The Best One Yet - “The official (BLANK) of the NFL” — Postmates’ football deal. Martha Stewart’s CBD. Restoration Hardware’s fanci-ness.

Episode Date: September 11, 2020

Postmates knows more Americans might be watching the NFL this season than ever before, so it became the official delivery app. Martha Stewart has a cult of followers, and Canopy wants them CBD-ing. And Restoration Hardware is one of the Fantastic Fancy 4 that’s winning by helping the affluent adapt to COVID. $CGC $RH $UBERWant a shoutout on the pod? We got the form for Snackers to fill out right here: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, September 11th. Nick, you know how I feel about today's pot. Jack, we discussed a little bit earlier. I got the sense you thought this was better than yesterday. This is the best one yet. TBOI, Jack, first story. What do we got over there? Canopy. The cannabis company based in Canada likes open concept kitchens and an apple turnover and an old PAPier machet. New strategy for canopy launch a CBD line with Martha Stewart. For our second. story. Postmates is officially more excited for football than you are. We got a clear eyes, full hearts, can't lose situation when you're the official anything of the National Football League. For our third and final story, restoration hardware successfully luxurified itself in the past 12 months. It's official. Resto is joining our fantastic fancy four of the corona economy. But Snackers, before we hit those three fantastic stories. Yes. Nick and I would love to say one thing. Yeah, it is September 11th when we said at the top of the pot. And our thoughts, they're going back 19 years. Over 3,000 people died on that awful day. Jack was up in middle school in Vermont. I was up in middle school in the Bronx,

and you could painfully see the smoke actually coming through as we tried to get back into Manhattan. I was watching it on TV like most other Americans, but this is not something Nick and I ever want to forget. No, New York City was hit the hardest. And New York City is a special place for both Nick and me. We were roommates for three years on East 14th Street between six. 2nd and 3rd Avenue. It's one day that has affected all of us. Now, September 11th in the United States is not a day of celebration. Of course, like most holidays in the United States are. Yeah, but what a lot of Americans don't realize is it's technically and actually a day of service. Kind of like Martin Luther King is a day of service. It's a day for us to think of and do something for someone

outside of ourselves. So before we jump into those three wonderful stories, Jack and I want to take a moment of silence like we do every year for everyone affected by September 11th. 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. 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. Robberhood Financial, LLC, member Fenbra, slash SIPC.

For our first story, Postmates, is officially the on-demand delivery partner of the NFL now. And that's important because the NFL is the unofficial economic partner of the United States of America. All right, snack, he's going to work with us on some imagery here. Picture the NFL sitting around wondering how they're going to replace this like lost ticket revenue. Roger Goodell is standing at the whiteboard. He's in his boxers. He's not happy, but he's pretty. present. And the first person's like, well, most stadiums are going to be empty this NFL season,

which is a big bummer. He's a good point, Jerry, good point. Let's keep going. What else we got? But people will still be watching on TV. In fact, probably more people than ever will be watching on TV. Julie, this is good. Continue, I'm jotting this down. How about we have more commercials? We kind of have a lot of commercials already. Any other ideas out there? How about we sell another official blank of the NFL title? Loretta, I like where you're going. I know we've already sold official seats, official straws, official pixels, official burgers, official car, official pickup truck of the NFL. We have, we have, we have.

But have we thought about food delivery apps. Loretta, you're getting a promotion. In case you missed it, Snackers, the NFL kicked off last night, aka the least socially distant of all the sports. I'm not sorry, touching on your buddy for taking a chicken wing. This story is about postmates, which just became the official delivery app of the National Football League. So Postmates is whipping out its wall.

It's paying millions for this honor. And here's what Postmates is getting. Well, they get to sponsor the Super Bowl, which is a pretty big deal. Not too shabby. So you're getting ready for some like Postmates me, that burrito bowl commercials coming into February. Yeah.

