The Best One Yet - “Throw cash in the $14B Instacart” — Photoshop pulls a Snapchat. Travel stocks go big/go home. Instacart & Doordash raise funds.

Episode Date: June 15, 2020

Because you’re doing delivery for everything your body consumes, Instacart and Doordash just raised mega fundraising rounds (sorry, you can’t invest in them yet). Adobe wants to make sure Gen Z uses “Photoshop” as a verb, so it just launched a freaky new photo-filtering app. And travel stocks’ latest plummet has made them 2020’s case study in risk/reward.Learn 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, welcome back. It is Monday, June 15th. Technically the last week of spring, but I'm telling you, I'm actually wearing a bathing suit right now. This kind of feels like a T-B-O-Y. I love what you're doing with the Pocodots, Jack.

This pot is the best one yet for our first story. First story. I'd like one seedless watermelon, one chicken cutlet palm, and a half billion dollars in cash. Snackers, Instacters, Instacard and DoorDash are doing mega fundraising rounds that you can't even add to your shopping cart. For our second story, everyone has to you. has one friend who actually uses Photoshop. The rest of us just pretend to use Photoshop. It's not Timmy. Adobe realizes that's a problem, so it's launched a Snapchat-like app so you won't forget that Photoshop is a verb. It's pretty cool app. Nick and I both download it. Let me jump in Snack style.

Third and final story, Jack? Third and final story. Stocks fell badly last Thursday, but they fell brutally for one specific sector. Travel, industry, stocks, they become 20-20's case study and risk reward. But before we get to those T-boy stories, we have to... have a nationwide alert we want to like send to everybody's smartphones. This thing is code light blue. There have been an unprecedented surge in corporate zuckings across the country. That's right, breaking news, corporate zuckings all time high. Now zucking is a verb. Yes. Let me define it for you. When Facebook steals your core product or feature and then unleashes that better version upon its two and a half billion users. Jack, can you do us a favor and use zucking in a sentence?

The original zucking occurred when Instagram stories copied Snapchat's core. feature 24-hour picks and videos. We'll never forget it, but Snackers, Jack and I noticed something over the weekend about the latest round of Zuckings that's been going on. It wasn't Zuck doing the Zuckings. That's right. Twitter just zucked Snapchat. They launched something called fleets in India, which is just like Snapchat stories. It just happens on the Twitter app instead. And just when Jack and I thought the Zuckings were done, Pinterest turns around and Zuck's Snapchat too. I thought Pinterest was like the gentler, kinder social media app. That's where we go to learn how to make sourdough happen.

They turned around and are testing storied pins, which are just like Snapchat stories, 24-hour videos on how to like arts and crafts DIY. Snackers, if this week you see anyone getting zucked, please tweet us at T-boy Jack and at Nick of New York. Or even if someone is just aiding and abetting or an accomplice to a zucking. We want to hear about that too. This has got to go on the record, especially if it isn't zuck-dewin the zucking. us up at Robin Hood Snacks. Let's get to our stories. You're tuned into Snacks Daily. We spoke to the lawyers and we got to get something legal

out the way. It's 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. It's not a research report or investment advice. Not an offer or sale of a security. Right. Snacks is digestible. Business news to you. Robberhood Financial, LLC, member For our first store, Jack, check to see if the peach is ripe over there. DoorDash and Instacart taking money from investors big time. The time is nigh for Corona economy winners to start raising money. Now, Snackers, when it comes to an entrepreneur starting a business, you first got to ask your friends and family before you hit up Palo Alto. Here's the deal. My takeout only self-driving

smoothie sharing business is going to be big. You're going to want in on this. Like, I'm getting you in on the ground floor. I'm going to need a whole. bunch of freezers, a whole bunch of blenders, and a whole bunch of engineers who don't get ice cream headaches. All right. Here's the deal. If you give me $5,000, you get one percent ownership in my self-driving smoothie biz, which is worth $500,000. Boom, the business gets funding, you grow, the valuation increases, you get covered in tech crunch. We do an awesome store that's even better on snacks daily, and everyone wins. That is how startups start, and it involves raising money from friends and family. Now, DoorDash and Instacart did that years ago, way back in

2012 and 2013. That's when DoorDash and Instacart were founded. Now, it's eight or nine years later, and they're doing the same thing essentially, but on a way bigger scale. They kick things up about, you know, 12 notches because both companies are delivering food of a different type for hungry stay at homers like you because you need to eat. Instacardard and DoorDash are borderline essential businesses at this point because a majority of grocery delivery happening in the U.S. right now is being done through Instacart. Walmart hates that down in Arkansas. And while we're all Talking about Uber Eats and Grubhub and Just Eat Takeout, DoorDash is actually the number one app in the app store when it comes to the food category.

That's right. Everything we just said about Instacart, it's number 14. DoorDash is number one in Food and Bev. So both these companies are crushing it. The time is nigh for them to raise money so they can grow even bigger. And that happened this past week. Both companies asked more money from investors in return for stock because they've never felt more valuable.

