The Best One Yet - 🍣 “Really real fake real slammin’ salmon” — IMAX’s un-theatering. WildType’s $100M sushi. Cybersecurity’s moment.

Episode Date: February 28, 2022

IMAX is reframing what it is: Not just a theater company, it’s an entertainment company. WildType just raised $100M to make sushi-grade salmon from salmon cells (so it’s meat-based meat) that’s really real (but also fake). And cybersecurity stocks had their best year ever… and then best week ever… because “Fortressing” ain’t a fad.$IMAX $PANW $CRWD $ZS $BYNDGot 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, February 28. I'm feeling it. This pod. It's the best one yet.

It is a T-B-O-Y. Jack, what's our first story today? IMAX, the high-end movie theater chain has a plan. Don't be a movie theater chain anymore. Yeah, IMAX is using a psychology technique straight off the therapist's couch. Our second story is a company called Wild Tight. Good name. Love that name.

It's a great name. Just raised $100 million for fake salmon, made of real salmon, That is still fake real safe. Is it really? Or is it fake? Really. This sushi ain't plant-based meat. It's fish-based fish.

It's fish-bish-fish. Let's just roll it. I like what we said. Third story. What are we got? Third and final story. Cybersecurity stocks just had their best year ever. They did.

And then had their best week ever. Because Russia's surprise export is the extortion economy. But Snackers, before we hit that wonderful mix. I love this mix to start the week, Jack. We're looking at week 101 of the hoarder's alman. Week 100. We missed it last week because there was a Monday holiday. Oh, yeah, you go.

All right. Well, I guess we'll, you know, 1001 donations. Let's roll with it. Week 101 things we're running out of because of the pandemic. Snaggers, Jack and I, we've been keeping track for you. This week, we're out of rice crispy treats. We're out of rice crispy treats. Straight up dessert drama going on.

Rice crispy treats. Marshmallow plus melted butter plus rice crispy cereal. Yeah, he got to love it. No one hates it. The go-to-go-y-y-o-y-y-y-old. option because baking cakes is so hard. You don't have to be Chef Boyardee to make a Rice Krispy Treat. You want to make a Rice Krispy Treat? You just need an easy bake oven and a pulse. And one of those glass pans. It's a no bake just melt situation, right? It's a no bake dessert. You don't need a hot

oven. Okay. So, Jack, the reason that we're running low on Rice Krispy treats? Because we're running out of Rice Krispies. Yeah, Snackers. No cereal. No treats. This isn't a marshmallow shortage we're talking. No, no, no. This is a main ingredient mayhem. And the reason. we're low on rice crispy cereal? I'm so glad you asked. It's because we're out of rice, Jack. We have plenty of crispy. Yeah, plenty of the crispy. We need more of the rice. Productions down, supplies are low.

Oh, plus you got that strike over at the Kellogg cereal plant. That didn't help. We talked about it on this pot a couple months ago. We did talk about it on this pot, not knowing it would lead to a rice crispy treat shortage. We should have assumed. We should have assumed. The rice crispy treat is becoming so rare in this country. It's more than just a treat.

Yeah, it's now a rice crispy delicacy. It's a rice crispy rarity. What's the takeaway for our buddies eating rice crispy treats? Those three little rice crispy elves. Snap crackle and... Pop? Oh, shh. Where's pop?

We're running out of Pop 2. Snackers, let's pop 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 about to hear ain't food. It's ear 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. Nope. It's not a research. report or investment advice. Not an offer or sale about security. Right. Snacks is digestible. Business news for you.

Robberhood Financial, LLC, member FINRA slash SIPC. For our first story, IMAX, IMAX movie theaters are tired of competing with your living room, so they're putting down their overpriced popcorn and making a change. Movies have been disrupted. Live events have not. Jack, should we go back to our freshman year college dorm room together? No cable TV, which was like fully part of our lives back then. You did bring that TV, though.

I brought an insanely heavy, low-quality TV on top of our fridge. Not with your back. We had a PlayStation 2 to watch Seinfeld DVDs. I don't want to date ourselves, but we were two steps away from VHS. Since we had no cable and streaming wasn't a thing, for big live events like Giants Patriots Super Bowl in 2008, classic. You went to the theater in the student center. huge, it was big, it was the place to watch. Macalla Hall. Exactly. Well, IMAX is sitting there

and they're thinking, hey, we got huge screens. We got huge speakers. Why don't you guys come on down over here? Why can't we host your live Giants Patriots then? We do nature movies. We do immersive movies. We do big of nature movies. We do Christopher Nolan movies with the loud music. But whatever it is, it's not working for IMAX. People aren't thriving back to movie theater. IMAX is a publicly traded company and just announced that revenues last quarter, they're still down 37% from the pre-pandemic days. So IMAX is sitting there alone and it's dark theater and it's thinking, you know what, we need to pivot.