Postmates is going to become a verb after the Super Bowl, Garin freaking tea. They're going to try to make this a verb. They're dealing with the old double syllable challenge, though. They also get the right to say the official delivery app of the NFL on all of of Postmates's marketing. Which leads us to the big question here, where exactly did Postmates get all these millions of dollars for sponsorships?

Glad you asked. The answer is Uber, which acquired Postmates for $2.6 billion in July. And that was after Uber tried to acquire Grubhub, that deal fell apart, so they settled for smaller postmates. Now, Uber shareholders are excited about potential new business driven from these NFL fans sitting on their couches on Sundays. And that's because the old delivery app ecosystem is actually a mafia-style turf war where Don Doordash controls the five families. The NFL could be the perfect way for Uber and Postmates to catch up to Don Doordash, who's leading the five families. Don Doordash is still leading over in the Bronx with 46% of the delivery market. Postmates is fourth out of the big four. So Uber stock rose 3% because yesterday was both the kickoff for the NFL and the day Postmates became the official delivery app of the NFL.

So, Jack, what's the takeaway for our buddies over Uber and Postmates? The NFL is an engine of economic activity. Both claim your Snackers, the NFL is actually the biggest source of entertainment in the United States. You want some proof? 43 of the top 50 most watched TV broadcast last year were football games. And that's stats courtesy of our buddy Kendall Baker's Sports newsletter. The NFL drives restaurant sales, alcohol sales, electronic sales, and let's face it, happiness. Add all that up, the NFL is its own economy.

On the day that Congress failed again to provide further economic stimulus, to businesses and people struggling with COVID-19. We're just glad to see the NFL kickoff, pun, very much intended. And we hope the NFL is as successful as the NBA and the NHL have been in limiting the spread of COVID-19. Uber is betting millions on that. For our second story, Restoration Hardware sold more sofas last quarter and made more profit on each one of those sofas sold.

That's impressive, because this is the comfiest member of the fantastic, fancy four stocks. All right, so Snackers, Jack and I jumped in snacks out. Checked out the Serning Support. We're blown away by the opening quote from Restoration Hardware CEO. Do not follow where the path may lead. Go instead where there is no path and leave a trail behind you. It sounds like a Jedi quote. What do you got going on there, Jack? It's actually the Restoration Hardware CEO quoting Ralph Wallow Emerson. Very transcendentalist. That's how you want to kick things off. Because, Nick, remember, 100% of shots not taken, don't go in.

Michael Scott slash Wayne Gretzky. Now, this CEO both open. opened and closed his second quarter earnings report with that same quote. And then get this, he ended the whole earnings report with a Carpe Diem at the very finale. Not sincerely, not best regards. No, Carpe Diem. This is like Moses leading all the retail furniture people. They got to build a statue of this guy. That's funny, because his name is guy. His name is guy. And revenues for guys company, they grew by 1% last quarter. Now, 1% growth sounds weak. That's no Zoom. That's no Palatine.

No, it's no Netflix. No, it's not. But when you're selling furniture online, that's challenging right now. Are you dropping $2,000 on a cloud sofa? No. You probably want to test out that sofa by putting your butt on it. And yet, even though butts weren't in sofas, restoration hardware, whose sofas cost double that, by the way. Yeah, they're costing like $10,000. You're going to put you back a bed. They increase sales from May to July. Do not follow in that path where it may go. By just 2%, they increase sales. but one analyst who basically grades stocks for a living, he said that Restoration Hardware stock is worth more than he thought after reading through this awesome second quarter earnings report.

Yeah, actually, it's quote described it very charmingly, we thought. The high-income consumer is healthy and is investing in their homes. Or is Jack, and I like to say, Pimp, yo Crips. Now, Restoration Hardware said that their investments in making themselves a luxury brand have paid off. And the way we know that is by looking at their profit margins. Profit margins rose last quarter by 490 basis points, which is finance speak for 4.9%. Because remember, half of finance is confusing people about finance.