Instacart is selling about 2% of their stock to investors in return for $225 million in cash. Jack and I whipped out the old Abacus and Whiteboard did the math. That equals about a $13.7 billion valuation. That is about one lift. And it means Instacart's private stock is way up. Because two years ago, the last time it did something like this, it was only worth $4.3 billion. So it's tripled in two years.

Meanwhile, DoorDash decided to whip out the same move, send its pitch deck around to Silicon Valley, and get some money as well. They're worth $15 billion now, according to PFWT. That's right, people familiar with the matter. This one's not Facebook official yet. Instacart's deal is official. So, Jack, what's the takeaway for our buddies over an Instacart and DoorDash? Public investors tend to get FOMO sometimes, but with these companies, we're just straight up missing out. That's right, Snackers. Jack and I are calling this the era of Sumo, straight up missing out. I would kill to buy stock in blank startup. Love it. Except it's private, so I

I can. That's right. Blank startup. Now, the universe of publicly traded stocks is huge, but the biggest innovators are still private. That's because companies have been IPOing later and later and later. We checked the history books back in the 1990s, lovely time. Amazon IPO just three years after was founded in 1994. So if you wanted to get in on Amazon's growth, you got in on like 95% of that growth after the IPO. Meanwhile, in the iPhone era, Uber took a decade before it, And now the stock is down from the IPO, so you got in on zero of Uber's growth. And Airbnb is over 10 years old and it still has an IPO. Private investors are the ones who have been in on all this growth, like celebrities, venture capitalists, and big funds like Fidelity, they're enjoying

the growth of Airbnb. Fidelity loves jumping in right at the last minute before the IPO. Now, SpaceX, DoorDash, Instacart, we are straight up missing out on their growth. The longer a unicorn stays private, the less of that early innovation, we public investors get to get a piece of it. Can't wait for these companies to IPO. For our second story, Adobe just announced record revenue. But we'd rather talk about the random new photo app. Adobe just whipped out of nowhere. This thing came out of nowhere. Now, Snackers, Photoshop. This thing became a verb before Uber, Venmo, or Google could pull it off. Your mom's never clicked into Photoshop's opera, but she can casually drop it at her book club and like, it's cool. Every single week. Now, Snackers,

Adobe stock is at a record high right now. And get this, it has grown 10x in the last 10 years. If it was $5 a share 10 years ago, now it's $50 a share. Yes. Now, this is a company that basically just licenses out creative software that's designed for most of the apps and videos you are looking at right now. And it's experiencing record web traffic during the coronavirus from aspiring graphic artists at RISD to work from home freelancers in Dumbow. Who probably also went to RISD. True. Now the thing about Adobe is that selling software to businesses is Adobe's business. But it just launched a consumer app that Nick and I were excited about. So we jumped in snack style. Yeah, we took a break from brunch and jumped in snack style, downloaded the Photoshop camera.

That's the uncreative name of the app and kind of took it from there. Now, if you download this app, like we encourage you to do so. The intro is a bunch of flashy bright colors. It feels like it's been mentored by TikTok. Exactly. Now, the value proposition behind this is that you're like Photoshop level filters, but for social media. And you don't need a pro to use it. Like there's dozens of options. You can easily take a picture of your face and turn your face into like an Andy Warhol painting. Boom. Next thing they're like, who did this? George Lucas and NASA. It's amazing. Remember those Obama like Hope posters? You can do that to your face with one swipe right on this app. But the other wild element that's thrown in here is that Adobe is embedded it with like artificial

intelligence. They can identify that there's a bunch of clouds, like kind of putting a bummer on your about the beach. No one likes clouds. And with one swipe, suddenly it's a gorgeous summer day when you're at the beach because enhanced photos are better than real ones. But then they took things a step further and the folks over at Adobe figured out they should build in some like Gen Z targeted partnerships. Billy Eilish, who gets a lot of references on this pod, has her own partnership filter at this app. Jack and I checked it out. It's cool, but kind of like Billy Elish's music, it's three degrees away from creepy. Three degrees is pretty far from creepy, but seriously, Snackers, check out this app if you're like losing inspiration in Instagram and feel like your

picture just needs a little something. So Jack, what's the takeaway for our buddies over at Adobe? Adobe realized it wasn't meeting consumers where they actually are. Snackers, where is the most visual creativity happening right now? It's happening from young people on their phone, posting on social media every single day. But who is Adobe's main client right now? The opposite, a business, which gets a license for its employees who are using a PC, working on a long-term project for a client, it'll only see the life of the day after eight and a half months of iteration. And then they're told to go back to the drawing board because production time ended and the budget's overdone. Now, Adobe's got a crisis. Photoshop is not being used

by young kids these days. It's borderline and antiquated verb. And to make sure Gen Z still uses Photoshop as a verb in 10 years, Adobe needed to make a change. The first way to do that is to meet and consumers where they actually are. On your Insta selfie. For our third and final story, the travel industry. It's become a game of Russian airspace roulette right now. Shareholders will either live their best lives and gain or get destroyed when their stock goes to zero. Now, Snackers, you typically hear risk reward and the thing that gets thrown around is like Bitcoin. Or some obscure Chinese computer chip stock that your buddy's roommate's uncle just told you about and said you got to get in. Or Nicola, the latest cold stock.

