The Best One Yet - 🌵 “Pinterest’s Q1 is a fake succulent” — Apple vs. Spotify (paid pods). Pin’s 3 dirty words. Polaris’ bachelor party stock.

Episode Date: April 28, 2021

Pinterest crushed 2020, but investors just crushed the stock because it looked like a fake succulent (good from far, far from good). Apple and Spotify just announced the same product, but with different goals. And Polaris invented the snowmobile, but now it’s beating Harley with the bachelor party playbook.$PINS $PII $SPOT $AAPLGot 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 Wednesday. April 28th. Facebook. Yep. Google. Check. Microsoft. Apple. of Amazon. Like $10 trillion of stock market value. It's like a million lifts. All reporting earnings this week. Snackers, even if you're fully vaccinated, the CDC still recommends that all big tech report earnings simultaneously. It's a fact. This is how Silicon Valley reaches herd immunity. It is. It also happens to be like, this is the TBOY, Jack. The best one yet. For our first story, Pinterest crushed 2020, but the stock just got crushed. Last three month Snackers, funny thing. Jack and I think they kind of look like a fake succulent.

For our second story, Polaris, it's Minnesota's motorcycle company, which is beating Harley Wisconsin's motorcycle company. Polaris, it is a bachelor party itinerary stuck in a publicly traded stock. For our third and final story, for 16 years, podcasts have been free to listen to. Pretty much all the time, 100% of the time, free, mostly always. I think 60% of the time it works all the time, Jack. But Snackers, Apple and Spotify have changed the world of free podcasts in the same way but different. Different, but the same.

But before we hit that wonderful mix of stories today, Jack, the last time I think we updated Snackers on the CDC guidance, that was big for the grandparents. That one went out to the grandparents out there. March 9th, I remember it well. We updated you that the grandkids, they're getting unleashed and they're giving grandparents hugs again. Highly critical, czechicuelly. Yesterday's CDC guidance, though, was so big and broadly applicable. to the meaty part of the age curve. And the meaty part of the curve, that's you, that's us. That's who this is.

The CDC just revealed guidance on mask wearing that shows someone there's really good at spreadsheets. Yeah, there was a little bit of a humble brag that they knew how to do some funky stuff. There was a column with a bunch of activities that we engage in day to day. Yes, and then they had a checkmark about whether you need a mask or not, depending on the activity. And it varied whether you were fully vaccinated or not fully vaccinated, which then led to this wild highlight that were whipping up here like an early thing. takeaway. Okay. The United States of America Snackers is broadly vaccinated enough that anybody vaccinated or not can walk, run, play boccey ball, do things outdoors with members of your household

without a mask. Without a mask. Baby, we were born to run without the N95 masks. You could go for a run in Central Park and not look like you're dressed up like Boba Fette. Jack, you can walk out of the apartment. You forgot your mask. You don't feel guilty and awkward into popping back in there. Okay. Outdoor activities, if you're fully vaccinated, pretty much. Anything is okay, gets Fauci's blessing without a mask. Now, we did notice Fauci dropped a single asterisk here except crowded events, like your concerts, your sporting events, your hockey games, that kind of stuff. Right.

Even the vaccinated you wear a mask there. Vaccinated Vanessa, the mosh pit is still a mask pit. Now, indoor anything with other people, the CDC still says you got a mask up for them. But getting vaccinated is still the path to life with less mask wear. Also, it gets you a free Krispy Kreme donut every day for the rest of 2021. I mean, I can't believe, how do we have to say that again? Don't forget it. And most important of all, we just went to CDC.gov and discovered this.

This is wild. Even if you are fully vaccinated, the CDC still strongly recommends that we had 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. It's snacks about to hear rain food. It's ear candy. They don't reflect the views of the robberhood family. It's all informational just so.

We're not recommending any securities. Nope. It's not a research report. or investment advice. Not an offer or sale about security. Snacks is digestible. Business news for you. Robberhood Financial, LLC, member Fenra slash SIPC.

For our first story, Pinterest last quarter reminds us of one thing and one thing only, it's the only thing we could think of, a fake plant. Snackers, after Pinterest's best year ever, they just had their worst day of the year. Okay, first of all, Jack, honestly, like maybe the most fun thing from last year. The theme of 2020, the pin dude. Women make up 60% of Pinterest users, but the number of dudes last year on Pinterest jumped by 50%. It makes sense. We're all at home. We all need that one pan dinner inspiration. Like, where else are you going to go to for that?

