The Best One Yet - 🏈 “Scan here to win” — Coinbase’s QR ROI. CoComelon’s kid cash flow. Congress’ stock ban-apalooza.

Episode Date: February 15, 2022

The most successful Super Bowl commercial was the cheapest one: Coinbase’s QR Code QB sneak. The #1 YouTube Channel in America is now CoCoMelon thanks to its Kid Cash Flow. And momentum is gaining in Congress to ban Insider Trading… by Congress.$COIN $GOOG $NFLXGot 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 Tuesday. T. Boy, Tuesday, February 15. Markets dropped yesterday on concerns about the Russia-Ukraine situation. Yeah, they did. Investors don't like war and they don't like uncertainty.

This happens to be a combination of both. This pod happens to be the best one yet, nonetheless. This is a T-B-O-I. Best pod we've ever done. Jack, what's their first story? The most successful Super Bowl ad was the cheapest Super Bowl. The Coinbase QR code. That was the QB snake.

the Super Bowl. For our second story, the number one YouTube channel in the country. Yeah, wait for it. This is gold. Cocoa melon. Cocoa melon snackers. Here's the cocoa melon business model. Parents will do anything to keep their kids occupied. Anything. For our third and final story, you trade stocks, your congressperson trade stocks. Yeah, they do. But only one of you knows what law is about to get passed. And that's why more and more members of Congress are jumping on the new ban wagon. Banning individual stock trading for lawmakers. Honestly, there wasn't much news today? Wild mix of stories. I love this. I love this mix of stories. This is a great Tuesday. Sometimes when you have the fewest ingredients, that's when you make the best meal. That's when you were

the best one yet. That's when you get the best one yet. All right. It is T-Boy Tuesday. Maybe you're working from home like Nick and me are right now. Maybe you're back in the office. You got the slacks on. But we can tell if you're back in the office before you actually told us that you've returned to the office. And that is because of a Bloomberg report. This is about the latte leading indicator. The Latte leading indicator because coffee shop sales reveal when people have returned to the office. Jack, look to the latte. Macha consumption is like the bat signal above Gotham. Jack, I mean, nothing gets a banker through a spreadsheet like an orange mocha fravichino.

Here's the evidence. In London, coffee sales at the Pret-Amange in the Financial District of London. Great spot. Just hit their highest point since pre-pandembourg. Because London just got back to work. In New York City, espresso sales, they're up for six straight weeks. Midtown Manhattan. And going back to work.

In Hong Kong, Cortado sales. Yeah? Plummeted. Yeah, there was a COVID surge there. So they're not going back to work right now. If you loosen restrictions, frappuccinos are flowing. Snackers, if you're back in the office, you are back in the oatmeal grind. Because if you got a conference meeting this afternoon, you're calling Darlene before.

Hey, Darlene, it's me. Can you get me a large regular? Two pumps? Hey, this guy needs two pumps. Extra hazelnut, Darlene. Snackers, if you want to know who's returning. to the office, just ask a barista. If he's crushing cappuccinos,

bankers be back to bank. Let's sip her 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.

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 Rapper Her Financial LLC Member Fenra

slash SIPC For our first story The winner of the Super Bowl spent the least amount of money on the Super Bowl The most successful ads They snuck in for free

Sneak right in there By the way If you want to win the Super Bowl Reliable do puppies Babies or hate on the Metaverse You can't go wrong with those three I didn't notice the anti-metaverse ads Were they in there

McConaughey Oh McConaughey McCona Hay. McCona Hay. Snackers, most of the Super Bowl ads this year, it's pretty much your classic Super Bowl ads, right, Jack? Yeah, Brand spent big money for celebrities to play actors in commercials that struck on our nostalgia.

I like the formula that you whipped up on this. I like the formula we got here. Huge budget. Vague R-O-I on these Super Bowl commercials. For example, I mean, the car companies, they splurge to try to convince you that electric cars are actually tough and cool. You might have noticed on Sunday,

BMW hired Arnold Schwarzenegger, Salma Hayek, and played the song Electric Avenue to sell their electric SUV. They're trying to kill the Prius. General Motors hired Dr. Eva. Mike Myers, there you go. And Tony Sopranos children in two separate commercials to sell their electric SUVs and pickup trucks. What does this thing run on? Gabo Gould.

It runs on Gaborgou. Now, Nick, how did those ads work out for BMW and General Motors? A great question, Jack, because the answer is they don't know. Yeah. With most TV commercials like this, you just hope that that made people like your brand a little bit more. Yeah, it's a bet on brand building. But what Jack and I found fascinating about this year's Super Bowl was that the most successful ad was the least expensive ad. The ad with the super tiny budget had a very clear and trackable return. Because Coinbase, Coinbase the crypto exchange was the hack Super Bowl ad winner quarterback sneak. The Coinbase commercial. Do you remember that one?

