The Best One Yet - “She made the first IPO move” — Bumble’s IPO filing. Spotify’s car thing. Biden’s $1.9 Trillion energy shot.

Episode Date: January 19, 2021

Bumble’s New Year’s resolution was to go public, so we just jumped into its IPO paperwork. Spotify’s “Car Thing” is the secret gadget to know about. And we’re whipping up the most important numbers from Biden’s $1.9T stimulus plan.$BMBL $SPOTGot a SnackFact? Tweet it @RobinhoodSnacks @TBOYJack @NickOfNewYorkWant 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. Welcome back. It is Tuesday, January 19th. Long weekend is over. Short week is beginning. That's why this is the best one yet. Jack, Tb-O-Y, you gotta love the four-day work week. What do we got today? Well, our first story was interesting because we were waiting for her to do this. Yeah. Turns out Bumble just made its first IPO move critical. The S-1. We're going to jump in snack style. Second story, Jack. What do we got? Spotify just registered its first electronic gadget Ever. It's called The Car Thing. Seriously, that's what it's called. Love that name. This is the secret gadget it's been tinkering on for years. For our third and final story, today is the eve of the presidential inauguration. So we're looking at Joe Biden's $1.9 trillion dollar economic stimulus plan. Yeah, trillion with a T. We're whipping up the most important numbers that you got to know. But before we hit those three stories, we're going to look at the worst one yet. The worst patent, Nick and I have ever seen. Oh, we couldn't get over this. We were staring at the thing on weekend. Get this. Turns out Microsoft is patenting a new tool to monitor your body language in every work meeting. And then they're going to grade the meeting based on the facial expressions

of the people in the room being presented to. Detecting speech pattern consistent with boredom and fatigue. That's why we're calling this feature, Office 365 Tattletail. Yeah, you can think of it like PowerPoint, except it can get you fired. This artificial technology is going to have a camera in the room that looks at the people in the room. It'll notice Frank in the corner, his legs fall in asleep halfway through the TPS report. Jack, after 12 minutes on the same slide, Susan started to drool. So this is a big brother situation, Snackers, but we've got a plan so that you can use this to your advantage. Jack and I always have your back Snackers.

So here's what you're going to do. First, you're going to figure out which mandatory weekly meeting you hate. Then, knowing that you're being watched by this new tool, you're going to frown aggressively for 42 of the 60 minutes of the meeting. Then you're going to do that squinty I think. You know, Jack the one you kind of do sometimes with the left bag, it's a little sleepy. My wife actually calls it my RBF. Then you're going to elbow the guy next to you and be like, are they serious? Is this really the meeting?

Well, guess what, Snackers? Add all that up. The quality score of the meeting, that's going to go down. The meeting, it's going to get canceled. You're welcome, Snackers. You're welcome. 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 the hair 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. Nope. 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 Fenra slash SIPC. For our first story, Bumble just filed to go public before the weekend.

2021, Nick. It's already the year of so many IPOs. Yeah, yes it is, Jack. By the way, they dropped this IPO paperwork Friday night. It's date night. This was our Friday night, date night, weekend reading material. First thing we checked was the ticker symbol, and we were so disappointed. I mean, Jack, I'm looking at BMBL. That's what they're going with here. They did the old cut the vowel strategy. The laziest way you can pick a tick. Bumble Whitney, huge missed opportunity here. They could have gone with kiss or date. Or how about F-R-S-T or S-H-E? Or they could have gone negative with dump or ghost. They could turn it for the worst. By the way, Jack, they timed this up pretty interesting. because they drop the IPO paperwork. It's going to take a month before they go public. We're a month away from Valentine's Day.