I used Pinterest this morning to get framing inspiration for framing our baby's little footprint we got at the hospital. But then you get into the Pinterest dresser Jack, because then did you do the white frame or the black frame, the brood, or the pine wood? I was hoping the frame guy would just decide for me, but he didn't, which was a bummer. Then you go down a further rabbit hole on Pinterest, museum glass with a plexiglass. Snackers, these two pin dudes can tell you that the stock of Pinterest quadrupled last year. I mean, because you're scouting out 50 types of sconces these days.

But the stock fell almost 10% yesterday after announcing earnings. Bizarre situation. And this has to do with the fact that, you know, Facebook is issues with fake news. Pinterest, it's got issues with what we call fake succulence. Nick and I think the past quarter for Pinterest was a fake plastic fig tree. And honestly, it all comes down to the numbers. Jack, Revenue.

news over at Pinterest, search 78% last year. What do you think about that? From where I'm standing, Nick, that is really good. All right, Jack, monthly active users over at Pinterest, search 30% last quarter. Faster than the population growth, that's for sure. Okay, also looks great. Then, Jack, we got 478 million global users over at Pinterest right now. That's a USA and a half right now. It is. It's serious. It's impressive. It's also like half of Instagram. That's the LinkedIn of the Living Room. That's what Pinterest has become. Oh, another great number for you? Pinterest It's ARPOO. It's average revenue per a user. Is there anything not good about Pinterest earnings that were announced yesterday?

No, they are squeezing more money out of every single one of your bassinet scrolls for the past three months. But Snackers, investors got closer. They took off their glasses and they noticed something strange about those leaves. Something seemed off. Something seemed unnatural. Something in our takeaway. So, Jack, what's the takeaway for our buddies over at Pinterest?

The dirtiest words of 2021. We're going to hear it a lot. Demand got pulled forward. start bleeping this stuff out. Snackers, that 30% user growth we just mentioned, that was Pinterest's slowest pace of growth in a year. In fact, we looked closelyer. We noticed that growth exploded last spring, but each quarter since then, growth has slowed. Then we looked more closelyer, and Pinterest warned us that they're going to keep on slow in growth through the next quarter of 2021. Okay, everything we just mentioned in the last three sentences sounded exactly like what

Netflix announced last week. Yeah, Netflix used those same. three dirty words to describe slowing growth in 2021 after a boom in 2020. Demand got pulled forward for Netflix and it looks like it did for Pinterest too. Honestly, Jack, it's hard to hear. Now, all those users that would have been pinning hard in 2021, they started pinning earlier back in 2020 apparently. So for Netflix and Pinterest, investors are adjusting to a realization that 2020's growth not only will not be repeated this year. No, no, no, even worse, 2020's growth probably harmed 2021's growth. stock sank because the market heard the three dirty words. Demand pulled forward. For our second story, Polaris just had its best quarter in years because you can ride this company. I'll tell you.

It's a good time of the year to be an outdoor adventure stock. You want to be sitting deep in the chassis on this one. Now, here's how the geography breaks down Snackers. First, Wisconsin, they got the Harleys. Minnesota, they've got Polaris. And Michigan's got the lazy boys. Yeah, they do. Now, this is the $9 billion prior to the Midwest, Polaris. They invented the snowmobile back in 1955. Don't question them on that. Wikipedia said it and they're very proud of this fact. Well, Wikipedia also said there's like 11 different ways to call the snowmobile. This is true. Now, last year, during the same three months, Polaris, they lost money. This year, we noticed they pulled in an $134 million profit. So it's a fact that we got to see what's going on.

Simple reason. Outdoor adrenaline is the pandemic prescription. But honestly, Snackers, the best part about this company and this earnings report is that their product segments breakdown? It breeds like a bachelor party itinerary. Okay. Let's start the batch party with snowmobiles and ATVs, which is the top product for Polaris. 63% of the revenue, 63% of the weekend. Then we'll move things to a boating trip. 10% of the weekend, 10% of the revenues.

