The Best One Yet - “r/Reddit$6Billion” — DoorDash’s robot salad. Hawk/Dove stimulus. Reddit valuation doubling.

Episode Date: February 10, 2021

Fresh after a 5-second Super Bowl ad, Reddit doubles its valuation to $6B. DoorDash just acquired a sushi and salad-making robot because it hates humans. And we’re about to get another stimulus, but it all comes down to 1 conversation between the Hawks and the Doves.$DASH Got a SnackFact? Tweet it @RobinhoodSnacks @JackKramer @NickOfNewYorkSend us your Black History Month SnackFact here:https://docs.google.com/forms/d/1Hu00HOlQ-qb6S7Jx4CgnGOfzrA67_j_SLFqxvFKinEQ/editWant a shoutout on the pod? Fill out this form:https://forms.gle/KhUAo31xmkSdeynD9Learn 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, February 10th. Nick, I'm just looking for some moral support from the snackers about what the dentist told me yesterday. I got you. Talk to me. What you're working with over there? 32 years old, and apparently I have like a minor cavity in the back molar. I've never had a cavity. My two front teeth are fake. All I know is you should get fake teeth.

It's a lot easier. By the way, I'm still trying to figure out the geometry on those Brattleboro pizzas. It was the square within a circle? You get eight complete square slices and then a bunch of. of crust pieces that have two right angles up to three right angles. This feels like our best podcast yet, but let's just go to our first story just in case. Reddit is the $6 billion renegade social media company. 2020 was TikTok, 2021 is Reddit.

For a second story, DoorDash just acquired Sally, a salad-making robot. Pretty simple. DoorDash hates humans. For our third and final story, we are expecting a third COVID-19 economic stimulus package from Congress this month. And it all comes down to one conversation. between the hawks and the doves. I'd say it's a debate between the hawks and the doves. But before we hit that wonderful mix of stories,

we've got a big update for your eyes. We'll do our best to describe this since you can't use your eyes for this podcast. This feels awkward, Jack. Nonetheless, Snackers, we've got our first new shade of blue in 200 years. That's right. We haven't seen a fresh new shade of blue since 1821 when cobalt blue was created. That was crazy, Jack. remember well. Sorry, was it created, discovered, or invented? I think it's E all of the above.

But Snackers, for the first time, this brand new shade of blue is available to consumers this week. Sherwin Williams already has 100 different shades of blue paint, make it 101. Yeah, the name of this new blue, Yinmin Blue. Yinmin Blue was discovered in a laboratory in 2009 using inorganic compounds by University of Oregon Chemist. And Yinmin Blue, we checked it out. It's got similar vibes to like, I don't know, like a 1996 Dunkeroo's package. I looked at Yinman Blue. It jumps out like the Kansas City Royals uniform jumps out. It does.

But the tone kind of screams more Eiffel 65. I'm blue da da da da da die. Get this Snackers. Technically though, blue doesn't natively exist. Blue butterflies, blue eyes, they're actually just refractions of light, giving the impression of blue to your eyes. Which begs the question, what colors do exist?

But we wanted to give you the heads up Snackers, too, on this brand new blue. Because you're going to see this new blue, even though what you're seeing, isn't technically blue. Dabadda, da, da, da. Let's hit 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 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 FINRA slash SIPC. For our first story, DoorDash just acquired a robot that makes pokey balls. And this reveals once again the dirty secret about the gig companies. We got to jump into this. Now, first of all, we got some wild numbers here.

