The Best One Yet - “Pure-play Millennial stock” — Elf Cosmetics wins corona-conomy. Apple’s latest Donglegate. HBO Max’s streaming meal.

Episode Date: May 26, 2020

The mythical Millennial pure-play stock: Elf Cosmetics’ stock jumped 16% on word it figured out how to beat the corona-conomy. We found the latest Dongle-gate from Apple — and it means you may have to splurge on AirPods. And HBO Max debuts tomorrow, so we’re looking at how the latest streaming species is more meal than bite.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. Welcome back. It is Tuesday, May 26. Happy four-day work week. Four-day work week. You gotta go to have a four-day week.

Stocksboro is about 3% going into Memorial Day weekend. Jack, I got to ask you, look tan. Scale 1 to 10, how are you feeling about today's snacks? Scale 1 to 10, this is a T-boy, the best one yet. It's the best one yet. First Story, Jack. For our first story, we have a rare, elusive, and mythical creature. Jack, sported out in the wild.

It's a pure play. millennial stalk. We think we found it in the magical forest when it comes to elf cosmetics, ticker symbol elf. Shares jump 16% on Friday for a makeup company even though you're not going out. Zoom face, it's real. And it's spectacular. For our second story, Apple, it makes fantastic products but does some incredibly annoying things. We're talking about donglegate. Another donglegate. Apple is reportedly forcing us to do and buy something we didn't want to do or buy. Again, and this time it's AirPods. For our third and final story,

Happy Birthday. HBO Max. Space between birth and day. A streaming service gets born every month. It's not a girl. It's not a boy. It's an HBO Max. Congratulations. The latest streaming species goes live tomorrow. So we're looking at how it compares to the others in the wild.

Snackers think more meal, less bite. Week 9, quarantine is weighing on all of us. Beards are growing beards. Couches are growing couches. And your new normal is saying new normal to every observation in life. We really miss the times in life that were just precedented. I can't wait to just feel whelmed again. Not over, not even under, just a simple well.

Quarantine, though, has been all good news for one guy that we want to highlight today. Snackers, you may know actor John Krasinski, he started the company Some Good News during quarantine, which was basically a YouTube channel. He came up with the idea for Some Good News, which is like 10 minutes a day, just about good stuff, kind of a counter to the crime and the travesty that's happening on local news. Idea came out seven years ago. He decided to execute it during quarantine because, you know, you're not doing much when you're not acting. Now, he has millions of followers on his YouTube channel, which is pretty hard not to get when you got Oprah and Brad Pitt popping on for

episode two. Again, no one was really doing anything. This was a good venue. But we've got an update from last week. Some good news for some good news. Actor John Crosinski's side hustle just got acquired by Viacom over the weekend. Viacom is the company that owns CBS and Comedy Central, and this thing is going to be spun off into its own Comedy Central TV show. One wild catch for a TV show that was basically all about John Krasinski, he will no longer be the host of some good news TV. They'll pop in time and again as a guest, but, you know, we're talking like once a month

max. In the meantime, he's technically the most successful entrepreneur during quarantine we've ever seen. From zero to selling his company in less than six weeks. some good news for some good news. We're going to hit our three stories. You're tuned in to snacks daily. We spoke to the lawyers and we got to get something legal out the way. The snacks about to hear ain't food. It's air candy. They don't reflect the views of the robberhood family. It's all informational just so. We're not recommending any securities. It's not a research report or investment advice. Not an offer or sale of a security.

Snacks is digestible. Business news for you. Robberhood Financial, LLC, member FINRA, IPC. For our first story, Jack, blush or bronzer? Actually, I'm a natural vitamin D sun seeker. The answer is always both. Our first story, Elf Beauty, shockingly jumped 17% Friday because it defied coronavirus expectations. Even though you're stuck at home,

you still care how you look. That's why we're talking about a company's slogan is B extra without paying extra. Elf's ticker symbol is elf, which we were a little disappointed because it should have been skin. Yep, lips. Okay. Dimple?

Yes. Rinkle with just an No W. Okay. Because we all got wrinkles. Maybe just a C-U-T-E. Is that too much to ask for? Now, we think it's called Elf because elves in the movies we know have perfect complexion.

