The Best One Yet - 💋 “PinPal” — Spanx’s $1B. PayPal’s Pinterest. Maersk & Crocs sitting in a tree, S-H-I-P-I-N-G.

Episode Date: October 25, 2021

The shocking couple that’s potentially dating right now is PayPal and Pinterest because PayPal wants to create a “Super App.” Spanx just sold for $1.2B, but Kim K is dressed to play. And the whole shipping fiasco that could delay your Christmas can be explained by Crocs, Maersk, and a Beyonce concert ticket.$PINS $PYPL $CROX $BX $AMKBYGot 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. Welcome back, Snackers. It is Monday, October 25th. Nick, I'm feeling it today's pot. I can tell, man. I can tell.

I know what you're thinking. It's the best one, yeah. It's a TBI-O-I. Jack, by the way, did I tell you what I tried over the weekend? No. I tried plant-based lamb. You know what it tasted like, Jack? Meat-based lamb?

It tasted like plant-based chicken. The other, other white meat. Exactly. For our first story, in shocking dating news, PayPal may be acquiring Pinterest to build a super app. Media is the must. Have fashion accessory these days. You gotta have it. For our second story, Spanx, sold a majority of itself for $1.2 billion to Blackstone.

Shocker. Snackers, the first mover, has got to watch out for the second shaker. For our third and final story, Mursk and Crocs, two totally different companies with totally different dealings with the shipping crisis. And here's the thing Jack and I noticed. A Beyonce concert explains why. But before we hit that fantastic mix. Honestly, I was looking forward to this all weekend, Jack. This is a fantastic mix.

It is week 84 of the pandemic. So we're looking at the Horder's Almanac, Chapter 84. Yeah, Jack and I have been keeping track. Things we're running out of because of the pandemic, week 84. We're running out of clowns. Clowns, true story, Snaggers. We're out of circus clowns. We're talking Krusty.

We're talking Bozo. All those clowns, they are MIA. We can't find them anywhere these days. The clowns are like, this is just a gig. It's not my life. Come on, man. The only clown around these days. days is Ronald McDonald's and the Joker on HBO Max.

And here's the thing, Ronald. He's getting paid by his sugar daddy McDonald's. And the Joker is now rated art, so the kids can't see him either. He's behind the screens. Well, clown performer snackers, they can't be found these days because lockdowns, they shut down the circuses. Plus, it turns out, a lot of clowns working in the UK and the U.S., they're from abroad, and they've returned to their home countries during the pandemic.

So, Jack and I heard about this, we jumped in snack style. And Silly Tilly, an Irish clown of 30 years. years experience told BBC that this whole shortage, it is a disaster. Silly Tilly said his greatest fear is not being laughed at. Yeah, and we don't make up silly Tilly quotes. Silly Tilly really said that. Now, ironically, there is an upside to this clown shortage. There is. Jack and I are always looking for this kind of thing. Here's the upside. First of all, you got a surplus of red noses. You also got a surplus of size 32 red shoes. Jack, I noticed that Glossay, they got plenty of red blush in stock, a whole bunch of it. And kids are having fewer nightmares.

There we go, Snackers. It is week 84 of the pandemic. and we're running out of clowns. I want to finish with something a clown says, but all I know is that their nose honks when you squeeze it, right? Aren't they like silent jack? I don't even know. Let's in our three stars. You're tuned in the snacks daily.

We spoke to the lawyers and we got to get something illegal out the way. The snacks about the hearing food is 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.

Robberhood Financial, LLC, member Fenbara slash SIPC. For our first story, PayPal is widely reported to be Pinterested in acquiring Pinterest. Yeah, that Pinterest. Super app. Maybe. Okay. Media. Yeah. Definitely. Snackers. Jack and I saw this last week. We couldn't wait to cover it. This is kind of a Chandler Monica situation, though. We should just get that out there. Didn't see this acquisition coming. I get Ross and Rachel, it like made sense season two.

