The Best One Yet - 🥳 “The Lassie of profit puppies” — Apple’s growth flip. Philip Morris’ self-loathing. Louis Vuitton’s handbag record.

Episode Date: July 28, 2021

Apple just told us that its iPhone business is literally as big as Costco. Cigarette-maker Phillip Morris just asked the UK government to ban… cigarettes. And the biggest company in Europe is now luxury icon LVMH because handbags are back, baby.$AAPL $PM $LVMUYGot 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 Wednesday, July 28. Wall Street took a breather yesterday. Stocks finally dipped a little. But they're probably going to rise tomorrow based on the insane Apple earnings we're about to talk about. Yeah, that's our first story.

But this is the best one yet. Yeah, this is a T-boy. Jack, first story? Can you tell us more? When you get older, your growth is supposed to slow down. Well, Apple is like as old as it's ever been, but it just grew faster than ever. I guess technically we're all as old as we could ever be. That was the joke, Nick.

Exactly. Right, there we go. For our second story, Philip Morris's CEO just said, in 10 years, we can completely solve the problem of smoking cigarettes. What he didn't say is he's going to replace it with the problem of vaping. For our third of final story, LVMH owns 75 brands with one thing in common. Luxury. Is it post-luxury or is it luxury, Jack? It's just luxury for LvMH.

Louis Vuitton just had such an indulgent quarter that it became Europe's most valuable company. Snackers, before we hit those. those three great stories. It's a wonderful mix today. I can't wait until we hit the stories. We hope you didn't burn your mask at that mask burning party. Pull it out of the recycling bin. Two months after ending the mask recommendation for people fully vaxed, the CDC just put some masks back on. We got a new problem in this country. Americans are done getting vaccinated. Yeah, even though 31% of adults haven't gotten vaccinated yet. We got another new problem. The Delta variant, which is mutated into a virus that is three times more transmissible than

the OG. Yeah, Jack, this is basically the Draco Malfoy to COVID's crab and goyle. It's the super shredder to COVID's shredder. It's a sad day when the whole world wants a vaccine and we've got all these extras just going to waste. It's an even Saturday that your summer soul patch has to get covered up by a mask again. It just started living, Jack. The details here are important. The CDC recommend, this is just guidance, by the way, that even fully vaccinated people wear a mask again if they're indoors and they're in a COVID hotspot. Because the vaccines, they aren't 100% effective. They're 95, 94, 72% effective, which is really effective.

Yeah, and they're even more effective when it comes to like serious cases that would send you to the hospital. Because they stop that from happening. Now, of course, unvaccinated people should mask up when indoors too. That was a given. Or of course, unvaccinated people could get the vaccine. It's like we all put our winter coats away for the winter. And then we got dumped on with a foot of snow in like late May.

Yeah, that was by Mother Nature. and it was kind of ourselves too. Snackers, there's our three stores. Let's see it. You're tuned in to snacks daily. We spoke to the lawyers and we got to get something legal out the way. It 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. Robahood Financial, LLC.

Member Fenra. for our first story. Apple, it just obliterated its own record for the largest profit ever in a Spring Quarter. Apple has somehow managed to flip the growth curve. I mean, Jack, can we talk about the spring quarter? Because like the spring quarter, people are hanging out. It's supposed to be Apple's spring break quarter. Supposed to be a long vacation. It's typically the slowest three months of sales for the year every year. Tim Cook, he's down in Cabo. He's got a sun tan. Can't blame him. But it's 2007 all over again. Jack, people are buying iPhones.

Like, it's like the new Beanie Baby. Snackers, get this. iPhone revenue last quarter jumped by 50% to $40 billion. $40 billion in iPhone sales in three months. Jack, we have got to sprinkle a little context on this puppy. This is an unprecedented profit puppy because iPhone, the one product, generates more sales than cost. Sit down, stand up and sit back down again, Jack. Forget iPad.

Apple Watch, Mac computers, and all those services. iPhone alone would be number 12 in the list of highest revenues of any company. It's like when LeBron scores more points than the entire Utah Jazz. Now, the thing that shocked us was it wasn't just iPhone upgraders. Tim Cook bragged this quarter about Android switchers. Interesting difference because typically Apple's trying to make the iPhone so unreal that you upgrade from version 11 to version 12 because it's marginally better. That A16 chip is so much better than the A15.

Oh, it comes in purple now. I may as well spend a thousand bucks. And Apple wants that because the more frequently you upgrade your iPhone, the more Apple makes profits. Now, it's one thing to upgrade someone who's a member of Club Apple. It's a lot harder to convert an Android. Yes. Remember, Snackers, 80% of the world and 50% of Americans have Android-powered phones,

Google's operating system. And Apple can't just go like door-to-door pitching you on this new iPhone like it's some kind of new religion. No. But this past quarter and yesterday, Tim Cook bragged for the first time in years about getting both switchers from Android to Apple as well as upgraders last quarter. Big deal. iPhones is basically like the lassie of profit puppies, Jack. I love lassie.

