The Best One Yet - “The Barking Bundle” — Chewy’s tele-vets. Amazon wins Techageddon. The final pre-election GDP report.

Episode Date: October 30, 2020

Did ya feel that? Amazon, Apple, Google, and Facebook just announced earnings at the same exact time on the same exact day. Amazon was the Techageddon winner. Chewy is jumping into pet telehealth, so we’ve got a bold idea for them: “The Barking Bundle.” And we just got the final GDP report before the election, so we’re sprinkling on some context through Ford, GM, and Fiat-Chrysler’s earnings report.$AAPL $AMZN $GOOG $FB $CHWY $F $VWAGY $FCAUGot 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. It is Friday, October 30th. Nick, stocks fell to start yesterday, and then they recovered for no apparent reason. The old Dennis Rodman rebound, Jack. Did we make this the best one yet? This one feels good.

It is. Yesterday was Tech Again. All four of the big tech giants announced their earnings at the same exact moment. Honestly, it was like the Y2K of 2020, but Amazon stood out. Amazon's our first story. For our second story, Chewy is like. launching a pet televeterinarian service. Real thing, chewy, it just won't sit.

It won't stay. Jack, I don't know what to do with this thing. Who's your couple? For our third and final story, we just got the final GDP report, which is the economy's report card before the election. So Jack and I are sprinkling on some context through Ford and Volkswagen's lovely earnings reports.

That is a fantastic lineup. But before we hit those stories, Nick, we're about to encounter a rare, rare event. Jack, I know what you're talking about. the highly coveted Saturday Halloween. Saturday Halloween, Mom. No curfew?

No curfew? I'm not coming up until, I don't know, 10 p.m. I eat like 11 Snickers bars because I'm sleeping in until 4 tomorrow. You'll need a chaperone. You'll need a chaperone. And it's an opportune year

because 2020 business news gives us some rich options for snacks costumes. Jack, it's so true, except if you're Zoom trick-or-treating, which adds a higher bar for attention to detail. Yeah, the centaur costume

is not going to get all the credit. on Zoom. You got a waste-up situation when you got over there. Now, Snackers, because Jack and I love and care about you, we decided to whip up a nice takeaway mix of potential costume ideas for this weekend. The first costume you could be is Jack Dorsey's beard. Yeah, throwback to Jack Dorsey's 2012 beard. It's actually the same strands of hair. Another idea, if you haven't decided, just dress up as a bike with an arrival TBD sign. Yeah, you're a delayed pelton owner. People will get it. Maybe you do the same costume, show up at their house in March. Yeah, just show up. in March. That works too. Or you could be the ghost of Adam Newman in the WeWorks of Past. The wealthiest ghost

we've ever seen, he floats between the kombucha bar and the cold brew tap. It also happens to be a good year to revive one of our favorite throwbacks from 2019. Jack, the honors. Last year around Halloween, every company I peeing, the stock was plummeted. Yeah. So we had the injured unicorn. No profits, no problem situation. But this year, you might as well just throw a mysterious sheet over your head and people will be like, what are you a ghost? No, you'd be like, no, I'm a spack. If you're looking for a three-person costume, just go as mattress, mattress, mattress. If you know, you know. If you're looking for a six buddy costume, go as six pink cars.

Tell people your Uber, which is equal to six lifts. If you got six friends dressed as pink cars, get seven friends and dress up as pink Tesla. Tell people you zucked those other pink cars. And of course, a lot of pressure for couples to like, you know, come up with a couple costume. Couples got to plan like six months in advance for Halloween. You've got to have harmony in that couple combo costume situation. We'll help you out. One goes as Facebook, the other goes as Instagram, with a rope holding the two together.

Then mid-party, you cut the rope, you split up, two different companies. It's coming. We all know it's coming. Elizabeth Warren would love the outcome of that costume. And then, of course, there is always the option to go with Dahlene, wearing a styrofoam cup, three pumps a hazelnut over here in Wallfam. But don't talk to anyone, because, you know, you might be going private, as you heard this week. Snackers, stay safe, stay snacky, this holler.

Saturday. It's the only day of the year wearing a mask is completely normal. Trick or treat or Puroreel, tweet us at Robin Hood Snacks if we missed any good stuff. Let's hit our three stars. You're tuned in the snacks daily. We spoke to the lawyers and we got to get something legal out the way. 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. You know, we're not recommending any securities. It's not a research report or investment advice. Not an offer or sale of us. security. Right.

