The Best One Yet - 👸 “The Princess War Diaries” — Mattel/Hasbro’s doll-ocracy. Tesla’s calendar invite. The 1st special effects stock.

Episode Date: January 27, 2022

Tesla’s got record numbers, but it’s also got a calendar problem (just ask Cybertruck). Mattel and Hasbro have fought a magical war over Disney princesses and we finally have a winner. And if you���ve seen Neo do that bendy thing where he dodges bullets in The Matrix, then you’ve seen DNEG. And DNEG is about to become the 1st pureplay publicly-traded visual effects stock.$MAT $HAS $DIS $TSLA $F $GM Got 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 Thursday, the new Friday, January 27th. Hey, Mark, Cuban. Do you have a generic prescription for Peloton stock? Yeah, Mark, I've got a bad case of losing moneyitis. Snackers, today's pod.

It's the best one, yeah. First symptom of losing moneyitis, I'm losing an insane amount of money on Peloton stock. I think we're setting a record for saying Peloton in the most podcast episodes ever, by the way. Yeah, stick around for the disclosures. That's the real spoiler. Today's pod's the best one yet, though, right, Nick? It's a TBO one. Honestly, it's the best pod we've ever done. Jack. First story, what do we got?

Hasbro and Mattel. They make toys for children, but they're not treating each other like they'd like to be treated. Snackers, the greatest rivalry in dolls just hit a major moment. Disney princesses. Disney princesses. For our second story, Tesla's big earnings report just hit. And it comes down to two things. First, cyber truck. And the second is calendars. For our third and final story, if you watch Neo in The Matrix, do that thing where he leans back and somehow dodges all the road. Bullets he do that. Neo. If you've seen that scene,

you've seen that scene, D-N-E-G. D-N-E-G. They don't just do visual effects. They are becoming the first ever pure play special effects stock. Wow, that was a mouthful and you now. Snackers, before we hit those three

wonderful stories. A fantastic mix. First, it was the Olive Garden subscription. The pasta pass. False. It's actually called the never-ending pasta bowl. Get it right. It was a trick question.

And you pass. You clearly work at the Olive Garden. Then came Panera Bread subscription. Yeah, the monthly coffee subscription. And then Taco Bell. Yeah, the Taco Pass subscription. And then sweet green. The subscription salad.

It was only a matter of time before we got the 7-Eleven subscription. Snackers, behold, the subscription 7-Eleven. Oh, thank heaven. We didn't ask for this. No, we did. We did. All right, so Snackers, this thing, it's called the 7-Now Gold Pass. But what do we like to call it, Jack?

We like to call this Slurpy Max plus. Yeah, it's $6 a month. Delivery of any 7-E-th thing within 30 minutes, guaranteed. Perfect for when you need potato chips delivered every hour on the hour. Yeah, you get that craving. This is the only subscription that actually shortens life expectancy. Now, this is a true detail about the subscription. If your basket's over $10, they throw in a free small slurpee.

Which, by the way, that is not easy to do to hit that $10 minimum over at 7-Eleven. That is an impressive accomplishment. And that's why also free with this subscription. is an increase in your monthly life insurance premium. We're talking about a slurpy subscription, people. Now, we're going to preemptively call next week's Horters Almanac. We're running out next week of Mountain Dew and Hot Dogs because of this. And those 7-Eleven hot dogs, they arrive lukewarm just like in the stores.

You know what we're close to. Subscrippsuration. Snackers, we've got a saturation of food subscriptions. If you got pasta, coffee, tacos, and salad, are you going to splurge on the slurpy subscription? I don't know. Actually, I might split on this on a story subscription. Let's hit our 7-Eleven 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 robberhood family. It's all informational just so. You know, we're not recommending any securities. Nope.

It's not a research report or investment advice. Not an offer or sale of a security. Right. Snacks is digestible. Business news for you. Robahood Financial. LLZ. member FINRA slash SIPC.

For our first story, a major update. We got a major update on the greatest toy rivalry of all time. Mattel just beat out Hasbro to win back the Disney princesses. Let me just get the book here. One second, check. Once upon a time, there were two toy companies. One, lived in the whirly, twirly gumdrop forest. Which actually led to one of the greatest business relationships of all time.