It was the weird one. It was awkward. Yeah, it was just a QR code that was like bouncing around the screen, like a 1996 screen saver on a gateway. Exactly. A Windows screensaver from back in the day. Yeah. Now, it did not seem like there was any budget behind this single graphic QR code. I, Nick, I'm not a computer science guy.

I almost could have created that video file for the commercial. Here's the thing that everyone was sitting there on their couch looking at their chicken wing wondering what is this commercial? It was like a mystery. was a trailer for an M-night Shamelon movie. There was no Coinbase logo. It was just a QR code. And so people naturally took out their phones and scanned it. Now, that is critical because what this ad was, it was really one giant CTA to scan, one giant call to action to scan this QR code. And if you did, it brought your phone to Coinbase's website. And Coinbase claims that 20 million people did

this in the one-minute time of the ad. So the return on investment for this single, simple, Super Bowl Super Bowl commercial wildly clear. App downloads. Coinbase jumped yesterday from 186 in the App Store to number two in the app store. Boom. Number two in minutes. The cheap simplicity of this ad worked so well. So well. It worked so well. That the Coinbase's website crashed, which then led to Coinbase getting even more publicity because their commercial broke Coinbase. Publicity cycle number one is that was so mysterious. Yes, did you see that ad? Publicity cycle. Number two, it crashed the website. Did you hear that ad?

Crash the company's company? So, Jack, what's the takeaway for all our buddies who spent money on the Super Bowl? The best Super Bowl commercials from Sunday snuck in for free. Yeah, Snackers. It wasn't just Coinbase's absurdly cheap, high return commercial. Other Super Bowl winners didn't even buy commercials at all. L.A. Ram's head coach, Sean McVeigh, congratulations on the win. He got a Gatorade bath after the game.

Keyword Gatorade. Oh, and Super Bowl champs, Stafford, Cup, and Darnold. They all shouted out Disneyland when they won. Key word, Disneyland. And did you see the cleats? Odell Beckham Jr. was wearing. You could not see the cleats. I want one of these for a microphone.

The Nike symbols were studded with diamonds. Oh, and Jack, the headsets. Oh, the Bose headsets. So many assistant coaches. So many Bose headsets on their ears. Snackers, $170 million a marketing value was not in the paid commercials, according to sports consulting from Elevate. That's right.

elevate tracked 75 minutes of on-screen brand presence during the big game. Some of these brands did pay to become the official blank of the NFL. But when you consider that other brands paid up to $7 million to NBC for a 30-second ad spot, Jack, then it's clear that the winning Super Bowl commercials, they snuck in for free. For our second story, Cocoa Mellon isn't just the number one kids TV program. It is the number one video program, period. The company behind Cocoa Mellon has a playbook for kids content. All right, Snackers.

Whether you have kids, you don't have kids. Jack is a kid. I don't have a kid. But you know Baby Shark. You've heard Baby Shark. It's a song that lives in your head right free, although you would very much like to charge it rent and evict it. And they just pass 10 billion views on YouTube.

Now, I think they hit 10 billion views because parents just put it on repeat to occupy their kids in front of the TV. So that's Baby Shark. And the other month, Jack and I told you about Ryan's work. That's the kid influencer who opens a box. of toys for a living and makes $25 million a year doing it. Oh, that's not too shabby. But how about the most viewed YouTube channel in the United States and the second most

viewed YouTube channel in the entire world? Cocoa melon. Cocoa melon, a company that basically digitized the nursery ride. If you have a two-year-old, they're probably saying cocoa. Because cocoa melons like if Rugrats and Sesame Street had a baby and that baby was then raised by Pixar. The logo of cocoa melon is a watermelon like TV thing. It's so cute.

You use more to the school easy. It's like a beanie baby. Now, this goes back to 2006 when Cocoa Mellon produced their first song, the alphabet song. They didn't even write the lyrics. It's the A, B, C, you know, L MNOP. It's the song we all learned as kids. All they did was out of rainbow and computer graphics. That's it.

The thing took off. Then they took the classic song Wheels on a bus and Humpty Dumpty. And translated them to 20 different languages. Yeah, Jack and I jumped and snacks down. You can get this cocoa melon content in Dutch, Thai, Arabic, Tamil, in a double dozen languages. And now Coco has 129 million subscribers. And that isn't even the craziest part about Cocoa Mellon's kid content.

