The Best One Yet - 🚴‍♀️ “Pulled a hammy” – Planet Fitness vs. Peloton. A $130 trillion superhero.

Episode Date: November 8, 2021

You may have invested in Peloton thinking it was a trend — but last week’s earnings report suggests it might be a fad (and the stock is down 50% since). And the COP26 climate summit may have a surprising hero: Big money finance.$LYV $PTON $PLNT $JPM $C $BLKGot 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. It is Monday, November 8th. Today's pod is the best one, yeah. This is a TBOY, Jack. What's going on with our first story? Our first story was going to be about Live Nation's earnings report, but we're actually not going to. Yeah, Snackers. On Friday, we recorded a story about Live Nation's earnings. Then the tragedy happened in Houston at a Travis Scott concert over the weekend.

Live Nation produced that concert. Given that news, the Live Nation story recrafted is no longer relevant. and we don't think it's right for today's pod. So Jack and I are sorry to anyone who heard the earlier version of today's episode that referenced Live Nation's earnings. Second story, Jack? Peloton stock fell off the bike last week. It fell almost 40%.

I pulled a hammy over there. There are trends. There are fads. And then there are investments that Jack and I made. The COP 26 is our third and final story. It's the conference that was supposed to be where governments save us from climate change. Forget this. It turns out banks and finance are saving us.

Instead? Okay. But Snackers, before we hit that wonderful mix, this is fantastic mix to start the week. It is Horters' Almanac Day, and we're turning the page to week 86. Yeah, things we're running out of because of the pandemic, Jack and I have been keeping track for you. It's not just that we're running out of things. No, get this.

There is a shortage of things in certain colors. That certain color is the color blue. Snackers, we're running out of the color blue. We're talking royal blue, navy blue, cobalt blue, azar blue, the whole section of the Warjee Biv. Robin egg blue. Are we out of that? What's Tiffany's going to do? This is scary. We have a shortage of ingredients in this economy, which are required to make blue blue. So Jack and I jumped and snacks out. We noticed one Dutch paint company said the one tint that's extremely difficult to get right now is the color blue out of all the colors. The CEO of that paint

company said this is creating, and we quote, complete chaos. And here's the thing. This pigment problem, it has some pretty dark ramifications for all of us. Blue's not just a color. It's What is a blue-budded business lifestyle? Jack, I mean, what is Levi's going to do about the blue jeans? You know, cotton isn't naturally blue. Just want to point that out. Blue ribbon cans? What are they going to do over there?

What about the Blue Apron meal kits? Jack, what about the St. Louis Blues jerseys? What about the Blue Man Group? I think we have to quote the legendary European band Eiffel 65. Here we go, Jack. Abad Di Abadai. Let's hit our three stories. If I were green, I would die.

You're tuned in the snacks daily. We're snacks about to hear rain food and say it 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 Robahub financial LLC Member Fenra slash SIPC For our second story Peloton it became Wall Street's biggest loser last week Nick and I went in on Peloton and it looks like we were wrong. I don't know if I'm ready to say we were wrong yet. I mean, I think we got a little time.

Do you want me to show you how much losses I've endured? My left hand kind of hers. Now, Peloton stock Snackers, it fell not like 10% not 20%. It fell 40% last week. That's not a plummet. That's a torn ACL. I don't know if you're coming back from that. You replace the meniscus after this kind of a performance.

Now, the CEO cited the terrible earnings report to challenge Visibility. Can you give us a little translation of challenged visibility? That means John Foley has no idea what's happening with their business. Because Peloton is having problems right now. It's having problems with new customers. Okay. Remember when their sales of new bikes was like triple the year before during the pandemic of last year? Yeah. They were up 250%. Well, sales of new bikes rose just 6% last quarter. And here's thing. It's not just new customers. They're having trouble with old customers too. Yeah. People who own Pelotons used to ride them 21 times a month. Great. Now they're only riding them 17 times a month. But it's not just that. Peloton, it's losing money, a whole lot of money now.

