The Best One Yet - “Trump’s anti-COVID cocktail” — Regeneron’s 5-second fame. Tesla’s S-3-X-Y conflict. Cooler Screens’ $80M grab.

Episode Date: October 6, 2020

Regeneron’s stock jumped because saving a nation’s president’s life is straight-up earned media value. Tesla has officially cannibalized itself… and we think that’s a good thing. And Cooler Screens snagged $80M to make your bodega’s drink fridge digitally speak to you.$REGN $TSLAGot 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 Tuesday, October 6, T-B-W-T-W-T-T. Stocks rose yesterday. They rose yesterday. Jack and I decided to make this T-B-O-Y. The best one yet for our first story. New ad campaign that every drug company dreams up. Love this.

Our drug helps save the president of the United States. You got to get one of those. Regener on stock, living that reality show right now. For our second story, we're used to seeing ads on TV, in the newspaper, on radio, and our Instagram fee. Well, Cooler screen just raised $80 million to stick a digital snap lad on your bodega's drink fridge. For our third and final story, Tesla is selling way more of its cheaper cars than the expensive

one. Tesla just cannibalized itself, and we think that's a good thing. It ate its own sales. Nothing wrong with that. But Snackers, before we jump into that wonderful mix of stories, National Coffee Day last week, it came and it went. Like you needed the reminder. her to drink another coffee. Sorry we forgot to remind you. No wakey, unless no coffee.

The biggest surprise though on September 29th, aka International Coffee Day, wasn't Starbucks and it wasn't Dunkin' Donuts. No, and it wasn't Debra with two pumps of hazel nut out in Boston. It was PBR. Pabst Blue Ribbon is launching a hard, cold brew coffee. 16 ounce tall boys in a nice hipster and little mocha coffee cup. Like a frappuccino, but perfect for the tailgate, too. You add almond milk, you feel less judged. Or so you feel more judged? You do feel more judged. No, we've talked about the functional beverage trend, which Coca-Cola, Pepsi, Topo, Chico, LaCroix, everybody's seen. Jack, we've talked about it. You're absolutely right. Drinks that enhance a feeling or improve your

health. That's what they do. This alcoholic cold brew from PBR is the rare cancel-out cocktail. That's right. Snackers, it's got all the vitality of the caffeine. And that caffeine's 100% reversed by the chemical depressive that exists in every alcohol. A classic stimulant plus depressive equals nothing situation. Now, we haven't seen a cancel out cocktail next since. I'm thinking for a loco soft manure. Soft four year. Social four year.

We're making our roommates, it was a thing. It was like a blueberry vibe. Snackers, the next time you're on a Zoom call, observe how everyone is sipping their morning joe. That's because Jerry from accounting may be enjoying a mug of 4.7% ABV with 30 milligrams of caffeine. person, he's canceling out. Let's hear 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. 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 for you. Robahood Financial, LLC. Member Fenra. IPC. For our first story, sounds like a Star Wars character.

Regeneron stock has already doubled in just the past 12 months. Does sound like a Star Wars character. It's actually a pharmaceutical company that could get the ultimate PR moment saving the president of the United States' life. Since the president announced he and the first lady tested positive for COVID, haven't made many public appearances. But you know who has made a lot of public appearances? Trump's doctor, a guy named Sean P. Conley, and he's given several updates.

Jack, you mean Dr. Sean P. Connolly. And he's made several updates. Now, one of those updates was that President Trump got an IV full of an 8 gram cocktail of two monoclonal antibodies, also known as Reg and Cove 2. That's the product by Regenoron. That is the cocktail of monoclonal antibodies. It's not approved yet by the FDA. No. But the president was able to take it through a clause called Compassionate Exception. They're willing to make exceptions for people who are running entire countries. Now, what this cocktail does is it's supposed to jack up President Trump's immune system with COVID-fighting antibodies. It's like injecting dragonglass into the battlefield, which happens to be overwhelmed with white walkers. Or injecting basilist teeth in a fight against Horrocks.