It's a golden retriever with a royal pedigree and it trained itself. So, Jack, what's the takeaway for our buddies over at Apple? Big Tech has flipped the growth curve. Snaggers, typically, as companies mature, their growth slows. It's natural. to double your sales when your sales are small in the first place than to double them when your sales are huge. Okay, so Jack, that was the norm. But yesterday, we had Apple, we had Google, we had Microsoft, do the opposite. Three of America's trillion-dollar companies just announced earnings yesterday,

and they announced the fastest growth in years. Jack Apple grew at its fastest pace since 2011. Microsoft had its best quarter since 2014. Google had its best quarter announced yesterday since 2013. And guess what? We expect similar fastest growth in years from Facebook and Amazon as they announced this week. After phenomenal growth in 2020, tech giants are somehow growing faster in 2021. For our second story, Philip Morris International is the biggest cigarette company on planet earth. And it just told the government it wants a ban on smoking. Can you repeat that for us, check. Yes. A cigarette company wants the government to ban cigarettes. All right. Philip Morris International. Such a big cigarette company, honestly, it should just

be called a cigar company. So big. It's huge. There's 130 brands in this giant corporation from Marlborough to Virginia Slint. Yeah. They separated from U.S. Altria back in 2008, basically to have less liability on all those cigarette lawsuits. Yeah. And this international only cigarette company has more freedom to aggressively market cigarettes abroad. where the U.S. has no jurisdiction. Then in 2019, they kind of switched things around. They came out with a whole new campaign. Jack, can you share the name?

Unsmoke the world. Sounds like a red hot chili pepper zone. And then last week, Philip Morris asked the government in the United Kingdom to ban the sale of cigarettes like soon. Yeah, their core product. They said, don't let us sell any more of what we sell. Now, naturally, Nick and I, I think, Philip Morris isn't the American Lung Association.

Jack, I'm checking the website here. They're not the unicef of the throat. So we think unsmoked the world is actually all about vaping. Yeah. And we jumped in snack style. We noticed that Philip Morris wants more than 50% of their revenues to be smoke-free by 2025. Smoke-free revenues is referring to Icos, which is their smoke-free tobacco product that Philip Morris owns. All right.

So, Jack, this is like vaping, but it heats actual tobacco leaves instead of some kind of silky oil that smells like mango. The silky oil, mango thing, that's vaping. Right. Which Philip Morris also just launched a vape, by the way. Yeah. So they own both Icos, which is heated tobacco, and your conventional jewel-style vaping products. But here's the thing.

E-cigarettes, vapes, heated tobacco. They all give the same addictive nicotine to satisfy existing smokers. So the pivot seems to be we're not going to make money on smoky cigarettes anymore. No, no, no, no. But we are going to make money when cigarette smokers switch to some other tobacco products. Exactly. Interestingly, Jack and I noticed they've never. made some interesting acquisitions. Yes, Philip Morris International acquired the company behind

Nicarrette gum, which helps you quit. And they acquired an inhaler company. So this is like Pepsi buying Weight Watchers. Right. Philip Morris isn't going to make money on smoking anymore, but they will make money when you try to quit smoking. And Jack, because they own an inhaler too, Philip Morris can now also make money as you suffer from smoking. So what's the takeaway for our buddies creatively over at Philip Morris? Can we not com buddies, vaping saved tobacco. Snackers, cigarette sales, they actually peaked in the United States back in 1981 before us. Yes. And there's been a 40-year decline since then. Cigarette sales today are one-third of what they were in 1981 in the U.S. Jack cigarette sales, they were

on their way out. Philip Morris, it could have been out of business. And then they were rescued by vaping in these heated tobacco products. Same nicotine, same addiction, same stunting of brain development. The long-term impact of vaping and heated tobacco on lungs is still TBD. We need time to figure that out. And the messed up thing, vaping doesn't have the baggage of cigarettes, and that's why it's growing. Vaping is cigarettes as less dirty, less smelly, but still unhealthy, reincarnation. And that could be why Phil Morris is so excited to sink at cigarettes, but embrace the vape. Vaping saved tobacco. For our third and final story, Fancy Legend, LVV. LVMH just had its best six months in the history of very expensive things, Jack.

Treat yourself tourism was dead for LVMH, and that's okay. LvimH, Louis Vuitton, Moe, Hennessy. It is an expensive smoothie of like 75 luxury brands. Cute kid. Nick, they're not brands. They're called houses. Oh, cool. You guys are right.