Orlando Bloom, what is your nighttime serum ritual? It's incredible. But Elf actually is an acronym. It stands for eyes, lips, and face. All right, Snackers. So this company IPOed in 2016, it's based in lovely Oakland, California. It was an early digital first makeup company just like Glossier. Today, it's worth less than $1 billion.

We're talking one-tenth of a lift. And it is way tinier than the leaders in cosmetics, Alta and L'Oreal. But, Elf is profitable. Now, this company doesn't call its profit puppies, profit puppies, or it doesn't call them hero products. It calls them Holy Grails. We're talking the $8 poreless putty primer that's a fraction of the price of competition and the number one mass primer in the United States.

Elf is basically doing the opposite of what everyone else in cosmetics is doing. Jack, is Elf sticking a celebrity right on the box and then charging a ridiculous price over the holidays? And nope, elf is worth typically under 10 bucks per product. Jack, is Elf only selling at high-end department stores to boost up the brand big time? Nine, you can actually find Elf's products at dollar stores. Jack, how about hiring a few big influencers and then doing a big magazine ad with like three different types of Cheetah? Absolutely not. Elf actually goes for quantity over quality. It's got a whole bunch of micro-influencers of like less than a thousand followers. We're talking micro, not macro. We're looking at Elf's business model during the coronavirus, and we

figure we might as well put them through the old Corona Economy retail test. Snackers, you know this well because Jack and I came up with this, like four days ago. It's six questions to see if a company is thriving, surviving, or no longer aliveing. And believe it or not, Elf got a few yeses to our six questions. Jack, for our second checklist, is Elf essential? Yes, because its products are sold at Target and Walmart, which have been open throughout. Jack, how is Elf's e-commerce game? Heck, yeah, it's good.

It's got a great website with its own loyalty program, which now make up 50% of sales. And then our third question, Jack, is Elf Zoom? No, but luckily, we're all zooming so much. Your face really matters on that screen. No meeting is complete without the, is this thing on, can you guys see me? Oh, I'm too close. I'm too close. You're too close.

You want your complexion looking good. That's why sales for Elf Snackers have jumped 16% of the last quarter, crushing expectations. The stock has doubled in the past month, but it is still less. than half of its peak price back in 2016. So Jack, what's the takeaway for our buddies over at Elf? Elf is an investment in wellness and wokeness, aka it's a pure play millennial stock. Snackers, Jack and I have spent a lot of time on Wall Street. Wellness and Wokeness aren't things you find on like the stock trading floor. How many vegan publicly traded stocks can you name, Nick? I can think of one. I can think of one. I can name one, but I'm not going to name it because we

don't want to disclose it. Our disclosures at the end of the pot are getting very long. The default on Wall Street is companies that pursue growth at all costs, put profits over people, and give their CEOs like Golden Parachutes. Jerry, we're going to have to recategories our employees as buddies so we don't have to pay them. Then if we can outsource our supply chain to China, our profits can have their own IPOs. Call in the investment bankers, Ralph. This is the M.O. operating style for corporations that gets Wall Street love. But Elf thinks its target customer cares enough about animals and trees, that woke ability is a competitive advantage. Elf has cruelty-free, vegan, and inclusive beauty.

Those are the key features of Elf's beauty stock. That's why we're calling it a pure play millennial stock. For our second story, get this Snackers, Apple will reportedly stop giving away wired white earphones for free. This travesty, we're calling donglegate. Donglegate. Headphones are basically a side of fries that come for free with a burger. Yeah, you know, you typically come with some fancy Apple product that you bought.

You get to eat them. They come with it. They're built in. But Apple really hopes that you pay to upgrade to the sweet potato fries, aka the Apple AirPods. So Apple's looking at the situation like, you know what? We're going to take away all the fries that were given away for free together. You like have to buy the sweet potato fries. We're done.

No more fries. If you want them, you got to ask, not included. Or you just get a burger, which like isn't even a full meal. So Jack and I noticed a really interesting Apple. strategy for growth. Stop giving things away for free. Airlines did it with peanuts. Apple is doing it with minivations. Remember they took away that headphone jack years ago? Now you got to use Apple earphones or AirPods. Or use one of those annoying dongles to plug in your expensive airphones you've bought before. Jack, how about the futuristic USB like Part 6C3 lightning port? Again, dongle City. Like if

you want to plug anything into your modern MacBook, you need that stupid freaking dongle. They need a support group for Bose speaker owners with iPhone 4 docs. Oh, God. I know people who built one of those docs into every room of their house, and it was obsolete with iPhone 5. It's like the iPod staring at you, taunting you now. And let's get to the infamous battery throttle gate that Apple pulled a couple years ago. Apple started weakening batteries, so you had to upgrade. And Apple's last strategy to boost sales that really annoys us. Nick, we're basically airing our grievance here, Festi to stop. Software update 4.243 version 6, it crushes all iPhone 8s or previous to that. There's a chance your iPhone 6 will physically explode if you do the software update.

