The Best One Yet - 📺 “YouTube > Netflix” — Crocs’ secret hero. YouTube’s 1st earnings. Apple vs Facebook.

Episode Date: April 29, 2021

Facebook and Apple both delivered stick-it-up-on-the-fridge record quarters… but 1 single quote reveals who has the advantage. Crocs stock surged 25% this week thanks to its adorable secret hero product, Jibbitz. And Alphabet announced earnings, but we think this was something different: The 1st ever YouTube earnings report.$CROX $GOOG $AAPL $FB $NFLXGot 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 Thursday. The new Friday, April 29th. According to the Wall Street Journal website, the Fed, the Federal Reserve, is keeping interest rates low for a while. In the meantime, markets reacted and stocks said nothing. Stocks didn't do anything yesterday.

They stayed at the record high, which is good news. Not too shabby. In the meantime, Jackline whipped up, honestly, like, the best one yet. This is a TBOI. T-B. For our first story, Apple and Facebook both announced earnings at the same exact moment yesterday. So awkward. And they delivered stick it up on the fridge.

record profit quarters. But one single quote that Jack and I found reveals which one mom and dad are actually going to brag about. For our second story, Crox lived its best life in 2020. Oh, yeah. Get this. They're living a better life in 2021. Turns out Crox has an adorable new secret hero product. I love how Crocs is a publicly traded stock.

This is a beautiful thing. For our third and final story, Google announced earnings as well, but it wasn't really Google's earnings. No, no, no. We're calling this the first ever unprecedented YouTube earnings report. But Snackers, before we hit, honestly, Jack, a wonderful mix of stories today. There's a funny thing that we noticed this week that we couldn't ignore. A whole year of pandemic going on can be summed up by one industry. Are you ready for this?

You ready? Get this. Plastic surgery. The latest plastic surgery trends in America reflect what we did last year. Seriously. And here's why. Here's why. Case in point.

Sitting on a couch lately, like rewatching Game of Thrones again. Spoiler. A dragon dyes. Yep, that was me. Well, guess what? The number one surgery in the past year was butt cheek implants up 22% from the year before. I mean, it's like eight seasons of that show. You may as well be comfortable.

Did you adopt a pup last year? Maybe. I did. This guy did right over here. Unfortunately, a lot of paurans weren't ready for it or dogs weren't ready because dog bite repair procedures soared by 20% last year. Ouch. Seriously, dog bite procedures up 20%.

And snackers, like me, are you still working on your resting Zoom face? Are you trying to suppress the sarcastic laugh you didn't know you had on Zoom? It's above the neckline. It may need some work line. That's right. The most common surgeries right now are focused on your Zoom frame above the neck. We're talking facelift and eyelid surgery. But Snackers, the number one plastic surgery of interest, according to a survey for after the pandemic, Jack?

Well, the evidence suggests you had Taco Tuesday and Taco Wednesday and Taco Thursday. Maybe he started doing like a make-a-cake Monday situation. So it's long. that the number one surgery expected for post-pandemic is going to be revealed at the end of this podcast. Oh, I can't believe you did it to him. Well, it's in 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.

It 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. Snacks is digestible, business news for you.

Robberhood Financial, LLC, member Fenra slash SIPC. For our first story, Alphabet just revealed some unshocking giant profits. So we totally ignore that, and we're going to focus on something way more interesting for you. YouTube is more valuable than Netflix or the entire cable TV industry. Let that sink. Actually, don't even let it sink in yet. We're going to jump right into this. Alphabet, the artist formerly known as,

Google. They brought in $18 billion in profits last quarter, and Jack, correct my math and I'm incorrect on this, but I believe that is a full lift. Alphabet generated a lift of profits last quarter. Can you sprinkle just, I don't know, a tad more context on this for us, Jack? They made 41 times the profit that Tesla did last quarter. Now this is just awkward. This feels weird. Well, it's got a global monopoly-ish position in online search that has become a profit powerhouse. Yeah, but here's the thing, you know that. Snackers, you know that. Jack and I, we all know that. Wall Street knows it too. That's why Alphabet is worth $1.6 trillion.