That's what antibodies do. That's what these antibodies do. Now, regenerance treatment is not approved yet by the FDA, but it is in the critical, all critical, phase three. But Trump got it anyway because he was willing to take the risk. So if you're looking at this situation and you're regeneron, the first thing you're thinking is if this helps Trump recover or survive, great PR. Trump did say on Monday he's leaving the hospital at 6.30 p.m. via tweet.

And then you kick that up a notch. If this is effective, this could also fast track the COVID treatment's approval by the FDA. Regeneron is a case study at Operation Warp Speed. That's right. The big billion dollar government project to fast track a vaccine or treatment for COVID. Regeneron got itself half a billion dollars in funding earlier this year, and it has been putting that to aggressive use. It's assuming its drug will be approved,

and it's already on track to deliver 300,000 doses of it by the end of the year. And then in 2021, they'll be pumping out 300,000 doses a month. If it works out and gets approved, we probably have a second wave of COVID coming, which could mean big business for this cocktail from regenerate. Now, that's all positive sounding for regenerate. But if this doesn't end up helping Trump, also not the end of the world for regenerate.

They'll just like finish up phase three and bring the product to market anyway. Not too shabby. So Jack, what's the takeaway for our buddies over at Regeneron? This is an earned media jackpot for Regenron. Snackers in business, coming up with a great product to solve a great problem, it's like half the battle. After that, you have to get discovered by customers, brutal, which usually means paying big bucks for paid advertisers. And that's why every NFL game is interrupted by a drug commercial and then another drug commercial and then a lot of really fine print that's had really quickly. You got an equal amount of runs, passes, and Cialis ads in a football game. Now, if the news or media showcase your product organically, that's pretty much free advertising,

a.k.a. earned media. You measure the number of people who saw the free publicity, calculate what the ad value would have been to actually spend that money to get those ads, and that's your earned media value. If it turns out that Regeneron's cocktail helped save the president, it'll be the biggest earned media moment for a drug. Probably ever. And the stock jumped 7% yesterday. For our second story, Tesla's quarterly deliveries just hit a record. But Tesla's cheaper cars are eating sales of its more expensive cars. And we're okay with that.

Jack and I are okay with that. That's okay, Tesla. It's okay. It's not your fault. Now, new record over at Tesla Snackers, new record. The number of vehicles delivered in the first quarter was a new record. 139,000 people bought Tesla's from July to September. That is up 44% from the same quarter last year.

And here's the thing that goes. Detroit, Ford and GM, they're not seeing 44% jumps in like anything these days. If you get to double digits in Detroit from last corner, that's a fantastic year. That's because they're starting from a much smaller number over a Tesla. You know, it took you less time to go from 10 pounds to 15 pounds as a human being. Took you a few years, though, to go from 100 to 150. Jack, did I ever tell you that we had in a 100-pound party my dad had for me? You're kidding me.

That's how they do it in New York, huh? I was 99 pounds. We invited a lot of people over, had a lot of food, and we got me over the hump to 100. It was never turning back from there. Now, forget that big number, 139,000. We're going to look at sales from Tesla by model last quarter. That's what fascinated Jack and me way more. Let's take, for example, the old Model S.

Jack, what can I do to interest you in the old Tesla Model S? Well, it's the original fancy high-end sedan from Tesla. It comes in about $75,000, so I'm going to need about $30,000. Mr. Kramer, you seem like the kind of guy who needs a little more space. Can I interest you in the Model X by Tesla? The Model X is the first SUV Tesla offered with those Falcon Wing doors for $79,000. All right, Mr. Kramer. Seems like maybe you want something a little smaller.

Can I interest you in the Model 3? The lowest price Tesla, also a sedan for $35,000. It starts at $35,000. Yeah, if you want any changes whatsoever, it's going to quickly be $50,000. Oh, you want wheels, Mr. Kramer? Oh, you want wheels. All right, so you don't want something so big. You want something so small.