This is a plot twist out of season four. I get Joey and a salami sandwich. I don't get PayPal and Pinterest. Honestly, I'd be shocked if they were still together in real life. Snackers, we're talking, of course, about PayPal being reportedly interested in acquiring Pinterest, the social media app for $45 billion. Now, Snackers, this isn't just a big deal because it's potentially an odd couple. It's a big deal because this would literally be the biggest internet acquisition deal

of the last decade. if it happens. FinTech company acquiring social media style app. Why? I feel like you're at the wedding right now and you're like kicking off the best man's speech. No, I'm kicking off the objection that no one ever takes advantage of. First thing you probably think it's knackers. The why? Well, reason number one, I mean, look at this. PayPal. They need some office decor inspiration. Subway Tyler, Shiplap for the office kitchen. I don't know. What are you going to put the fictory? You're going to put in the corner. Pinterest can tell you where to put it. The other reason we figured is maybe PayPal needs to acquire a new user base. Yeah. And this is, and this is,

a pretty straightforward way to do it because PayPal, you're 23 years old. You got 400 million accounts. Are you even growing these days? Pinterest is much younger with even more accounts and probably not much overlap between those two user bases. True story. All we do know is if there is a term sheet, it's going to have a custom font. Now, here's what Jack and I find fascinating about this potential deal. The real reason behind the deal was hidden in a PayPal earnings report we noticed a year ago. It was an utterance of the word super app. And that word, that term super app, it was uttered four times a year ago and seven times in July by PayPal. Let us explain. In the West, you have apps for different purposes spread across the various home screens on your iPhone or Android

Smart. But in the East, apps tend to be spread across tabs within one single super app. And PayPal CEO, Dan Shalman, he admires the super app. that he has seen in China and India have so much success. Snackers, you may have heard of these. Like, WeChat, Paytm, Ali Pay, D-D, I was using one in China. We-chat. You're using a single app for like everything you're doing, even if you're just there for two days.

It's just different in the Far East. You can order lunch, pay back a buddy, post a picture, and hail a ride all in one single app. And when it comes to building a super app, the formula for super apps is actually pretty straightforward. You blend social media, e-commerce, and banking all into one app. Well, PayPal has slowly been building a super app of its own. It's just been doing it extremely slowly.

They acquired honey two years ago for insights into what you're buying online. And PayPal also happens to own Venmo, which they'd also acquired, to help you send cash to your buddy Timmy to get those bagels paid for. The bagels Timmy said he was treating us all to, but obviously wasn't. Now, let's pause for a second. Super app, a new concept here. Maybe you don't get it. Curious about why this makes sense.

What is PayPal trying to think about and what are they doing over here? Wall Street doesn't get it either. No, they don't. PayPal stock plummeted 12% last week on Word that this deal could happen to buy Pinterest. PayPal is worth about $300 billion. So if it fell by 12%, it lost over $30 billion in market cap, which is almost as big as the size of the potential acquisition in the first place. Now, that is a huge deal.

Wall Street is un-Pintrusted. So, Jack, what's the takeaway for our buddies over at PayPal and Pinterest? Media has become the ultimate must-have fashion accessories. Snackers across industries. Jack and I have been telling you about all these companies buying up media startups lately. Because nothing engages your existing audience like pure editorial independent media. I mean, we just covered this the other week. JP Morgan Bank just bought a restaurant review site called the infatuation.

Medium-sized software company HubSpot acquired pretty big newsletter company The Hustle. Penn National Gaming acquired Barstool Sports a couple years ago. Nike just two weeks ago invested in LeBron James video podcasting media startup, Springhill. And full disclosure, Robin Hood acquired market snacks, Jackson My Startup, and now that's why we are Robin Hood snacks. Don't mind if we do. What we just did. Media has become the must-have fashion accessory. Make it work.

I'm the necklace. Nick is the anklet. For our second story, Spanx, the disruptor of drawers was just acquired for $1.2 billion. And the buyer is big money blackstone. Okay. Snackers. This week, Jack and I think you should check out a different. podcast episode from a different podcast from four years ago. You got to check this out. It's how I built this with Guy Raz, but more importantly, with Sarah Blankley.