But Alphabet did something interesting recently. It started sharing data on YouTube and that's what Jack and I find fascinating. And we're calling this the first ever YouTube earnings because their numbers stole the show. Get these guys a trophy. Jack, YouTube was mentioned a whopping 33 times on the earnings call. Must be nice getting all the attention. Our favorite highlight is that there are a billion hours streamed on YouTube every day. Let that sink in. That is two and a half times the daily streaming hours of Netflix. Our second favorite stat, YouTube brought in $6 billion in revenue on those ads you have to watch at the beginning, the middle, and the end of YouTube videos.

Okay, so YouTube revenues, those are 85% of Netflix's same revenues from the same quarter. Now, although Google hasn't told us how much profits YouTube makes, I mean, just tweet us. We're ready. They could. They just decided not. Jack and I are here. We're waiting. We think YouTube's profits demolish Netflix's profits. And that's because Netflix, they're shelling out $17 billion a year to the actors, the directors, and the camera folk for the shows and the movies. And who could forget, the schmovies. But the shows, the movies, the schmovies, and the how-to videos that are on YouTube, YouTube has to pay next to nothing to stream those. Honestly, that's it. They just share like about 50% of the ad revenue with YouTube creators and then they go home. They call it a day.

By the way, Snackers, you're not impressed yet that YouTube is more valuable than Netflix based on our match? Jack, can you put down the bassinet and whip out the whiteboard for us over here? We did the numbers. YouTube's billion hours of streaming a day is 50% more than the entire cable TV industry in America. I'm sorry, Jack, I had to sit down, stand up and sit back down again. So what's the takeaway for our buddies over at YouTube? Free still matters, especially abroad.

Now that the U.S. and Europe are saturated, Netflix's growth really just depends on Asia and the Middle East and Africa. That's the focus. Asia, Middle East, and Africa accounted for three out of every four Netflix new subscribers last quarter. Yep. And Asia and the Middle East and Africa are lower income than Europe and North America. Splurging monthly for Netflix in those regions is going to be a major friction, even if Netflix decides to drop the price there. On the other end of the digital spectrum here, YouTube, it's free. The only cost is your attention of watching ads. And pro tip here, you can look away from the ads. Yeah, you got other tabs. They're not like pausing the ads if you switch to another tab, are they?

No, they're not. Yet. Oh, well, maybe they are. Actually, I don't know. If YouTube manages to convince advertisers to pay up in Asia and Africa in the Middle East, like they have in Europe and North America, then YouTube has another half a world of scaling, of revenue, and profits yet to be made. Now, Netflix could potentially do that too with the other half of the world. Yeah, they could. But we think it'll be easier for YouTube.

Because free still matters. For our second story, Crox, the stock has surged a whopping 25% this week. Crox, CROX, ticker symbol? CROX. O-C-S company. Okay. Not SAT-quality, Jack. So you struck out on the third day, but I like what you were thinking. Yeah. Yeah, but Crox is Hero Product Snackers. It's not Crocs anymore. Okay. First, a little context here. Question, who won the Oscars this past week. By the way, quick answer. The Oscars lost the Oscars this past week. We should say that. It wasn't the Academy. It was Questlove, yeah. Who got some custom gold crocs and strutted down the red carpet in them. I know what you're thinking, Jack. You want to ask your question? You've been dying to ask this. they gold the color or gold the element? I think it's both. I think it's a trick question. The answer is both. Snackers. Yes. Crock stock is more than doubled today where it was before the pandemic. Yeah. Thanks to the comfort economy. Now, first quarter sales surged 64% to $460 million

in the last three months. So naturally, analysts are thinking it got to slow down this quarter, right? How can they keep up that pace wrong? Crocs expects to grow even more than they just did by 70% next quarter. They're not going to get a post-pandemic pause. No, they're not. Demand wasn't pulled forward. We repeat, Crocs is expecting to do better in the next three months than it did in the previous three months, which were already better than the other three months. We jumped in snacks out to the earnings report, and 76% of crocs sales are the classic OG crocs that you've seen Tim Tebow wear back in the day. Absolutely, classics. You've seen them around. Number two is sandals, which are like kind of standard sandals. They're not really like croxy. But the third product is the

smallest, and it happens to be the one that fascinated us the most because it's also the fastest growing and the real hero product here. Jibbitts. Jibbitts. If you don't know what jibbits are, I mean, I guess he'd say they're the physical manifestation of emoji and you stick them on your crocs. That's a great way to put it. It's like a charm. Not a sticker, it's a charm that you can somehow like append onto your crocs. Once you put it on the crocs, the crocs become like the Seth Rogen of footwear, enjoyable, charming and just fun to be with. Jan Aniston in the office space, Yeah. She had to wear like 23 different flare on her outfit. I remember her well. That's kind of what gibbitts are. They are for your feet. And let's say, you know, you love New York City, which we do.