I got a Goldilocks situation over here. Can I interest you in the Model Y crossover SUV? That's going to come in at $55,000. So a few observations looking at these four models. First of all, S3XY basically spells sexy if you write out Tesla's model. Seriously, take out a pen and paper. That was just Elon being Elon. He actually intended that when he named these vehicles.

Second, it seems clear here that Tesla is basically offering a really expensive sedan in SUV and then a not as expensive sedan and SUV. Subjectively speaking, Jack and I are looking at all four of these cars, and we actually think the less expensive SUV in sedan, the Model 3 and the Model Y,

are much cooler looking than the more expensive SUV and sedan, the Model S and the Model X. Call me crazy. I would much prefer a 3 or a Y than an S or an X. Jack, I would never recall crazy on this. I think you're absolutely right. Which leads us to the big update from last quarter.

89% of the deliveries, those 139,000, they were the cheaper Model 3 or the Model 1. That's right. The vast majority of cars that Tesla sold were their two cheaper options. So Jack, what's the takeaway for our buddies over a Tesla? Cannibalize thyself. Companies, they fear cannibalizing their own sales. Their entire case that he's devoted to avoiding cannibalization at business school. Cannibalizing, you know, when you make a second product that is so good, it competes with your first product and you're fighting,

yourself. Well, Tesla's number show that their Model 3 and their Model Y did in fact cannibalize their two other more expensive cars. Not good for Model S, Model X, but we actually think this cannibalization, which definitely happened last quarter, actually benefited Tesla. Reason number one, you want to make the best car possible and you want to price it as well as possible. If you don't, someone else will, so Tesla's leading with their best self. Be your best self, lead with it. Reason number two, these higher-end models, they make the lower-priced versions look more like a bargain. And Tesla is in a desirable position because even its lower end three and Y cars, they are profitable and that's a good thing. So these lower price Tesla models

may be cannibalistically stealing sales away from their more profitable siblings. But Model 3 and Model Y are driving way more sales and Tesla slowly becoming more and more mainstream. Cannibalize thyself. For our third and final story, cooler screens just raise $80 million to turn bodega refrigerators into drink digital billboards. We're talking about the final frontier of advertising. Which means we got to head over to our buddies in Shytown. Chicago, three-year-old cooler screens is transforming convenience store cooler doors into ads. They're cooler doors, but the company thinks they are cooler doors. It's highly literal. Hey of the thing with words over there in Chicago. We'll double on Toddra God. So cooler screens are going to go into your local gas station

and transform the glass doors in the back where it's cold into screens. The drink section is going to have a bunch of human-sized iPads. Yeah, as Apple likes to call it, iPad 14. As you come within six feet of the drink section, cooler screens will come to life. Yeah, you're not going to just see a Pepsi can or a Mountain Dew can or a Sprite or a Coke can. You're going to see what they want to show you. The video screen could just show you a digital version of all the drinks behind the cooler door.

Yeah, maybe it throws out the prices, some discounts. Could even highlight what the calorie counts are if it just feels like it. Yeah, it's digital. It can do whatever it wants. That's why it also might show you a video ad for like the product of choice, whoever has the biggest ad budget. And this could get pretty strategic case and point. Let's say it's 99 degrees outside. The last thing you want is just warm milk. Boom, you're going to see a Snickers ice cream bar bursting out of some avalanche right on the freezer door. Yeah, until the team over a course light says, no, we've got to do a course light out in there. Now, today, cooler screens is literally just a video screen. But it's the same. In the future, they could add voice or touch screen technology too.

