nick? Should Exhibit be afraid of this thing, Jack? But first, we want to give a pep talk slash congrats to the Snackers about to enter the workforce. Get this number.

there are four million Americans who are graduating from college basically like, I don't know, like right now this month. Nick, 10 years ago, my shirts were way bigger than they needed to be. I had 30 pounds more on my body and I didn't have my hair part yet. I looked like a boy. Now we got enough snackers toss and tassels to stretch from Proctor Dining Hall all the way to the ratty on College Hill. Can't believe it was 10 years ago we graduated there. Feels like, kind of feels like it was a decade actually. Now, sadly, these graduates are missing out on the famous, infamous graduation weekend rituals. You got to stay out till midnight to watch the sunrise. You got to forget to tell your parents what time the ceremony actually begins. You got to wear sunglasses throughout the ceremony because your eyes are bloodshot and then you're embarrassed. You didn't tell your parents by what time it began. We're going to call up some Snackers to the podium and congratulate you on your hard work and wish you good luck. Starting with Snacker Peter Donahue, who's graduating this weekend from SUNY, New Paul.

State of New York. This guy's getting an empire diploma. Wonderful. Beautiful. Second, Katie Baker, Stanford Graduate School of Business. Four for you, Glenn Coco. You go, Glenn Coco. And then Mike Shoe, the shoe didn't drop on Mike Shoe.

He's getting a BS in computer science from Georgia Tech. Home of the genetically modified peach. Go Yellow Jackets. And then you got Kyle Wiper snagged that MBA from Darden. Darden always gives me PTSD for my days at the Olive Garden next. This guy to the Olive Garden fast. And then last, definitely not least, are boy Lucian, who just got a BBA from the University of Michigan Ross School of Business.

We're talking about an OG Market Snacker, former intern, Lucien. Lucien goes way back, great guy, but congratulations to all the graduates of the year of 2020. Things are insane. Yes, but I think you got a bright future. We honor your honors. 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 are about to hear ain't food. It's air candy. They don't reflect the views of the robberhood family. It's all information. just so you know we're not recommending any securities nope 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 robberhood financial LLC member fenra slash sipc for our first story jack grab a socket wrench in the cast of real world road worlds are they two by fours or are they four by twos is winning right now because people are going full on

Pimp your crib. This new megatrend has Home Depot and Lowe stocks close to all-time highs. And that's because DIYism has proliferated in the WFH era. Tweet us a picture of your DIY tie-dye t-shirt. Nick, did you know an avocado shell can turn into a tie-dye shirt? Jack, avocados didn't even know that. Now, nesting behaviors should have been their own line item in Lowe's quarterly earnings report. Yeah, get this Snackers. We're talking about like an old school company here. Sales jumped 11% last quarter. That's because you're at home, and so you're finally tackling those long overdue home improvements, and you're going to lows to get the supplies. You know what, honey?

We should fix that ceiling because I'm staring at the hole in the ceiling all day. Even sales to professional contractors remain strong last quarter. Gotta love those contractors. That's not DIY. That's the old DDIY. Don't do it yourself. Now, this speaks to a new mega trend we're seeing in the coronavirus. We're calling it Pimp Yo Krib. Snackers, Pimp Yo. crib. This is of course a combo of the classic MTV hit, Pimp Your Ride, and Cribs, which is also a classic MTV hit. This is also definitely going to get us a legal summons from exhibits lawyers immediately. Historically, Americans have spent 35 to 40 hours a week at work. Now companies

are adding all the flexibility, the semi-work from home, the extra work from home, the permanent work from home. So maybe your future isn't 35 to 40 hours a week. No, no, not work. Maybe it's 25 hours. Maybe you're only in the office 20 hours a week. maybe you're never in the office. Maybe you're just scared of the office. You stop even using the word. Snackers, what this means is you might be spending a bunch of extra hours every week at home instead of the office where you used to be.

Give or take, maybe 10 to 20 percent of your waking hours are now extra going to be at home. So if your house is 10 to 20 percent more important in your life because you're spending more time there, maybe you'll spend extra money on your house. Maybe you'll spend 10 to 20 percent more of your money on that home. And what does that mean? What does that mean you're going to do? Repeat after us. Pimp, yo, crib. You pimp, you crib. We're looking at stocks that would benefit if people pimp, yo, crib, because they're spending so much more time there. And Lowe's at Home Depot, they are aggressively getting pimped out right now.