Peloton used to drive sales through word of mouth. Now they are doubling their marketing, putting TV ads out there to try to get people to buy bikes. Now here's the thing that Jack and I find fascinating snackers. Jack and I invested in Peloton this whole time. Our thesis was that Peloton is a globally scalable trend. Yeah, this isn't just fitness equipment. Peloton is a network. That's right. The more friends you have using Peloton, the more you'll enjoy it. because you can like share and chat about it. Classic network effects. Also, they built a premium brand in a premium industry that was only getting more premium. High income Americans were flocking for that $2,400 buy. Health and wellness is wealth and wellness. Nick and I figured

there was an opportunity to conquer not just the American leggings wearing population. No, no, no, not just that. But for the whole world. We're talking not just North American instructors. What about the German instructors they've been at? Pelton has at least two German-speaking instructors. And I take a couple German rides here and there to sharp up my German. So you didn't just buy the stock, you went all in on the product too. So Pelton has a booming business in Germany. Nick and I figured they could do the same thing in every other country, just hire local instructors.

Just like the iPhone. It's held by the world's most affluent, what we call Club Apple. Well, Peloton could be ridden by that same customer group, Club Apple. But last quarter, we saw signals from current investors that show Peloton might be a fad. We were investing in a trend, but Peloton may be moving more toward the fad side, kind of like your mom's 1996 Nordic track. Nordic track was huge in the 90s and now they are dusting up in addicts all over the country. Just ask your parents, they can still do the leg motion. Peloton is not growing new customers as fast as before and they're not engaging existing customers as fast as before.

They're splurging money on marketing and that's why the stock is down 40%. So Jack, what's the takeaway for our buddies over at Peloton? For every stock, Ying, there's a market yet. Snackers, funny timing with this earnings report from Peloton. You know who else reported earnings that same day? Planet Fitness. Planet Fitness is the opposite of Peloton. Yeah. Okay. Membership start as low as $10. Spree-ishy. They're purely physical. They're purely unconnected. Yeah. And Planet Fitness is stock. It jumped 20% last week. Peloton fell 40% last week. Planet Fitness jumped 20% last week. Because Planet Fitness, its revenues are up 46%. They're adding 100 new physical gyms. And membership, it is back to 15 million, baby. It appears people are tired of getting into the same workout clothes and

work now in their basement. They want to go back to physical gyms and see people. Now, one of these companies is an $8 billion gym chain and the other is a $17 billion tech company. So you can't totally compare them. They can grow in different ways. But side by side, we're seeing consumer behavior shifting from the pelons of the world to the planet fitnesses of the world. For our third and final story, we got an update on COP 26. The conference focused on, you know, saving the entire world. Governments aren't being heroic. So, banks are stepping up to the plate, which you wouldn't expect, but we got more on that in a second. But Snackers, here's the sad truth about the UN Climate Summit. It's kind of doomed to disappoint from

the beginning. Well, the two biggest CO2 emitters in the world are the USA and China. And the U.S., we haven't passed meaningful carbon-cutting legislation ever. Right. And China is the biggest coal producer and consumer. They didn't even show up to this event. So the climate summit, it's kind of like a D.C. comic convention, but without Superman and no Batman, either. Oh, Spidey. Good to see you. Until one shocking potential hero stepped up last week, which we did not see coming. Big money. Big money apparently wants to play the role of like Wonder Woman or Aquaman. Snackers, a potentially world-saving initiative was announced last week. It's called the Glasgow Financial Alliance for Net Zero. That finance alliance is 450 financial firms across 45 different

countries, and they have been planning this probably for months. Yeah, they finally are. announced it. And here's the huge number, huge number. A 130 trillion dollar commitment with a T, trillion with a T. They're going to commit $130 trillion to build clean infrastructure to keep the world's temperature rise below one and a half degrees Celsius. Jack, can we sprinkle a little context onto the number $130 trillion? $130 trillion is more than five times larger than all the stock on the New York stock exchange. Snuggers, you wonder how much $130 trillion is? Take every dollar that's spent in the United States economy every year and then multiply it by six. This is basically a financial commitment

as big as the world's GDP. So we know what you're thinking. Who is committing this huge amount of cash that we've never seen of this size ever? Okay, there are 94 banks committing. Including JP Morgan and Citibank. There's 220 asset managers, including BlackRock and Vanguard. There's 60 pension managers. Boom. 13 insurance companies. There you go. And 23, financial service providers. This money isn't coming from Birkenstock wears. It's coming straight from the suits. So, Jack, what's the takeaway for our buddies over in the entire world? Governments are broke, but the financial sector is loaded. The reason everyone's interest rates are so low right now is because financial firms have more money than they know what to do with. Oh, you'd like a 30-year loan?

