The Best One Yet - “The stock ticker should be KEYS” — Airbnb’s IPO. Mars eats Kind Bars. Amazon launches an ePharmacy.

Episode Date: November 18, 2020

We jumped into Airbnb’s IPO paperwork Snacks Style… and they finally told us who their favorite child is. Candy legend Mars just bought Kind Bar because snacks spring eternal (meta). And if you noticed Walgreens stock fell, it’s because Amazon just whipped up an online pharmacy.$ABNB $AMZNGot 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 Wednesday, November 18th. Everybody, stocks inched down a tad, but they're so close to their record highs. Jack, Bitcoin jumped past $17,000 for the first time in three years. Both for no particular reason. No, that makes any sense.

But we made this the best one yet. TBOY, Jack, what we got for our first Snacks Daily Story? We booked an entire place with flexible cancellation policy and dog-friendly to jump into Airbnb's IPO paperwork. got to do that. And Airbnb, who's getting ready to IPO, just told us who their favorite child is, hosts or guests. Who's it going to be? Second story, Jack, what do we got? Candy legend Mars, Inc. They get hungry, too. So they just acquired kind bars. Jack, I'm going to go poetic on this. Snacks, Springs, Eternal. I do not know that idiom, but it sounds smart. Third and final story, what do we got over there, poet? Did you notice Walgreen stock fell yesterday? Jack, did you notice

Amazon just launched its own e-pharmacy? That's a problem. Funny thing. Same story explains both deadlines. All in one story. But Snackers, before we jump into that wonderful mix of stories, we are one week out from Thanksgiving Eve. Thanksgiving Eve, something that should definitely be a real and respected holiday. Honestly, we're all thinking it. You know you're thinking. We've all thought about this. Now, sadly, this Thanksgiving, we won't be with our extended families, you know, bringing out the extra leaf to make the dining table bigger like most Thanksgiving. Jack, we ordered the eight-pound turkey this year, not the 18-pound mutant super turkey who does crossfit.

And that means you may actually have to cook yourself this year, Snackers, because Aunt Pegg, she won't be coming with her awkward casserole. No, so that means you got to buy an extra smoke detector, maybe a fire extinguisher. Jack, did they still offer the meltproof oven mitts? Is that a thing? They do. I'm thinking of Tim Allen in the Santa Claus. You remember that scene? Great guy, great scene. But Snackers, Jack and I noticed the smartest thing to happen to the insurance industry in ever just happened. The insurance industry isn't very sexy, but progressive insurance, just partnered with Whole Foods because they know you're probably about to botch the turkey in the oven. So they will ensure your botched turkey situation.

That's right. In case you commit a quote-unquote turkey cooking fail, there is now a Thanksgiving turkey protection plan offered from Whole Foods and Progressive. Jack, Overcooked, Undercooked, burnt, dry, boom, doesn't matter what went wrong, you can just submit a claim. If you're asking your guests at the table, did I overcook it? Do you think I overcooked it? Guess what? Yeah, overcooked it. Snackers, insurance payouts like this. They only apply to the bird, not the yams. And by the way, the guac, it's still extra. It's always extra.

Snackers, it is up to you to not overcook the turkey this year. And not let stuffing become a super spreader. 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 hearing food is 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 Robberhood Financial

LLZ Member Fenra Slash SIPC For our first story No more sumoing on Airbnb No more straight up missing out That's because Airbnb stock Will be available for us

All starting in December After its IPA Starting in December Airbnb going public On NASDAQ next month Although I mean The ticker symbol ABNB

AB&B, big, huge missed opportunity. They could have gone with STAY stay. Could have gone with home, H-O-M-E. Or CASA or House to bring in different languages. H-A-U-S, C-N-D-O, condo. But Jack, can we just share our favorites so they can run with it quickly? Keys.

Yeah. 60% I'm making this stat up. 60% of messages on the Airbnb-I are about, can you tell me where the keys are again? Oh, I'm sorry, I forgot the code. Can you just let me know where the keys are in the code fix? Snackers, this was a dramatic S-1 file. for Airbnb to officially prepare to IPO. Honestly, Jack and I jumped into this.

This is so 2020. The first line in Airbnb's IPO paperwork in the beginning. Isn't that how the Bible began? Yeah, it's exactly how the Bible began. Oh, and then they go on to mention crazy seven times because they were crazy for starting this company. We get it, guys. We get it.

