The Best One Yet - “The 1st pureplay Super Bowl stock” — Apple’s iCar. Wingstop’s stock pop. End of the S.U.M.O.

Episode Date: February 5, 2021

Apple and Kia just took their biggest steps yet to make iCar a thing: It’s not a First Mover, it’s a Second Shaker. Wingstop’s stock popped because chicken wing prices are living their best lives for the Super Bowl. And a subtle change may mean you don’t have to be knighted to invest in big pre-IPO startups (no more SUMO’ing - straight up missing out). $WING $AAPLSend 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/KhUAo31xmkSdeynD9Got a SnackFact? Tweet it @RobinhoodSnacks @JackKramer @NickOfNewYorkLearn 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 Friday, February 5th. I'm trying to decide between TGIF and TBOI. Let's go with TBOI. The best one yet. Let's go with TBOYLY.

Let's do that one. For our first story, Apple is reportedly paying Kia $3.6 billion to get to work on the Icar. Damn, are we going to need a new charging dongle? What's going on over here? This thing doesn't take regular unleaded. It takes a USB3 lightning plug. Lightning. Second story, Jack, what do we got?

Chicken Wing prices. hidden all-time high. And so did Wing Stop. Jack, we got ourselves the first pure play Super Bowl stock, finally. For our third and final story, if you want to invest in a unicorn before an IPOs, you have to be knighted. Yes, you do. And there is a new SEC rule that we noticed that may be subtly changing that. But before we hit those three stories, it is Super Bowl weekend. Yes, yes, it is. Tom Brady. Do less. Do less, Tom Brady. Yeah. Eat a chicken oil. You're not going to kill you, man. Come on. Now, technically, technically this is Super Bowl 55, but Jack and I jumped in snack style. It's actually a game of a lot of first. A whole lot of first. It's the first one with a woman referee.

Congratulations, Sarah Thomas. Can't wait for it. It's the first one where the Super Bowl host is also playing in the game. Yeah, Jack, technically the Buccaneers, they are basically working from home for the Super Bowl. I heard they're going to play in sweatpants and like sandals. Good for Tampa Bay. It's also the first one not to sell out since Super Bowl won in 19. Bad for Tampa Bay. It's also the first Super Bowl without a Budweiser ad. Jack, the Clyde sales quarantining in their parents bar in upstate, no judgments. Aren't we all, Nick? It's the first Super Bowl not to accept cash at concessions. For the lucky fan socially distanced in the stadium, it is a full-on no cash zone. Never happened. Yeah, shone out cash for a 12-out soda. That's a super

spreader risk. Yeah, Jack, also the first Super Bowl to see a drop in gambling. That's what's expected. Uncle Craig told me that the Super Bowl squares, it's not as much fun unlike Google Meets. And finally, the first Super Bowl without a smug text from our friend from Boston, Dahlene. Dahlene! Brady needs seven pumps! 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. It's snacks about to hear rain 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.

search report or investment advice. Not an offer or sale about security. Snacks is digestible. Business news for you. Robberhood Financial, LLC, member Fenra slash SIPC. For our first story, Apple has not said much on the record about the Apple car. But Nick, there's a critical mass of PFWTMs that we cannot ignore anymore. No, we can't.

Now, this is going to feel like a humble brag. We did predict in 2019 that Apple would acquire Tesla, but it's not. a humble brag because that didn't happen. No, we were wrong. Interestingly, though, there is something more to that story. We were on to something back in 2019 because Bloomberg, Mac rumors, and finally CNBC are all reporting that the Apple car is coming. Yeah, the Apple car. Now, Apple is very good at keeping secrets. Like, if you work at Apple, I don't even know if you can tell people you work at Apple. Everyone is on the edge of their seat in that one more thing moment at the end of a product event because they're so good at keeping like amazing product secrets. So even though Apple

hasn't confirmed this story technically. Jack and I thought we were ready to tell you it based on these reports we've seen. Now, Nick, let me back up five years. The information reports that Apple started working on a car way back in 2015, eventually hiring 1,500 people. That's like a lot, Jack. 1500, I feel like is a lot. After a billion dollars, they poured into that, and they like ambitiously named it Project Titan, everyone quit. They were gone. But Titans never die, according to Greek mythology, so they're starting again, but they're not making the car themselves this time. That's the key here. Now, according to the reports that we were just seeing yesterday, Apple is close to finalizing a deal with carmaker Kia Hyundai, which makes sense, because Apple

lets another manufacturer, Foxcon, make the iPhone over in Taiwan. So it's letting a South Korean car giant produce their future Icar. Not in South Korea, though. This thing is going to be designed in Cooper Tino, California, produced at Kia's plant in Georgia, USA. Now, again, a little asterisk here. Apple has not confirmed any of this, but Wall Street doesn't care. Yeah, guess it doesn't care? Wall Street. No. Even though Snackers, the first Apple car isn't expected until 2025, according to CNBC, the reports have moved stock prices. Yeah, Apple stock was up 2% yesterday. Kia stock is up 54% in the past month. And Jack, what's the takeaway for our buddies over at Apple? Apple isn't a first mover. It's a second shaker.