It's not just on YouTube. It's also on Netflix, Amazon Prime Video, Hulu, and Roku. Okay, Cocoa Mellon has the most powerful distribution network of any content we've ever seen. If we added up the subscribers on all those platforms, it'd be way more than $129 million. Now, here's what Jack and I find fascinating about Cocoa Mellon, the business model. And the business model is that kids demand cocoa melon and parents don't say no to their kids. So, Cocoa Mellon is a profit puppy and kids are the puppy chaff. Kid cash flow.

This is all about kid cash flow. According to the Wall Street Journal, Cocoa Mellon does a hundred million a year in profits. Yeah, not revenues, not sales. We're talking profits. 100 million in profits last year. And they're on pace to double it this year. And they've licensed out all that goodness to a whopping 100 partners for like toys and IL6 So Walmart and kids' ears.

Here's an example about the ears part. They just partnered with Spotify to spin off all that YouTube content into a bunch of podcasts. Snackers, let's say you're driving in a 2014 Honda that doesn't have a TV in the back. Cocoa Mellon has your back. Yeah, no problem. Just connect your phone to Bluetooth and Cocoa Mellon will play on your speakers for the kids. So, Jack, do you know the Muffin Man? The Muffin Man.

Yeah, the Muffin Man. If you know the Muffin Man, the Cocoa Muffin Man, he's got a song on YouTube in English with 102 million views and in a dozen languages, and he's got a podcast, and he's got a plush toy. Oh, that muffin man. He lives on Drew Lane. Yeah, that muffin man.

Because of all this, Snackers, Cocoa Mellon was acquired by the publicly traded private equity firm called Blackstone for $3 billion. And the news that just got Jack and I more curious about Cocoa Mellon is that Cocoa Mellon just acquired another YouTube studio called Little Angel.

Which has 90 million more YouTube subscribers. Oh, my God. So, Jack, what's the team? takeaway for our buddies pumping out content over at Cocoa Mellon. Some companies don't just build businesses. They build playbooks. Okay. This was Jackson, my favorite part. This quote from the CEO of Coco Mellon, we are putting this new studio's content into our machine. We will create more content, internationalize it, and then distribute it on global platforms. Bold words, machine, that's the playbook for Coco Mellon. That's also the most adult quote ever about the least adult show ever.

The CEO of a kid channel isn't being cute and cuddly about it. That's the playbook, the machine. Cocoa Mellon isn't just a business. It is a playbook to be applied to a bunch of other kid shows too. For our third and final story, the stock trading ban for lawmakers, it is gaining traction right now. It's a sticky situation for a pretty clear-cut issue. It really is.

Nick, can I hit you with a hypothetical situation? We're at dinner with a buddy who works at Tesla. The buddy is thrilled about the numbers that they just saw about Model Y sales, which are going to be announced next week in the Tesla earnings report. Does anyone know these Model Y sales? Does anyone heard of these Model Y sales? No. It's only internal information at this point.

The buddy is super, super stoked about Model Y numbers. Okay, so the question, can you buy the stock? Could we buy the stock after having this burger dinner with our buddy? Based on that information about the Model Y sales? No, we couldn't. Jack, how about our other buddy? Let's say we got another buddy. She works on Capitol Hill.

She loves telling everyone that she works on Capitol Hill. And she gets this secret briefing hearing that there's this virus coming that she finds out that it's going to be worse than expected. No one else knows this. It could crush the stockmark. Okay. That sounds very valuable, that information. Can we trade stocks on that news?

Yeah. Okay. So here's the situation. You couldn't trade stocks on the first news with our buddy at Tesla? Definitely not. That's clear cut insider information. On the other hand, with our buddy on Capitol Hill, not so clear. It's a little less clear whether that would be insider trade.

Yeah, Snackers. As stock markets became more relevant than ever over the last two years, attention has come to insider trading. Insider trading is illegal. You can't make trades based on knowledge only known to company insiders. It's totally not fair. If the Microsoft CEO can buy stock in Activision Blizzard, the gaming company a day before Microsoft announces it's acquiring Activision Blizzard,

the gaming company. But when Congress people trade, the rules are less clear, but it can look kind of shady too. For example, Politico reports that some Congresspeople and AIDS, they made some trades that were pretty particular in January and February of 2020. It was before the coronavirus had become a pandemic, but Congress people and AIDS were selling stock of airlines and buying stock of Moderna. It was kind of like they had a crystal ball.