In less than a year, in less than a year, DoorDash has gone from a $13 billion private company to a $60 billion public company. Gone from owning a third of the first of the first. food delivery market to a half of the food delivery market. So it got Jackson my attention when we saw DoorDash acquiring San Francisco's Chau Botics, great name. They didn't say price on this deal, but Chau Botics last valued at $46 million. Now, Chau Botics has one profit puppy. It's called Sally. Sally. Sally is the name of Chau Botics's robot, which can whip up salads and pokey bowls even though it doesn't have a pulse. Employee of the month, Sally. Now, technically, they did point out she also does yogurt and

brisket bowls, to which Jack and I were wondering for a very long time, and why not Buddha bowls? Why did you stop there? I googled brisket bowl. I don't think it's a thing. It seems to be consuming brisket, but you put it in a bowl. Now, Sally is basically a vending machine, but she's got a degree from like cordon blue. That's how you got a picture. You know, you wish there was a salad bar, for example, maybe at your college lecture hall or at a bus station or like gate C4 over at the Delta terminal. That's where you want a robot like Sally. With Sally, this is feasible. to have salad bars there because there's no worker you need to pay 15 bucks an hour for an eight-hour shift. It's 24-7 pokey bowls whenever you want them.

DoorDash didn't explain why they acquired this salad tossing machine, though. Yeah, and it's kind of surprising because DoorDash does delivery. That's what they do. Other restaurants actually prepare the food. But the dirty little secret about the gig companies like DoorDash. Yeah. They kind of hate human workers. Yeah, they kind of hate humans.

Uber's founder, Travis Kalanick, famously said that driverless cars were existential for Uber's profits. That's because drivers currently take 75% of the Uber fare. So that's why it seems like an obvious move for DoorDash would be pursuing a similar gig strategy. Eliminate delivery drivers with autonomous vehicles. So that's what made this story not just interesting, but surprising. DoorDash isn't replacing the delivery human. DoorDash is replacing the restaurant human? With Sally, it seems that way.

Yeah. So Jack, what's the takeaway for our buddies over at DoorDash? Prepare to see a bunch of post-pandemic insecurity moves. Yeah, Snackers, a whole bunch of companies surged to prominence during the pandemic in 2020. DoorDash. Zoom, Peloton, their household names now. But now, we notice there's one question they're all facing. Can they maintain that growth post-pandemic? And we think these companies may feel a bit insecure about that huge question that they can't answer yet.

So we're also thinking, here's how they're probably going to answer it. Big acquisitions, splashy product launches. We think the pandemic winners may use the cash they've accumulated in the past year to buy companies and prove they're not a one-trick pony. Yeah, Doordash could accelerate its own ghost kitchens with its own food making. Sally, the robotic salad tosser, could beat out traditional restaurants on price when it comes to salads. And if Doordash delivers a salmon bowl, are you going to know if it's cooked by human Sammy or robot Sally? Or maybe to prove to,

Doordash isn't a one-shirt pony, they could sell Sally's to independent restaurants who could use them as an extra line cook. Sally is the big splashy acquisition that solves DoorDash's post-pandemic insecurity. For our second story, Reddit just doubled its valuation by being a social media renegade. But to satisfy hungry investors, it may have to start to conform. Okay, so basically, like, the only thing busier than Reddit stocks right now, Reddit the company. Reddit the company. All right, in January, Reddit's chat rooms were in. integral in the stock buying campaigns like GameStop. And then in February, like last week, Reddit's Super Bowl commercial, stole five seconds

at the show. It literally five seconds long. It got people to pause and be like, what is this really quick ad that I obviously don't have time to read? Jack, my mom still thinks Time Warner broke. Like, I mean, it was confusing. She called the cable company. Now, yesterday, after all this momentum, we hit a crescendo with Reddit.

Reddit just announced $250 million in fresh funding from investors, Valuing the company at $6 billion. Yeah, that doubles its 2019 valuation. Now this is the seventh most visited website in the United States. Let's talk about Reddit, the dark horse of social media platforms. Okay, this feels like a subreddit check. Now, wild coincidence we noticed. Reddit and Facebook were actually found it just one year apart.

This feels like an origin story where they went to boarding school together. Yes, but the two companies pulled a Bobby Frost because two roads diverged. Yeah, basically. That was 2004, 2005. Since then, Facebook's goal is to get every human being an account with a name and a picture. Redditors do it different. They're anonymous with obscure screen names that no one knows about and no pictures of who you actually are. Yeah, Facebook is all about mobile use. Reddit's more popular on desktop. Facebook loves pictures more than texts and loves video more than pictures.