Investors have been taking big risks, though, in travel stocks hoping for big reward. Welcome to Stocks R Us. Are you a thrill seeker? I've got a travel stock that I'll spice up your work from home monotony. Snackers, the context here is that travel stocks have gotten destroyed when the global pandemic started cancellations en masse of bachelor's parties. That's right. Nashville didn't end up happening. The S&P 500 fell 37% by March 23rd, the lowest point of stocks during the COVID-19 crisis. And if you look at some ETFs out there that are tracking like travel stocks like one tickered away, it fell 3rd. 55% way more than the S&P 500. Right. And Jets, which is an ETF, just focused on airline stocks. That was down even further, 62% by March 23rd.

It looked in March like travel was over. Full disclosure, this hits close to home. I had to cancel my honeymoon, which was one year after the wedding, but every day is a honeymoon with you, Alex. And great thing we got River now. Jack, Capri, 2021, make it happen. But Snackers, we have so much home claustrophobia at this point that people are traveling again. You can't look at the same view at the same window every day.

Honestly, it's the same wall, the same wall, the same wall. As states have been reopening, investors have been getting excited that the travel industry could actually come back and be as good as new. Call the Ritz, airlines, hotels, and even Carnival Cruises stocks ended up doubling over the last few weeks. It's like COVID never happened. But then Thursday, we've remembered COVID did happen. Yeah, on Thursday when the S&P 500 dropped 6%. Travel stocks decided to travel a little bit further. Hertz rental cars fell 18%.

Carnival cruises dropped 16%. Delta Airlines spike down a turbulent 14%. Boeing airplanes down 17%. Marriott Hotels tanked by 11%. And then Disney theme parks down 9% because nobody lives at Disney. It's a COVID world after all. So, Jack, what's the takeaway for our buddies? over in the travel industry. Travel stocks are 2020's case study in greater risk means greater potential

reward. Snackers, travel stocks right now definitely riskier than anything else you can see out there. There's no question about it. Clorox is a less risky stock to own than Carnival Cruises. Bleach kills germs. Carnival swims in germs. Okay, so based on that, you'd think everyone would want to own Clorox, but we both know that a lot of people own Carnival. Yeah, you look at the trading activity, Carnival is getting all the action. Why? Because Carnival has a higher potential return than Clorox does. Investors will want to take the big risk that Carnival goes to zero a real, real risk on hopes it'll go to $1,000. Greater risk means greater potential reward. Or for Clorox, smaller risk, cleaner, smaller potential reward. Jack, can you whip up the takeaways for us to

start the weekend? DoorDash and Instacart have doubled their stock prices during the coronavirus. But we don't know their stock prices because they're Still private, so we're sumo, straight up missing out. Second story, Adobe wanted cultural relevance. So they made up an app to make your selfies cool. Photoshop camera. Probably won't make money, but it'll preserve, you know, relevance. Third and final story, travel stocks.

They show that with higher risk comes higher potential reward. And with lower risk comes the yink to every yang, lower potential reward. Now, time for our snack fact of the day. This one sent in by Spencer Ong from Lovely Earned in Virginia. You used to live kind of near Jack and I on lovely Sullivan Street, New York City. Sullivan Street. Is that original race or classic race? Trick question. Answer's always both. Spencer points out that we've been comparing a little bit Tesla and Nikola. We did on our podcast last week.

Both electric car startups, both publicly traded. But Spencer points out that Tesla has more cars floating in outer space. Real thing. Than Nikola has on roads on planet Earth. One's a cold stock, and the other is also kind of a cold stock. Tesla has one car in outer space. Nicola has zero cars on the road. Now, Snackers, we want to give a Snacks challenge shout out to Samantha Stewart and her husband, Cole. Here's their deal in the morning.

They start cleaning the kitchen at the beginning of the podcast, and then when the profit puppy barks signaling halfway through, they start cleaning up the bedroom. It's a wonderful thing and also happy birthday call. Snackers, let us know how you multitask during Snacks daily because we are the multitasking generation. Anything that's doing two things at once like this, it's a Snacks challenge. Thanks for listening and please ask your buddies, H-Y-H-Y-S-D. Have you had your snacks daily? We'll see it tomorrow.

If you know, you know. This is Jack. Nick owns one Bitcoin. Its name is Ben. I own stock of Amazon. I do not own stock of Carnival anymore because it was eating myself. Real thing. I saw it live.

The Robin Hood Snacks podcast you just heard reflects the opinions of only the host who are associated persons of Robin Hood Financial LLC and does not reflect the views of Robynhood. Robinhood 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.