Like, relax. Then they added some fluffy language. They mentioned belonging, community, and showed like an Instagram-style feat of like divorce and lovely-looking hosts. Honestly, Jack, this IPO paperwork felt more like a summer camp reunion than like an IPO paperwork. Now, Airbnb knows the number one thing on investors' minds is what the heck has been going on in 2020 for Airbnb? And so they thought they should address that,

which they did on like page number nine, COVID's impact on our business, that's their number one risk that they highlighted. Let's rewind to March and April. In the spring, revenue dropped by 72% for Airbnb. It's worst quarter ever and it lost a half billion dollars in profit. So Airbnb made some moves. They cut their marketing budget in half. They fired 25% of their employees, and they hoped things would work out okay. Two months later, a whole bunch of people, myself and Nick included, are like, Airbnb's kind of perfect for the summer. Revenue quadrupled back, and then they actually squeezed out. Get this, you don't see this that often, a $219 million profit, their first one of the year. So the COVID crisis hurt Airbnb. Its revenues are

back up to the 2018 levels, but it didn't hurt nearly as bad as investors feared. The Real story here about Airbnb and COVID isn't how badly they got hurt. It's how quickly they bounced back. Think Rocky four. The first and second rounds were brutal. Yes. But we're focused just as much on the other rounds when Rocky got back up. Jack, I think what didn't Alfred say to Batman like it's not who you are, but it's what you do that defines you? We're mixing movie analogies and I really like it. I think it works. But Snackers, when it comes to Airbnb, it's a platform that connects travelers and homes. What Jack and I found fascinating, though, is they just revealed who their favorite child in that equation really is. Page number two, Brian Chesky of Airbnb announces basically who he likes more. He says, hosts are at the center of Airbnb. And then Jack and I had to whip out the old Apple left.

Turns out in this S-1 IPO paperwork, Airbnb mentioned guests 787 times. Jack, how many times did Airbnb mention hosts? 1,117 times. If I was a guest, I'd be not feeling good about my dad. Not loving it. This is kind of awkward. And then Airbnb went on to mention one of their top five risks is if we fail to retain hosts. Because hosts could easily switch from listing their condo on Airbnb to going to HomeAway or VRBO to companies that basically do the same thing. So CEO Brian Chesky created an endowment like colleges have specifically for hosts. This one, That one's interesting. The proceeds of the endowment are going to benefit hosts, and it's getting funded with 9 million shares of Airbnb, which are about to be worth cash money after the IPO.

And then Brian Chesky mentioned basically his whole life goal here. He wants to see guests grow up to become hosts. Your first Airbnb is spring break in Miami. Eventually, you have a place to book out to spring breakers. So, Jack, what's the takeaway for our buddies over at Airbnb? Airbnb. Airbnb needs to think like Uber, not like Lyft. Snackers, Lyft is a gig platform focused on rides transporting you from A to B airport to home. Uber has become a gig platform to transport anything, not just humans, also food, freight, medications, etc., etc. So right now, Airbnb is a sharing platform focused specifically on home. So condo, ski houses, Lake Cottage kind of a thing. Airbnb needs to become a sharing platform for anything. Snackers, Jack and I are envisioning an acquisition. spree from Airbnb so that they can own all the items of an entire sharing economy menu. Imagine whipping open the Airbnb app and seeing the first tab is dedicated to stays that you can book for the weekend. But then there could be another tab dedicated to booking someone else's car and another tap to booking someone else's parking space. And another for RVs, another

for pools that you're not using for the weekend. And finally, maybe somebody can just book out their basement for your storage. Airbnb's expertise isn't two bedroom apartments. It's making the sharing economy viable. Airbnb should become the everything sharing company, not just the house sharing company. For our second story, Mars Inc. is going beyond candy, acquiring kind bars for a port to get this, $5 billion. That's like so many almonds. But Nick, how kind is kind bar? That's what we want to know. It's a great question. So Jack and I jumped in snack style. Mars, to kick things off, is as close to Willie Wonka's chocolate factory as like corporately possible. Five generations of Mars family members have run this company, starting with Frank C. Mars, way back