Yeah, Reddit is text heavy with text and more text, plus they're often linked to more text. Snackers, we're not done here. Facebook throws $20 million, $30 engineers, and $6.5.5,000. focus groups to determine the most delightful like button. Reddit looks like it got done by MySpace. It's been wearing the same clothes ever since. It doesn't even care what it looks like. No, it doesn't. Jack, Facebook is obsessed with one news feed. One news feed for all to see. Reddit does it different. They have subreddits with hidden threads that you need to seek out yourself. A few of the most popular subredits, Jack, can we whip these out? R slash funny. R slash explain like I'm five. R slash shower thobbs. Those are the top ones. Jack, so what is the takeaway for our buddies,

over at Reddit. With more funding comes more pressure to cater to advertisers. Okay, so social media companies, they are ad companies. 98% of Facebook's revenues are ads. That's what they are. That's what it is. And the dark horse in social media, Reddit, is also an undermonetized company when compared to Zuck's apps. Yeah, Reddit has said before, and these are the latest revenue numbers we have, from 2019, they got $100 million in revenues. In the past eight hours, Facebook made as much money as Reddit made in that year. Now here is part of the challenge that Reddit's facing. Big brands see Reddit's ardent commitment to free speech. It's kind of a risk for them. Reddit is light on content moderation, which leads to, shocker, some ugliness online.

Yeah, it's been widely criticized as being relatively hands-off with racist, sexist, and harassing posts. Advertisers don't want their ad right beside a string of offensiveness. We think Reddit's investors, who probably now want an IPO, will start putting pressure to get more advertisers. But to get more advertisers, will Reddit need to act more like Facebook? For our third and final story, economists think our economy is going to grow fast in 2021. But here's why we still need some good old-fashioned economic stimulus. Yeah, we're at a critical moment. Now, before we get there, the Senate is right now occupied for the next couple of weeks with the impeachment trial. So we have a minute to talk about the economy.

So let's talk about the stock market, which is doing great, thanks to tech living its best life and perpetually low interest rates. Basically, Jack, cash has become the world's most boring king. It's brutal. The economy, on the other hand, the one that we all live in, not so much. No, get this, this is wild snackers. In January, 275,000 women dropped out of the labor force, mainly because kids weren't gone back to school.

Yeah, it's the continued economic pain of the pandemic. So we're at an inflection point, and here's where we are. We know a third economic stimulus is coming. We don't know how big that is going to be, though. We got two sides debating how big it's going to be. The doves and the hawks. That's what we do know. The doves are going to be most concerned about jobs.

The hawks most concerned about deficit. So it feels like a role play. Let's kick it off with the hawks. Here's what the fiscal hawks of this country are going to say. All right, here's what they're going to say. All right, we just got this government report last week, and we're expecting 3.7% GDP growth this year, not too shabby. That's going to bring the U.S. economy back to the pre-COVID level

Yes. In the middle of the summer. Jack, boom, no help needed. Pretty straightforward. But here's how the doves are going to respond to that bold claim from the hawks that we don't need any support. They're going to look at the hawks and say, hey, guys, the population has grown. We got 10 million people who are still out of work.

Oh, by the way, those economists you keep referring to, they have a track record of being overly optimistic about how fast this economy is going to grow. Yeah, a little bit rounding up. The last three months, there was no growth in jobs. Let's keep that in mind. After finishing their best, how do you like them, Apple's impression, the doves are going to go on to propose their own argument. Here's what the doves are going to say. They're going to say, look, we need a $15 an hour minimum wage. The minimum wage has been stuck at $7.25 an hour since