So, Jack, what's the takeaway for our buddies over Lowe's? The housing market, though, is bigger than the DIY market. Snackers, Pimp and your crib makes sense right now, but not if your crib gets foreclosed upon. And Snackers, with 20% unemployment, people could start missing their mortgage payments and potentially lose their homes. That's the kind of shock that could hammer home prices. Although people keeping their jobs might be pimping your crib. True. That could be offset by all those people not keeping their jobs who got no crib to Pimp. Jack, that was like poetry. I mean, that was incredible. I learned it from exhibit, Nick. I learned it

from exhibit. And if home prices drop, that means people probably don't want to be improving their homes in that moment. If the housing market tanks, Pimp your crib pretty much gets canceled. Snackers, in the middle of the story, you're going to hear a barking sound from our profit puppy. That means we're halfway through. Time to turn around. For our second story, Clubhouse, the app just hit $100 million dollar valuation. And it's only got 1,500 users that's smaller than Middlebury College. This is like signing the Little League Lucy to a 12.4 million dollar multi-year contract with the Mariners. I know Cristiano-Rinaldo was like big when he was 16. But this is like five-year-old Cristiano Ronaldo, like getting his own TV shows.

Snackers, we're talking about a company that has no website and we repeat 1,500 users. That is so tiny. Technically, it's still in beta mode. Right. That's the mode you go and after you've been bragging about being in stealth mode and couldn't talk about what you're doing, then you go into beta mode. Beta mode pretty much means like it's not ready for everybody to see, but some VIPs can check this out even though there may be some glitches. Oh, by the way, email me or ping me any glitches you see. Speaking of VIPs, the founders of this company, their LinkedIn doesn't even mention Clubhouse.

That's how stealth they are. The LinkedIn just says he's a quote-unquote hungry entrepreneur. Experience go-getter with a hustling attitude. Very sexy way to say unemployed. So if you're wondering what Clubhouse is at this point because no one you know is on it, that's a good question. It's making a lot of waves in Silicon Valley, so we figured we'd tell you what it is. Jack and I basically put together like a Jackson Pollock painting to combine a bunch of variables and figure out what this thing is. This is the fourth iteration of our description of what the product actually is. Jack and I had to whiteboard this thing for a good, I don't know, give or take four hours before we recorded this podcast. All right. So imagine an app which is like Zoom, but nobody has their video on.

It's just their microphone. Then add in a host or moderator who's super interesting, like, the kind of person you see do a TED talk on like the invention of the pinata. It's like somebody you'd go to at 7 o'clock on a Friday night and like watch them speak. And then add in like a Facebook newsfeed element of like a bunch of interesting stories that you can pick and choose that you want to enjoy. All right, that's it. It's like a super exclusive like audio experience. That's the best way we can describe it. I feel like at this part we should just cut, do the takeaway. We didn't jump in snack style because we weren't invited. It was kind of insulting. We're not holding it against them, but we'll take the invite. So they're pretty much audio only virtual conference rooms.

So here's an example what was just on Clubhouse. They had a big chat going on about like prison reform in the prison population. They had three famous speakers, including Ben Horrible, of Andresen Horowitz, the famous venture capital firm. Then you got Van Jones, who's like a CNN guy who knows this stuff. And then you got MC Hammer, who is MC Hammer? Who's too legit to quit? So you can pop into this virtual conference room. Enjoy the conversation and you can only talk if you raise your hand and they call on you.

Best quote we found was from a user and investor in Clubhouse. This thing's either going to be dead by July or they're on to something big. Think a yik-yak, the app that was like for anonymous messages and hit a 400 million million dollar valuation? It's shut down now. Think of chat roulette. Basically became a porn site. Clubhouse could definitely fail, but the core concept we think we'll live on. So Jack, what's the takeaway for our buddies, not us?

Because we can get in over at Clubhouse. This highlights the second phase of social networks, beyond the screen. Snackers, you know virtual reality. You know augmented reality. They get all the attention, but they're really phase three of social media. To do VR or AR, you need some expensive goggles and power. computer and a whole network of buddies who also have expensive goggles and a powerful computer. But audio like Clubhouse, that could be the sneaky second phase of social networks because it's the low-hanging fruit. Phase one was Facebook, Snapchat, Twitter, Pinterest, LinkedIn, Zoom, etc. But all of those

