The Best One Yet - “Your score dropped, Nicolas 😓. New credit score, Nicolas 😃” Intuit buys Credit Karma. Tubi (almost) acquired. Dow drops 1,032 points.

Episode Date: February 25, 2020

The Dow plummets 1,032 points because coronavirus expanded beyond China (to South Korea and Italy). Fox wants to splurge $500M on streaming service Tubi, even though it’s got terrible content (it’s all part of Tubi’s plan). And Intuit just announced it’s officially dropping $7B to buy Credit Karma so it can data-double-dip you.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. It is Tuesday, February 25th. It is a great day. I've got a feeling this is the best one yet. It's the T-Boy Tuesday, best one yet. We've ever done so much better than it's right. Markets dropped badly. But honestly, this snacks daily is phenomenal. Yeah, markets had a bad day. We're having a better day. Our first story, into it is paying $7 billion to acquire credit karma. It wants to become friends and then tell you about your credit score. And then make money off your data. Not a big deal. Don't ask any questions. Just we'll tell you your credit score. Our second story. Have you ever heard. of Tooby. Probably not. It sounds like a made-up name. It's the Randos streaming service that Fox is trying to require for $500 million. And they've been strategically putting out terrible movies. Tubi has awful movies, but that's actually part of the plan. It's a fascinating story. We're going to get into this one. Our third and final story. Coronavirus. Contagion is a scary word,

just like coronavirus is. And it's the reason markets have dropped, you know, a thousand points yesterday. Now, the reason is because 20% of the global economy has been affected by coronavirus. Snackers, we always go back to benchmarks and we're to explain why this is different than SARS. But also why you shouldn't panic. SARS equals worse. Now, Snackers, before we jump into all that good stuff, it is T-Boy Tuesday. It is T-Boy Tuesday, because this Tuesday is the best one yet. Now, Jack and I were doing some research on today's pod, and we noticed a little theme going on with the names of streaming service companies.

If you're paying $10 a month for something, it's probably called Roku, or it may be called Hulu, or Pluto, or Phibu, or Kizuma, or Kew. We noticed there's a formula for naming video streaming services. You got two syllables. You got two vowels. And then you got two consonants. Bonus points if you can make it sound like a futuristic pet name. Bonus, bonus points if you add a plus to the end of it. We're talking Disney Plus.

Apple Plus. B.E.T. Plus. ESPN Plus. And then HBO Max. Which is a plus in disguise. You couldn't sneak that one by us HBO. Now, we're thinking there should be some additional streaming services. Like, what's coming next?

Right, but follow the same formula. For example, what about Chitzu? Which is dog stream. Or what about nesting? Nemo. Nature streaming. Or Jack, what are you thinking here? PIPA, which could be like royal family material streaming. Poooooo, which is programming about bodily functions. FU., which is just R-rated content. YouTube, which is just YouTube music. Yeah, why can't they have a streaming service? Music video. It was a really good one we were growing up. Snackers, what is a great name for

the next streaming service? And what content should they specialize in, especially if you can use the streaming name formula? Hit us up at Robin Hood Snacks on Twitter. Hashtag T-Boy Tuesday. Tell us the best one. daily. We spoke to the lawyers and we got to get something legal out the way. It snacks about to hearin 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. Snacks is digestible. Business news for you. Robahood Financial, LLC, member FINRA slash SIPC. For our first story, Intuit is officially acquiring credit karma for a cool $7 billion. Or as Rebecca the third snacker put it, credit karma is putting its back into it. Oh, wait, inbox new message. Nicholas, your score has dropped. Nicholas, new credit score!

Exclamation voice. Basically, credit karma is like an army of elves who are like obsessed with your credit information. I love exclamation points. They should really put a depressed, sad, founty face next to your credit score dropped you now. into the 21st century, enough with the exclamation points. All right, let's talk about Intuit. It's a $75 billion software company that's behind

TurboTax and QuickBooks. This is their favorite time of year because they're gilting you right now that you're not doing your taxes. Your 2019 refund is waiting, John. P.S.HNR Block is terrible. The only competitor. Here's the funny think Snackers. In most developed countries, it's pretty easy to use online software because the government provides it and lets you submit your taxes online. And everyone has to pay taxes and you shouldn't have to pay 50 bucks do that. Here's the funny thing. Intuit actually hates that. Yeah, that's because Intuit sells turbotax software and it would stop making money if filing taxes was easy. In the United States, Intuit literally spends millions of dollars every year lobbying to keep taxes really complicated.

