The Best One Yet - 🤩 “Vinny’s Entourage goes public” — Ari Gold’s IPO. Amazon’s Gretzky moment. Biden’s new 40-year cycle.

Episode Date: April 30, 2021

The inspiration for Ari Gold just took his entertainment-everything company Endeavor public and it was… entertaining. Amazon whipped up its best quarter in history thanks to the Wayne Gretzky principle. And Joe Biden’s freshly unveiled $6 Trillion prescription for the economy could be the beginning of a new 40-year cycle.$EDR $AMZNGot 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 Friday, the real Friday, April 30th. Snackers, first off, bummer situation this week. Aided. Both Apple and Spotify have had outages. Honestly, you haven't been able to listen to the pod.

It's been a bummer. unprecedented. A lot of Snackers couldn't get their daily serving of Snacks Daily. Now, if you missed an episode this week, we're sorry. Yes, we are. But the weekend is a good time for some revenge listening. You'll listen to one episode with revenge listening. And then you'll listen to another episode. Snacks is a dish best service.

You want two of the T-boys in one day, the best one yet, Jack. What do we got for this story today? Amazon just had their best quarter in history. And Jeff Bezos, the outgoing CEO, he's getting emotional. Honestly, it's all thanks to a little thing we call the Wayne Gretzky principle. For our second story, there is a corporation based on Ari Gold from Entourage. True story. And that corporation just IPO.

Endeavor, is Vinnie doing the movie or is Vinnie doing the movie? He's doing the movie. For our third and final story, on the 99th day of his. presidency. Joe Biden just finished writing his $6 trillion prescription for the U.S. economy. And we think this is the beginning of the third ever 40-year cycle. But Snackers, three words we never thought we'd say on this pile. Oh my God. Yeezys, Zuckin, wheezy. Snackers, no joke, Walmart has decided that Kanye West's new logo. Maybe you've seen it. Is problematic. Yeah, and here's the problem. The new Kanye West logo looks a lot like the current

Walmart logo. First of all, Kanye West has a low. A personal brand. Interesting. This is like a sigil from Game of Thrones. It is. First musician logo since Prince, one second, Jack. Hold my umbrella. There's some purple rain.

Now, if Zucking Snackers is copying another product like Facebook always does. Which it is, then ipso facto, this is our first ever ye zucking. Yes. Now, Walmart's logo, you may have seen it. It looks like a sun with rays of sunshine coming out from the middle. Kanye's logo looks like a sun with dots of sunshine coming out of it. Together. these logos look like a form of Morse code of some sort.

An artistic rendition, if you will, check. Now, Walmart's lawyers are claiming that Kanye's logo and Walmart's logo, they're so similar. So similar. Customers are going to be confused. I was walking down aisle 6 trying to buy a $3.31 cent of paper towels. I accidentally got a 300 pair of sneakers online instead. The takeaway snackers, Walmart takes my money when I'm in need. Judges will end up playing the blame game for sure.

Let's in our three stories. 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 Robin Hood 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 FINRA FNRA slash SIPC. For our first story, Amazon just had its most profitable quarter. Not in months, not any ever, the most profitable quarter it's ever had in

history. Nick, they unprime themselves last year, which was a brilliant move. Classy move. Now, sales, we'll just like get right to the core number. This is what you got to know. Sales up 44% to $109 billion in three months. You're not supposed to grow that fast if you're this big. It's like Shaquille O'Neal hitting puberty now. You must be this tall to ride the ride. If you're this tall, get off the But Snackers, Jeff Bezos is stepping down as CEO later this year, and we noticed he's getting kind of nostalgic. I don't know if I can go on. Get this guy a box of tissues.

He kicked off the earnings report with two of our kids are now 10 years old and 15 years old. Jeff isn't that much of a soft because he's talking about companies there. He's not talking about human beings. Amazon Prime Video, 10 years old. Amazon Web Services 15 years old. Those are his adorable children that he spends a whole lot of his time with. Amazon Prime Video got 12. 12 Oscar nominations this year.

Congratulations. Step up to the podium, step off the podium. Amazon Web Services is on pace for $54 billion in annual revenue. Jack, can we contextualize that? But let's not use a lift because we're going to use revenues on this one. That's more than Goldman Sachs makes in a year

and more than Caterpillar makes in year. And we're talking a single segment of Amazon. But snackers, funny thing Jack and I notice here, the rest of Amazon's earnings report, it sounded like they were applying for the head of a nonprofit. Jeff said that they are the world's safest place to work. Yeah, urinating in bottles not with standing, they did give 500,000 workers a raise jack.