Each $1.1 of sofa sold translated to 4.9 cents more profit than the year before. Basically, restoration hardware convinced consumers their sofas were more luxurious and therefore deserve the higher prices. Now, that's thanks to their gallery-style showrooms. Beautiful. Which Nick and I think are like Airbnb Lux worth. Snack, is you trying to get engaged in the next six months? Do it at a restoration hardware gallery. Oh, by the way, they also have a magazine called RH Ski House and RH Beach House, which are extremely aspirational.

Trust us, she'll say yes if you go to the meatpacking restoration hardware. The brand perception of RH furniture has elevated and so have its prices. So, Jack, what's the takeaway for our buddies over at restoration hardware? There is a new class of stock market winners in 2020, companies that cater to the affluent. Snackers, having a brand perceived as luxury is a very nice thing to have and a very hard thing to maintain. That's like some kind of recessive gene that makes you actually enjoy your vegetables. Yeah, no one's got this thing. But one major trend we're seeing in the coronavirus, wealthy people, doing better than ever. And we see four companies benefiting primarily from that trend of wealthy people doing better than even before COVID-19 struck.

We're calling them these stocks the fantastic fancy four. The four stocks are Apple, nice, restoration. hardware, Lulu Lemon, and Peloton. Intense. Each of these companies is helping the world's affluent, basically just adapt to shelter in place. And for each of those four companies, the pandemic has boosted their stock prices by 40% or more in 2020. And snackers, if you think there's a fifth, tweet us at Robin and Snacks, but we can't go higher than five because then the whole alliteration doesn't work. If you think there's a sixth, don't tweet us the six. The only one tweet. For our third and final story, Canopy is pulling a strategic, move in the cannabis industry. We're calling it CCBD. C-CBD, celebrity CBD. Snackers, we've got to

sprinkle a little context on this thing. Cannabis stocks were like in a bubble in 2018. That's when Canada legalized recreational marijuana use and pot stocks shot to the moon on the excitement. But since then, sales have usually disappointed and those stocks have fallen dramatically. Now, cannabis is a plant. It is a commodity. So canopy needed a key. differentiator from the rest of the cannabis companies. And interestingly, their key differentiator ended up being Liquor Legend Constellation Brands. Constellation Brands is known for Robert Mondavi Wine and Corona Beer, and they own one-third of the outstanding stock of canopy growth. And Constellation is doing what liquor companies love to do and Jack and I don't endorse, which is

peer pressure. They're pressuring canopy. To think less about smoking and more about digesting. They're like canopy, less edibles, more blunts. You don't have to do it, but kind of do it. If you don't do it, you're not cool, you're cool, they just keep going. Constellation thinks that cannabis should push CBD, the less psychoactive chemical found in the cannabis plant. That's because CBD doesn't make you high, but it can relieve pain, reduce anxiety, and a whole bunch of other things apparent. Constellation thinks CBD is a nice beginner product with more mainstream appeal than THC, which is the stuff that gets you high. It's why you're seeing CBD and your hand sanitizer and probably your AirPods. Now, as we mentioned, canopy stock is down from its high. It's down 70% in fact. So

yesterday, they launched a CBD partnership with Martha Stewart herself. This fascinated Jack and me, she's whipping up $35 to $45-dhymp-derived CBD-rich gummy, soft gels, and oils. And since it's Martha Stewart, they got to be gourmet. Yes, they do. We're talking Myers-Lemones flavors and even like some rare berry jack and I can't pronounce. I'm going to call it Kindleberry at this point. Just go with that. Take out your oven mitts if you're going to handle this thing. Now, we noticed Canopy has a thing for celebrities. It's not just Martha Stewart. Canopy is basically like a groupie of the cannabis space because Martha

was introduced to Canopy by Calvin Brodus Jr. Yada, yada, yeah, Calvin Brodus Jr. is also known as Snoop D-O-D-W-G, who launched a brand called Leaf CBD with Canopy as well. Oh, and if Snoop doesn't impress you, maybe Drake will, who also launched a cannabis brand also with Canopy.