Here's the situation for IMAX. The competition for IMAX, it's not AMC or other movie theaters. No, it's not. It's your living room. Yeah, Snackers. The competition for IMAX isn't just other companies. It's now a behavior change that you went through. You went to Best Buy and upgraded during.

the pandemic to a 70-inch 4K frame television with a built-in something. It doesn't have a built-in something. Why did you even buy it? And Disney Plus and HBO Max, they started dropping movies direct to living room. Yeah, the old DTL. And you know what, Snackers? That's caused movies to be disrupted. Here's the surprise, though. Live events haven't been disrupted by the pandemic. Yeah, Snackers, this is what Jack and I find fascinating about this story. Live Nation, the event company, their CEO said just last week that they're going to have more live events from performers than ever before. They also said they're seeing more ticket sales

booked for those live events than ever before. Apparently people want live experiences. That's what they want now. And 2022 is supposed to be the year of live events. Well, I'm actually being pretty reflective here. So they're changing their business event. Instead of just movies, they're going to add in concerts. Yeah. Stand up comedians, simulcasts of live events. They're going to be doing east. sports tournaments from IMAX movie theaters. So don't just think Christopher Nolan movie. Think Chris Rock, live from Las Vegas standup event from an IMAX theater in Milwaukee. Actually, Jack, we saw this just last week with that Kanye concert in Miami.

Kanye was live in Miami, but you could also watch that event live from 15 IMAX theaters and kind of feel like you're in the arena. Yeah, as IMAX's CEO said, it's hard to beat a six-story Kanye standing right in front of you. In real life, he's only four stories. So, Jack, what's the takeaway for our buddies watching over at IMAX? It's a psychological technique. It's called a reframing. Okay, Jack and I were just talking about this.

This literally came up in my therapy session two weeks ago. Change how you look at something. Change your experience in it. IMAX isn't just a movie theater company. That would be understating what they are. They just realized they're in the entertainment industry. So same company, they just reframed what? they're in to actually see some new opportunities.

Because the bar for movie theaters was raised tremendously hot during the pandemic. I mean, Jack, why should I pay 15 bucks for a ticket and $10 for junior minutes when I got a lazy boy in 14 subscriptions over at home? I haven't been to a movie theater in two years. I'll say it. My lazy boys got grooves. IMAX is freaking out when they hear Jack say that. And if they pigeonhole themselves as just a movie theater company, then their business will

decline. But if it reframes to think of themselves. as an entertainment company. Oh, okay. Then movies are just one of many things that they present and sell tickets for. Snackers, that reframed mindset? It is liberation. For our second story, Jack, sushi or sashimi?

Well, you know what? You would take a long pause from a landlock state right now. I'm from the landlock state. I had my first fish when I was like 19. That's fair. Yeah, fresh water. I think that's great stuff. And it was chicken of the sea.

Snackers, second store here, Wild Type. Just snagged $100 million in funding for sushi-grade salmon. That's not really salmon, but it is salmon. Alternative foods are pulling a fancy Tesla moon. Okay, so Jack, we've covered plant-based meat. We've covered meat-based meat. We've covered plant-based plants. We've covered potato-based milk. So we're going to do cell-based fish. Let's just do cell-based fish. We're looking at San Francisco-based wild type. $100 million just raised the largest ever fundraise for a gas. a cell-based food startup. This company produces one product, salmon. Yeah. Cultivated in a laboratory from cells of salmon.

Now, the investors who were curious about this were like a starring cast of the next Oceans 12. Decaprio. Yeah. Downey Jr. Yeah. Jeff Bezos, not in Oceans 12. No, that's true. Although he probably wants to be in it.

Also, he had a bunch of VCs and Cargill, the large agricultural company. So salmon, not wild caught salmon from off the coast of Alaska. Not farm-raised salmon. Not plant-based fish either. This is salmon-based salmon. This is fish-based fish. Real animal cells to create real fish that's fake slamming salmon, but it really is real salmon technically. Nick and I heard scientists, and we're not going to pretend to put on a white coat.