It felt like they had a crystal ball. It was a Gandalf situation. Those turned out to be some pretty lucrative trades that put them on the the right side of the stockmark. They were selling travel stocks and buying vaccine stocks before the public realized how bad this COVID situation was going to be. And the timing suggests they may have been based on private COVID briefings, only available to members of Congress at the time. Which leads to what's happened over the last week, something that has gained incredibly rare bipartisan support. Because there's few things the general public dislikes more than the appearance

of Congress people getting rich because of their position of power. So now you actually have the left and the right, both rallying for a ban on trading of individual stocks by Congresspeople and aides. The bill might even put limits on whether the Congress people's husbands, wives, kids, and family members can trade individual stocks too. Now, the key for this bill to become law is that Speaker Nancy Pelosi would have to support. She was originally opposed to this, which you might have heard, because her husband is a famous stock investor. But she said last week she's open to this bill, but only if it extends to judges to. So, Jack, what's the takeaway for us constituents. This doesn't mean Congress can't own stocks. Yeah, Snackers, there's actually like a whole

bunch. There's like multiple proposed bills floating around D.C. right now. And they all focus in some way on banning individual stocks. Right. If a bill does pass and become law and bans individual stock trading for Congress, it's likely that diversified mutual funds and ETFs would be fine. Yeah, because here's the key Snackers. Insider information, it tends to have the ability to move single individual stocks. It's less likely that insider information could move the entire stock market. So a ban on stock trading for lawmakers that would ban trading of Nike shares. But Congress members could still own Nike indirectly through a mutual fund or ETF as long as there's no conflict of interest. Which ironically, many studies show offers higher returns. Anyway, Nike no, shoes ETF.

Okay. Jack, can you and the muffin man whip up the takeaways for us over there? Super Bowl commercials were really expensive this year. Yeah, but the real Super Bowl commercial winners, they snuck in for free. For our second story, the company behind Cocoa Mellon is acquiring another kids video studio. This is the number one video channel in America because of its playbook. For our third and final story, momentum is gaining for a bill to ban individual stock trading in Congress. Not a ban on stocks, we should point out a ban on individual stocks. Now, time for our snack fact of the day, which was sent in along with a whole book,

bunch of calorie crushing from Johnny Henderson from lovely Denver, Colorado, which, by the way, we gave him a shout out for getting his pilots license the other day. Nice. It was Johnny. Nick, are you a burpee guy? Okay. I've been doing them more lately and it hurts. I feel it.

The question about a burpee, do you have to jump at the top of the burpee or can you just go back down? If people are watching, you do the push up. But if they're not watching, you don't do the push off. Okay, Snackers, you drop. You get on the ground, push up optional. You get back up and you repeat. It's a wild exercise.

this exercise, the burpee, it's actually named after a real person. Dr. Royal Huddleston Burpee. Yeah. He is the creator of the burpee. He's a physiologist who ran the YMCA in New York City a hundred years ago. 92 Y? I wish. I love that. Why? Dr. Burpee's family isn't getting paid a royalty every time you do a hit workout, unfortunately. But Snackers, if you Google an image of Royal Huddleston Burpee, the man who created the burpee, he looks like he could bench press a horse. It's like the Arnold Press, which everyone knows is after Arnold Schwarzenegger. That's a man. That's the second time we've mentioned him on this pie. Maconahe. Snackers, you look fantastic today.

If you want to help grow this pod, all you got to do is tell one person today, H-Y-H-Y-S-D. Have you had your snacks daily? If you know, you know. Nick and I'll see you tomorrow. Can't wait. And before we go,

happy birthday to Jason Alexander, not that Jason Alexander, from Dubai. The summer of George. And happy birthday to Sabine Kim over in Los Angeles. Congrats on the win. And Alex, the OG Snacker, Crow in Eureka, California.

And Ann Piper is having a birthday over in Santa Ana, California. Happy birthday to Convo over in Palm Beach Gardens, Florida. And Doug, enjoy that 60th over in Celine, Michigan. Congrats to Stephen, who's celebrating the last day of work before a new job in Baton Rouge, Louisiana. And a shout out to Sienna, a snacker who is just getting her friend a lovely birthday cake in the Marina of San Francisco. Celebrate the wins. Bon voyage to Roxy, who is headed from Rome to England.

to meet her five-month-old niece, Ila, for the first time. Have a fantastic trip. Bring some food. Bring some cocoa me. Actually, five months old is too young for that. Maybe. Your call. Your call.

I don't think that's CEO of Cocoa Mellon saying that. I don't think she's saying that. This is Jack. Nick and I both own stock of Spotify, and I own stock of Netflix, Amazon, Disney, and Moderna. 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,

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 principle and past performance, does not guarantee future results. Robin Hood Financial LLC, member FINRA, SIPC.