Oh, just send in the Schedule C-1040 W6. Or is it W-4? Depends if it's first quarter or third quarter, you idiot. Is that gross or adjusted or net? It's all the same thing, or is it not? Now, Intuit has been buying up the millennial personal finance apps that a whole generation loves. Back in 2009, they splurged $170 million to buy it mint. Mint, you, of course, link your bank accounts, link your credit cars, and it tells you at the end of the month that you're overspending on Chipotle. Basically, you get an email at 3 a.m. on a Saturday evening saying, hey, you spend $400 at Chipotle in the last week. How do you feel about yourself? Yeah, they should stick a couple big eyeballs in there because they're judging you in that subject.

How do you think I feel about myself, Mint? How do you think? Now it just acquired credit karma, another darling personal finance app of Millennials. Now, Snackers, here's the thing about credit karma. It's basically the only thing besides your dog that knows your credit score. And it takes advantage of that intimate knowledge with targeted advertising. So basically it's going to pull your credit score from the credit agencies. And that doesn't ding your credit rating when it does that money. No, and then Jack and I noticed it shows you your credit score.

Then it offers you things based on that credit score. Oh, boom, John Kell and Kramer, you're paying 8% for that auto loan. You got to refinance. And please use this link because we make money if you do. But seriously, they make money when you click on the link. So, like, you have to click on the links for credit cards. $30,000 credit limit, $790 credit score and no debt. You should apply for the MX Platinum, John.

Boom. That's when you click on the, like, best travel rewards cards for 2020, which they have meticulously crafted to make more money off. Again, please use our link because we make money if you do. If you work at credit card right now, you're like, whatever you do, don't Google. Don't open a new tab. Don't Google.

Stay on this tab and click our links because we make money. So, Jack, what's the takeaway for our buddies over at Intuit and Credit Carver? Intuit is trying to be the Facebook of finance. Snackers, Facebook is a virtuoso of making money off your data. Mozart is impressed by Mark Zuckerberg's data whipping up that cash skills. I also think, like, the team at the British baking show likes the data double dip going on with the premium topping to make money off you from Credit Carver. Yeah, Intuit really does have a data double dip.

All right, so here's how it goes down, Snackers. It owns TurboTax, Mint, QuickBooks, and now Credit Karma. First, it tries to get to pay for those services, like using QuickBooks to figure out the taxes for your small business. Then it starts making money off your data. By showing you ads first based on the data it knows about all your finances. Again, it's got that credit score and knows that maybe you probably eat a lot of Chipotle. But then, it's not done yet. It's going to make money if you buy that credit card from the article on the top 10 travel rewards cards.

And then it's going to know that you can click on the article that explains the 0% APR Zero Day. down, six-down thing. This deal was 100% about capturing personal finance data on millennials and then dipping into your data and making some cash. For our second story, coronavirus is a factory mall tourist triple whammy right now. And it just entered two new countries. So news broke over the weekend, Snackers, that Milan in Italy and South Korea are instituting curfews, quarantines, and an alert level red. Even scarier, people are getting sick without coming into contact with people from China or without going to China. So investors sold stocks on Monday morning. Stocks are risky during a crisis. And instead, investors bought government bonds and gold instead, which are considered safer during a

crisis. So here's the way Jack and I are looking at this, Snackers. Investors basically realized over the weekend that coronavirus is not just a China problem. When coronavirus was just a China problem, that was already bad. Basically, it's a triple whammy situation. If China is like one giant factory, that was like shut down during the coronavirus. And that's what's hurt Apple specifically. But China is also like one gigantic shopping mall and that's been shut down by the coronavirus. And that's hurt like Apple's retail stores. But China also has lots of global tourists and China the global tourist has been shut down because of coronavirus. And that's hurt airline stocks, hotels, Tiffany's. Oh, and guess what? Apple's retail stores abroad. If you think of each country as a huge factory, a huge shopping mall and a