We'll finish things off with a gang motorcycle trip as well. Yeah, this one's actually kind of dangerous, but it is 8% of the revenues, Jack. This is Polaris's business. Barry, you just... design the custom cruisy. Dave, you got the Yeti cooler. Mark, you booked the van, right? Wait a minute. Timmy. Where's Timmy? Where's Timmy? Timmy? Timmy? Where's Timmy? Timmy? Timmy? Was the only person at my Bachelor Party, Jack? Who injured himself playing curling. Unprecedented. Pulled a hammie. That was there. I can attest it. Snackers, Polaris made $2 billion in this bachelor party rundown from January to March this year,

which is up 39% from last year. That means for the full year, Polaris brought an $8 billion. And the earnings report was an adventure in the details, too. They launched 40 new vehicle models in the past three months. ATV sales, they doubled thanks to like a surge in this new Slingshot motorcycle thing. Okay, Slingshot sounds like a social media app or something. It's actually a $20,000 to $30,000 three-wheeled adult go car. I'm so glad you clarified that because otherwise Microsoft would probably buy this thing. 47 states consider a slingshot street legal with a regular driver's license.

The rest, you need like a special driver's license. It doesn't come with the muffler. Oh, and by the way, Polaris's garments business, they're selling leather chaps up 50%. And the stock is also up 50% already in this young 2021. We said it before. We'll say it again, you've got to look sharp to ride sharp. So, Jack, what's the takeaway for our buddies over at Polaris? Whenever one's winning, see who's outperforming.

Now, Snackers, we just mentioned a whole bunch of big numbers there. The whole outdoor industry grew last year because, you know, outdoor pandemic prescription. But Polaris still deserves credit because they grew faster than their rivals did. They stole business away last year from the rivals making the same things. Okay. Our favorite other stat about the Surings Report, they grew their market share last year. It took home a bigger slice of the outdoor vehicle pie in 2020. In 2020, they snagged market share from their rivals across every segment that they do business.

That's right. Every single Bachelor Party product line over Polaris beat its rival. So the whole outdoor industry did win in 2020. But only Polaris outperformed. For our third and final story, Spotify offers up its anti-Apple premium podcasting feature. This is the counterpunch to the punch, Jack. But this story is the tale of one product, two different business strategies. All right, Jack.

I feel like we can open up a little bit of our honesty and transparency with the Snackers here. Bring them into the fold a little bit more. We're going to open up our house to the Snackers. Basically, that's what you're saying. You want to share this numbers? You want to share these numbers? Well, now I'm on the spot. Well, now it's awkward.

If you don't do it, I mean. Snackers, here we go. 91% of you are listening to this podcast on either Apple Podcasts or on Spotify. Is this proprietary information that we just shared? The other 9% of you guarantee that your podcast is better than those other ones and you want to tell us why. And Saggars, the reason we're sharing that is because there has been a update to the increasingly unfriendly matchup between Apple and Spotify that are like just dominating the podcast scene. Last week, Apple launched a new version of their podcast app that's Let's Creators, like Nick and me. Yes, that's us.

charge, if we want, for some episodes of the Robin Hood Snacks podcast. Now, we're not doing this. Full disclosure. We're not doing this right now. We're not doing it. But theoretically, this would be club snacks. Yeah, we'd call it club snacks. And we would have special content to paying users only. Let's say, a Snacks after dark episode, for example. Who wouldn't want to listen to a Snacks after dark episode? It's like snacks, but it's after dark. Well, thanks to Apple's due update, that is possible. But here's the catch. Yes. We would have to pay the app tax if we did that. The Apple tax. Apple will charge us the Apple tax. We have to pay, what, $20 a year just to even have this subscription

podcast. And then whatever we make with club snacks through like the dues that you have to pay to get in, which you would be paying for. Apple would take 30% of those dues in the first year. Yeah. And 15% of all revenue that we generate every year after that. So that's how Apple's subscription podcast, which they just announced last week, that's how that would go down. But then yesterday, Spotify announced a very similar product. Podcast creators can now designate that certain episodes are premium on Spotify. They're only available to people who pay $3 a month, $5 a month or $8 a month. Funny thing, there's also a catch with this, but it's just a different catch with Spotify.