Then Jeff said all the ways Amazon is supporting communities. Yeah, and there were a lot of ways. They had nine bullets on how they're supporting communities. Finally, we think this is the most worthy of the brags. The climate pledge. It is, because they actually are making a lot of progress on this. Here's the goal. 100% renewable energy by 2025, carbon neutral by 2040.

The rest of the earnings report read like a CV of somebody who's been like alive for too long. Can you squeeze this into one piece? For me, please. By the way, Jack and I counted up the bullets if you've ever seen an Amazon earnings Snackers. We actually do this every earnings report. Nick and I like divvy off, who has to do it? It's very manual work. It's an interesting use of 15 minutes of our valuable time, actually. Control F can't find bullets. Can they? No, it can't, but Jack and I's eyeballs can, and we noticed there were 89 bullets in the Amazon earnings report. This thing's a doozy. It wasn't until page five where we got to like a new product or something commercial. And there were some pretty

cool new things. There actually were some cool things. First of all, Amazon's doing in garage delivery now. You could have an Amazon delivery person. Yeah. Put it in your garage and open the door first in 5,000 cities. Yeah, no big deal. Oh, also, they've got a hair salon. They got a hair salon going on in London.

You know how they said only barbershops were Amazon proof? Guess not. You're walking. You got an augmented mirror, and it's a little bit creepy, but it kind of works. Finally, you can pay for things at Whole Foods with the palm of your hand. Oh, only $18 for this unrefined coconut oil. No, stick my paw on this thing. Let's pay for this puppy.

Give me five situations. I already spent $32 bucks on asparagus. Why not? So, Jack, what's the takeaway for our buddies over at Amazon with the best quarter in their history? They pulled a Wayne Gretzky in 2020. They passed where the consumer was going. Snackers, when the pandemic hit for the first time last year, Amazon did something wild. They stopped selling everything as fast as possible. Amazon prioritized just the essentials at the expense of the non-essential products on Amazon.com. So let's say this was a year ago, April 2020. Lysol, if you threw it in your basket, that could be there at your home today if you order it on Amazon.com.

Oh, you need some random podcast equipment? That'll be two months. Sorry, it's a pandemic. No joke. Jack, remember, we were like remote. We tried to order backup microphones. It was like a six-week wait on that situation. Amazon wanted to get you the essentials. They thought that would earn your trust. I was really stressed with the microphone thing. This is important because from 2018 to 2020, for two years, Amazon was losing e-commerce market share in the United States. Yeah, Walmart, Target, eBay, get this, those companies actually sank Amazon's share of the e-commerce market from 48% to 39% a year ago. But then during the pandemic, according to e-marketer, Amazon flexed again, winning back 1.7 percentage points of the e-commerce market.

So during the year in which every retailer got online and every retailer was new competition to Amazon, Amazon actually grew its share of the e-commerce market. They stopped losing consumers to Walmart, Target, and others, not by passing where consumers were. But by passing to where they would be. For our second story, Endeavor Group finally IPOs on the second take. That part is key. The Everything Entertainment Company is now worth $10 billion. Sir Jack, one second.

You ready? Yeah. Yeah. Oh, that's the entourage. Was Entourage like the first movie, technically, movie and show? Yes, HBO, 2000. Vinnie Chase, he's doing the movie, he's not doing the movie. I think that entire series was like every 14-year-old in Westchester's aspiration in life. Vinny Chase was the main character, but Ari Gold

was the memorable real character. Turns out that character Ari Gold from Outrash is a real person in real life. No joke, Snackers. He is based off of a guy named Ari Emanuel, a real person in real life, who happens to be the CEO of a company called Endeavor Group. Endeavor was created a hundred and twenty-two years ago when it was called William Morris, the first talent agency that was based in New York City. These guys were doing Chaplin. They were doing the silent picks. They represented Charlie Chapman in the silent era. They did. Then the dinosaurs were on the earth. Then a meteor hit. Then they got extinct. And today we got Endeavor Group. Endeavor. The core business here. Pretty straightforward. They're representing talent. Movie stars, athletes, models. Endeavor's goal is to maximize how much they get paid. And they're also like negotiating TV deals for the Olympics and the NFL. Their core business is taking a 10% commission on whatever sweet contract

they managed to negotiate until Endeavor did something a little different. They bought an alternative sports league. Endeavor acquired the ultimate fighting championship. The octagon, boxing, agitated cousin. There's the great thing about UFC. Everyone is five foot six in UFC, but they have 56 abs. They're redefining what an arm bar is. I don't watch it because I'm actually, I'm scared of watching it. Now, it's a talent agency. It's also a combative and bloody entertainment league. Okay. But Endeavor Group is actually a bunch more things.

