The Best One Yet - 🍭 “What Gen Z Wants (Candy & Cash App)” — The Zillennial Report. Nike’s too-much-Nike problem. Facebook’s death spiral.

Episode Date: October 3, 2022

We just got the report on what brands Gen Z likes… and the shocker is how it’s the opposite of Millennials (can we still say Zillennials? TBD). Nike shares dropped 10% Friday because it’s got too many Nike shoes — so we’re preparing for a Christmas of discounts. And guess which company is #499 in the S&P 500 this year? It’s Meta. Because Facebook is facing the Death Spiral, but we may have a solution.$NKE $META $SQFollow The Best One Yet on Instagram, Twitter, and Tiktok: @tboypodAnd now watch us on YoutubeWant a Shoutout on the pod? Fill out this formGot the Best Fact Yet? We got a form for that tooLearn 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. It's Monday. Welcome back. October 3rd. And today's pod is the best one yet, man. We're serving up a T-boy. Because on October 3rd, he asked me what day it was.

It's October 3rd. Happy Mean Girls Day. On Mean Girls Day, we wear slamming salmon. We keep the pink at home. Jack, what's our first story? We just got the annual report on what brands Gen Z likes the most. Honestly, here's the shocker. Gen Z and millennials disagree.

For our second story, Nike's story, fell 11% on Friday because Nike's got a problem. It does. It's got too much Nike. Nike is dressing up like overstock.com this Halloween. And our third and final story. Surprise. Yeah, what we got?

Guess what company is having such a bad year? It is number 499 in the S&P 500. It's not Quibi. It's Facebook. Facebook's second to last. Facebook is facing the death spiral. If you wait last, yeah, you're second to last. And we say one more thing and make it sound dramatic.

But before we hit that wonderful mix. It's a great mix of stories, Jack. I love this mix. Last week, we met a couple of you during the fifth inning. Yes, we did. In the center field at the Giants baseball game. It was a highlight. The other highlight of the game and the crazy crab sandwiches was the wine.

Because the San Francisco Giants are the only professional sports team with a master Somali. Bichers and pinos. We had it delightful Sauvignon Blonde. This Somalié, he wasn't no olive garden chicken neck. But here's the funny thing Jack and I found. out. Turns out baseball doesn't have a monopoly on Merlot. Get this. The Mighty Ducks of Anaheim had the largest wine cellar in all of American sports. According to Alvin Garcia, who's a sommelier there, the hockey team The Ducks has more bottles than any other arena on Earth. The Honda Center,

home of the Anaheim Ducks, is home to 250 different wines. Quack, quack, quack, quack, Mr. Ducksworth, the largest list of Vino from Sonoma to the south of France. And it makes sense. that ice hockey would be the true wine winner. Absolutely. Because you've got to keep that shardinay slightly chilled, man. What do you think the Zamboni's for? I don't know. It's for the Zinfandel.

Correct answer. Yetis, they don't need a refrigerated cellar in the ice rink. Just stick the Brunello in the penalty box for a period and pour that thing. The Stanley Cup is called a cup for a reason, Jack. Put that thing in your face and take a sip. It's made for sipping. So besties, when the NHL hockey season begins this week, remember this. They're not fighting to be goons.

No, they're not. They're fighting. over grapes. They're fighting over grapes. Let's hit our three stories. what millennials love. Is this a difference in preferences or is it something else? Are we talking Zillennials? Zellennials? Let's talk Zellonials. It's our made-up word to describe young people that marketers want. It's millennials and Gen Z. It's ages 10 to 40. It's a broad spectrum. The common thing? People who went to college in the era of the smartphone. Exactly. And had to delete party picks from their social media profile. Jimmy, it's been a great

interview, but we noticed you're tagged in a few images as Dr. Keggerator. Care to explain. Is that kind of thing frowned upon around here? Well, Morning Consult just interviewed 16,000 U.S. adults to confirm that millennials and Gen Z pretty much the same. This is an annual survey that just got published. Every sales, marketing, and executive reads it because they want to know what brands did the young kids love the most. But here's what Jack and I found fascinating. The surprise wasn't what Gen Z loves. It's where Gen Z and millennials disagree.

That's what was interesting. With statistical significance. 99% confidence in it. N equals 16,000. The limit to this exam does not exist. Get this. It turns out that millennials and Gen Z are not the same. It's not Zellinials.