in 1920, what was then called the Nuget House. Jack, back in my day, we used to churn the egg whites with real stomping horses. Marobar was the first product in 1922, followed quickly by Milky Way, Snickers, and Three Musketeers. That's a classic. And then you got Skittles and Eminem. They joined the Mars family. And finally, they merged with Wrigley's gum because you need something for after the chocolate. If this all sounds appetizing, which of course it does, sadly Mars Inc. is still a private company,

still owned by that family, so it's a sumo stock. Yep, we're straight up missing out. But Snackers, here's what fascinated Jack and I. Mars started a corporate diet of like less sugar about three years ago when they bought 40% of Kind bars. And Kind bars isn't just bars. It's not just a nutty, fruity energy bar. They also do granola, oatmeal, and cereal. So this acquisition is really similar to Kellogg's buying RX bar, which became the fastest growing snack bar of all time for $600 million. RX bar famous for their clean ingredients and for getting stuck in your teeth. Yeah, I still vote an RX bar from yesterday, Jack. It's maple. The maple's the best. Yeah, Nick, you do. I've been meaning to tell you all day. Nick, this also looks like Hershey

acquiring one brands, which is a plant-based snack food bar for $300 billion. Yeah, early takeaway here, Jack. This podcast should be literally a snack bar because someone would acquire us for $5 billion. Apparently the multiples are really high on this stuff. Now, Kind Foods has somewhat of a healthy and transparency reputation. You can literally see through the package. Right. But how healthy and how transparent is it?

Well, Snackers, the snacks industry itself, it's like an onion. It has layers. It has layers like ogres. So on the healthy snackiness spectrum, and we know snackiness, Jack and I do, Kind is kind of like a gateway snack. Its biggest ingredients in a Kind bar is nuts, oats, or fruits, and they're also gluten-free and vegan. Vegan, if you're not including honey,

and you know that's controversial. It's very controversial. But they also have kind bars that have chocolate and syrups and unpronounceable elements and up to 21 grams of sugar, which is a whole bunch of sugar. And some kind bars have a bed of chocolate and are drizzled with even more chocolate. They're basically one degree away from a Snickers

as if you don't look at it. So Kind Bar isn't a totally healthy snack, but that's exactly why Mars is acquiring it. So, Jack, what's the takeaway for our buddy? over at Mars. This is a Prius acquisition. Snackers, Prius, Toyota Prius, we're thinking original hybrid on this. This thing has an electric motor under the hood, which is really nice. But guess what's right beside the electric motor? A gas burning old school combustion engine. Jack right there next to the chassis. Now, Toyota knew when they launched the Prius that electric cars would be the future,

but consumers weren't ready to go 100% electric back in 1997. They still wanted to make progress, though at Toyota towards this inevitable environmental sustainability that was coming. Jack and I think it's the same situation over at Mars with Mars customers. Mars customers are still crushing Milky Way's and Snickers bars like every other day. So Mars is thinking they need a transitional snack to get to the inevitable healthier lifestyle like a nut bar with a little bit of cocoa drizzle, like an electric motor with a little gasoline drizzle. So if Mars current candy bar brands are gas guzzling trucks, then we're thinking kind is their first hybrid option. This is a Prius acquisition from Mars

because Kynbar is a gateway product to healthiness. For our third and final story, cross-off drugs, you can now order those from bed on Amazon too. Amazon Pharmacy is actually the big bully that American healthcare needs. It is. So we're going to travel all the way back to 2018 when Amazon partnered with two behemoths

to launch a health insurance company. Yeah, then it spent nearly a billion dollars to acquire an online pharmacy called pill pack. And then it started making its own generic Advil under the Amazon Basics brand. You don't need to read these tea leaves. These tea leaves read themselves. CVS, Walgreens, and Rite Aid, they hired a whole bunch of consultants after that and then started bracing themselves for the inevitable. Well, it is finally here. That's right. Snackers, Americans in 45 U.S. states can now buy prescription drugs in their Amazon basket.

Does Amazon pharmacy take health insurance? Jack, yes, they do. You just add the account info. I assume Bezos knows all our socials right now. Can Bezos's company read those like messy doctor notes for the prescriptions? No, Jack, no one can read those, but yes, you have to add a doctor's prescription to get the drugs that require the drugs you need. All right, let me ask you this. Do Prime members get any special treatment? Jack, Club Prime is Club Prime. Free delivery and discounts if you're a member of Club Prime.