And if your favorite movie is super bad, you'll be impressed that Seth Rogan also launched a brand with Canopy. So Jack, what's the takeaway for our buddies over at Canopy and Martha Stewart's living room in the Hamptons? Canopy is trying to do in cannabis, which Spotify did in podcasts. Snackers, that's what we're thinking here, because Spotify had to stand out in a sea of dozens of podcast apps.

It had to convince people to try out podcasts for the first time. Similarly, Canopy has to stand out in a field of dozens of publicly traded cannabis companies. And similarly, it has to convince people to try out a cannabis product for the first time. So to deal with this situation, Spotify signed Joe Rogan, Michelle Obama, Kim Kardashian, and Batman to a whole bunch of exclusive podcasts. Canopies doing the same thing, signing up celebrities for their own exclusive brands. And with each celebrity signing, both Canopy and Spotify, hope to win the fans of those celebrities as new first-time user

customers. If you're thinking about trying out a new product for the first time that requires like a lifestyle change, an influential trustworthy celebrity is a good way to get you. to do it. Total behavioral shift. Jack and yo, whip up the takeaways for us before the weekend. The NFL is back, and so are those official blank of the NFL titles. Yeah, so Postmates Snag one of them. They're hoping to drive eggplant

palm orders every Thursday night, Sunday all day, and Monday nights. For a second story, Restoration Hardware's Crown Jewel Gallery stores have been closed all quarter. But it's still increased sales because it's a fantastic, fancy four stock. Third and final story, canopy growth is being peer pressure to focus

on CBD. So it's hooking up celebs with their own brands just like Spotify would. Now, time for our snack fact of the day. This one sent in from us. Birth certificates. The certificates that say where you were officially born in the United States. In the U.S. states handle the birth certificates. That's how they do it.

For example, my birth certificate was issued by the state of Vermont. It says it very clearly at the top of the certificate. Extremely charming, but there's one place we're pretty sure that doesn't have. had the state issue the birth certificate. That's right. And that one place is the city of New York. Yeah, Jack's mom and me can attest to this. We both got them. If you look at a birth certificate from the city of New York, the top of the document says, City of New York. Yeah, not the state of New York. Yeah, New York City does its own thing. The bars close at four, and the birth certificates are issued by the city. Snackers, hit us up at T-boy Jack and at Nick in New York on Twitter to confirm or refute this exact

snack fact. We'd love to hear if somewhere else had birth certificates issued anywhere other than the state. Now, Snackers, before we go, we got to say congrats to Justin and Cheyenne, one-year anniversary in lovely San Francisco. And congrats to Pierre for passing the Series 7, a brutal exam that both Nick and I have passed as well. And Martin and Natasha got engaged in Chicago. They didn't know there was a restoration hardware there. Must be nice. And Makaya and Justin Beam just got married in the great state of Montana. And Senali and Rahul one-year anniversary, Baltimore, Maryland. birthday to Ernie Ron Regis from Georgia

and Max Castro from Porto Alegre in Brazil and Larissa Rainey from San Francisco and Justine in Taiwan and Keith from San Diego California and Rebecca Wang in Brooklyn and Trey Burkhart from Berkeley California and AIV view from Arlington Texas and Tiffany

not the Tiffany on Fifth Avenue's but Tiffany in New York City and Stan Jamchatted Chicago and a non-Puzonel in Illinois and Jeremiah Martin in Arcata California and Justin Dietrich in the Great It's dead up Florida. And Ryan Fugel, you're in Ohio.

Get up, go to school. Your dad wants you get out of bed already. Snackers, thank you for snacking with us. If you got buddies, not snacking. This is the weekend. You can ask them, H, Y, HY, Y, Y, S-D. You stay six feet apart and you yell H-Y H-YS-D. Have you had your snacks daily?

We'll see you Monday. Have a great weekend. If you know, you know. This is Jack. I own stock of Spotify, Nick own stock of Apple, and we both own stock of Lulu Lemon. 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.