The Best One Yet - Snapchat buys the “Cameos” company — One Medical’s IPO moves — Apple’s 2020 HomeKit mantra

Episode Date: January 6, 2020

Aaaand we’re back. While you were unwrapping gifts, Snapchat treated itself to an augmented reality startup that makes the hilarious filters for Snapchat. OneMedical just filed paperwork to IPO already even though the industry it’s in hates new brands. And Apple’s got a new mantra for 2020: Make HomeKit happen.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. It is Monday. January 6th, that sounds weird. Nick, I'm making a bold claim here. Best Pod yet of 2020. Best Snacks Daily we've done this decade, Jack. All right. Last year also was a great tea boy for markets. I think the S&P 500 rose by 29% in 2019. But then stocks fell very promptly because this whole Iran situation as soon as the year stock. Seriously, when you mess with oil, you mess with everything in business. Jack, First wonderful story of 2020. One Medical is the first company we've seen file for an IPO in 2020. One Medical is trying to be the first nationwide healthcare brand you don't hate. Emphasis on brand and don't hate. Brand don't hate.

Second story. Snapchat quietly acquired an augmented reality AR company over the holidays so that you can stick your face into a cat's face and make a hilarious video. Jack, if you don't get the gift you want, you just go out and you buy another company. You buy it for yourself. Treat yourself. Third and final. The best stock of the Dow in 2019 was Apple.

And it has a new mantra for 2020. Make HomeKit fetch. And just try to make it happen. Trying to make HomeKit happen. What is HomeKit? We'll explain in our third store. Snackers, before we jump into that, you look fantastic. What have you been up to the last couple weeks, Evan?

I have missed each and every Snacker over the last two weeks. We've been away. We took a break. Thank you for listening to us today. Jack, you didn't shave. I'm not blaming you. It looks sharp. It's got like a rugged appeal going on here on your chin.

I look like Grizzly Adams. That's because I did three Christmases over break. I went ice skiing in Vermont. And then I just got back from a Mexico trip, which I went to based on a recommendation from a snacker who DM'd us through Instagram. Snackers, Jack Humble bragged this whole thing to me. He's like, we were so, you know, the ocean was so loud. We could barely go to sleep.

Yeah, we get it. You were really close to the ocean. be really nice. We were wicked close to the ocean. Nick, what'd you have going on? I had, I got like an Amtrak situation going on across the eastern seaboard. I hit New York City, Boston, like back forth, back forth, almost reached conductor status on Amtrak. What's it called the northeast corridor? Yeah, pretty much. You hit conductor status. You should be able to blow the horn, but I was able to cap it off with a New Year's Eve wedding in Nashville. Nick was the emcee of his buddy Nick's wedding. Nashville.

Nashville. It's like Austin. Now, Austin and New Orleans had a baby. Snackers, we all. also both basically have carpal tunnel because we did check into our Instagram and Twitter accounts at Robin Hood Snacks because we just finished the 12 days of T-Boy and we love giving away our T-boy T-shirt to you. I can't feel my left knuckle. I actually can't bend this third finger on the ring. Nick and I seriously love the love that you sent us over break.

Our resolution for 2020 is to boost snacks. So tell your friends as you're starting the new year. It's a new year, new decade. Share snacks, spread the snacks. We'll snack with you guys for the rest of you. 20. 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 Robin Hood 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.

Robahood Financial, LLC, member FINRA, SIPC. For our first story of the decade, one medical just filed to IPO. This could become the only beloved brand in healthcare. Snackers, can we talk about who is doing the ticker symbols for these future IPO and companies these days? We're talking about the four-letter symbol that every publicly traded stock has. For one medical, it is O-N-E-M, like one-m. Incredible missed opportunity.

We thought of dozens of alternatives such as C-O-O-N-E-M. O-F-F, cough, S-N-Z-Z-Z-S-E-S-I-K, sick. Then I realize those are all negative health things. True. Jack can actually spend an unhealthy amount of time on this, because we also came up with H-L-T-H-M-E-D-S-P-I-L pill. W-E-L-L-L. That should be the winner.