It is an incredible episode. Sarah watched my cousin Vinnie and wanted to become a lawyer, but failed the L. Sats. Yeah. Then she applied to work at Disney World as goofy, true story, but was rejected from Disney World. Things weren't going well. She was figuring things out. She was almost 30. One day she's at home, got to go to a party, cuts off the feet to some traditional panty hose to wear under her pants. Boom, she thinks that's a business idea. She brought the idea to some potential investors, but they all rejected the investment because all of them were men. And none of them wore pantyhows, at least like Adam. So then Sarah took $5,000 of her own savings and started Spanx way back in 1998. And boom, Spanx became

a unicorn in 2012, making Sarah Blakely the youngest self-made female billionaire of all time. And last week, Blackstone, the publicly traded private equity company bought a majority stake in Spanx. And it wasn't just Blackstone. Blackstone had a strategic all-female investor team led by all-female lawyers and all-female bankers. Spanx will have an all-female board at Blackstone. No man-spreading. None. No man-splaining. But here's what we notice, Snackers. Spanx is also celebrating because Spanx right now is also surviving. Yeah, the pandemic tossed the shapewear category, which is what Spanx is way back into the back end of the drawer. Yeah, Snackers, you were on the couch, you were doing lounges, you were not wearing your shapewear out. Right. So industry sales of

products like Spanx plummeted by 30% during the pandemic. We said no to people. Yes to cookies. Sarah made her original pair of Spanx back in 1998 because she needed something to wear under white pants. Yeah, last two years, you weren't going to any parties. But finally, things have rebounded. People are going out again and dress orders are back up to their pre-pandemic sales levels. And Snackers, here's the thing. If dress orders are coming back, then shapewear is coming back too. and we've seen the demand rise. So, Jack, what's the takeaway for our buddies over at Spanx? First Movers got to have a rearview mirror.

Look up for the second, Shakers. Yeah, Snackers, for the last two decades, Spanx was the only big player in the shapewear category with the big brand. But it's no longer number one, despite a 20-year head start because of Kim Kardashian and Skims. Yeah, get this Snackers. Spanx, it is a 23-year-old company worth $1.2 billion now. Jack, how about Kim Skims? It's only three years old. It's already worth more. It's at $1.6 billion valuation, according to the New York Times.

Kim Kardashian Skims expanded to more skin tones, more sizes, and they did it way faster than Spanx did. Skims also had lounge wear right from the start, which was great during the pandemic, but Spanx didn't have that. I guess what else we noticed? Skims has a quarter million TikTok followers. Jack, how many TikTok followers do Spanx have? I feel bad about this. Spanx obviously hasn't like launched a TikTok strategy. Their social media team, not focused on this. They do have an account out, and it has two followers. It has two followers. So Snackers Spanx, they were the first mover in modern shapewear, and they're worth $1.2 billion.

But Kim Skims was the second shaker that moved faster. For our third and final story, shipping delays are the Grinch that could steal your Christmas. Crocs and Merck, they're Cindy Lou Who. They're going to have a great Christmas no matter what. Jack, I know you do this because I know I do this. do this, you do this, constantly refreshing the tracking number. If you are obsessed with when your package is going to arrive, we have some bad news for your snackers. Ma'am, it's TX3044PK, and that's a zero or an O, and I have no idea, but this thing is not

showing up on FedEx. Bad news if you're waiting for a package. The port of Los Angeles is the busiest port in the Western Hemisphere and just had their busiest month of shipping ever by far. Yeah, traffic jam over there, it's insane because when a cargo ship arrives, it's got a way in line, at this, 12 and a half days in the seas outside of Los Angeles. A gigantic ship goes from China across the Pacific Ocean to L.A., but has to sit there, bobbing in the water for 12 and a half days. Now, President Biden is ordering the port of Los Angeles to start operating 24-7 to clear this stuff out.

And you've heard the reasons for this, like, traffic jam. Disruptions caused by the pandemic and a worker shortage across the country. Yeah, so early takeaway from Jacoby. Order now, if you want to do. want your packages guaranteed delivered by Christmas, 2023. Now, this issue, the shipping and supply chain issue, it's adding to inflation across the country. Prices are rising. And it's adding to delays across the country. Frustration is rising. But Crocs don't care about this shipping problem. We're talking Crocs here, people, the extremely casual footwear company. Jack, how are the revenues doing

over a crox? Revenue's jumped 73% last quarter and they boosted their outlook for the holiday quarter and for 2022. Again, we're talking about crocs here. Snackers, crocs brag to investors last week that they have a playbook for avoiding the whole supply chain snafu that everyone else in the world is dealing with. Play one of their playbook is just have a simple product, which they have. Funny thing about crocs, they're only three parts in a single crock. I'm actually counting two parts. There's the shoe and there's like the heel latch. So it's pretty easy to shift production of the rubber in those crocs to like some different factory. It's only three parts. The second key is the product is extremely light, like not heavy.