Snacks is digestible. Business news for you. Robberhood Financial, LLC, member FINRA slash SIPC. For our first story, Amazon's profit just tripled in its record breaking third quarter. We jumped in snack style and learned a lot about American shopping habits and Amazon's deep guilt. Honestly, Snackers, this is a long earning support, but Jack and I noticed one thing right off the bat. Amazon's earnings read like they're repenting. Shame.

Shame. This report is 16 pages long, and honestly, Cercy and Bezos have the same haircut in season six. Just want to point that out. Shame. They opened with 532 words about their hiring of new workers. Oh yeah, we upped our minimum wage to 15 bucks, and now Target and Best Buy, they're copying us.

240,000 people became Amazonians in North American alone. Oh, by the way, they promoted 35,000 people, donated a million masks last quarter. Congratulations. We're investing in electric fans, too, and now a bunch of companies are doing that, too. They're copying us. The reason Amazon is so concerned with displaying their positive impact on society, it's gigantic profits that happened during a pandemic. Get these numbers. Amazon turned a record $96 billion in revenue, aka like 10 lifts, into $6.2 billion in profits in three months. comparing Amazon's numbers to lifts actually don't do it justice. So we're going to look at what Amazon

does every single hour. Honestly, snacks. This podcast is 15 minutes long. In just the last 60 minutes, Amazon has delivered one million packages and paid one million employees. And it has three million dollars left over as profit in just the last hour. Jack, and he can pass! That's all despite tripling profits and beating analyst expectations, Amazon stock still fell yesterday during Techageddon. The reason? The holidays. Yeah, the holidays. You know, Amazon thinks it's going to make between a billion and four and a half billion in profits. That would be less than they made in this last quarter, which doesn't make sense. No, it would be weird since, you know, the holidays are when most people are buying stuff on Amazon.

But Jeff says you've already done a lot of holiday shopping, and trust me, He knows. He knows. And it could make the Christmas bump they usually get less bumpy. Oh, by the way, Snackers, Amazon's been bragging about it's hiring. Jack and I noticed one number that kind of awkwardly stood out. Yeah, they received 384,000 job applications in North America in one week. Yeah, kind of an unfortunate stat. Shows you how desperate our unemployed situation is. So, Jack, what's the takeaway for our buddies over at Amazon? 2021. Next year is the year Amazon sells its profit puppy, AWS.

Snackers, when you think Amazon, are you thinking of a farm of computer servers that keep the apps on your phone magically working at a distance? Guess what? You should. Yeah, you should. Amazon Web Services, its cloud computing division

is the unquestioned profit puppy of the land of Bezos. 57% of the profit last quarter came from AWS as the world moved online during the pandemic. And as the world moved online, it paid Amazon to make their websites and apps actually work.

AWS would be one of the most profitable companies in the world separate from Amazon, it would still be. So as you're looking at Congress scrutinize Amazon over this past week, you're going to notice they're going to start asking this particular question. Why does the biggest online shopping platform in the world by far also need the biggest cloud computing company in the world by far? The answer? It doesn't. Even if Congress doesn't force Amazon to split off from AWS, the company might want to. Yeah, here's the kicker. Amazon separated from AWS as two different companies could together be worth more than Amazon staying with AWS. We think next year is when Amazon sells its profit puppy. Four second story,

chewy stock just popped 8% this week because it's jumping into televetting. But we think it can jump even further. Farther? Further? Luke, I am your further. It's your further. Now before we go further into the story snackers, full disclosure here, my mom is a huge chewy shareholder of like one or two shares of this stuff. She's like Ace Ventura, basically. And full disclosure over here, River, our dog is chewing a chipmunk chew toy. We got on Chewy right chew. Yeah, whenever the cardboard box comes, both my mom and Jack's dog, but equally excited about the prospect of what's inside of this thing. It's wild.

Chewy is like Amazon, but it's obsessed with your pets. Yeah, they're famous for their customer service immediate pickup, which Jack and I have jumped in snacks style and tested. They pick up. in five seconds. The first time we covered Chui on this pod, we did a live phone call to Chui's customer service and a human being picked up in five seconds just like they promised. Aaron, it was fantastic. Thanks for confirming what we thought. Now, the stock price of Chui is up this year. It's like doubled this year on record pet adoptions during the pandemic. Jack and I was checking this out, apparently one French bulldog in the United Kingdom got 1,000 requests for adoption within 24 hours. This is insane. Yeah. Shelters are out of dogs. And if you look at a picture of this

French Bulldog, you understand why I got a thousand requests. And Chewy is feeding into this with their thesis that how you treat your family is how you're going to treat your pet. At least it's how you should treat your pet. You should feed them, bat them, and care for them like you'd care for yourself. A lot of Chewy customers, they're doing some stuff with their pet that they're not doing with their kids, probably. What has also surged since the pandemic started along with pet adoptions is telemedicine, visiting your doctor remotely through Zoom. Your humans and your family are doing it And Chewy wants to kick that up a notch. So Chewy is ham-handedly merging.