One of the, honestly, the longest lasting relationships ever, Mattel and Disney forever after. It was love at first sight. Back in 1950, Mattel started building toys for Walt Disney's Mickey Mouse Club. Good move. Good move. They were Cinderella and Prince Charming. Jack, they were Shrek and Fiona.

But then in 2013, Mattel did something that Disney couldn't forgive. This is that awkward situation where you question their relationship. Mattel launched a little thing called Ever After Princesses. And Jack, what are these? Ever After Princesses. Who did they look like? I'll tell you, they looked strikingly resembling to Snow White. Yeah, Snow what?

Entire new line of Talls that were based on the children of the fairy tale characters that were owned by Disney. They even made a TV show. You can watch it on Netflix. Are you kidding? I didn't know this. It's called Ever After High. It's a high school animated drama where, like, Cinderella's daughter consoles Snow White's

daughter in a high school breakup. Oh, what is she doing? like, you know, a lot of people judge you just because they can see through your shoes? I don't know, but Disney wasn't involved in any of this, even though it's all based off Disney's ideas. According to some PFWTMs in the Wall Street Journal, Disney, they saw this zucking happening and they didn't like being copied by their partner Mattel. So they ended their relationship with Mattel.

A few years later in 2016, they gave the Disney princesses deal, the rights to make all the toys to Hasbro. But Snackers, this is what Jack and I find fascinating about this relationship. Mattel didn't just lose Disney's business in 2016. Mattel lost its pixie dust. They lost $440 million of annual business by losing the Disney princesses. That's 10% of Mattel's annual sales. Four CEOs limped and struggled through the next five years without those princesses.

We're talking half a decade, people. Hasbro stock rose over those five years. What was Mattel stock doing? It's falling. But yesterday, Mattel stock rose and Hasbro's fell. Because Snackers, new news. Mattel, it has got its crown back. Mattel just won back the Disney princesses, baby.

What do I have to do to get you in this glass slipper? What do I have to do to get you in this pumpkin carriage? This is not just a deal for the classics like Beauty and the Beast, Cinderella, or Snow White. This means that Mattel is getting access to Frozen, Brave, Little Mermaid. They're getting all of these princesses. Little Mermaid's big because a live action reboot is coming next year. It is. So Hasbro had no comment on this deal.

But they did reiterate that they still have the deals for Star Wars and Indiana Jones and the whole Marvel universe from Disney. So Mattel's got Elsa and Olaf and Hasbro's got an archaeologist and space people. And Iron Man. And half of Spider-Man, because Sony owns the other half. They're going to do a whole round-up situation over at Hasbro. So Jack, what's the takeaway for our buddies who just want to let it go over at Mattel? Why doesn't Disney just make the toys themselves?

because they like being courted. Yeah, Snackers, this is what they don't teach in business school. Cording. People love getting courted. Mattel, they've said for five years they wanted to win back this Disney princess deal. And in the last five years, it's become clear. The toy maker is less important than the company who owns the IP of the characters. Yeah, Disney's movies determine what toys get bought, not the company forming the plastic

Rapunzel. So why does Disney license their IP? Why don't they just make toys themselves and keep all the... the profit of every toy sale. Because Mickey Mouse loves being corded. Disney strategically gives some of their IP to Hasbro and some to Mattel. Just a little.

And right now, Mattel has the princesses of Pixar. Hasbro, they got the Star Wars and the Marvel. That competition between Hasbro and Mattel, it ensures that the quality of Disney's toys remain tip-top. Because both toy makers are desperate to keep their relationship with Disney strong, they don't want to disappoint

Papa Disney. Disney could probably make toys themselves, but they're better off recorded. For our second story, Tesla just reported its most record-setting, record-iest record numbers ever on record. But all investors wanted was a calendar update. Is that too much to ask for? Jack, does that be like too much to ask for? Snackers, we got the numbers from Tesla. They're huge. These were large numbers. We told you three weeks ago, but we'll tell you again, they sold nearly a million cars in 2021. That's a record number. But yesterday, we learned they made $5.5 billion in profit on all those sales last year, which is $8.5.5.5.com.