No, it's like, Zelenials doesn't work. There's some shocking differences in brand love between the Instagram generation and the TikTok generation. All right, Jack, let's jump at T-Boisd out. What's going on with food? Millennials came of age, Nick and May, as kind bars were replacing KitKat. I just had a vegan, like, ethically raised almond bar. What's what I just ate, Jack.

Cabucha was eating Coca-Cola's lunch, as Nick and I came off spending age. Eating the lunch in a vegan, plant-based way. But Gen Z, shockingly, prefers the boomer classics that your dentist hates. Jack, what were Gen Z's favorite food brands? They want the sugary sweets, the candy. What were the brands again? Eminem's, Oreos, and Sprite. That is a difference.

Okay, what about communication? The difference between Millennials' preferences and Gen Z. Millennials prefer sending message by iMessage, and we're intimidated by Discord and Twitch, to be honest. But here's the funny thing. Gen Z's preferred communication apps. Discord, Twitch, and Snapchat. Exactly what intimidates millennials.

And we really see another difference in fashion. Okay, millennials like to resell a used J. Crew cardigan sweater secondhand. We love the real real. We love posh mark. We love thread up. Gen Z loves halls. Gen Z loves the halls. She in, the fast fashion app, is 11% more popular with the kids these days than with the

slightly older kids. N equals 16,000. I think it's 11 percentage points, actually. Gen Z loves fast. Millennials love slow. So, Jack, what's the takeaway for our buddies who aren't everyone who wants to know what these generations want? It's not a difference in preference.

It's just a difference in timing. Yet he's explaining the differences in generational preferences. It isn't about preferences at all. The way we see it, it's simply about timing. For example, one surprise in the report was that Gen Z prefers paying with Squares cash. But millennials prefer paying with Venmo. Now, that sounds like a fundamental difference, but in reality, it's just timing. We prefer Venmo because that was the only peer-to-peer payment app 10 years ago when we started

using it. And like our little cousins prefer cash app because that's the cooler option 10 years later. But millennials in Gen Z, they're doing the same thing. Yeah, both of us are using apps to send money and we're not using cash. The difference in brand love between the generations is not a preference thing at all. In many cases, the difference is just about timing. For our second story from the plastics, Nike stock just fell 10% because they got a new problem. Nike has too much Nike.

It does. And that could be a great thing for your Christmas list. Honestly, Jack, one of the most fun traditions of the last two years. Two plus. Yeah. The hoarders omine. Things were running out because of the pandemic. Jack and I've been keeping track for it.

We've run out a lot of things. We've had a shortage of cream cheese, Rolex watches, flowers, lifeguards. Last week, weren't we running out of butter? The churned stuff. We ran out of butter. But Nike's earnings just revealed the opposite of a shortage. And Nike sales rose 8%. But the key number that fascinated us was the 44% too much.

Yeah. As in inventories. They were up by 44% compared to last year. Unsold stuff sitting on Nike shelves rose 44%. This means, Nike's got too much Nike's. Inventory rows 44% to $9.7 billion. What does that mean, Jack?

That's a lot of extra pairs of sneakers and sweatpants, squatting in warehouses, living rent-free with no legs to be put on. Nike has too much Nike. Last year, Yuddies, Nike, it was the pandemic. They were running out of everything. Or does Omineck? There was a 14-week wait for those AirMax 90s. But this year, Nike is facing the Bull Whip effect.

It's better than Cookie Crisp, I think. Supply snapped back like a rubber band. And guess what? They overdid it. And here's where we see the bullwip effect. The CEO of Nike just said that a whole bunch of seasons are now landing at the same time. They have three seasons worth of fashion deliveries all coming in at once. Yeah, for example, they got summer sandals today.

Those showed up way too late. But they also have winter workout shoes today. Well, that's the right timing because winter's coming up. But then, Jack, they also just got a bunch of spring sneakers. They probably ordered them early thinking it would come late. But it came early. It came today. Whose fault is this big mismanagement of inventories?

It's a fair question. Nike blames are still hiccuping supply chains. Yeah. Well, now Nike shelves really kind of look like your father-in-law's garage, Jeff. The shelves are just overflowing with random stuff that he says someday he'll find a use for. Will you? He's never going to use it. Are you going to use that lumber you found on the sidewalk?