2009. America's a consumer economy. Helping those at the bottom will help the entire economy because they're going to spend that extra wages. And after the doves say all that, then the hawks are going to respond with a little something like this. I got a new report right here that just came out last week from the CBO. It says a $15 an hour minimum wage will kill $1.4 million jobs in America. The guy washing dishes, he was worth $8 an hour. I'm not paying him $15 an hour. He had to go. I'm sorry. And there's 1.4 million of those. So, Jack, what's the takeaway for our buddies over in the economy? The last major debate on the stimulus comes down to the definition of one word, needy. It looks like the Democrats are going to pass the third

stimulus bill without Republican support. Here's the last big question about $1.9 trillion bill. What income level qualifies as needy and qualifies as getting a stimulus check in the mail? The senator from West Virginia may not want checks going out to anyone making over $50,000 a year because when you're making $60,000 a year in West Virginia, that gets you pretty far. If you're making $60K in West Virginia, we're watching the Super Bowl at your house. That's where we're going. On the other hand, the senator from California, where the cost of living is way higher, may think that family's making over $100,000 a year

could still use some support. Your $800 square foot million apartment is not where we're watching the Super Bowl. Now, the Democrats are probably compromising on this between the $50,000 and the $100,000 and we'll settle on needy at $75,000 of income a year. So you get a $1,400 check if you make up to $75,000 a year. And unlike the previous checks,

families would get an additional $4,000. $1,400 check for children and adult dependents who are living in their homes. So if you got a college student living in the basement, another $1,400. If you got an adult with disabilities in the house, another $1,400 check. Now, Congress must pass a one-size-fits-all stimulus bill, and compromising on that $75,000 salary number, that is the cutoff for needy. In the meantime, the impeachment is probably going to be a two-week speed bump. We've got to get through.

So the goal passed this bill before February ends. Jack, can you whip up the takeaways for us over there? Reddit has earned its $6 billion evaluation by being not like Facebook. Yeah, now that's accepted VC money, it could be pressured to be a lot more like Facebook. For our second story, DoorDash delivers food, but they just acquired a robot company that makes food. They're a little insecure about their life post-pandemic. For our third and final story, the U.S. economy has barely added any jobs in the past three months. So the Doves and the Hawks have compromised on $1,400 checks for people making $75,000 or less.

Now, time for our snack fact of the day. this one's ended by Jared and Brooklyn. He's got more on himself here. Hey Snackers, this is Jared coming in from Brooklyn, New York, originally from Scram, Pennsylvania, providing you with a Black History Month snack fact. We're talking about Alan Emtage, who in 1989, Alan conceived of and implemented what he called Archie, which was the world's first internet search engine. And in doing so, he pioneered many of the techniques used by public search engines today, most notably Alphabet's Google. But unfortunately, Alan never secured a patent for his technology, but he still deserves all the credit and recognition in the world

for being a major architect behind finding information on the web so fast and so easy today. Next time you Google, think Alan M-Tage. Next time you Bing, think Alan M-Tage. No big deal. Basically invented the whole search engine while he was in college, side hustle. He's also in the Internet Hall of Fame. Snackers, this pod grows when you share this pod. Ask your friends, H-Y-H-Y-S-D.

Ask your friends. Have you had your snacks daily? if you share with one friend, we'll double in size. If you know, you know. And before we go, happy one-year snack anniversary to Martina in Rome, Italy. Grazie Miele. And congratulations to Daniel Cueva, who got into a school named after my second oldest brother Tuck.

And Alan and Mark both got new jobs on Wall Street off Wall Street in Murrietta, California. Happy anniversary to a Harangra and Gatami in Kamon, India. And Hannah-Jane Miller is running cross-country for Rhodes College. Congrats on the win. Congrats to Justin Zaccun, who just passed the bar in Toronto. Canada. And happy birthday, Ali Bia Shad in Rochester, New York. Happy birthday to Will Tan in Paulus Verdes, California. And Sean Wirtz in State College, Pennsylvania. And happy birthday to Ian Bunting in Chicago. This is Jack. I own stock of Peloton. 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 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.