These two trends, we're seeing pet adoption and telemedicine. Jack, I just love that visual of the ham-hands. Every time, every time I think of the ham-hands. It's not even made of pork. I don't know why they say that. So Chewy, we just noticed, is launching something called connect with a vet, socially distance online connections to a veterinarian. Nick and I were skeptical.

Yep, when we saw this headline. Because unlike humans, dogs can't describe their symptoms with words. They need a physical examination. Bark twice if it was for two hours, bark twice if it was for three hours. That's why this televeterinarian system at Chewy is for basic pet issues only. Like you cut your dog's nails too short and it started bleeding. Throw in some baking soda, throw in some cornstarch, call us in the morning kind of a thing. Or maybe your cat is now allergic to you. I don't know what to say to that one. But like most veterinarian conversations, it's probably going to end with, don't panic, your pet will actually be fine.

99% of them do. They can't diagnose or prescribe medications with this new service, but they're moving in that direction. Speaking of that direction, Chui plans to go beyond the 8am to 8 p.m. to 8 p.m. televette availability that there currently is to 24 hours. Critical. And they're going to start doing prescriptions, and you know, eventually move beyond cats and dogs to iguanas. That's critical. Now, a key feature of this, which is called Connect with a Vet at Chui. It's free if you are a member of Chui's AutoShip program. That's right, Autoship program. Sounds like a FedEx internship.

Actually, the worst name ever for Chui's loyalty subscription program. We'll get to that in a minute, Nick, the naming part. But Autoship lets you save on monthly essentials like dog food because you can set a schedule and they'll send it to you every month. And this statistic is fascinating and it led to Jacks my takeaway. Autoship orders. So the loyalty program orders for Chooey.com drive 70% of Chui's sales. Full disclosure, I'm not a member.

of auto ship for river, we buy one-offs. So, Jack, what's the takeaway for our buddies over at Chewy? To protect itself from Amazon, Chewy should launch the Barking Bundle. Yep, the Barkin Bundle. Snackers, first of all, they got a rebrand auto ship. It's a brutal name. They should go with the Barking Bundle. Second of all, Barkingbundle.com, it's available. Chewy, if you take it, just Venmo Nick and me. And we're square. Third of all, Chewy's current subscription program, it's driving consistency.

see, but Chewy needs loyalty they can build with the barking bundle. They need loyalty to prevent people from defecting to Amazon. And adding in this vet telehealth perk, that's a solid first step to building the barking bundle. We're thinking, Chewy, take it a step further. Add pet insurance to the barking bundle. Boom, launch your own pet insurance or partner with Lemonade, the insurance company that just added pet insurance. And why don't you extend to financial services partner with synchrony, a company we've covered on this pod, get a pet credit card with pet perks. Snackers, the barking bundle, that's how Chewy can beat Amazon Prime in the long term.

Who's a good boy? For our third and final story before the weekend, car companies just had their third quarter earnings that set record highs. But just like the American economy, context is key. Jack and I jumped in snack style. This was a global snack story. It kind of touched on car stocks, the U.S. economy, the whole world. We're talking everything, totally connected. So we're whipping out our spreadsheet, our election ballot, and our passport for this one. Like all good stories, this one starts with a chassis. Nearly every car company we've seen had one of their best third quarters ever.

Jack, can we talk about America? Ford, profits quintupled over at Ford's HQ in Detroit to $2.4 billion in just three months. Jack, can we pop across the pond over to Germany? Volkswagen, better known as VW here in the States, sales came back to normal, which was a big improvement. Jack, let's pop on a train. How about Italy, the U.S., Holland, France, what are we got going on there? Yeah, Fiat Chrysler is a confusing company, and now it's merging with Pugé, but they had a big profit in the third quarter compared to a loss the same quarter last year. And honestly, Snackers, Jack and I are looking at one main theme connecting all these great lands.

Unless you're in an Uber, you're probably in an SUV or a truck. Yep, that's what's driving profits. You're not playing soccer, but you could fit the whole team in the back of this thing. Also, with COVID, people are like, I don't know if I can rely on public transit or just Uber anymore. Might need my own car. And you don't just need your own car. You need more than my own car. You need space.

