The Best One Yet - 🏒 “Watch this penalty shot for $0.99” — Torrid’s plus-size IPO. Didi’s 20% plummet. Buzzer’s sports savior.

Episode Date: July 7, 2021

The best-performing IPO of last week got no attention: Torrid noticed that 67% of US women are plus sized, but only 14% of US clothing sales are. Didi plummeted 20% after going public because we’re in a new era of investing in China. And Buzzer just launched to TikTokify live sports since Gen Z is accused of killing them.$CURV $DIDIGot 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 Wednesday, July 7th. Oh, no. The stock market's seven-day winning streak has come to an end. Jack, the triple-hat trick isn't going to happen. They're not going to have three-peat the three-peat on the stock market.

Still, this pod, honestly, this is the best one yet. Snackers, for our first story, D.D., also known as the Uber of China, just had last week the biggest IPO of the year so far. The stock just plummed a 20% because we're in a new era of investing in China. This is such a good pod. For our second story, Torrid. is the only stock we've seen focused entirely on plus-sized clothing. Plus-sized fashion has found a major market mismatch.

For our third and final story, buzzer is the sports app that will show Gen Z what a designated hitter is. The real story here, though, the TikTokification of sports. Snackers, before we hit those three wonderful stories. I'm so excited for this lineup. Yesterday, we told you about Wheels Up. It's a private chat company with public stock. We realized we had ourselves a. new thing. You can't afford the product. No, you can't. But you can afford the stock. So you can't

use it, but you can own it. And it's not just wheels up. How about Ferrari? Please, the car is $200,000. The stock, $200. Exhibit B, LVMH, it also owns Tiffany's jewelry. Tre bien, Jack, the rings, their two-months salary. The shares are not. Maybe a little closer to home is Yeti Coolers. Their top cooler, Nick, tops out at $1,300. Must be nice. The stock, though, any stock's a little bit more chill? So we asked yesterday, what should be the term for a product you can't afford? But a stock that you can afford. The Snackers did not disappoint.

No, they did not. Here are the four finalists that we found on Twitter, Instagram, and LinkedIn. Sometimes you throw it on LinkedIn. Just see if you get any bites, Jack. Nick likes to call himself a LinkedIn influencer. If I endorse myself, it's still a thing. Snackers, the first term whipped up for a product you can't. You can't afford, but a stock you can is aspirational equity.

From Alex Wilhelm. And from Jake Westerman. That was a great one. Second one you guys came up with was Mo Bo. Missing out, but owned. And that one is from Phil Savarez. The number three finalist is vicarious investments. From Claudia Cruz, because you want it, but you can only get it vicariously.

Finally, from Tony DeRosa. This one's great. The inaccessibles. That is key emphasis because it is an inaccessible product, but you're bullish on the stock. Snackers, tell us. What is the best term for a product you can't afford, but a stock that you can afford? Real thing, now a thing. Vote on Twitter at Robin Hood Snacks.

We're looking for it today. Also, Snackers, classy first date move we want to share with you. This is a pro tip. You say I own a private jet. Stock. Actually, it's a fractional share, I can be honest. Yeah, it is. Let's in our three stores.

You're tuned in the snacks daily. We spoke to the lawyers and we got to get something legal out the way. The snacks are about to hear rain food. It's air candy. They don't reflect the view. of the Robberhood 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 Fenra slash SIPC. For our first story, Diddy stock just plummeted a whopping 20% in one of the worst IPO honeymoons we've ever seen. And Snackers, we got to tell you about the new theme for investing in China. And that's in the take. But first, Jack, Didi, the Uber of China was the biggest IPO of 21

so far. We covered their S-1 last month, and they became a publicly traded stock last week with a total valuation of $68 billion. I mean, who could forget their great feature, The Shofer Service? That's what some guy, like, bikes to you, drives you home because you can't drives. Sticks the bike in your car and they get you home. This is where Didi's operating at a whole different level than Uber. And once he safely returned you to your bed, I assume he tucks you in. You got it. And then he unwraps his bike and bikes home. That's how you get the five-star rating. In the meantime, Didi, I p-oded last week. Everything was looking exciting except this happened on Friday. Chinese authorities launched a quote-unquote cybersecurity probe into Didi.