times bigger than the year before. Which is also a record number. And now we also know that Elon owes $11 billion in taxes for selling an absurdly valuable batch of Tesla stock. I'm no accounted, but I'm pretty sure that's a record number. But there's one thing all the investors cared about. By the way, that tax number is like literally half a lift. Investors were focused on something Elon mentioned in a tweet in November. Let's go back to November. Elon tweeted, I will provide an updated product roadmap on the next earnings call. And what did we get yesterday? An updated product road map. Because Tesla's greatest problem isn't chips or competition or even regulation. No. It's the calendar. Yeah. Tesla and Elon have a problem with something so simple. They're calendars. Tesla originally planned to have the

cyber truck ready by 2021. This thing looks like a spaceship from interstellar. On the earnings call, they said it's now going to be 2023. Elon just delayed the cyber truck another year. We got the product roadmap and cyber trucks not on it until 2023. Elon's accomplished an insane amount, but he's had problems with calendar deadlines before in the past. Yeah, for Model S, Model X, Model 3, Model Y. It was always arriving off the production line later than originally planned. Hey, Alexa, set a calendar reminder to just deliver the cars already. Nick, setting aggressive deadlines is what Elon does. And he always misses them, but that's been okay, historic. Yeah, it's okay. the rest of us have like Google Calendar Pings.

It was okay to miss deadlines in the past because there was no electric car competition for Tesla. But today, missing deadlines in like the cyber truck, that could have consequences for Tesla. You got Rivian and Ford rolling off electric pickups right now. The electric Silverado and electric Sierra trucks, that's all that GM is thinking about tonight. When Elon's calendar missed deadlines in the past, there was no competition. But today with electric pickup trucks, it's the opposite situation. There's a lot of competition. So, Jack, what's the takeaway for our buddy?

Elon and the team over Tesla. To win the war for electric vehicles, you must win the battle of electric trucks. Yeah, Snackers, Tesla, they won the race to electric cars, but they're losing the race to electric trucks. It's true, though, the race for electric cars, it's over. Tesla won. The majority of electric cars, what was it, like 80% we saw in 2020? Yeah, and it's still a majority last year in 2021.

If it's electric, it's probably Tesla. But here's the problem facing Tesla. The number one, number two, and number three, top selling cars in the United States. They're pickup trucks. You can't win the war of electric vehicles until you've won the battle of electric trucks. Tesla, they won cars, but they're behind in the battle for electric trucks. For our third and final story, six Oscar awards are forming one publicly traded stock. D&EG.

It's a pure play special effects studio and it's going public. What are we on these days, Jack? Are we on like Marvel movie, I don't know, 67? Watch your mouth. You know, Alex and I started watching Marvel movies last year. Well, good. It's going to take you like three more. years to get through them all. Yeah. We're on like movie liberal 11, so we're a 20th of the way.

In the meantime, though, Cineophiles, they hate the blockbusterification of the American cinema. Cinephiles rue the modern state of American cinema. But D&EG, it loves it. If you saw Iron Man, then you saw D&G's movie magic and didn't even know it. Yeah, Tony Stark, he couldn't save New York City without D&EG's classic visual effects. Tom Cruise couldn't accomplish a mission that was supposed to be impossible without DNEG's magic. And Wonder Woman, she couldn't have blasted through that wall without breaking her wrist if it weren't for the visual effects of DNEG. All right, let's say you watch Christopher Nolan's tenant, paused, rewind, watch the scene again

seven times and still didn't understand it. So you didn't understand it. I still don't know what happened. I watched the movie backwards and forwards, but I like the way it looked. But those guys running backwards, that was DNEG. That was DNEG. Snackers now, DNEG. The billion dollar of specials.

The National Effects Studio is going public. They call their services tech-enabled creative solutions. We call it defying gravity on film and destroying dimensions on the screen. But Snackers, D&AG, they're not like a trend in and of itself, but they are piggybacking on another trend going on. We want more content. We do. So big tech is making moves into movies.

And D&EG, they are thankful for the streaming video arms race that is going on right now. Because Netflix, Apple, Amazon, and Disney, there are the Sugar Daddies. that are ultimately dropping billions for the creative services that DNEG provides. Oh, and it's not just that. DNAG, they're thankful that Microsoft, Sony, and Tencent are invest in big money over into video games. The NEDs. The NEDs call video gaming a new market and future revenue stream for their visual effects. And D&EG is an extremely thankful company because they're also thankful that everyone is

talking about the Metaverse, Metaverse right now. Visual effects are everything in a Metaverse, right? It is literally one giant special effect. Okay, add up all this thankfulness. DNEG forecast in their investor deck that their revenue is going to more than triple by 2026. More than triple. That got Jack and I curious. Feels like a takeaway. So Jack, what's the takeaway for our buddies over at DNEG? The biggest visual effect of all, it might be DNEG's investor presentation. D&EG, they are very proud of their future. In fact, D&EG was obsessed with talking about their future. One of the few things they said about their past was that six Academy Awards for Best Visual Effects have been won by movies they've been in.