Valentine's Day. We're talking to Valentine's Day IPO potentially. We're talking, of course, about Bumble, the second highest grossing dating app in the world. Yep. And guess what, Nick? This is wild. It's not just founded by women. A majority of people on the board of directors are women as well. And it makes sense because their core feature is all about women making the first move in dating. You can't go on a date after swiping left until the woman sends the first mess. So key number here, women have added up to 1.7 billion first moves on the Bumble app. That's a lot of dating app conversations and it's led to 377 million in revenue when users upgrade from the free

version of Bumble to the premium account. Now, on the other hand, they did result in an $84 million loss on all those revenues last year. Understandable though, we bet, Nick, if they had spent no money on marketing, they would have made a profit last year. But if you're at Bumble, you're thinking, hey, we want to invest in growth, so we'll spend money in marketing. It's more important than profits, and that's why they suffered a loss. It'd be a big missed opportunity if they just made as much profit as they could last year. Okay, so Snackers, it's the weekend. Jack and I are deep snack style in this IPO paperwork. And here's the theme we noticed. Women aren't the customers on Bumble. Women are actually the competitive advantage on Bumble. There are 42 million people using the

Bumble app, and it's not 50-50. There's 30% more women than there are men. And importantly, 2.4 million of those 42 million users, 2.4 million are actually paying customers. There's splurgeon for some features to make the dating app more fun. That suggests that women are more willing to invest in a dating app instead of just using the free version to make romance happen. In fact, they showed us that women will actually pay more often for these dating features than men will. There you go. Women are the profit people of this business. By the way, just thought of another one, Jack. Ticker symbol, H.I. Hi. That's how every conversation begins.

There you go. Jack, what's the takeaway for our buddies over at Bumble? Bumble solved the number one problem of apps, promiscuousness. Okay, key here, Snackers, we're not talking dating promiscuousness. We're talking business promiscuousness. When it comes to the apps that we love using, there are extremely low switching costs from using one app to closing it and then using the competitor app. Snackers, take any app platform. For example, take food delivery. You could use Dordash to get your burrito delivered or caviar or postmates, you're going to choose the one that offers the lowest combination of like fees, fees and fees. And that's why Grubhub's CEO, like a couple years ago,

said users are promiscuous. And he took a lot of heat for that. Yeah, he kind of like insulted his users. And I think he got fired after that. Well, it's actually the same situation with ride hailing too. Uber, Lyft, you don't care. Whichever one gives you the $5 promo code. That's you're going with. Whichever one is lower cost, you go with that. And for dating, it seems similar. the average user has two dating apps on their phone. They're not committed. They won't even commit to the dating apps. But Bumble's brand is so strong,

they've found a way to get their users to commit to just using one dating app and that one dating app is Bumble. Yet this Snackers, only one out of every five Bumble users came from like a promotional growth marketing campaign, like on Facebook or something. That means four-fifths of Bumble users came from word of mouth

from a friend who's probably in a great relationship thanks to Bumble. And that means that Bumble's brand earns business monogamy. For our second story, the Biden stimulus plan, here it is. We just got it, basically spend a whole bunch of government cash to avoid another recession. It's also hoping to avoid societal decay in this country. Yeah, and it's a big bill we got here. So tomorrow, Snackers, Joe Biden is going to be inaugurated as the 46th president of the United States.

He's inheriting a mess. So we spent last week detailing a very long rescue plan. Yeah. And at the end of this rescue plan, there's a whole goal. goal. And here's the goal. He's got to rally Congress to spend $1.9 trillion to end the virus, get schools open, and save jobs. All right, if the tab for anything is $1.9 trillion, you want to ask to see the receipt. This is like a CVS receipt. This thing is long. I mean, like Princess Diana's Vail kind of a thing. It is. First is $1,400. What's that, Nick? Okay, so the $1,400. That's going to

be the check every American gets. Yeah. And if you got kids, like, they'll get a check too. And $400 a week in extra unemployment to all of those people who've lost their job during the pandemic. Plus, there are going to be some tax credits for low income families, aid with rent, and some grants for small businesses. That's all wrapped up in that $1,400 check. Yeah, that's like a trillion dollars of total money right there, like directly to people to help them pay the bills. All right. So then, Jack, out of this nearly $2 trillion, then you get $400 billion. Where is that going to be headed? That's going to the states to make sure that they destroy. the vaccine efficiently and that they equip schools with equipment so they can like bring kids