That was awkward. And then this happened on Sunday. Chinese authorities removed D.D. from all app stores, iPhones and Android. Huge deal. Until that probe gets resolved. D.D. stock has fallen 25% since all that happened. D.D. competes against Lyft? Yes, it does. Which is ironic because D.D. lost the value of Lyft in just one day.

The Uber of China lost the value of Lyft in a single 24 hours. Now, I mentioned we covered DD's S1 document when they filed to IPO a month ago. And we noticed risk number 11 on page. 48 of that S1 document. I mean, this is classic jumping in snack style. If we do not comply with China's regulations, we could be subject to severe penalties. You can't say Didi didn't warn us about this. Which is part of a larger theme because we noticed in the last year, we've seen the

Communist Chinese Party intervene in public companies for various reasons. Kick it off with Tencent. They are a gaming icon and we're becoming a global tech giant. Great. Point Jack, and then China issued new rules hurting its video game business badly. Now let's take a look at Alibaba. Their legendary CEO, Jack Ma, had the audacity to criticize China's financial regulators publicly. Then he wasn't seen publicly for three months.

Okay. Exhibit C. Ant Financial. They were supposed to be the biggest IPO in decades, valued at like $300 billion. Well, that IPO was blocked by the Chinese government, and many believe it was punishment for what Jack Ma said, which we just said a few seconds ago. Right, because Jack Ma is involved in Ant Financial tip. Jack, can we whip out Exhibit D? We rarely get this far down the alphabet.

Even cryptocurrencies, the Bitcoin mining industry in China, was the biggest Bitcoin mining industry in the world. Well, China had a major crackdown. It's now illegal to mine Bitcoin in China, and that literally caused Bitcoin's price to drop last month. Snackers, the theme we're seeing in these four examples is that China is reminding the biggest, most powerful companies and industries who is in control when it comes to China.

This feels like a takeaway, Jack. So Jack, what's the takeaway for our buddies? Over at Chinese publicly traded companies, all of them. The theme of the 2000s was invest in China because of the opportunity. The theme of the 2020s, though, invest in China at your own risk. Snackers, for decades, American investors have been excited about the growing size of China's billion-plus people consumer market.

That was the opportunity. But the risk now is the growing role of China's government. What U.S. investors in companies like DDC is that DDIO isn't the real boss of that company. No, he's not. President Xi of China, that's the real boss. What she wants. Yes, she gets. But it on a pillow, actually don't.

And that is why it wasn't just Didi who stock actually dropped yesterday. Buy-do stock got hammered yesterday. The Google of China. Pindu-doo is feeling pain. The Instacart of China. And JD.com is bruised. Pretty much the Etsy of China. The major theme of investing in China has changed.

For our second story, Torrid is the first pure play plus size clothing stock out there. Torid is targeting the biggest supply and demand mismatch in all of fashion. Okay, so by the way, this company IPOed last week didn't get any attention. This is why I love our job, Jack. They didn't get any attention, Nick, because Torr doesn't have all that innovative a business model. It doesn't really. I mean, the company was founded 20. years ago. It's got 600 physical stores. It's a retail company. Torrid used to be part of

Hot Topic, the mall staple that was always next to the Brookstone. Always next to it. But now, Torid sells, shoes, and accessories, and intimates and dresses and underwear and outerwear and athleisure wear. Straightforward, fashion, retail, apparel company. After their IPO, they're worth $2.5 billion, because they had a billion in sales last year, and they're profitable. So here's what you're going to see at Torid, though. You're going to see the same floral kimono as you see at Anthropology. You're going to see the same chiffon cocktail dress as you'd see it made well. And you're going to see the same black capri yoga pants as you see at Athleta.