Now, what about Thytastrosol for that thing on your thigh? Yeah, you take it twice a week. There may be some side effects, but it helps with that thing on your thigh. I'm glad you asked. Thytastrosol will be 40% off the brand name version, up to 80% off the generic version on Amazon. Yes, that last point is true for all real drugs on Amazon Pharmacy, not a fake drug, Thytastrasol, which Nick and I haven't trademarked. Even though you may have a real thing on your thought. We all do. It's weird, Jack, but moving on. Snackers, the news here is as much about the disrupted. The pharmacy companies as it is about the disruptor. Amazon. Yeah, because Amazon stock, we're looking at it.

It kind of barely budged after this announcement. But the seas were rough for CVS, Walgreens, and Rite Aid, whose stocks all fell about 10% yesterday on this news. You know, CVS, it has 10,000 physical locations. Walgreens got 9,000, right, aid, it's got like 2.5,000. Now, until today, that real estate, those brick and mortar locations,

they could be seen as an advantage in the pharmacy space. Right, because you're walking into that drugstore, you're picking up your lip-a-tort, but on your way out, maybe you grab some shampoo or some cereal or some lipstick. And you need the Lipitor. The drug anchors you to Walgreens and then you buy a bunch of other stuff. Now those buildings are just extra costs that let Amazon undercut prices.

That's what investors might think. So Jack, what's the takeaway for our buddies over at Amazon? American healthcare kind of needs a bully and Amazon can be that bully. Snackers, in the U.S., we spend about double as much per person on health care as any other developed country. Part of that reason is because we don't comparison shop when it comes to health care. You just do what the doctor tells you to do. That's what you do. Now, there's an online market to compare cars for buying, not so much for pill buying.

But Amazon Pharmacy will allow comparing prices. It'll show you the price for drugs with insurance and without insurance. You can pick the cheapest ones. So drug makers like Cardinal Corp or McKesson, they're going to have to start selling drugs directly to Amazon. And their stocks fell 5% yesterday on fear that Amazon is going to force them to lower prices, just like they've lowered prices on everything else. can you whip up the takeaways for us over there. Airbnb is going public in December on the

NASDAQ stock exchange. Honestly, big opportunity here at Jack and I are thinking become the sharing everything company, not just the home sharing company. For our second story, Mars is starting to wean itself slowly away from sugar. Kind Bar is the perfect gateway healthy snack, aka a Prius acquisition. For our third and final story, Amazon Pharmacy, finally launched and could finally make comparison shopping for drugs a thing for that thing on your thigh. Now, time for our snack. fact of the day. This one tweeted in by classmates Elena and Sally over at Yale's School of Management where they're in class together and they've been sharing some notes. Elena and Sally are taking a class called Mastering Influence and Persuasion with integrity, of course. Right. With Professor Zoe Chance.

That's the way to do it. An interesting little study that they came across here. Turns out making, being an organ donor, the default on your license, requiring people to opt out of it has a huge impact. Now, opting in is the other way when you make people decide to become organ donors. That's how it is in the U.S. and opt-in countries generally get less than 15% of people volunteering to be organ donors. But over in Australia, they actually have an opt-out situation, so you're automatically an organ donor unless you say, no, I don't want to be. And they get 90% of people becoming organ donors simply as a result of that. The takeaway here, people are influenced by the default choice, and they're like

afraid to not do the default, so you can use that to your advantage. The extra takeaway here, people are lazy. Snackers, you looked fantastic today. Let's do this again tomorrow. Maybe you should ask some friends, H.Y. H.Y.S. I will be there. Have you had your snacks daily? I have. If you know, you know.

Before we go, Snackers, a whole bunch of engagements just went down yesterday, apparently. Congrats and McCrassovich just got engaged over in the lovely Catskills. And Mario and Maria, fantastic names for an engagement. couple just got engaged in Silicon Valley. And Chloe Ames and Jared Pierce also got engaged somewhere else in California. Unreal. Happy birthday to Nishant George in Mumbai, India. And Yvette Cheesman in West Palm Beach. And Kristen Houston in Seattle. And Matt and Carrie, North Carolina.

And Ty Dinger in Madison, Wisconsin, Go Padger's. And Wyatt Tyree in Denver. And Maurice Leacock in Boston. And happy birthday, Sammy Rahman, over across the street potentially in San Francisco. go. This is Jack. I own stock of Amazon and Nick owns one Bitcoin. His name is Ben. 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, 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.