huge tourist, then it's clear how each new affected country hurts the global economy. And when each new country gets hurt, that ends up hurting profits, which hurts sales and which hurts stocks. But here's the key during times like this when stocks drop by like a thousand points in the Dow yesterday. Don't panic. Snackers, do you remember where you are? Jack, do you remember where you were? I actually do remember where you. On February 5th. I do. 2018. I was at University of Michigan watching you on CBS News talk about the stock drop, which was a thousand points. I think I was saying, do you guys remember where you were on February 2018, I was saying like the same thing about another date.

On those dates that Nick's talking about, the Dow fell by over 1,000 points, which is actually more than what happened yesterday in percentage terms. Yeah, yesterday the Dow fell 3.5%. Back in 2008, it fell over 7% three different times. So the Dow took a big fall yesterday, but it wasn't that big a fall. This has happened before. It happens in isolated moments, and it could happen again, and it will happen again. And some people might see what happened yesterday as an indication that they should

sell their stocks. But Warren Buffett, the legendary investor, had a great point about moments like this. Basically, investors should buy when everyone else is selling and sell when everyone else is buying. Now, Snackers, that doesn't mean you should necessarily buy right now. Could stocks, they could fall further. But it's best not to be emotional. Don't get whipped up in the news from yesterday, and don't just follow the past. So that leads us to our key takeaway. Jack, what's the takeaway for our buddies who is everybody in the world right now? SARS is the wrong benchmark to measure coronavirus. It's already five times bigger than SARS. Snackers, comparisons make us feel more comfortable. They're like adorable comfy pillows. And SARS is the obvious comparison that people are

making for coronavirus. But this situation with coronavirus is different. All right, SARS had an outbreak in China back in 2002. Back then, China was only 4% of the global economy. Right. But today, China is more like 16% of the global economy. It's grown an insane amount since 2002. And when you look at Italy and South Korea, whose economies are now affected. more deeply by coronavirus, that means 20% of the global GDP is affected by this outbreak. Right. Now, 20% of the global economy hasn't been shut down. No. But coronavirus has had a significant impact on countries that represent one-fifth of the world's economy. And for each country that the virus spreads to is another injury to the global economy. For our third

and final story, this one's fascinating. Fox is in talk to acquire a streaming company for over $500 million. It's called To be. To be with an eye. By the way, Fox is confusing. Most of Fox just got acquired by Disney. But what we're talking about is like Fox Sports, Fox News, and Fox Local TV channels. A.k.a. Fox leftovers. Right. Like when you're traveling for business, right, Jack? And you're like, oh, what's Fox Tampa? I didn't know that was a thing.

Right. This Fox is basically in a doggie bag. It's the leftovers from the Disney. Now, Snackers, we know you're thinking, Jack, Nick, you know, what's this tubey thing? Because that's kind of confusing, too. It's actually a streaming company with 25 million users. Bold number. But you've never heard. heard of it. It's free and it has what they call unskippable ads, which sound like a superhero. And it's been focused on reruns since 2014. Also, what ads aren't unskippable? Yeah, not really

sure where they're going with this one. If it's a skippable ad, it's just not an ad. Someone really dropped the ball in marketing on that. In this day and age, if you're producing video content, then you're in the market for streaming tech. Case in point, Jack and I whipped up a whiteboard list over here as long as your arm. Look at Viacom. It acquired Pluto for $340 million. Look at Disney. they acquired a majority of Hulu. Comcast is currently in talks to acquire Zuma. And we found out yesterday, Walmart is in talks to sell voodoo to NBC. I need to just take a breath after all those names.