But there's one key difference. Which is perfectly exemplified by the snacky ticker symbol that this company chose. C-U-R-V. Curve is their ticker symbol. It says everything. It makes all the difference. So TORID's innovation isn't its business model. Toritz innovation is its focus on plus-sized customers.

Torrid's innovation is curves. Basically, Torrid found Victoria's Secrets blind spot here. The largest clothing market is the least represented and the most underserved. Wild stat here, snackers, you're going to sit down, stand up and sit back down again. 67% of American women 14 and up are plus-sized, according to Torad's IPO paperwork. But as of 2017, only 17% of the clothing sales in the United States are plus-sized clothes. 67% of women are plus-sized, but only 17% of sales are plus-sized. That is a mitch match and a mismatch is an opportunity.

Now, Taurid believes that plus-sized women want to buy more clothes to boost that 17% to be more proportional with the 67% that they are. First of all, you need to wear clothes. Also, it's fun to wear clothes. Shopping is fun. If only there were a more fun, a more fashionable, a more feel-good clothing option for this market. That's why all of Torrid's clothes come in size 10 through 30, and they were designed for people who are a size 10 through 30. So, Jack, what's the takeaway for our buddies now public over at Torrid?

Torrid turned a size into a brand. Snackers, another wild statistic, Jack and I found in the IPO paperwork. 82% of Torrid sales in 2020 were from customers who also bought in 2019. Nick, Jay Cruz, CEO, she would kill for that kind of customer loyalty. Jack, that's power you can't buy. You read my mind. You read my mind, maybe. Snaggers, Torrid, turned a simple number.

The size into a signal of celebration and acceptance. And that turned into customer commitment. Torid turned a size into a brand. For our third and final story, this one's wild. Buzzer, the sports app catering to Gen Z just launched. And Buzzard could be key to saving the sports industry. Okay, buzzer, new thing, just launched last. weekend. Basically, the sports app for people under 25. And we're going to tell this one like it's a

1990s infomercial. Are you tired of paying a hundred bucks a month to watch sports on games? Tired of that Boeing three hour a game packed with no action, but somehow 60 minutes of commercials. Or worse, you can't watch because the game's blacked out. Introducing Buzz. Billy Mays here. To tell you to ask your parents to tell me you want buzzards. Yeah, it's live sports. TikTokify. Basically, here's how this is going to go down, Snackers. First, you're going to download the Buzzer app, and then you're going to select your players and your teams. And then Buzzer is going to send you push notifications when there are big moments happening in the games of your favorite players and teams that you selected. If that sounds like a small thing,

it's not a small thing. That's a huge deal. And that's the key to Buzzard. With Buzzard, you can watch that one critical overtime moment. But here's the key to the business model. You're going to pay 99 cents to watch that one key critical overtime. moment. So you're scrolling Instagram and you're like, whoa, push notification. Rangers, penalty shot? Yes, I will pay 99 cents to watch this penalty shot happening right now. There aren't a lot of penalty shots out there, so you will pay up to watch a penalty shot. Totally new thing buzzer is doing. They're 99 cent payments to watch like a tiny thing. They call them micro payments. We call it a la carte live sports. Because sports on TV has always been like a

giant tasting money. It is fancy. It is expensive. It is long term. It is. It is. a prefix with only no modifications allowed. Think about it, Sackers. To watch your team's games on TV, you must pay like a season long or maybe a month-long subscription. So you got Xfinity or even YouTube TV. It's a commitment. It's a commitment.