Sure, take the money. Just please pay us 1% interest per year. On the other hand, just about every major government is running deficits right now. The exact opposite. So we thought governments were going to lead the transformation to a clean economy to save the world. But here's the thing, but the private sector, specifically the financial sector, is trying on its Superman Cape Wrig. Now, to be clear, these banks, they're not going to donate $130 trillion. They're planning to lend it and invest it in carbon cutting projects. Yeah. And there is some cause for skepticism here. For example, it's voluntary and everyone could just break this promise. The details on this plan is, were also vague.

Yeah, they were. Plus, poor countries, they really need grants, not loans. But this commitment from the private sector from finance is what gives us hope from the whole climate summit. Jack, can you whip up the takeaways for us to start the week? We thought Peloton was a trend. It appears it might be a fact. Yeah, it seems consumers drifted from the Peloton to the planet fitness.

For our third and final story, COP26, isn't getting the commitments it needs from the U.S. or China. But the financial sector is loaded, so they're stepping up. Now time for our snack fact of the day. This one tweeted in by Sean David from lovely New York City. The oldest living organism in the world isn't like a 110 year old on those little, what is it, those jelly things, smuckers? I know, I can't even pronounce the name. It's not a turtle.

It's not a turtle. It's a tree. That's right. The Methuselah tree is living somewhere and it's 5,000 years old. It's estimated to be the oldest living thing on planet Earth right now. Apparently a Neanderthal planted this thing in his backyard. Just forgot about it. Here's the funny thing, though.

You can't visit this tree, which is believed to be in a grove somewhere in eastern California. Because to protect it, they haven't told anyone where it is. And its exact location is kept a secret by the U.S. Forest Service so nobody knows. They don't want some vandal going over there and like doing something to this wicked old tree. Which leads to the big question, Jack, if an old tree lives and falls in a forest and no one knows where that forest is, doesn't make a sound. You got to get that tree, a nice young, strapped. nephew to come help out. Just traffic.

Snackers, you look fantastic. Whatever you're doing, do two things. First, cherish whatever you have. That's the color blue. And then two, tell your buddies, H, Y, H, Y, Y, S day. Have you had your snacks daily? If you know, you know, and they'll know. Nick and I, I'll see you tomorrow.

Can't wait. And before we go, congratulations to Sammy Early, Michael Kodish, and any other snackers who enjoyed this pod while they were running 26 miles in the marathon. Okay. Kyle Miller, the product lead on Tinder swipe night. Unreal. celebrating a birthday down in Sandiae. Jack and I are both married, but we heard that's one of the greatest product inventions in the history of the year. Happy birthday to Ben Fenton, turn to 21 over New Orleans.

And Matterjot, So he, happy birthday down in Vancouver. Happy fourth birthday to Dominic Caliva in Great Cumberland, Rhode Island. And happy birthday Mason in Abington, Virginia. And Matt Cowley, in Fort Worth, Texas. And Victor and Cecilia pitch it, Jack, they just got married in Fort Worth, heard it was lovely. Congrats on the new job to Uma Lee in Middleton, Delaware. And I aurora Kia Rie just got promoted over an Oakland. Huge happy birthday to Russell from Mexico. And here's the crazy thing about Russell. Nine months ago, we helped Russell ask Claudia on this pod to be his girlfriend.

And guess what? They're still together. And guess what? She's returning the favor. That is wild. But I also want to close a loop here. Nick. Yesterday, I butcher the Florida Gators two-bit song.

Here's how it goes. Two bits, four bits, six bits, a dollar. All for the Gators, stand up and holl. Leah Clapper, thank you for having our backs. This is Jack. As mentioned like six times, Nick and I both own stock of Belton. 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.