back in and bring teachers back in. All right. So that $400 billion is kind of key because without it, public schools would probably remain closed and remain remote until like this summer. We don't want another full semester of remote zooming. Parents listening are like, we love our kids, but let's get them in class. Now the last little bit's like the dessert, it's $350 billion for all 50 states and like 3,000 local governments. And that 350 billion is pretty important because without it, state and local governments are going to be forced to lay off teachers, fire firefighters, police slash government services, not pretty stuff. And that could lead to societal decay that we

would regret. You'd have to get used to a bunch of garbage in the streets. Nixon, New Yorker. Did you ever live through a trash strike? I think if there's a trash strike, you don't live through it. Oh, Jack, and one more thing. Joe Biden also wants to forgive $10,000 in student loans per student and boost the minimum wage in this country to $15 an hour. Okay, so we're talking nearly $2 trillion. Do all that, Snackers? That's just part one. Joe Biden plans to propose his build back better part two later this year. This is like a two-discs DVD set. The second part is going to be less putting out fires, more long-term investments. But probably more trillions of dollars. Yeah, and probably fixing LaGuardia. So Jack, what's the takeaway

for our buddies over in the economy. This whole thing will be paid for with America's credit card, which actually seems okay. Snugglers, typically when a borrower has way too much debt, lenders are like, hey, easy there, slugger. We can't give you any more loans. Well, America has more debt than ever. The size of our mountain of debt is 140% of our annual economic output. But interest rates right now, they have never been lower. It has never been cheaper to borrow money. So it's showing how easy and available it is for the U.S. government to keep borrowing more money. And how willing lenders are to continue to let America borrow more money. Yeah, after the $2 trillion rescue package in March, he got $900 billion in December. And then this

total COVID tab comes out to like $4.8 trillion with a T dollars. Believe it or not, economists still think this latest $1.9 trillion plan by Biden is a good investment because inflation isn't a concern. And that's typically the main concern when you're borrowing all this money as the government. So the big question we face here as a country now, will Republicans support this deal or will they cry that this is government wasteful spending? Now here's the key snackers. Despite having a majority in both houses, there is a filibuster rule in the Senate. And that means the Democrats would need 10 Republican votes, yes, just to get this through. By the way, passage of this much-needed economic bill will face an epic distraction as the Senate

does a trial of President Trump's second impeachment. And if it goes through, it goes on America's credit card. For our third and final story, for the first time, in two years, we just got a major clue on the biggest mystery in audio. We're talking, of course, about Spotify's car thingy. Jack, I love talking this story. Now, Snackers, a little context here. We've got to sprinkle it on. This story actually goes all the way back to one of Jackson, my first ever podcast, before the acquisition by Robin Hood, like years ago. Pre-Robin Hood, we were at the Flatiron Hotel Squatted. Yes, we were. Buying like one coffee every three hours to justify our presence. Startup life, that's what you do. Well, Jack and I heard this storyline back then, and we went full Nancy Drew on this thing.

Yes, back in May of 2018, Spotify posted a job posting about someone who works on hardware and someone who works on cars. We're like Spotify? Yeah, they had no name for building out whatever this mystery product would be. so we just called it like the car thing and moved on. A year later, Spotify announced they're publicly testing a voice-controlled smart assistant for the car. Yeah, new name for this thing. They just call it, true story, the car thing. The name stuck. And then we haven't heard anything about it until yesterday.

Honestly, until yesterday. Because Spotify just filed an update with the FCC. And now we know exactly what the new car thing looks like. And here's what it looks like. A small tablet thing with a small tablet thing with. the suction cup. It's kind of charming. It's like an iPad, but with Jay Leno's chin. And we assume the suction cup is going to leave a little ringmark on your dashboard because that's how suction cups work. All right. So basically this little thing. And remember, Spotify, purely a tech

company, purely software, now potentially a hardware product, this would plug into your car's 12-vote socket, which we all got. Yeah, or like the cigarette lighter from back in the day. And then it will connect to your phone via Bluetooth. And then play on the car speakers the Spotify that you're playing on your phone. Now, Spotify has no like sales plans, no marketing plans they've released yet. And Jack and I aren't expecting this to like become their profit puppy like AirPods have been for some other companies. So naturally, what are they doing? What are they doing? Well, Jack, what's the takeaway for our buddies over at Spotify? Spotify's biggest growth opportunity is in the car. Snackers, let's go back to first principles. Spotify's core mission, become the world's number one