I'm sorry. Just be desolet. They have seven jewelry and watch houses, which are all prestige and all pricey. You line them all up. Honestly, it looks like a mall in Dubai. And this is a classic Mobo stock. You're missing out on the product because it's like a trillion dollars, but you can own the stock. Jack, records on records on records.

Sales nearly doubled for LVMH in the second quarter from last year. And there were even up 14% if you compare them to the pre-pandemic 2019. One second. I'm just looking in the fendi purse here. It looks like, oh, they also got a $6 billion profit. Yes. And LVMH has become, this is a trivia question for you. Europe's most valuable company worth $400 billion.

Also, just dropping trivia here. Another one, Jeff Bezos, Amazon, richest man on planet Earth must be nice. Number two, doesn't get as much attention here in the States. Bernard Arnaud, CEO of LVMH. Going to assume he's a snacker, I don't know. Nick, that is funny that Jeff Bezos is all about cheapness at Amazon.com. And LVMH is the opposite of cheapness. It reflects a lot of things kind of maybe in the world right now.

But Snackers, here's how LVMH's business model roles. They have a small target audience. But they got a wide range of products for that target audience. From Hennessy to handbags to hotels, LVMH does it with those 75 hazms. Oh, I love that triple H jack. Now, the highlight of the last quarter, the highlight of the last quarter, the handbags. Yeah, leather goods. Sales were up 120% from last year. Apparently, handbags are the number one post-pandemic splurage.

You're doing Dior and Fendi, and that's your plus one everywhere. And then apparently, despite the pandemic, The rich were celebrating. So champagne sales were up 57% from last year. There you go. Oh, Jack, they launched a new sparkling wine, by the way. Shandon Spritz. Spritzen.

They also bought half of Jayze's Ace of Spades' Influencer Bubly. They're taking on Avril. Can you give us another spritz, Jack? I don't want to break the speakers on our audience right now. That's true. That's true. I'll tell you, Snackers, sleuth in the earnings report is vicariously going to the con film festival. Yeah, the stock is nearly double.

than where it was before the pandemic, because the wealthy are nearly double as wealthy as they were before the pandemic. Yeah. And the wealthy need their handbags, their hotels, and their Hennessy, apparently. You got to have the Triple H. So, Jack, what's the takeaway for our buddies living it up over at LVMH? The biggest takeaway from LVMH, luxury has become local. Okay, Snackers, we found this fascinating. Before the pandemic, luxury was basically a travel industry. The whole sector depended on tourists. Half of all luxury fashion sales in Europe in 2019 were two visitors who were on vacation. Let that sink in. One out of every two handbags sold was to someone not from that country who was just popping in. But LVMH just snagged a record quarter, even though travel is not happening

this summer. LVMH, they poured money into direct sales and websites and marketing to stay relevant, even though you and Clooney weren't hanging out in the French Riviera. And they just proved that they're not dependent on tourists. Luxury can be local. Jack, can you whip up the takeaways for us over there? Apple's iPhone is the lassie of profit puppies. And the biggest companies ever have flipped the growth curve. Real thing.

Philip Morris International wants to unsmoke the world. Vaping. Kind of saved smoking. Third and final story, LVMH is a mobo stock. You're missing out, but own. And it's winning big time because luxury went local. Now, time for our snack back to the day. This is a wild one tweeted in by Nicholas Carinas, who's a long time snacker.

All right. Napoleon Complex is a thing, and it's real when it comes to NBA referees. Yeah, it may even be where you get like the most height differential. Get this. These professors studied 4,463 regular season games in the NBA from 2008 to 2012. And it turns out more personal fouls are called when relatively shorter officials are refereeing the game. So the shorter the refs, the more the fouls. The bigger the height difference.

between the refs and the players, the more the refs don't like the players. It's awkward. I wish I had written this paper in college. Snackers, you look fantastic today. Jack, life call? The Triple H. Snackers, Nick and I'll see you tomorrow. Can't wait.

And before we go, congrats to Snacker Mary Asher, her second lung transplant anniversary down in St. Louis. That's awesome. Good luck or congrats, not sure. To Ian Wolfe, who either is defending or already defended his dissertation. And Maria DeSantis, congrats on the promotion of principal down in Los Angeles.

Happy anniversary to Mike and Stephanie in Ridgewood, New Jersey. Stratton Bond got his first kid over in Iowa. So did Angel and Sam, who are celebrating their first son in New York City. And happy birthday

to Wyatt Cashman in Honolulu, Hawaii. And Matt Adams in Ontario, Canada. And Drew Mandalia in Mumbai, India. And Sam in Great Falls, Montana.

And Whitney, enjoy the 30th in Walpole Mass just outside of Boston. Happy birthday to John You in Brooklyn, New York. And Kim Yardley in Pennsylvania, also kind of outside of Boston. Anyone else celebrating something today? Make it a T-Boy.

Celebrate the wins. This is Jack. I own stock of Amazon. 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.

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