Now, Apple is super sensitive when it comes to making AirPods happen. They've basically been like the ear jewelry of Silicon Valley, but Apple knows they need to be a mass market play. AirPods are awesome products. Nick and I both own them, but we want to quickly tell you a personal story that shows Apple's sensitivity when it comes to those wireless Bluetooth earphones that they love. All right, Snackers, get close to the speakers. Here we go, here we go. Nick and I launched our podcast back in May of 2018 for the first time. It was called Market Snacks Daily.

When we did and we came up with the logo, we were going to have that logo be a bull wearing headphones, just regular headphones. Like clearly visible headphones that go from ear to ear with a thing on top to connect them. Apple would not let us do that because they thought that promoted like an old school version of headphones. not their AirPods. Well, they might have let us do it, but they would have like throttled us to the bottom of the podcast store. By the way, Jack, check the Apple podcasting app right now. We're definitely

like plummeting in the rankings because someone is doing something over there. Apple was so sensitive about making AirPods a mainstream thing. They wanted to eliminate the idea of like headphones that go on top of your head. And that's because Apple spent years working on AirPods. We're talking, working with Stanford for five years to map out hundreds of variations of your ears. Again, AirPods are an awesome product, but Apple really wants to make them happen like Fetch. This is Nick, and I'm wearing AirPods right now. We're recording this podcast. So, Jack, what's the takeaway for our buddies over at Apple?

Donglegate could turn AirPods into Apple's second profit puppy. Snackers, by giving people free airphones with every iPhone they purchase, it's hurting AirPods sales notably. And it hurts Apple's profits because it's making those earphones that it doesn't even get paid for. Now you'll have to buy those AirPods. and Apple just sold $7.3 billion worth of AirPods in 2019. Jack, can you translate that one for us? That's about one left of AirPods. Overall revenue for Apple barely inched up 1% last quarter, but wearables, the division that AirPods are in, search 23% its fastest growing division. Apple is hugely ambitious on AirPods sales for the rest of this year. They think they'll sell 94 million

pairs of AirPods in six months. That's enough for one-third of Americans to get a pair. The AirPods are now bigger business than MacBooks or iPads and second only to iPhones. And now if you buy a new iPhone, you'll need to pretty much buy AirPods if you want to listen to anything. Speaking of iPhone, iPhone sales are about half of Apple's revenues, but that is shrinking. So Apple is done giving away at second profit puppy for free. Get ready to be forced to buy another Apple product you don't want to buy. Donglegate. For our third and final story, Snackers, Mark Thy Calendar's, HBO Max launches tomorrow. And this streamer is a full meal of video binging. Yep. Not like some of those appetized-sized streamers out there. You got HBO. You got HBO Go. You got HBO Now. You got HBO Max. It's hard to keep track of the HBO

Encyclopedia these days. It's not TV. It's complicated. It's complicated. Content is king. So here's what you're going to get with an HBO Max Royal Kingdom subscription. First, you're not just going to get movies. You're going to get like the big movies, the ones that are large. DC Comics. is part of Warner Brothers, which is part of HBO Max. We're talking Batman, Spider-Man, Superman, all the man's. Plus, you're going to get Harry Potter. Yeah, Gryffindor, Slytherin, et cetera, et cetera. Et cetera, et cetera.