Jibbitts has a value pack that includes the Statue of Liberty, a yellow taxi, and a bagel. You can stick that on your baby if they're born to Lenox Hill or if your baby got crox, you do some other stuff, Jack. Baby got crox, baby got a baby shark gibbets or like a Yoshi you can put on there. Now, Snackers, here are the key numbers with Jibbitts. Jibbitt sales doubled in the last quarter. which is more than any other crox product line, including their famous clogs. Here's why we think it's the hero product. There are 32 different types of crox clogs for sale on the website. Yes, there are.

And 317 different gibbets on the website. Now, Jack and I jumped in snack style, and your average crock shoe is $40. Your average gibbets is only $5. So it seems insignificant at first. Let's say, though, you buy nine gibbets, which some people are doing to really customize their clock. You can fit 14 on a shoe. the gibbets ended up being more sales than the crox did. It's like if you splurge to buy a house,

and then you realize you spent more money on the furniture than the actual house. That's a great analogy. Do we need this boudoir? We need 12 boudoirs. So Jack, what's the takeaway for our buddies over at crox? Crocs has turned personalization from a cost to a profit puppet. Snackers, personalization is a mega trend right now, but it's mostly limited to digital things because it's absurdly expensive to customize a product. LinkedIn wants you to personalize your profile because it costs LinkedIn nothing for you to personalize your profile. Levi's doesn't customize gene sizes because size like Jack messes with their whole supply chain. But Crocs has cracked the adorable code of customization for the physical world of their clogs. I mean, you can wear Crocs as

unique as you by paying Crocs more money for a smorgasbord of gibbets that reflect your soul. It's a beautiful thing. And the profit margin on these little $5 plastic flare things called Jibbets. Don't even get me started. I bet you they're really high for Crocs. Snackers, personalization, often, it's prohibitively costly. Crocs has made it a profit puppy. For our third and final story, by the way, we got to get to that plastic surgery thing in a bet, do. Oh yeah, right. Apple and Facebook both announced wild quarters, record quarters last quarter. But Apple's billions of expensive devices is its biggest advantage for the future. Now, full disclosure, Snackers. Typically, Jack and I don't cover Facebook and Apple at the same time. They don't really

compete. And it's kind of weird covering them at the same time. But they announced earnings at this same exact moment. We couldn't decide which to cover and which not to. So we're going to compare and contrast the two. Facebook kicking off with, you know, insane earnings. Profits double to $9 billion dollars best ever for Facebook. And the reason was the same as Google had its great profits. There was a massive shift to digital last year that benefited Facebook. The economy's waking up from the pandemic, advertisers are pumping money into Facebook ads, mattress, mattress, mattress. And that's why Facebook stock jumps 6% after the report. Well, meanwhile, down the road over at Apple, the stock searched 4% also on a whole bunch of

insanity. Jack, you want to take it from here? We're calling it the double double because it's the second straight quarter for Apple where every single product area grew by double digits. Forget iPhone sales. The real story here is that the iPad just won't die. I can't believe the iPad is still ticket. Sales jumped. 77% for the iPad. Remind it, we're talking about the iPad here. A product that Jack and I personally like to rank is like number six on our Apple list of things we care about from that company.

If I was stuck on an island snackers, I would rather have my MacBook, my iPhone, my AirPods. Why not? It's my Apple TV. My watch. iPad is six on the list. Even if you couldn't plug any of that stuff in and only an iPad, Jack, I would still take all those other items. iPad sales, however, are on pace for $32 billion this year. Let that sink in.