W-E-L-L-L-W. That is a gold ticker symbol. Now, actually, Jack and I also spent an unhealthy amount of time going through this S-1, the critical filing paperwork for an IPO. One medical points out, right away that there's a huge problem in health care that it aims to fix. 81% of consumers are dissatisfied with their health care experience. 81%.

Who are the other 19%? They just love stethoscopes? They love that sensation of a chilly stethoscope on their chest. Please prick me one more time, doctor. It's a borderline fetish situation. Now, employers aren't happy with America's health care system either because it's really expensive to offer their employees' benefits. So here's the thing about One Medical.

They're going for the elusive win, win, win. Yes. People hate going to the doctor in America so they don't go to the doctor in America, which increases the cost to everyone when you're calm and cold becomes pneumonia because you didn't go to the doctor. Jack escalated that super, super quickly. By the way, this is why I Purell Jack twice a day. I got to make sure this guy's healthy on the pod. So One Medical's goal is to get people to hate health care less so they use it more.

more and everyone wins. Right, everyone's winning, except for the ambulances. Ambulances kind of lose in this situation. Now, they have a membership model for $199 a year. You get access to all the one medical locations across the country. But this is non-urgent care. So let's say you've got a situation that's lasting longer than four hours. You should not be going to one medical.

No, you go to the emergency room for that. This is a place with primary care doctors to give you the annual check-in, to refer you to a specialist, to do whatever you got to do, like once a year. And basically it's like a franchise model. So these one medical locations, they're getting to use the one medical brand, but they're kind of operating independent. And they're hiring doctors. So if you're a doctor, you can either sign up and become an employee at One Medical, or you can

have your own private practice that's like really hard to find online. Snackers, full disclosure here, I've been to a One Medical. Jack, do you remember my back situation thing? Yes, I saw your back situation thing. There was a thing on my back, so I went to a One Medical. Let's just say that was a new era of nix of my relationship when I got involved. When I walked into the one medical location, this thing feels like it was designed by a millennial Frank Lloyd Wright. Yes, I checked out the S-1 document.

They have a bunch of pictures to help investors understand the experience. And the best I could think of, it's like a West Elm furniture showroom. There is plush furniture all over the waiting room. There are succulents everywhere to make you feel comfortable. Breathe in the air. The doctors aren't wearing white coats and like goggles. They're dressed in like chinos. They look casual and fun.

You're walking like, are you a J-Crew model or a general practitioner? You can't tell the difference. Now, they claim that they save money through technology. All of your health information is in the app so that you don't have to fill out the same paperwork every time you visit the doctor. And instead of going to an actual appointment, you can even do like a FaceTime with the doctor instead. They have 77 physical locations so far in nine cities in America, and they boast 340. 36,000 members. But it sounds like everything is going too good to be true for One Medical. It kind of is because the growth of this company, it's not like a tech company. Yeah, we were impressed by a lot of things about One Medical except this revenue growth, which was only 20% in 2018 and 29% in 2019.

So, Jack, what's the takeaway for our buddies over at One Medical? One Medical is creating a brand in an industry that doesn't have brands. Snackers, you know that on snacks. We don't end up talking. that much about the healthcare industry because they're like hardly any relevant brands. The only one we could think of is like Kaiser Permanente, which sounds like some Spanish warlord. A war criminal. Nick and I noticed in healthcare, you tend to just have one choice. It is an industry full of various types of monopolies. You've got one hospital in your area. There's one drug you need for that one illness. And you've got one doctor who's willing to see you at 2 p.m. on Tuesday.

So brands don't really matter because customers have no choice. But what One Medical is doing is creating a brand you would recognize so that you understand what you're getting and that it's different than other doctors. There's evidence this is working. One Medical's NPS, its net promoter score, which is a rating of whether you would recommend one medical to someone else, is a 90. That is phenomenally healthy. For our second story, Snapchat didn't get any gifts for Christmas, so it bought itself AI Factory for $166 million. Quite an acquisition, but first, Snapchat. If you're self-conscious about working for a tech product that is very addicting, it happens.