A podcast creator can only charge for premium pods if that creator is using Anchor to create their podcast, which is a service that Spotify owns. And which full disclosure, this podcast does not use. We do not use Anchor. No. So not only are we not launching Club Snacks. No, we're not. A paid podcast club on Apple. We also are not eligible to launch club snacks on Spotify right now. Unless people are interested in that in which we could consider it. But we'd have to switch over to anchor. So unlike Apple, Spotify isn't taking a cut of revenue from the creators like Jack and me, at least initially. Starting in 2023, they're finally going to start an app tax of their own, but they're only going to charge 5% cut of revenues, not 15% from Apple. Now, Jack, we did say that this was like a pretty unfriendly relationship.

between Spotify and Apple. This is where things got kicked up a notch and got a little awkward. Daniel X, CEO of Spotify, he wants to make sure that Apple doesn't benefit a penny from these premium podcasts on Spotify. He doesn't like them. So in their launch announcement, they're encouraging users to bypass the Apple App Store if you're on an iPhone when you're paying for premium podcast. So this way, Snaggers, Apple can't take anything from iPhone using Spotify users if you start paying for the podcast you listen to. So, Jack, what's the takeaway for our buddies over at Spotify and Apple who have a whole thing going on over? Same product. Yeah. Different goals. That's right, Snackers. Same product, different goals. This is a strategy story. Why would Apple and Spotify offer the same

product, but with vastly different price points? Here's the answer. It's all in the goal. Snackers, Apple is the mother of podcasting. It's a portmanteau of iPod and broadcast. Two days in a row to SAT words, you're on a roll. Yes. Now, Apple has been the leader since its invention back in 2005 of a podcast. But today, get this, Apple doesn't make any money directly from all the podcasts listened to on iPhones. And because of that observation, Apple's goal is to monetize its existing podcasting business, and that is why it's charging money. Spotify, on the other hand, already makes money from podcasts with their $10 a month subscription

for Spotify premium and on ads in Spotify's owned podcast. So if you're Spotify and CEO Daniel Lack, your goal isn't to monetize the podcast business itself. You're already doing that. Its goal with this premium podcast feature is growth. They want to convince podcast creators to tell their audience to migrate over to Spotify because Spotify is not going to take an app tax like Apple is. So that's why Apple is charging the big bucks for a premium while Spotify is pretty much still free. It's the rare case of same product, different goals. And that is why this also isn't a zucking.

Jack, can you whip up the takeaways for us over there? Pinterest's earnings looked good until you zoomed it. I feel dirty saying this. Demand Jack, it got pulled forward. For a second story, Polaris is Minnesota's ATV, boat, motorcycle, and snowmobile icon. So every outdoor gear company won last year, but Polaris, they won even more with everything. For our third and final story, Spotify and Apple launched very similar subscription pod products, but at different prices. Spotify's goal is growth.

Apple's goal. It's monetization. Now, time for our snack fact of the day. This is Fresh Jack. This just came to us yesterday. Vijay DeWan from Toronto sent this right over. In 2014, our buddies at Mickey Dees. They wanted kids to start eating their vegetables.

So apparently they created and then they started testing out bubble gum flavored broccoli. Awful idea. The candy flavored vegetables confused kids. Yeah, they did. So they cut it from the menu forever. It's one of the interesting list actually at McFaliers that's out there. Pro tip from my buddy Kyle, who just adopted a two and three years. You're old. Kids who hate vegetables, mix veggies into the homemade pizza sauce. They'll eat the pizza. They

won't even realize the broccoli. Jack, have you ever enjoyed the sweet taste of a misoda? No, what the heck is that? Okay. So my parents used to give my sister and me milk and soda, a misoda. What? Taste like a confused milkshake. Disguised nutrients are the best nutrients. Snackers, we should definitely do this tomorrow. Ask your friends, H-Y-H-Y-S-D. Have you had your snacks daily? If you know, you know. And before we go, Happy birthday to Chalar Choban in Antalya, Turkey. And Brian Robert in Juarez, Mexico. And Moog down in Honolulu.

And Paxton Haggerty in Calgary, Canada. It's a flames guy. Jennifer Brand over in Seattle. Happy birthday to Mike Benapayo in Arcadia, California. And to Jessica G. down in Modesto, California. And Frida Lopez in Dallas, Texas. And Nicole Isaacson in Park City, Utah. And Mickey Mullen in the OK state of Oklahoma.

And Francis over in lovely New York City. An essay in Huntsville, Texas. Happy birthday to Ben it O in Marietta, Georgia. And to anyone else celebrating something today, making a tea boy. You know what to do. You celebrate the wins. This is Jack. Nick and I both own stock of Spotify and Nick own stock 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. 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.