No. So here's how this goes down. Wild type takes the tissue from the muscle of a live wild salmon. And then they put it in a tank and do some science to it. Yeah, basically they grow this in a process called scaffolding where they then inject it with like a what they call a Gatorade-like. substance to grow the salmon cells over five weeks. And then after five weeks of science, they open up the tank and there's a bunch more salmon. Basically, you're getting a whole salmon to flay.

We're talking the orange and white stripes. It's just the filet. Funny thing that Nick and I actually do understand about cell-based salmon. Well put. The goal is not just environmental sustainability. No, it's not. Although this does protect dwindling fish stocks because, like, we're low on the tuna situation. Yeah.

Someday we might run out of fish if we keep eating. What Jack and I found fascinating about wild type, is that they pitch it as efficiency. They only produce the salmon filet. That's it. No fins or head or spine that you have to throw away into the trash. In fact, they are also pitching this as an efficient time product as well. Not only do they not waste material like the head that you have to throw away.

It also saves the sushi chef's time. Exactly. They don't need to do all of the stripping of the meat. Right. And they get from salmon to salmon roll quicker. Now, there are challenges with something so new like this. It's like they still need FDA approval before cell-based salmon can slam itself into restaurants. But Wild Type is taking an approach the opposite of the rest of the alternative food industry.

So, Jack, what's the takeaway for our buddies making cell-based fish over at Wild Type? They're testing the limits of the Tesla strategy. Yeah, the Tesla strategy. First comes fancy. That's the strategy. If you look at plant-based meat, beyond an impossible started with mass appeal products, burgers. They're going with the comfort foods, beef, sausage. The kind of stuff you're going to stick between the McDonald's bun and a Dunkin Muffin. Wild type isn't doing that.

They're not doing mass appeal shrimp. They're not doing a headache. They're not doing fish and chips. Not doing poe boys. They're doing the opposite. They're going 50 bucks a pound. Sushi-grade salmon. The most precious, expensive, delectable fancy fish of the ball.

We're talking straight up in Nigeria. You're going to do the omacasi on this thing. Maybe they're doing it because plant-based meat has struggled the past couple years. They have. Perhaps it's too expensive. And the average burger buyer is try and plant-based burgers once, but then won't pay up a second time. But a sushi snub.

That person has the cash and curiosity for cell-based salmon rolls. They'll pay up. They're going to pay out. Tesla started with an unaffordable $100,000 sports car before eventually 10 years later selling a $35,000 a sedan. Tesla started with those willing to pay for a new technology. Wild type seems to be taking the same premium approach, but for alternative food. Fancy comes first.

For our third and final story, cybersecurity stocks just had their best year ever. And then they had their best week ever. Call it Cyber Monday. Yeah. And welcome to the extortion economy. Okay, Jack, can we talk about a company that, I guess, geographical name you would say, Palo Alto Networks? They founded in 2005. This is a cybersecurity firm whose website has real military vines.

You're going to go on this thing and you're going to want to take cover. You're going to think your computer's under attack. Yeah, you are. Because what they're actually making is they're making firewalls that protect your company's networks. Whether it's a data center in Utah or Annie's iPhone from accounting. Yeah, you got to protect that thing. And as a cybersecurity company, they're enjoying life right now because they just announced their fifth straight quarter of over a billion dollars in revenues. Nick, I saw they have a thousand companies that pay them a million dollars in fees.

They're just, companies are just dishing out money. And that's one reason why the stock was up 12 percent in just the past week just hit a record high. It hit a record high because it's been a record year for hackings. Totally. Work from home. That means you are vulnerable from home. Companies are a little nervous right now. Your Xfinity modem in the living room?

Yeah? No firewall. Now, Snackers, here's what Jack and I find fascinating about Palo Alto networks. Beyond Palo Alto, we are seeing a fortressing fad over the past month. In just the month of February, venture capitalists pumped $2.6 billion into cybersecurity startups. That's a big number. also four times more than they pumped into cybersecurity startups the same time last year.

So venture capitalists are bullish on cybersecurity. Yeah. In the meantime, over in the C-suite inside the companies, Chief Technology Officers are getting more love than ever, according to the Wall Street Journal. Chief Information officers, Chief Technology Officers, and Chief Information Security Officers, which is like basically a new thing. Got the best pay raises last year in corporate America. And Jack, can we talk about what's going on over in stock markets?