You like, ask about the numbers. They're like, have you seen this? I'm just going to take this off the rack and polish it. Can you see yourself in the reflection of the award? But besides those Oscar trophies, Nick, and a bunch of huge movies they've done, D&EG wasn't really talking about the past in their investor deck. Okay, so why is D&EG so focused on the future? Maybe because revenues actually fell this year for the company.

And revenues this year are still below where they were two years ago. Yeah, that's what we find so fascinating about this SPAC position, SPAC. They're allowed to focus and talk all about the future. If DNI were doing a traditional IPO, they actually wouldn't be allowed to forecast tripling of revenues in 2026 like they are in this one. In a traditional, usual, typical common IPO process, DNG couldn't distract you from their recent revenue decline. DNG is spacking into public markets. And since they're spacking, they can talk about the future, not as much the past. And that might be DNG's biggest special effect of all.

Jack, can you whip up the takeaways for the new Friday for us? Mattel won back Disney's Rose. Disney, they could make princess toys themselves, but they prefer being courted. For a second story, Tesla made $5.5 billion in profits last quarter, which is right up there with any car company. But to win the war for electric vehicles, you need to win the battle. of e-pickups. For our third and final story, D&EG is backing itself onto public stock markets. It's a visual effect studio, and you can tell from the investor deck.

Now, time for our snack fact of the day from legendary snacker and three or four times snackback submittee, Justin Cram in lovely Fort Lauderdale, Florida. Nick, what do you do when your door is squeaky or if like you can't twist off that old rusty thing? I know everything. When your door is squeaky, you reach for that blue can of like WD40, the go-to, like, spray. That's what you Or if you're handkill, you grab your tiny WD-40 to lubricate the stubborn top of your main WD-4th. Which gets me every time. Now, what is this strange, oily spray stand for? WD-40, such a curious name.

Water displacement, 40th formula. WD-40. Snackers, WD-40 was actually born in San Diego in 1953 and was meant to be used on like rockets and rocket ships. Got an incredible first use case. It was used to seal the Atlas missile. I don't know what that is. Sounds intense. But it took 40 tries to perfect the formula to seal that missile.

And today it is a pure play lubrication seal in stock with the weird name, WD40. And we now know how it got the name. Water displacement 40th formula. WD.40. Snackers, even if he got subscription, you'll look fantastic today. Remember, it's never-ending pasta ball, not the pasta pass. If you make that mistake in life, you should issue a correction. I'm going to slap you with a breadstakes. Scary, because they're unlimited.

Nick and I'll see you tomorrow. Snackers, Tell your friends, H-Y-H-Y-H-Y-S-D. Have you had your snacks deal? If you know, you know. I'll see you tomorrow. And before we go, happy birthday to Austin Jacobs turning 28 down in San Jose.

Congrats to Gary and Amy, who got engaged on a helicopter in Maui. Too shabby. And snackers, if you've got a snack fact or want to shout out on this podcast, we've got a form in this episode. All you got to do is click the link. And to anyone else celebrating something today, make it a T-boy.

Celebrate the wins. This is Jack. I own stock of Disney. and Nick and I both still own stock of Pelton. Robin Hood Snacks, newsletters, and podcasts reflect the opinions of only the authors who are associated persons of Robin Hood Financial LLC and do not reflect the views of Robin Hood Markets Inc. or any of its subsidiaries or affiliates. They are meant for informational purposes only and are not a recommendation to buy or sell any security, cryptocurrency, or investment

strategy in any account. This is not an offer or sale of a security, not a research report, and is not intended to serve as the basis for any investment decision. Any third-party information provided therein does not reflect the views. of Robin Hood Markets Inc., Robintov Financial LLC, or any of their subsidiaries or affiliates. All investments involve risk, including loss of principle and past performance, does not guarantee future results. Robin Hood Financial LLC, member FINRA SIPC. Wow, that was a mouthful and you nailed it.