You're also going to get quality shows like HBO's legendary lineup of rerounds. You got Game of Thrones, The Wire, Silicon Valley. Plus, some incredible old Goldies. We're talking friends, most importantly, friends. The price? Well, launches tomorrow for $15 a month, which is the same price as HBO now is. today. Now, Jack and I jumped in Snacks style, and we noticed that it's actually offered for $12 a month for one year if you sign up before tomorrow, aka today. You should feel a case of sticker price

shock, though, because Netflix and Disney Plus are both quite a bit less than this $15 a month. But then you could argue this is a good deal because 33 million people already pay $15 a month for just HBO. And this new thing, HBO Max, is going to be HBO plus a bunch more. That's why you always add a plus or a max to any streaming service. We cannot emphasize that enough. And any streaming service isn't really a streaming service without promotions. You got to have that streaming service launched a promo code, Jack. AT&T will hook you up with free trials or even just free HBO max if you subscribe to direct TV, which AT&T owns, or you get one of the AT&T's top wireless phone plan. TTT, TTT, TTT, TTT, TTT. Now, Jack and I happen to be history buffs, history majors here,

And a streamer divided against itself cannot stand. We see a little bit of a culture clash between HBO and the rest of HBO Max. So true, Snackers. It's not an HBO show unless there are three nude scenes, seven drug references, and an opening curse line to kick the whole series off. But the day AT&T acquired Time Warner and therefore acquired HBO, AT&T said they wanted HBO to be more like Netflix. This is like Christopher Walken's character and wedding crashers with his son Todd. You know, Todd, a little bit of athletic competition could be good for you. Would that make you love me, Dad?

Actual footage of the last HBO AT&T board meeting right there. Here's what AT&T lectured about HBO the day they acquired them. You got to do more shows, lower quality bar, and more family friendly. HBO, all that stuff that makes you unique and awesome, we want you to do less of that and be more like everyone else. So HBO Max is going to have like the HBO old school adult stuff like South Park, for instance. And it's also going to have Mac. which is like the family stuff like Harry Potter. So Jack, what's the takeaway for our buddies over at HBO Max in AT&T?

Some streamers are entrees. Some are just appetizers. Snackers, cutting the cord is a commitment, and you need to know your streamer can satiate your binge needs. Netflix spent $8 billion last year on a buffet of shows, movies, and stand-up comedy specials so that you always have something to watch. And Netflix, of course, is a main-course streamer. Disney Plus, also a main-course streamer.

You're never going to run out of options when it comes to Disney. Plus or Netflix, you'll leave your couch feeling full. But Jack and I have noticed that Amazon Prime, Apple TV Plus, Peacock, not so sure. They're kind of more like finger food. We're getting hors d'oeuvr vibes. Let's be honest, Apple TV Plus, I think it launched with nine things you could watch. Pretty much finished it before the opening weekend. Not that much. You're going to be hungry when you're done with Apple TV Plus. HBO, on the other hand, is definitely a meal. It's got the HBO, and again, the max. As subscriptionation hits, and we enter a recession, it's good to be a meal. It's good to be a meal. It's not TV. It's

Dishorno. It's complicated. Jack and you'll whip up the takeaways for us over there to start the four-day week. Elf cosmetics makes you look extra without paying extra and might make you look like Orlando Bloom. We're talking pure play millennial stock, bloomy. Apple is reportedly ending its freebie giveaway of headphones that comes free with your iPhone. It's the latest donglegate. Apple annoyingly making you buy things you don't want to buy or do or buy or do. For our third and final story, HBO Max launches tomorrow. It's HBO plus Max. Price wise, the same as HBO, but you're getting more content. Now, time for our snack fact of the day. This one, a hometowner sent in from Ben in Indianapolis, Indiana. The Indy 500 is typically

hosted every Memorial Day weekend. It should have been yesterday. Sadly, it was postponed due to COVID-19. The track, though, is so gigantic. You can fit like, worth of stuff just within the 2.5 mile racetrack. Honestly, it sounds like the Romans built this thing. You can fit Yankee Stadium, the Rose Bowl, Churchill Downs, the Coliseum, and Vatican City all inside the Indioval. It's 253 acres. There is literally a golf course inside the racetrack. There is a race track within the racetrack within the racetrack. Christopher Nolan loves the idea you're working on here. Happy birthday to snacker Josh Tay, currently a frontline worker as an nurse, keep crushing it out there, Josh.

Josh, if I was an opera singer, I would stand on a balcony at 7 o'clock and sing an opera for you. We're clacking the pots for you. By the way, that profit probably barking mid-second story, that was the turnaround signal in case you're running a snacks challenge. Snackers, one last thing. If you see your buddies, ask them H-Y-H-Y-S-D. Have you had your snacks daily? We will see you tomorrow.

Happy Four Day Workweek. If you know, you know. This is Jack. I own stock of Amazon. 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.

Thank you.