Z-scaler, Fortinet, Crowdstreet. All those stocks jumped 10% last week. Quick, FYI, Snackers, you can't be a cybersecurity company unless you have an ambiguously threatening name. You are vulnerable ink. I think you meant to say, Jack, Z-Scaler, Fordina, CrowdStra. And all those stock price jumps are explained by something right at the top of Palo Alto Network's website.

Yeah, Snackers, Jack and I notice a new thing appeared on Palo Alto's cyber security website on Friday. Protect yourself against the cyber impact of the Russia-Ukraine crisis. So, Jack, what's the takeaway for our buddies over in cybersecurity? Russia has created an extortion economy. Snackers, hacking, it isn't just something Russia does. Hacking has grown to become part of the whole nation's GDP. Russia is number one globally in hacking.

The hackers from Russia, they're called. Yeah, Russia brought in an estimated $400 million in ransomed just in the last year, according to BBC. Now, we just said that American companies faced a record number of hacks last year. And they're often forced to pay something in a black. Well, it turns out that 75% of those corporate hacks were by Russia-linked hackers. And it's almost like an export industry. It's like Russia's exporting oil, wheat, and hacking.

Russia sends a foreign government or a foreign company some malware that they didn't ask for and then gets a ransom in return in exchange for not screwing up the network. Yeah, so there is a war going on on the ground in Ukraine that has worsened U.S. and Russia relations. And that's only going to increase the size of Russia's extortion. And that is why America's fortressing bad now looks a lot more like a fortressing trend. Jack, can you whip up the takeaways for us to start the week? IMAX is a $1 billion publicly traded movie theater company.

Well, the new IMAX now, it is an entertainment company because they psychologically reframed. Our second story is wild type. Look out for their salmon that never swim. No, by the way, we should clarify, this is technically like real fish muscle. They're doing the Tesla strategy, though. Fancy comes first. I think we clarified that like four times in the story. You mean it's real fake, plant-based, fish-based, cell-based fish?

For our third and final story, Palo Alto Network's stock, it's at a record high. Yeah, and Russia, they have a growing extortion economy. Now, time for our snack fact of the day. This one's sent in by legendary snacker, Leviticus Williams from lovely Los Angeles. There are some wonderful, life-changing inventions from black women who rarely get the credit they deserve. Okay, check, let's roll with the IMAX theme here, 3D movies. Valerie Thomas of NASA invented that. Jack, how about the home camera security system?

A black woman named Marie Van Britton Brown. And then call her ID, call waiting. You use those every day. Dr. Shirley Jackson filed all those patents. I hope she's getting royalties. And then finally, Jack, the heater. The heater was an invention of Alice H. Parker of Howard University. She's known for patenting a central heating system that uses natural gas.

It's a facto, something you may be using right now. Unless you got a wood-burning fireplace, you can thank Alice H. Parker. Snackers, you look fantastic to start the week. If you haven't yet, turn to whoever you're standing next to whenever you grab lunch today and say, hey, you know what? H-Y-H-Y-YS-D. Even if it's your cat, had you had, your snacks deal. Do it right. If you know, you know.

And before we go, congratulations to Snackers, Ian and Tiffany, who just had their one-year anniversary in Shanghai, China. And congrats to Miguel Vasquez and Pugnio. who got engaged in New Jersey. And it is Miguel's birthday, so someone got a ring, someone got a present. And congrats to Toby, who just started a new job at a fintech startup in Lagos, Nigeria. And Tess, winebound, and joined that new job over in Los Angeles. Congrats to Camille Hanner, who just got a new dream job at Black Rock. And Hannah Thornberg, happy birthday in Potwin, Kansas.

Happy birthday to Adriana P. in South Carolina. And Frankie, Iter Bay, enjoyed that 30th in Huntington Park, California. Oh, and Moral? You know the whole mates employee thing? Oh, I know the Mates thing, yeah. Alta employees are Ultimates. Yeah, check how about Patrick Linton? Freddie Mac has subprimates. I actually think it's Ultimates.

It's Ultimates. Right? Ultimate Sports. Oh, and James Gaskill? Nick, you and I are snacks. We're going to go with snacks, mates. This is Jack, Nick Owenstock of Beyond Me. Robin Hood Snacks, Newsletters, and Podcasts reflect the opinions of only the authors who are associated persons of Robin Hood Financial LLL

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, or Robin Hood 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. Z-Scala 4th, Crowdstrike.