You should pivot and say you're a mission-oriented company. You're democratizing access to augmented reality. Snapchat employees, we know you're listening. Run with that for 2020. That's a big, big win. Here's the update. In December, Snapchat unveiled its cameos feature, which lets you drop your face into a video. Because you know when you're watching a cat video and you're like, you know, this cat video is charming, but it'd be a lot better if my face was on

a cat. Or do you remember that really hilarious dancing hot dog that danced to our Rihanna's beats like a couple years ago? You can replace the hot dog face with your face and it's really hysterical. Now this Snapchat feature, Jack and I were playing around with this thing again for an unhealthy amount of time. And it's not exactly like a deep fake, you know, the kind of thing that could change economies and ruin elections. It's kind of more like jib jab. Yeah. Nick and I had an invitation to a holiday party in like 2013 where we used jib jab. Great time. You just superimpose your face instead of the face in a video. This is a shallow fake at best. It's like very amateur looking, but still delightful. Now, the company behind this feature and that was just acquired is the uncreatively

named AI Factory. Yes, AI Factory, based in Ukraine, it does have an office in San Francisco and it claims to be based in San Francisco, but like 90% of the employees are in Ukraine. Right. This is actually the best marketing Ukraine's gotten in about six months. The leader of the company is called Victor Shabarov, and he sold his previous company as well, which is called Luxury, also to Snapchat in 2015. Do you remember Snackis, do you remember, do you remember that selfie lens, the classic throwback Snapchat one with like the rainbow in the mouth? Yeah, the rainbow barfing.

I think a bunch of people wore that for Halloween that year. Right. It was like, it never gets old. It's like you're barfing the rainbow. That was Victor. That was Victor's company. And also the face aging lens that was a big hit last year and like, caused. a lot of Snapchat's growth. That was also luxury, which belongs to Snapchat now.

It was like the opposite of Starburst. The rainbow just comes out of your mouth. Now, what Jack and I found so fascinating about this acquisition is that it hits on two of the three pillars of tech. First, engagement. 70% of Snapchat users use these lenses daily. That's really strong. Second is monetization, because these lenses end up getting sponsored by like McDonald's, which wants you to show fries coming out of your nose. And that's how Snapchat can make money. The third growth, not sure this is driving growth, but two out of three. is pretty solid. So, Jack, what's the takeaway for our buddies over at Snapchat, the democratizer of artificial reality? Snapchat is the leader in augmented reality, period. Everybody in tech thinks

augmented reality is the next big thing, that you're going to be like, hey, I'm tick of tired of pulling my phone out of my pocket. I just want the computer on my face already. Augmented reality is wearing a computer on your face. Now, nobody has a viable product for that yet, except for Snap and Instagram, which rips off Snapchat every move it makes. Spectre. Electicles are a real thing and they're fantastic. Snapchat filters is also a real thing. They take reality, whatever picture you're taking with your camera, and they augment it with these hilarious filters.

Now, Facebook's chief scientist thinks that mass adoption of augmented reality glasses isn't going to happen until basically the next decade. But Snapchat is kind of doing it right now. For our third and final story, Jack and I noticed that Apple's stock is at a record high over the break and its home kit is going to be the next big thing. You actually probably know HomeKit. It's the orange app that looks like a house on your iPhone.

It's pre-downloaded on everybody's iPhones. Everyone has that, like, one folder of random default Apple stuff that they call the random default Apple Apps folder. I checked my iPhone before this pod. I just call that folder. Folder, which means I never even named it. Everyone has that one friend who has, like, a folder on the front page that says, Miscellaneous, and it's got like a bunch of random Apple stuff. HomeKit is the connected home app for Apple users.