audio platform. It turns out it can't do that unless it conquers the car. Yeah, because, Because according to Pew Research, 91% of Americans are listening to radio every single week. The average American commute is 26 minutes each way. And if you own an old car, your only choice for those 26 minutes is the radio. It's the radio. It's the radio or you got a CD option. You get a CD option. Or a six-dix changer. Now, the average car on the road, Jack and I jumped in a little further snacks out in the United States is 12 years old. Your average car is 12 years old. according to IHS market. That means that half of the cars on the road in America were made before 2008. That's like 80 million cars that are decently old. Half the cars in the United States were around

before Uber was a thing. They have no infotainment system, no Bluetooth connection, no auxiliary cord, no way to listen to Spotify in the car. So we're thinking if Spotify can make America's old cars finally Spotify compatible, then it could win the millions of people currently jamming daily to WBUZ 99.9. The buzz. Jack, can you whip up the takeaways for us for the four-day week? Bumble is geared up for a Valentine's Day IPO, valued around $8 billion. Yeah, women aren't just the customers. Women are the competitive advantage. For our second story, Joe Biden is trying to rally Congress to spend another almost $2 trillion to save jobs and kill the vaccine. And it's all going on America's credit card. And that,

actually seems okay right now. Spotify is taking the next step to conquering America's old Bluetoothless cars. Best name in the biz, three words, the car thing. The car thing. I think it could sell with that. It could say, just go with that. Wrong with that. Now, time for our snack fact today. This one sent in by Abby Wolf over in lovely Zamora Spain. Abby is actually a professional basketball player over in Spain. Yeah, and she sent us a picture of her jersey. Here's the funny thing. Her jersey has 13 ads all over the jersey, just stuck on it. The main ad is a cheese manufacturer called Caso El Pashtar. Now, we took the snack fact a little bit further, and we're curious,

what was the first professional sports jersey to have an ad on it? It's not the New York Yankees. My dad would cry forever if the Yankees ever put an ad on. No, pinstripes, just pinstripes. It's actually the football club called Kettering Town, which added a paid slogan to their jersey for a soccer game against Bath, way back in 1976. Yeah, all the way in England, they kicked off the jersey logos.

And now pretty much everyone but the Yankees out. Yeah, now it's a thing. Snackers, you looked fantastic today. We hope you enjoy this four-day work week. H-Y-H-Y-Y-S-D. Have you had your snacks daily? Ask a friend, that's how we grow. We'll see you tomorrow.

If you know, you know. By the way, Snackers, three corrections from last week. First of all, Poshmark actually does verify some items, only the ones over $500. Thank you to the snacker who bought a wedding dress on Poshmark, and let us know. Also, Jack Daniels is based in Tennessee, not Kentucky, but it's owned by a company called Brown Forman that is based in Kentucky. I can't believe we made that mistake. And finally, Jessica, who speaks Mandarin, told us that Coca-Cola is pronounced a little differently over there than the way we pronounced it. In China, it's actually pronounced caco-cola, which is brilliant,

because that almost sounds like Coca-Cola. And before we go, Snackers, congratulations to Herardo Gonzalez graduating over in Spain. And apparently, Tasha Giselle and Grandma, three amazing women all have the same birthday in Las Vegas. And Mike Duan, happy birthday in Bay City, Michigan. And Andy Reyes, happy birthday in Newark, California. And Brian Cutner, over in West Hempstead, Long Island. Definitely a Fogh. Definitely a Long Islander.

Juni Wang, happy birthday in Boston. And Natalie Finato, happy birthday in Naples, Florida. Please get a reservation at Tommy Bahamas to celebrate. Dusty Winnow, Great Falls, Virginia. Happy birthday, Patrick Mateer in Durham, North Carolina. and Alejandro Sanchez in Seattle. And Michelle DeRoche from Chicago, where they do logistics. This is Jack, Nick and I both on stock of Spotify and Nick on stock of Apple.

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 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.