It's developed mold. Nike was short of Nike. Yeah, it was. But now Nike's got several billions too much nights. So, Jack, what's the time? takeaway for our buddies over at Nike. Prepare for a Christmas of deals. Hello, Yetis, you'd think that too many sneakers is way better than, you know, not having

enough sneakers. For Nike, too much of a good thing, it's not a good thing. And that is why Nike stock lost $13 billion of value in one day last week. Investors know that Nike is about to go on sale. Nike's facilities are about to dress up like overstock.com for Halloween. Nike just warned investors when promotions go up, like they're probably about to, profits are probably going to come down. My besties, get ready for 20% off the Air Force Ones.

Get ready for 30% off Air Jordan T's. Enter Fall 50 at checkout for 50% off everything. Last chance ends tomorrow. So we're prepping for a Christmas of deals. Just do it. Because too much of a good thing, it's not always a good thing. But it is for us shoppers. Yeah, it is.

Now, a word about our sponsor, Robin Hood. A lot of Yetis don't realize how much prep work goes into this pot. We spend hours every morning jumping in T-boy style to earnings reports, CEO tweets, breaking news headbikes. Yeah, Jack and I are toggling tabs like you toggled IM Convo's in 2004. Having eight tabs open can be stressful. You don't need that, especially when invest. Robin Hood offers it all in one app. Whether you want to trade options, ETFs, or stocks through Robin Hood Financial,

or you want to buy some Bitcoin on Robin Hood Crypto. You can do it all on the Robin Hood app. If you're not investing in Robin Hood yet, to get started, go to Robinhood.com slash T-boy and choose your free stock. Robinood.com slash TBOY. Limitations apply. Robin Hood Financial LLC, member SIPC, all investments involved with us. By the way, this podcast is not owned or part of Robin Hood. We are not employees of Robin Hood.

For our third and final story to kick off the week, meta, formerly known as Facebook, is facing the dreaded death spiral. The only thing to fix a death spiral is with a new face. We're just going to say it. Wall Street doesn't care that much about sun and moon cycles. Happy Libra Cesar. by the way. Yeah, we should point that out. But they're lessened to the, uh, astrology. They're lessen to the horoscopes. They care about quarters. They do. Quarterly

stock cycles. Well, the third quarter just ended. And it was the third straight quarter of negative stock markets. To sprinkle on some context here, that is the first time we've had three straight negative quarters since 2009. Yeah, that'd be the financial crisis, which led to the great recession. It's a tough comparison, but there is one bright side today. If you zoom out, the S&P 500 is still up by 13% since the end of 2019. If so facto, we're actually doing better in the stock market than we were pre-pandemic. 13% gained in two years. It's not horrible.

But on top of that bright side is kind of a dark side. Yeah. After three quarters, 2022 has been horrible. 2020 tastes like a hangover feels. Nick and I jumped in T-boy style, though, to the scoreboard, and we found a fascinating thing. Get this. Out of all 500 companies in the S&P 500 stock index, guess who's actually the worst? It's Netflix. Honestly, I didn't expect.

I didn't expect. But they're still spending $13 billion on content. Love them. It hurts my stock portfolio. I wish they'd spend $12 billion on content. But Jack, they're number 500 there at the bottom. But who is number 499 in the S&P 500? Facebook.

It's second to last on the S&P 500 scoreboard for this 2022. Zuck's baby stock is down 60% in 2022. And honestly, it's kind of getting worse. First, Zuck announced a hiring slowdown. Yeah, fewer Metamates out there. Then he didn't offer even the top performing full-time interns, full-time job office. And then he did that thing we were talking about, the quiet firing. You're not fired.

Right? You just can't work here after next week. Well, now, as of last week, it is explicit, according to Bloomberg. At Metas-All Hands last week, Zuck announced the unprecedented. He wants to shrink the size of the work. Facebook has never shrunk their workforce before. But because ad sales are down and you're scrolling TikTok now at Instagram Reels, he has to. From 2004 to 2021, Zuck grew headcount while wakeboarding in a designer hoodie.

2022 is the beginning of the face plant era. So Jack, what is the takeaway for our buddies over at Facebook? Cut off the face to save the book? All right, Vestis, meta is facing a death spiral, a cascading cycle of problems that beget more problems that be get more problems. A low stock price leads to job cuts, which hurts morale, which hurts performance, which leads to more lower stock price, and then repeat, repeat, repeat. It's a cycle. Now, there is one solution to stopping a death spiral. And that solution is a change of the face. Now, if the Metaverse takes off or if like TikTok gets banned,