So Crox isn't dealing with ships. They just took to the air. That's right. To avoid the port of Los Angeles, Crox uses airplanes because you can stuff thousands of Crocs into a 747. Exactly. But you can't stuff a thousand bolvos into a 747. Add all that up and Crocs is basically threading the needle on this whole pandemic thing.

They're doing better than pretty much anyone we've ever heard of. Their stock is up 15 times higher in just the last 18 months. Their stock has 15 apples. Yeah, next thing, Crox is going to launch a cryptocurrency. So, Jack, what's the takeaway for our buddies over in everywhere in the world? Probably Crocs too. Cargo ships right now are as valuable as a sold-out Beyonce ticket. Okay, here's how Jack and I are thinking about this.

If there is a shortage of tickets to a Beyonce concert of which that is likely, they're going to jack up the prices and then the shortage is going to go away. With a higher price, the number of tickets demanded drops. The supply becomes just right. The shortage has been resolved. Beyonce wins as usual because she controls the scarce resource the tickets to her console. Well, just 10 companies control 82% of the global shipping market. And shipping is the scarcest resource for the global economy right now.

Mursk is one of those shipping giants. And it's basically the Beyonce of shipping because everyone wants space on its ships these days. So this Danish shipping company responded by quadrupling the prices per container for much of the past year, which tripled their profits for the past year. Ipsopacto-Mersk is prospering because of the shipping shortage. Crocs is prospering too because it's avoided the shipping shortage. And all of us and everyone else is paying more and waiting longer. And possibly ruining Christmas.

Jack, can you whip up the takeaways for us to kick off the week? PayPal's trying to build a super app and they might acquire Pinterest to do it. Media is the ultimate fashion accessory. Spanx is worth $1.2 billion now that it's majority. owned by Blackstone. But first movers, got to look out for those second shakers. Shipping delays could be the Grinch that steals Christmas this year. But not for Crocs and Merck, which has the sold-out Beyonce ticket of the whole economy right now. Now, time for our snack fact of the day. This one sent in by Luke Polador from lovely Philadelphia, Pennsylvania. Mickey and Minnie

Mouse. Great couple. That's a couple I can see together, Jack. Like, I could see them together. Well, the real voices behind Mickey and Minnie is not me or the. impersonation I just did. No, apparently the real voices behind Mickey and Minnie Mouse were also married in real life, like the human beings. That's right. Wayne, Alwyn and Russie Taylor were married in real life and married in animated cartoon land. As we're trying to tell you, love transcends drawings.

What's the anniversary that you're supposed to get something paper? I guess if you're Mickey and Minnie, it's like every anniversary. Every gift is two-dimensional for those days. Snackers, you look fantastic today. Check out that Sarah Blakely How I Built this episode. You're going to like it. By the way, Jack, the best, how I built this for co-founders, not just a founder.

Ben and Jerry's. Ben and Jerry's. That is such a good episode. 100%. What was the question? He goes, so the investors wanted bigger numbers. What'd you do? We did what any good entrepreneur does.

We made them up. We made the numbers up. It gets me every time. I love that they did that. Snackers, we'll see you tomorrow. And before we go, happy birthday to Snacker a sheer Ollie from Dubai. And Nate Donovan in Trenton.

Michigan. And Margaret Wilson down in Greenville, South Carolina. Sindu Figueroa, happy birthday in Austin, Texas. And Jack, George, just got a new job, left a nonprofit for an investment banking job. Congrats to Swati, who just got a new job in Chicago. And Victoria Balinski got that one-year work anniversary as director of marketing down in New York City. Happy second anniversary, which isn't the paper anniversary to Victor and Eliza in Brooklyn, New York. But make it something. It's Monday. a win today. Make it a TV. This is Jack. Nick and I both

own stock of Robin Hood. 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, 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 as the basis for any investment decision. Any third-party information provided therein does not reflect the views of Robinood Markets Inc., Robinto Financial LLC, or any of their subsidiaries or affiliates. All investments involve risk, including loss of principle and past performance, does not guarantee future results. Robin Hood Financial LLC, member FINRA, SIPC. Come on, man.