One second, I've got to massage Jack's back and throw some water on his face. Here, Jack, here's some lemon for your hands. If you're wondering why Roku hasn't been acquired yet, it's because it's too big. Yeah, it's now a $13 billion company, which is about the size of, what would you say? Lyft. Also, this is Jack. I don't own stock of Roku anymore. But Jack and I did notice something very interesting.

about Tooby. The content was objectively bad. This is actually some of the worst streaming content we have ever seen. We looked through this library and we couldn't help but notice that these are all like 2.0 ratings on IMD. Snackers. We do our research. We jump in snack style. There's no Emmy Oscar winning Adam Driver

and Martin Scorsese bio epic coming out of Tobey. There's no Houston Astros sign stealing scandal, six part documentary. I can't believe you were able to say that. Instead, they got a bunch of unknown movies. Yeah, you ever heard of Vampire Academy? Nope. You ever heard of the Lazarus? effect? I think so. No, you haven't. And have you ever heard of Better Watch Out? Jack, don't lie to anyone here. Don't lie to anyone. Then they've got embarrassing titles like Dog the Bounty Hunter.

Yeah, that's kind of like from your childhood. And did that ever take on? Burnt was shockingly has Bradley Cooper. Brad, you can do better. We know you're a snacker. You can do better. And August in Osage County starring Julia Roberts. Julia, when did this happen? No longer pretty woman. But here's the thing about content, Snackers. Content is supposed to be king in media. For Tooby? It isn't. So Jack, what's the takeaway for our buddies over at Tubie and Fox? Tubey wasn't built to take over Netflix. It was built to get sold eventually. Snackers, this is our own take on this.

The founders of Tooby, we're guessing they weren't looking to disrupt Netflix or cable. No, Netflix and cable are like good enough. They recognized a different problem. Content producers need technology to stream their video online. So if Fox, a content producer, acquires Tooby, it'll now have the tech it needs to stream its own content. Which is way better content than Tooby's content. And that's why Toobie doesn't care about actually having good content. they're happy with Vampire Academy.

Now, comparisons make us comfortable, right? So we got a perfect comparison here. MLB, Major League Baseball, created a tech company to stream baseball games online. It was called Bam Tech. And it was spun off into its own company back in 2015. Then they realized Bamtech was kind of a great tech asset. So they started doing NHL, PGA games as well,

and had 10,000 games streaming per year. Boom, Disney recognizes this is a streaming tech they want and acquires it for almost $4 billion. Now, Bamtech is Disney's, backbone, which powers Disney Plus and ESPN Plus streaming video. Tubi was built to be sold. Jack, can you whip up the takeaways for us over there? Credit Karma is now part of Intuit.

Along with Mint, QuickBooks, and TurboTax, Intuit now knows more about your finances than your significant out of it. Than anyone really, basically. Now, coronavirus has Italy and South Korea on high alert. Coronavirus hurts production, hurts sales, and tourism in every country it touches. Now it's all getting wrapped up. Our third and final story. Fox is interested in buying Tubi to buy.

boost its online streaming game. For like $500 million, Fox gets really horrible content, but really great technology. Now let's go to our snack fact from Nathan Anderson, hailing from Denver, Colorado. Snackers, you know Jack loves to bathe in the creeks of Vermont, and I would live off of New York City tap water like a bagel if I could. H2O. H2O. Oh, I have it shipped back to San Francisco. I don't know about the carbon fit print on that.

Turns out bottled water is super inefficient. Yeah, it takes, you know, 1.39 liters of water to produce one liter of bottle. What's not clear to us there, I mean, it's clear that it's wasteful. Yeah, it's very rich. But is that 0.39 liters of waste per bottled water? Questions for the snackers? Or does it include the water itself and it's 1.39? Same question for the snackers.

Either way, we know that bottled water is 600 times more expensive than tap water. Wow. Also, we got to give a birthday shout out to Federico. Who listens with his girlfriend Maria Victoria. I think they're about to graduate from Harvard. Never heard of that. I think that couples who snack together stay together. By the way, we have to do a little quick correction here.

Oh, God. Yesterday I mentioned that landslide had a Radiohead remake. It was actually smashing pumpkins that did a landslide. Not going to lie, I'm kind of proud that you got that one wrong, Jack. Also, Snackers, H-Y-H-Y-S-D. Have you had your snacks daily? Spread it if you know, you know. And remember to tweet at Robin Hood Snacks, we want to hear your streaming name ideas.

Geez, are we done yet? I'm exhausted. See you guys tomorrow. Go to throw the bread bowl on me. 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.