All right, Snackers, we jumped in Snack styles to this. This is like the fifth Avatar movie at so long. They do events. They do music. They do sports, fairs, festivals. They got 800 events annually, Jack. They do video and movie production, brand licensing, streaming video technology. What about Miss Universe?

They doing that? Why not? Professional Bull Riding League. Of course. And do they have a podcast? It's a great question. Guess what? They don't have one.

They have nine podcasts that they own over at Endeavor. Now, what is the business model of Endeavor? If a famous person is involved and they can make money, Endeavor is somewhere elbow-deed. Yes, they are. They're on the red carpet. And on Thursday, they had their first day of trading. The stock rose 12%. So, Jack, what's the takeaway for our buddies over at Endeavor?

Endeavor tried to be a one-of-a-kind diva stock, but they failed. Snackers, funny little context we got to sprinkle on here. Back in 2019, Endeavor actually filed to IPO a first. time, and then they pulled a Rachel first episode of Friends on us. The day before the IPO, Endeavor walked away from the altar, canceled their IPO. We were in New York. Remember what? Do you remember doing that?

I do. It was the day after Pelton's IPO. It was kind of freaky. Back then, Endeavor pitched themselves to investors as follows. We just had a great sweet cream meal. It was delicious. It was lovely, Nick. And then this is what Endeavor pitched.

They used to say, wherever you are in the world and whatever way you define content, endeavor is likely playing a role. investors were like, sounds like you don't know who you are. It was a little awkward. So this year, this second time they're IPOing, Endeavor, is doing things a little bit differently. Well, they bought the other half of Ultimate Fighting Championship that they didn't already own. They did that in March. And now investors understand.

They're like, hey, this is a storyline I get. I'm not just pretending. Endeavor is the Ultimate Fighting Championship. Yeah. Plus a bunch of other entertainment businesses. It's basically like they were a theater major and then they added an econ minor. This new endeavor, investors can compare to another publicly traded company, like the WWE, for example. So UFC plus more, that was understandable enough to give these guys a $10 billion valuation.

Yeah, yeah. For our third and final story, President Biden just wrote a $6 trillion prescription for the U.S. economy with like a squiggly little signature. I got it, disease. Yeah, it's cowbell. It's going to be cowbell. We think this could be the third ever 40-year megacycle for the U.S. Yes, we do. And it all began earlier this week with something that wasn't the state of the union,

but it sounded like the state of the union. On his 99th day, Wednesday night, Joe Biden illustrated ambitious new government programs. Snackers, you already know some of these. You already know about the stimulus bill. Yeah, $1,400 checks. It was passed in January. And you already know about the proposed infrastructure bill. We told you about that.

But yesterday, Joe Biden announced another expensive plan called the American families plan. All right. So this one's going to include things like universal pre-K and free community college. Also subsidized child care and paid leave for new parents. Now, we know what you're thinking when you see the whole menu here. What are the prices and what's the bill? Well, this brings the total bill to the build back better talk from Joe Biden to $6 trillion. We're talking about huge government spending and support for the bottom and middle class paid for in this case by the top class. Here's how the $6 trillion is going to be paid for. First, increased capital gains taxes on people making a million bucks.

Yep. Second, increased taxes on income for those making over $400,000. Increased estate taxes. And increase corporate taxes. And finally, more money for the IRS to track down all these said taxes. You can't just jump in the flying Bugatti and head to the Cayman Island so quickly. So sum it up, the $6 trillion, it's going to be paid for by the rich. And the justification Joe Biden is using is that instead of trickle down economics,

He wants more of like a bottom-up, middle-out economics. Those were his words on Wednesday night. And in 2020, Joe Biden also said that 650 billionaires in the United States saw their net worth increased by more than a trillion combined dollars. That's a lot of cash, and that's where they're hoping to pull from. So first you asked how much this food is going to cost you. Now you're going to ask, is this food actually good for me? There you go.