You're not paying less than like 50 bucks. Buzzard just came in though, and they're doing the exact opposite of everything we just said. 99 cents. And you just watch one thing, Megan Rapino's corner kick when they're down 1-0. You didn't have to watch 90 minutes. a people flopping around a soccer field. So Buzzard just launched the app and they closed a fundraise

with some VCs and some HOFs. Yeah, some nice Hall of Famies here. Jack, the lineup for who else is on this investment team? Naomi Osaka. Michael Jordan. Ever heard of him? Wayne Gretzky. A lot of muscle on that cab table.

Two of the greatest, maybe three of the greatest, if Naomi can keep doing what she's down. We're going to round up on that. So, Jack, what's the takeaway for our buddies over at the Buzzer app? If pro sports doesn't disrupt itself, they could die a slow and painful death. I mean, Jack, whip out the old whiteboard we got going here. The media megatrends are flying in the face of U.S. professional sports.

Sports today requires three hours of your attention. TikTok is 15 seconds. Most sports requires a cable TV subscription to watch your local team. Tinder just requires a swipe. The old-schoolness of sports media on TV is a big reason that sports fans are disappeared. All right. So Jack and I jumped in snack style, and according to the morning console, 47% of Gen Z considers themselves not a sports fan.

Big deal. That is a huge percentage of non-sports fans in this country. Huge. Oh, in sports purists, they probably hate the idea of buzzer. But the NHL, the PGA tour, and the NBA have all signed up to put their stuff on buzzer. By serving sports, the way Gen Z actually wants it, maybe they'll create some actual young fans for all those leagues. On the other hand, Major League Baseball and the NBA,

NFL, they have not signed up to join Buzzard. And that could be the playbook for a slow, painful death. Jack, can you whip up the takeaways and the subtle dark night references for us over there? Rachel. In the 2000s, American investors were focused on China's growing market. In the 2020s, investors are focusing on its growing government risk. Torit is the pure play plus size clothing stock. And they just turned size into a brand. For our third and final story, buzzer is the TikTok of live sports. And as sports media doesn't disrupt itself, they could suffer a slow and painful decline. Now, time for our snack fact of the day.

This one is actually a correction, which that can happen. Corrections can become snack facts. And this one comes from Marjay Smiles in Dearborn, Michigan. Snackers, yesterday we were busy telling you how Detroit is actually north of Canada, which messes with your head and your mind. Only place in the U.S. north of Canada. And then, honestly, we made the biggest gaffe in Snacks history right there. All right.

We referred to Detroit as Hockey City. Yes, we did. And what we should have said is Hockey Town. It's not Hockey City. The Red Wings play there and they play in Hockey Town. I asked on Twitter, what's the big deal? Marjay said that's like calling New York City the large apple. We would not do that.

We would not make that mistake. We would hear from a lot of you. Forget about it. Snackers, you look fantastic today. If you haven't yet, drop down, give us five stars. and Jack and I will love you forever. He's not a Belgian. We will. We'll love you forever. That's how the podcasting industry works. We'll see you tomorrow.

And before we go, congrats to Maria and Zillard, engaged in Boston. Let's see the ring picks. I'm excited to hear this one. Fernando Salazar, guess what I got out of surgery successfully in Mexico City. There we go. Congrats, Fernando. Keep on walking. Celebrate the wins. And Nitchie A. are moving to New York City with a best friend, not too shabby. Congrats to Elizabeth and Laura also moving to the big apple. Carlos Moran and Denise Rodriguez listen to snacks every day in traffic and it's their anniversary. Celebrating the anniversary, not the traffic.

And happy birthday to Retiga Ida in Ashburn, Virginia. And James Moride in Bermuda Run, North Carolina. And Melinda Wilson technically a half birthday in Washington. Happy birthday in Nassim in San Francisco. And Henry Chavez also in Boston. And Nerja Gupta in Toronto. And happy birthday, Mark Lynn, turning 39 in Minneapolis. Anybody else celebrating something today?

Make it a T-Boy. the wins. 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 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. I'm so glad you ripped on the LinkedIn because every time it's almost a joke and I'm like,

I'm going to tag Jack. I'm going to tag Jack.