Snackers, this Apple car, it's expected to be electric and fully autonomous. You know who's probably going to be Apple to an electric and fully autonomous car? I know what you're thinking. A bunch of carmakers snack. Yeah, I'm pretty sure that already exists. Now, interestingly, though, Jack and I noticed that's pretty consistent with Apple's entire history. Remember, it was way back in 1997 that the first MP3 player was made, and four years later, Apple came to the game with the iPod. Yeah, you had BlackBerry and smartphones before the iPhone came out. You had Fitbit in smart watches before Apple Watch. And now you have Tesla way before the Apple car. Even though Apple likely won't be first, its autonomous electric car could be the best. In speed versus quality, Apple does quality. For our second story, wing stop stop pop,

wingstock stop-pot, wing stop-pot, winged. The chicken wing chain just hit an all-time high right before the Super Bowl. Okay, wild number here, Snaggers. We heard that there is a record-expected 1.4 billion chicken wings that are going to get consumed this Super Bowl weekend. That's four and a half wings per American. We crunch the numbers. Which among the Kramer brothers is really nothing at all. I've seen the Kramer brothers. I can validate this, Jack. I can put the wing down and back away slowly. Tucker. Now, funny thing, chicken wings have have become the ultimate pandemic food winner because of delivery. One undisputed truth, chicken wings don't get soggy.

It's one of the rare humidity-resistant foods of our age. Yeah, they're perfect for delivery. They show up in a creaky styrofoam box just as the chef intended. As a result, wing prices have soared since March when the pandemic started to an all-time high of $2.70 per pound. So you may actually notice restaurants pushing you toward chicken thighs because that's cheaper for them. They're trying to make some profits, I can tell you, don't accept the drumsticks.

Don't do that. Don't do that. But Wingstop, the publicly traded chicken wing company is the only pure play chicken wing stock we could find. And that pure play chicken wing stock is up three times higher since March. And it's up 17% in this young 2021. Two sides of this company. First, on the revenue side, it's a one and only company. Does only one thing? Does chicken wings been doing them since 1994? Great year.

Actually, I've been there. They do soda too. It's just wings, though. They have sides of fries. It's pretty much just chicken wings. Nick, they do boneless chicken wings, which is a kind of chicken. On the cost side, being a one-in-only company helps too, because their entire kitchen has like five barely perishable ingredients. Add all that up, and the result is Wingstop opened a whopping, get this, 140 locations in the last year,

and they're on pace to add three stores every week. Wingstop won't stop. By the way, the competition knows about this wing secret too. Chili's and Applebee's are launching pure play chicken wing locations. Yeah, true story. So Jack, what's the takeaway for our buddies over at the Wingstop stock pop? Wingsop is early in its life cycle. So let's compare it to someone who's later. Snackers, you can reveal an opportunity in a young company by benchmarking it to an older one. For food chains, we can use the menus to see where Wingstop is going in its life cycle. All right, case and point here. Chipole. began in 1993 with just four menu items, only started adding those new menu items in the last five

years. Since then, the stock of Chipotle is triple. Domino's pizza began 1961 with just pizza, only added salads and like chocolate lava cake in the last 10 years. Apparently, lava cakes lead to a 3,000% stock jump. Now, wing stop, on the other hand, unlike those chains, it still only does one product. So there's a big risk here that wing delivery trends just end. Or Wingstop could mature through its life cycle, expand the menu like those others, and unlock new value. For our third and final and last of the week's story on the financial system, only financial nights can invest in pre-IPO companies. But a subtle 2020 rule change could mean that you could get knighted. Snackers, you know what we're thinking here. We're talking sumo stocks, S-U-M-O.

If a stock is private, retail investors are straight up missing out. Now, for example, we were sumo on Airbnb and Uber stocks from their foundings up until their IPOs. Over the 10 years before those sumo stocks went public, only a few lucky investors got access to their soaring private stock. Yeah, and over that period of time, both Airbnb and Uber grew their companies from worth nothing to over $50 billion each. But only 25% of Uber and Airbnb stock price growth happened after the IPO when we could all get access to it. Right. So what we're saying here is so public investors like you, Jack, me, all the snackers out there, only got 25% of the Uber Airbnb story. Let's do some math. That means three quarters of the growth of Uber and Airbnb stock

flowed to a small group of sumo investors in the decades before the IPO. Now, we know what you're thinking now. Who were these investors? One is the founders and the early employees who took some risk and hoped that the company would get to an IPO. And then third, you get the accrued. And then third, you get the Credited investors, the Lannisters of Finance. We're focused on this story with accredited investors, a special class of investor who's basically been knighted by the SEC. Yeah, accredited investors, they can write checks to private companies before the IPO, all the way up to the IPO.