I need a few inches of space in this thing. But despite an incredible third quarter, car companies are actually having an awful 2020. And Snackers, that's because the second quarter was all about the economic shutdown. Detroit, Germany, and Japan's car companies, their profits at the e-break when COVID broke out this year. The third quarter that just ended the last three months, that was all about catching up on the previous quarter's lost spending. Right. Blow out third quarter results. from the car companies, they're made up for pause spending from previous quarters.

So like you didn't splurge on the Cabo of AK back in May, but you may have bought, you know, a Toyota Tundra when it came to July. The third quarter looked great. Overall, though, Volkswagen's car sales this year are down 18%. And Ford's profit is overall this year down 12%. And Fiat Chrysler has lost almost $2 billion so far this year compared to a $6 billion profit last year. So Jack, what's the takeaway for our buddies in the car industry and the global economy? Context is key as we climb out of this COVID economic hole.

It all comes down to context. Snackers, just reading all these headlines, you'd think that car companies are like leading their best lines right now. But sprinkle in some snacks context, and you see they're just trying to make up for losses from the second quarter. And we're seeing the same story with cars play out for the rest of the economy. We just saw on Thursday that the economy grew at a third. 33% annualized rate from July to September, the best ever and something that sounds like Celebrate. Yeah, it sounds like it'd be a lot of fun. Except when you hear that that comes after a 5% shrinkage of the economy in the first quarter of this year and the 32% shrinkage of

the economy in the second quarter of this year. Entering October, our economy was actually three and a half percent smaller than it was at the end of last year. And that's as big a drop as during the Great Recession of 2008 and 2009. We love seeing things getting better, but we're kidding ourselves without context. Jack, can you whip up the takeaways for us before the weekend? You just blinked? Amazon just made a few thousand dollars of profit. Best quarter ever, but next year we think they got to sell off AWS, their profit puppy.

You gotta let her go. For our second story, Chui just launched a televette service for all those new COVID parence out there. Chewy, go further. Launch the barking bundle with perks and pet insurance already take it. Osha Good car. For our third and final story, car companies had spectacular earnings last quarter. So did the U.S. economy. But context is key.

We're still trying to climb out of this year's econ hole. Now, time for our snack fact of the day. This one tweeted in by maybe the most legendary snacker in the great state of Arizona. It's a dry heat. Scott from Scottsdale. Scott from Scottsdale. This snack fact is about the early days of Amazon. Even Amazon struggled to.

Yeah, it turns out Amazon had so many emails. emails and customer service piling up, Jeff Bezos held a two-day contest to see who could resolve the most emails. Or there's the glitch that let users order a negative quantity of books on Amazon.com. I'll take negative 500 for $5,000 for me, please. F.I, Amazon, now worth 230 lifts. And Scott, it's his birthday down in Scotty. I'll celebrate dryly. Snackers, have a great weekend. Happy Halloween. Stay safe. And please send us your 2020 business-themed snacks Halloween costumes at Robin and Snacks. If you can dress his subscription, we got to see how you pulled this thing off.

Have a great weekend. We'll see you Monday. And before we go, big congrats to Mr. Conklin, the business teacher in Pennsylvania, who opens every class with a question from today's snacks pot. Mr. Conklin, you're a T-boy teacher, and we're honored for this honor. We need a snack fact from this class. Also, big happy birthday to Brittany Fox over in the Grand Cayman. And Guillermo Vasquez, Mexico City, Mexico City, Mexico.

and Jasper Chow over in Taipei, Taiwan, and Tiffie Holman in Jackson, Mississippi, and Bennett Pumpkin in L.A., love that name. And Wyatt Eskridge in Richmond, Virginia, and Lauren Hathcock in San Francisco, and Sidney in Chicago, Illinois. Do us logistics. And Raleigh Tramontina, also in Chicago,

still doing logistics. And congrats on launching a startup to Onus Canal in Cameroon. And Ryan and Larissa Hardy, big congrats on the Halloween wedding. And Chris went down on one day and proposed to Angelica in the Bronx. Congratulations. You got to have a hollow wedding next year. Francis and Johann Zaffra just had a baby and got a new house over in New Jersey. Congrats to Chira Jones and Chas Scott for getting engaged in the great state of Maryland.

An 11-year anniversary to Nicky and Vince in Mountain View, California. And happy Snacksversory. Listen to snacks for one year. Leo Koslowski, great guy Atlanta, Georgia. This is Jack. I own stock of Amazon. Nick own stock of Apple. Nick's mom owned stock of chewy.

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.