Are there new baby boomers being born that want an iPad to take pictures during a vacation? Jack, my mom will literally like approach a puppy, put her phone back in her pocket and then pull an iPad out to take the photo. It's like a shield. For contact snackers, Apple made more revenue in iPad, which we think is their six best product. Six best. Then Starbucks did last year. The company, Starbucks. And they're making a 35% profit margin on all those iPads.

If so facto, Jack, can you take us home on this? iPad makes three times the profits of Starbucks, the company. Again, Starbucks, the company. So, Jack, what's the takeaway for our buddies over at both Facebook and at Apple? Apple's advantage over Facebook is the 1.7 billion active Apple devices in this world. And Snackers, the reason that's our takeaway is because of one wild quote that Jack and I noticed hidden in Apple's earnings. Apple's CFO said, our installed base of active devices drove to an all-time high last quarter. Oh, yeah. Because Apple, Apple owns the rails of the digital economy for members of Club Apple.

Snackers, if you dropped like 500 bucks on an I-anything, which 1.7 billion people have done. Good point. Then you're probably committed to Apple's ecosystem for at least a few years now. And then Apple has home field advantage to sell you I services and use its Apple apps. Unless Facebook gains traction on VR goggles or something physical, Facebook's apps can be deleted at any moment and replaced by Snapchat or TikTok. But if you've got yourself a couple of Apple-connected devices, you can't quickly delete Apple. Apple's installed base of iPhones, iPads, Apple Watches, Macbooks, that hardware is a value volcano. And that's a big reason why Wall Street thinks Apple is worth more than double Facebook.

Jack, can you whip up the takeaways for us over there? Alphabet's earnings were fabulous. Yeah, they were. But YouTube streams a billion hours a day. YouTube is free, and that still matters. Crox's $5 little flared gibbet's thing is makes customization profitable. Unprecedented. Even the comfort economy, though, it needs some style. When are you going to get on Crox, by the way, Nick? You know I got it.

Oh, guess what I'm wearing right now? Oh, Birkenstocks, the left bicep of the comfort economy. Yes, it is. Third final story, Jack. Apple's 1.7 billion active devices is its value volcano. And you can delete a Facebook app at any moment. You can't really do the same with an iPhone. Quickly want to acknowledge, Nick, we're Burk his stock spread. Oh yeah, baby. Also, full disclosure. Jack sent me these burks. These are the ones he sent me, by the These are fantastic. It's a birthday present. Now, time for our snack fact of the day, which is the answer to the question that Jack and I posed in the intro of today's pot.

The number one plastic surgery, most expected after the pandemic, it's liposuction. Liposuction. Instead of dropping $12,000 for niptock snackers, we're working off that COVID-19 by jogcasting. Apparently, we're both wearing burk and stock while we're potting. That's what we're doing. We should set up a treadmill under our podcast station. I love what you did with that term. That is a new thing. It's a portmanteau. Three days, another SAT.

Snackers, you'll look fantastic on Thursday, the new Friday. And you should ask your friends, that's how we grow. H-Y-H-Y-S-D. Have you had your snacks daily? It's that easy. It's so easy if you know, you know. And before we go, Snackers, a thanks to the Snacks fans fan club on Twitter and Instagram who are pumping out takeaways on Jackson and my takeaways on a daily basis.

We love it, guys. My day pretty much gets made every day, thanks to the Snacks fans fan club. Snackers, you should follow Snacks fans on Twitter and Instagram. Congratulations to David and Lauren, who just had a baby tea girl named Lucia in Brooklyn, New York. Lovely. And Ali Hartinstein just got promoted over in New York City, too. Congrats to Ian and David, who are closing on a house in Norfolk, Virginia. Not too shabby. And happy birthday to Javier Figueroa over in Tucson. And Sam Bakovich in Surrey County, Virginia.

and Kwame Eagerton the second in Los Angeles. And Felipe Tomaya in Miami, Florida. And Catalina, happy birthday down the street in San Francisco. And Kyle Winchell in Lincoln, Nebraska. And Brian Long over in West Covina. And Eduardo Medina in Escondido, California. And happy birthday, Jose Ayala in lovely Riverside, California. If anyone else is celebrating anything.

Yeah, make it a T-Boy. Celebrate the wins. This is Jack. I own stock of Netflix. Nick own stock of Apple. The Robin Hood Snacks podcast you just heard, 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.