It's like Nest for Google, but for Apple. So if you've got like your iPhone, your Apple Watch, your Apple HomePod, you can connect and interact with all this stuff through this Apple HomeKit app. And by all of this stuff, I think Nick's referring to the smart lights, the smart thermostat, the smart door locks, the smart garage door. Basically, Apple's HomeKit app could probably take the... the job of Kevin McAllister and Home Alone. Honestly, if this product existed in 1990, the whole plot of Home Alone would be destroyed. Yeah, Kevin could have just gone off to Paris, had fun with

his family, and then messed with the criminals remotely using one-up. Or he could have stayed home and been safe and sound because they could have locked the doors. Now, Snackers, we know what you're thinking right now. This Home Kid thing sounds pretty cool. How come we've never mentioned it even though it's been around since 2014? Well, the reason is clear. Las Vegas. Yes. What happens in Vegas. Apparently Apple cares about right now. Now, there is a consumer electronic show. It's abbreviated CES. It starts tomorrow in Las Vegas. Now, typically Apple's like a little too good for this consumer electronics show and like doesn't show up, even though it's been going on for like 20 years. It hasn't been there in 20 years. And honestly, it is too good for this. They don't want to hang out

with a bunch of GoPro sales reps. Apple employees like, hey, we're in Cupertino designing the next future of the world eating a vegan lunch. But this year, it is showing up at the Consumer Electronics Show to show off its connected devices and how everything can be synchronized through HomeKit. Not just Apple things. What they're thinking is HomeKit could start synchronizing with non-Apple products, and that's a key development. You've heard lots of commercials saying this microwave is Alexa compatible. This dishwasher is Alexa compatible. Get ready for series slash home kit compatibility for window blinds, air conditioners, and everything else. Basically never have to touch anything again except for your phone. So Jack, what's the takeaway for

our buddies over at Apple? Can we talk about Apple's record stock price? It's over $300 a share. It's the best stock performer in the Dow for 2019, and it doubled in price while we weren't even paying attention. Here's the funny thing. Both revenues and profits dropped for Apple in 2019 compared to the previous year. But for 2020, it's got the iPhone 12 coming out, which could be huge because this thing is 5G compatible, which just sounds cool. We predict it's probably going to be 5G compatible. Everyone's going to insist on upgrading their phone for holiday 2020. And if you're not interested in the iPhone, Apple's saying, hey, why don't you check out our services? Because for Apple TV Plus, they just hired the HBO guy who basically made Game of Thrones a thing. And now HomeKit

could become another way that Apple makes money because you love your. Apple products. Jack, can you whip up the takeaways for us over there? One medical stock isn't available yet, but when it IPOs later this year, it will be. They're creating a brand in an industry that is sick of brands. Snapchat has acquired another company founded by Victor Shabanov AI Factor. Snapchat is the leader in augmented reality, period. They're democratizing access to it. Apple is about to give HomeKit, Golden Boy Marketing Status Treatment. HomeKit's ditching home pot so it can go sit down and hang out with iPhone. phone over at the lunch table now. Snackers, time for a first snack fact of the decade, which is an honor

we are bestowing upon Jesse Nebres of Los Angeles, California. Now, Nick, what is the other name for Converse All-Star Snickers? I think it's like Chuckie. Chuck T. It's the Chuck Taylor. And guess what? Those shoes have been just about the same price since they were unveiled in the mid-1920s when adjusted for inflation. They were a $2.00. is back in the 1920s. Today, they're going to run you a cool $56 bucks if you want to pair. Now, I didn't fully trust Jesse on this one, so I fact-checked him. We love you, Jesse. It's not you. It's not personal. It's not a thing. I went to one of those online inflation calculators. Fact-checked us. It's pretty much true.

It's been just about the same price when adjusted for inflation since the 1920s. Even Stranger, that's the case despite the fact that Converse is owned by Nike. Jesse, thank you for that great snack fact. Snackers. You all looked fantastic to start off the new year. We couldn't be more impressed. Thank you for following us on Spotify, subscribing on Apple, and telling your buddies about the best one yet. Jack and I cannot wait to do this again tomorrow, Jack.

Same sweater. Same sweater. Can't wait. 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.