Facebook could get out of this death spiral. But it doesn't control those things. What it does control is who leads Facebook. Only Zuck. can replace Zuck. One dramatic change that could stop Facebook's death spiral is a new CEO. Honestly, if there ever were a moment, it's right now. It's 2022. But would Zuck cut off the face to save his book? Jack, can you and Gretchen Wieners over there whip up the takeaways for us? Gen Z and millennials, they have some differences in preference. But do they? Or is it just timing? I think it might just be timing. We think it may just be time. For our second story, Nike, it ordered too much Nike. So now you get to be.

to order more Nike at Christmas for less Nike because they got too much Nike for our third and final story. Meta's 2022. It's looking like a death spiral. Would Zuck cut off the face to save his book? Really thought we had one more bullwhip effect in us, Jack. There we go. Four. I'm a court jester. No, no, no. I didn't ask for one more. I'm proud to be a court jaster. It's what the show needs. Now, time for the best fact yet. This one sent in via voicemail from John Harmer in lovely Ellsworth, Maine. Pledge and play.

Let's hit play. Hey, Yeties. This week is National Drive Electric Week, and if you're anything like me, you're probably listening to the pod in your car right now. In the U.S., our cars burn 8.9 million barrels of gasoline every single day. But only 1.8 million of those barrels actually move our cars forward. That means for every five bucks you spend on gas, only a dollar actually get. gets you anywhere. Electric vehicles, on the other hand, are far more efficient. Out of every $5

spent on fuel, $4.45 will actually get you moving. This means you can spend far less money to travel the same distance. Happy driving. John's quite the EV of Andrews. Honestly, he's a fantastic radio voice. It's way better than ours. So the gas thing, it's because of idle. It's because of idling. Like, that's kind of been the fun thing about our electric cars I found. Is when you get to a stoplight. When you stop, the car's just off. It just turns off. And then it's on again when you push the gas. It's like your iPhone. And by gas, I mean, not gas. I mean, juice.

Yetis, you look fantastic to start the week. And remember, when you see someone today, remember to tell them, the limit does not exist. Actually, H-Y-H-T-B-O-I. Have you had statistically significant? The best one yet. If you know, you know. And before we go,

congratulations to legendary Yetis, Christina and Aaron, who just bought their first home over the weekend and got engaged. The old double whammy. That's a Saturday. And congratulations to Katie Scar and Ricky DeBello, who are on their seven-month anniversary in New York City. Peter U. is celebrating 18 years in the legal profession in Georgetown, Guiana.

Congrats to Damien Todd for getting a new job in Clarksville, Tennessee. And Nathan Gillard also got a new job in New Berlin, Wisconsin. I've been there once. Sounds lovely. And happy five-year anniversary to Thomas and Melissa in Phoenix, Arizona. And congratulations to Ryan Peterson, who's got a birthday down to Minneapolis. And happy birthday to Juan Fenton. from Chicago who's celebrating

at a bachelor party in New York. I guarantee Juan's in charge of logistics. It's not even his bachelor party. He does logistics. And happy birthday to Andre Wilkinson from Jamaica, New York. Andre Wilkinson, a legendary YouTubeing Yeti. Andre, he greets us every morning on YouTube. We love it. And to anyone else celebrating something today,

make it a T-boy. Celebrate the wins. This is Jack. I own stock of Netflix. Nick own stock of The Real Real. And we both own stock of Apple, Block, Robin Hood. Now a word about our sponsor, Robin Hood. A lot of you listen to our show while you're driving. Two hands on the wheel. Keep it 10 and 2. You might be cruising Chris, no rush, stay in the right lane. Or you might be doll lane from Duncan, dotting from lane to lane. And there are different drivers on the road. They're different investors too. Maybe you're cruising down the long-term lane with

stock investing, or maybe you're a more advanced full speed trader. Well, the Robin Hood app helps put you in the driver's seat wherever you're at in your investing journey. If you're not investing, on Robin Hood yet. To get started, go to robinood.com slash T-B-Boy and choose your free stock. That's Robinhood.com slash T-B-O-Y. Limitations apply. Robin Hood. Robinto Financial LLC, member SIPC, all investments involve risk. By the way, this podcast is not owned by or part of Robin Hood, and we are not employees of Robinhood. Well, dude, I always that tunnels went like at the bottom of the riverbed. They go deep, right? They go underground. I always thought there might be like a crack and water

would come. I know. It was a threat. It was always a concern. That's why you held your breath when you were going from New York to Jersey. It's like, mom, get out the scuba gear in case we get stuck in traffic. I don't want to go to Jersey. This Lincoln Tunnels. T tunnels. T tunnels. Scaring little kids since 1921.