Will this $6 trillion plan hurt or harm the economy, businesses, and stocks? Well, Jack and I whipped up for you a snacker of some arguments why they're this could harm the economy. Here are a few basic ways. While printing $6 trillion and pumping them into the economy, that could lead to debt and inflation problems. And then government spending, that can crowd out private investment. Like if the government builds a charging station, is Tesla going to build a charging station or not? There's also some good arguments why this could grow the economy, help businesses, and boost stocks. Right. So you're combating inequality, turbocharging the middle class, and federal spending is the most effective economic stimulus out there.

Oh, by the way, Joe Biden's plan has been clear and transparent for a number of of months now, and stocks are off to their best 100 days for a president since FDR. So it seems like Wall Street's kind of cool with this concept. So, Jack, what's the takeaway for all of us here in the United States? We may be seeing a new 40-year government megacycle. Snackers, one second while I pull out the old history book, Whiteboard we got going, Jack. For 40 years, the government's role in society and the economy, it grew from like 1932 to 1968, one 40-year cycle. Starting with FDR and ending with LBJ, the government played a huge and growing role in society. Then things pivoted. Then the government's role in society and the economy shrank for another 40 years from 1980 to 2020. Ronald Reagan to Donald

Trump, there was a focus on making the size of the government smaller. And then we noticed this wild statistic. Last year, the government became the preeminent lender and spender and provider for the economy again. And here's the stab. This is a wild stab for every dollar spent in the economy last year, 31 cents of it came from the federal government. Let that sink in. Every dollar spent, 31 cents came from your federal government. And based on the $6 trillion plan, Joe Biden wants to keep it that way. And he might just have the votes in Congress to make this dinner happen. Jack, and you'll whip up the takeaways for us before the weekend, my friend. Amazon unprimed, its non-essential items when the pandemic started. Sevy moved by the great one.

They passed where consumers were going, not where they were. Endeavor Group is UFC and a bunch of other ways that entertainers entertain. Sometimes investors understand Act 2 before they understand Act 1. For a third and file story, Biden's prescription to reshape America is $6 trillion expensive. And if you succeed, it would kick off a new 40-year megacycle. Now, time for our snack fact of the day. This one tweeted in by Thaler from lovely Cincinnati, Ohio. Twitter's bird logo, the little blue guy. It's basically been unchanged since 2006. Yeah, and funny thing, this is wild. They're 15 years old now. And that's like, 65 years old and tech years.

Well, we just learned that that bird logo has a name. It's called Larry. Larry, because the co-founder of Twitter, Bizstone, he's a Boston native, so he did the predictable thing that all Boston people do. He named something he loves after a Boston sports legend. You can't get out of a Boston Convo without hearing that. Snackers, you look fantastic. Have a great weekend.

Jack, by the way, I can't believe you don't remember that sweet green. You definitely ordered off menu. I did. Jack, that's where we discovered that you order on the menu. I just have them throw random cauliflower and pestos in there. I'm a deer in the headlights. It's totally fair. Snackers, we'll see you Monday. And before we go, happy Kings Day to Peter Vischer and the entire country of the Netherlands.

May your day be very orange today. So much orange in the New York City flag and the Dutch. Congratulations to Paul, Michael Manharez, and Cleon, who got promotions in California. Also, congrats to Charlotte, Azos, and Kate, who got promotions in New York. Happy birthday to Sue and Hapoon Bay, California. and Tori down in Dallas and Estefania in Houston, Texas, and Xi Jang down in Toronto, and Otis Kwano in Iowa, and Aaron Hendry in Morristown, New Jersey, and Isaac Gomez in Sherwood, Oregon, and Antoinette Marie, interesting name on a treadmill in Austin, and Nicola Martins in Gainesville, Florida,

and Sandy Punk in Cerritos, California, and Zach French in Brendanton, Florida, and Elise Goodhue in Ann Arbor, and Katrina Bionetto in Brooklyn, New York, and Jason, who didn't get a shout out last year at this time, but he's getting one now over in White Plans. Jason, respect the persistence. And happy birth to Gabriel Ryan, who is zero years old to parents, Abby and Cody. And anybody else celebrating anything today, make it a T-boy. Click to follow us on Spotify. Click to follow us on Apple and celebrate the wins.

This is Jack, I own stock of Amazon and Peloton. 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.