Leonardo DiCaprio, Gwyneth Paltrow, both accredited investors, both invested early before the IPO of Uber. Venture Capital, a type of accredited investor. Now we know what you're also thinking. How do you become a knighted, accredited investor? Jack, I love where you're going. Here's how it happens. It's simple.

You ready? You're going to want to get a pen and paper. You got to be rich. You basically have to own a castle. You need a castle. Minimum income, $200,000 a year or $1 million in net worth, not including your home. So if you're making $50,000 a year and you're renting, you are straight up missing out on investing pre-IPO like the Lannisters.

Now, there's a reason for this rich rule. It's supposed to protect us regular investors. Right. I think the size of your bank account reflects your financial savviness and your understanding of risk in financial markets. Accredited investor rules kind of contribute to that narrative that the rich get richer. Right. But there's some news on those accredited investor rules. So Jack, what's the takeaway for our buddies who want to be in credited investors? A driver's license for startup investing is coming. All right, Snackers, sumo stocks, they may finally be ending thanks to a

subtle change. Back in August, the SEC, which is basically like the police of Wall Street, they started letting people with a normal bank account size become accredited investors. The SEC admitted this whole system was unfair, unequal, unjustified. Their words. So now the SEC is going to not ask as much, are you rich? Instead, they're going to ask, do you understand financial markets? And the SEC will let you prove you understand the risks by passing a test. Jack, specifically the Series 7. although I feel like this could be a physical test that they require. The Series 7 is like a driver's test, but for the stock market.

Now, right now, you actually have to be employed by a financial services company who sponsors you for the Series 7. So not everyone can take this test, unfortunately. But the SEC said they'll be flexible in the future. Maybe they'll let you pass another test to become an accredited investor. Maybe you could just have, like, a bachelor's degree in finance to qualify. Now, this new accredited investor rule, it won't mean you can invest in like the next Airbnb with one tap of a phone.

Right, because private companies still do fundraisers by invite only. So you still may miss out on the next Airbnb, but you won't be straight up missing out. Exactly. We won't be sumoing. With this expansion to accredited investors, more people will be legally eligible to get invited to one of those fundraisers. At least some people could get a driver's license to startup investing

without that rich requirement. Jack, before you make some Italian gazpacho for the weekend, can you whip up the takeaways for us over? there. It's a Spanish soup. For our first story, Apple is reportedly looking at Kia and Hyundai to make the Apple car. Apple's not a first mover. It's a second shaker.

Wingstops menu just has wings right now. And fries and soda. Yeah, look at the life cycle, then compare it's at an earlier stage. For our third and final story, accredited investor. That is the title you need to invest in a company pre-IPO. But the SEC, it's starting to loosen

up who can get knighted. Now, time for our snack fact of the day, this one sent in by Cade Perrient in lovely Carrollton, Georgia. Cade, the floor is yours. Everybody's heard of Rosa Parks. The African-American woman from Montgomery, Alabama who wouldn't give her bus seat up, also the title of an epic outcast song. But have you heard of Claudette Colvin?

She's another African-American Montgomery woman who nine months earlier wouldn't give her seat up on the bus. She is one of the plaintiffs in the lawsuit that led to the desegregation. of the Montgomery bus system. I'm sorry, Ms. Parks. That is for real. First of all, Cade, voice of an angel. I wish you would narrate my life. Second of all, we'll remember Claudette Colvin forever.

Forever, ever, forever, ever. Snackers, you're going to have a fantastic weekend. Jack and I are rooting for you. If you got buddies who should be snacking but aren't, ask them H-Y-H-Y-S-D. And then through the mask, explain, Have you had your snacks daily? See you Monday.

If you know, you know. And before we go, happy birthday to Chan in Farmboro Heights, Australia. And Sasha Gang in South Korea. And Leah just got a new job in Los Angeles. Also, she named her fish Nick and Jack. Okay, okay. And happy birthday, Richard Florente, the third in Vallejo, California. Happy birthday, Malik Khan in San Diego.

And Debbie Newman in Corpus Christi. And Mia Benicaj just turned one month old in Brooklyn, New York. And Emery Santurk. Happy birthday in Crystal Lake, Illinois. And Alejandro Garcese in Weehawk in New Jersey. Congrats on Jake Nadler, new job, Iowa City. Congrats Alberto Reyes, also a new job in sales in Georgia. And Akshae Anand, his company's turning two years old.

And congratulations to Casey Millsaps, who just became an airplane pilot. And Naron and Aparna just had their third year anniversary in the lovely Seattle. Congratulations to Laura Lulu Heibnstrait, who just bought her first home in Nashville, Tennessee. Grant Tinker, getting that MBA just got into NYU. Stern. Now, this last couple is having the T-Boy of T-Boy weekends. Yet Tim Lulo and Zanato, a couple with the same birthday weekend in where else, Jack, but Chicago. Chicago does logistics. This is Jack, Nick on stock of Apple and Chipotle. 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. 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.