Again, you approach that six foot zone. Suddenly you say, hey, cooler, show me the vegan-friendly options. Or hey, cooler, any peanuts in that kombucha right there? Or, hey, cooler, are people judging me for my eating preference? But this is about ad sales at the end of the day. Because cooler screens, it's not UNICEF. They're not just trying to help out customers with more information about the products. They know they've got some power here, so they may approach Shobani, which is a partner of theirs right now,

and say, hey, do you want to promote your new panda berry yogurt? Oh, great, you do? Well, as long as you're willing to spend more than YoPlay, which is planning to pay up to $10,000, then the ad is yours. Boom, perfect timing for the panda berry launch. Cooler screens just announced, in addition to raising money, that they are in 50 Chicago-based Walgreens expanding to 2,500 Walgreens soon. And now Jack and I found interesting is that it's actually playing out with successes in real time in two different ways. Companies that advertise their product on a cooler screen, are experiencing sales boosts of two to ten times higher than when they weren't advertised. And then this is wild. It's also raising all boats because the spectacle of these screens is bringing more shoppers into the stores and lifting sales overall for your local bodega.

I'll tell you a bodega could use a differentiator like that. This is the differentiator. So, Jack, what's the takeaway for our buddies over cooler screens? The closer to a decision point, the greater the value of the ad. Snackers, as life continues, you're seeing ads press into whole new frontiers. Started with the radio back in like FDR's Day, then magazines and TV. Now you got an ad on every Lakers jersey on TV. But it's not just about the quantity of the ads. Now it's about the quality of those ads. The quality of ads is why Facebook is worth $750 billion. Yeah, Zuck knows you and shows you freakishly relevant ads. Kays Point, Jack, little experiment. Can you say mattress three times right now? Mattress, mattress, mattress. Snackers, tweet us to Robin Hood Snacks if you get a mattress ad in the next 24 hours from Casper. That's true. Zucks definitely listening to this podcast.

But the most valuable ad frontier there is, is capturing you at a decision point. Tropicana would love to pitch you their delicious orange juice at that moment. It knows that you're thirsty. Cooler screens is going to show you ads at the literal decision point, but in offline retail. Coming to a gas station near you. Jack, can you whip up the mattress? Takeaways over there for us, mattress, mattress, mattress. President Trump's use of regeneron, COVID cocktail.

is a huge earned media moment. A great product is only half the battle. Getting discovered is the other half. For our second story, Tesla's Model 3 and Model Y seem to be cannibalizing, Model S and Model X. But you got to cannibalize yourself or be eaten by someone else. For a third and final story, cooler screens think they have cooler screens than the old school class.

So they're sticking ads absurdly close to your consumer decision. Now, time for our snack fact of the day. This one tweeted into Robin Hood Snacks by Catherine in Lerner. Nuded Massachusetts, two pumps, Catherine. I wonder if that's in Wobbin, which is a sub-Newton, Newton, Newton. Or is it west of Weymouth or south of Weston and Walton? Radio Shack was founded by two brothers in Boston, Massachusetts in 1921. But we looked at further, there is a specific reason for the name Radio Shack. Turns out the term for a small wooden structure that houses a ship's radio equipment is called a Radio Shack. That is the Radio Shack, the original. Now, the next question

we don't have answered, what's the difference between a vessel, a boat, and a ship? Snackers, tweet us at T-Boy Jack and at Nick in New York. We need answers to this. Snackers, H-Y-H-Y-Y-S-D, ask your buddies for us. Have you had your snacks daily? Let's grow the snacks. Nick and I'll see you tomorrow. Can't wait. Before we go-go, congrats to Rish Sharma for launching a new business in Irvine, California. And congrats to Janet and Sam just got engaged over in Quincy Mass. And Kim and Nia, two-year anniversary, Omaha, Nebraska. And a big happy birthday to Barbara's Wig, legendary snacker straight out of Manhattan. And happy birthday to Connor Kay at Wake Forest, which I think is in North Carolina. And to Annie Fan over

in Chicago, Illinois. And to Grace Yan Zamara in San Francisco, California. And a happy birthday to James Sparkman over in Pittsburgh. And to Anne-Marie Gass in Los Angeles. And to Alex Saffer in Daytona Beach, Florida. Snackers, if you want a shout out on this pod, fill out the form in the description of this episode. You can find the link there. This is Nick and I own shares 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, or any of its subsidiaries or affiliates. The podcast is for informational purposes only, 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.