phase one social media apps, they've required your attention on the screen all the time. Meanwhile, Clubhouse is a concept that needs no new equipment, just your phone and your ears. It's the only social network you can actually multitask with. That's the $100 million bet. For our third and final story, Facebook just turned Instagram into Insta shop. Warning everybody, your Insta shopping problem is about to get a lot worse. Which means we got to bring in our buddy Mark Zuckerberg, the Zuck, who knows we're all obsessed with followers. I'd like to thank all of my followers for helping me get to a thousand followers. Half of you are family, half of you are bots, and I love and cherish you all. Businesses feel the burn too. Instagram is where potential

financial buyers are checking out your product to make sure, you know, it's a good product. And on the business side, the number of followers can be a proxy for how legit a company is. So the first thing startups are doing is trying to get their Instagram follower account as high as possible. Why not be able to sell directly to those followers? Done. Facebook just launched shops for both Facebook and Instagram. That means Facebook and Instagram have transformed from a digital magazine, what they are today, to a digital shopping catalog, which they are tomorrow. Pull out the notebooks because we've got marketing.

zero one. This isn't 101. This is where you begin. Meet your customers where they are. Used to be an email. That's where you'd meet them. Now it's happening on Instagram and Facebook. It used to be a big deal if you had a customer's email address because you could send them that 40% off email with the sassy subject line. Now that's in your promotions tab. Who's reading the promotions tab? It's like two sniffs away from the spam folder. Facebook and Instagram is where customers are at. And that's why they're becoming truly shopping apps. And when it comes to this new Facebook product, shops. Classic Facebook move, Jack and I noticed. The first line of the press release brags that they're just trying to connect people to the small and medium businesses they love but can't visit because of

COVID-19. Just trying to connect people. Facebook's all about connecting. It's also about charging fees for purchases made on the app, which is why the stock rose to a record high yesterday. Cough, cough, they're going to make some money off this. So, Jack, what's the takeaway for our buddies over at the Facebook? We got a big question. Who just got zucked by this. Getting zucked Snackers is one of Facebook, basically, you know, just completely copies your company's product.

And since it has 2.6 billion users, with a B, Zuck's version of your product is more successful than your product immediately. So that's the first thing Jack and I started looking at, the zucked situation. And the closest thing is Shopify's new shop app. Now, this new feature is called Shops,

which is extremely close to Shopify's app, which is called Shop. Which means this wasn't a full zucking, but there was definitely some zucking going around. Shopify provides all the e-commerce back end for retailers to sell online. They're doing your website, your transactions, your payment processing, etc. That's why Shopify created the shop app, just like last month, I think, featuring all of the online stores that it powers.

So when you hear about what Facebook just came out with shops, and Shopify's shop app sounds a lot like Shopify got sucked. But shockingly, it didn't. Get this Snackers, turns out Facebook is actually integrating Shopify's technology into its new shop product to make shopping possible. Shopify's new company slogan, we are unzuckable. Shop, shop, shop, shop, shop, shop. Jack, and you'll whip up the takeaways for us over there. Lowe's is reaping the benefits of a new mega trend, Pimp yo crib. You're spending more time at home, so you're spending more money on your home in exhibit. Second story. If you have the clubhouse

beta app, you're bragging that you have the clubhouse beta app. It symbolizes the next era of social network's audio only. For our third and final story, Facebook just transformed from a digital magazine to a digital catalog. And Shopify narrowly avoided getting zucked. Now time for our snack fact of the day. This one sent in by Yasser Asami in Chicago, Illinois, the nicest Chicago. Yasser points out that Warren Buffett, who we call the Dumbledore of American capitalism, his company, Berkshire Hathaway, has so much cash on hand. How much cash on hand does it have, Jack? $360 billion billion with a bee. That is enough to buy a lot of companies.

Netflix, Uber, and Coca-Cola. All together, those could be buffets if you just started spending some of his cash. Or he could buy 40 lifts, either on. Everyone wishes there was more than 40 lifts. Quick happy birthday shout out to Matt Young, a field service engineer working out of Detroit. By the way, I lived for one summer on the corner of Cass and Warren. By the way, full disclosure, Jack and I had to Google what a field service engineer was. Well, Matt is working from work. He's a great guy. And his girlfriend, Allison, is a nurse in

Detroit. She's also working from work. Thank you for being essential. They're both commuting while they're snacking. Thank you both. Snackers, if you like today's pod, hit up your buddies and ask them H-Y-H-Y-Y-S-D. Have you had your snacks daily? We will see you tomorrow. I can't wait. If you know you know. By the way, this is Nick and I own shares of Shopify. Shop, Shop, Shop, This is Jack Islandstock 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, 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.