The Best One Yet - Yup, it’s a cult stock” — Nikola love/hates Tesla. ZoomInfo is the biggest tech IPO of 2020. American Airlines’ normal data.

Episode Date: June 5, 2020

Don’t call it Zoom — ZoomInfo is the biggest tech IPO of 2020, so we’re looking at why it jumped 70% on its first day of trading. Nikola is trying to take on Tesla, but it’s really a cult stock right now. And American Airlines’ latest data encouraged investors big time, because they love forward-looking data.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 Friday, June 5th. What's going on with all the IPOs this week? Snackers, more IPOs. We're going to have to borrow a vowel. So many letters we're working through.

We had an IPO yesterday. Two IPOs today. Are we having a Saturday IPO? What's going on? Our buddy Timmy's like putting together a syndicate over the weekend. Now, the T-Boy ticker symbol better still be available. It has to be available. Snackers, we got to keep it available.

In the meantime, Jack and I whipped up our best snacks daily ever. The first story of ticker, Today's T-boy is Zoom Info. Did you say Zoom, Jack? Yes, but no, I said Zoom Info. So not Zoom, we're talking Zoom. Info, sounds like a suffix. Not Zoom.

But Zoom is a client of Zoom Info, and Zoom Info helps you get intelligence on a company before you make a sales pitch. Snackers, we're looking at the biggest tech IPO of 2020 just happened. Second story, Nikola. It's the first name of Mr. Nikola Tesla. The Godfather Electricity has inspired two eccentric entrepreneurs. Nice legacy.

Snackers, you heard it from us? Nicola is the latest cult stock after going public yesterday. The CEO loves comparing himself to Tesla and Amazon. You might as well throw a Jesus in there too. Why not? What's going to stop you? Third final story, Jack. American Airlines can't make its planes depart on time. But it can apparently move the stock market we noticed. The information that American Airlines just shared on the travel industry has shown the power of forward-looking data.

Jack and I have said this 100 times. Butts and seats are investors' treats. But in seats, investors treats. Snackers, before we jump into all that wonderful stuff, we got to talk about another big number here, 500, as in the Fortune 500, 500 companies in the Fortune 500. The Fortune 500 is the 500 companies with the most revenue annually. I think Walmart is number one and has been for many years in a row. That's a big number, but there is a smaller number, and that number is four. Four is the number of companies in the Fortune 500 that have a black CEO. Four out of 500, not a fraction that sounds like.

that good. This is a snack fact sending from Quinn in lovely Batesville, Arkansas. Thank you for sharing Quinn. The only four Fortune 500 companies with black CEOs are Lowe's, Merck, TIAA, and Tapestry. And since there's only four, we figured we'd do a quick biography of those four CEOs who are incredibly outperforming people. Jack and I jumped in snack style, went through Wikipedia aggressive here. Jide Zytlin is the CEO of Tapestry, the company that owns Kate Spade. Jide was born to a single mother in Nigeria before being a opted at the age of five by an American family. Got ended up with a bunch of degrees from Amherst, all the way up to PhD, and is now running all the pocketbooks over at Kate Spade.

All right. Number two is Ken Frazier, the head guy at Merck. Grew up in Philadelphia, big question, Gino's or Pats, he can answer that later. And Ken bust 90 minutes a day as a kid to get to school, where he was one of just nine black children in the school. Oh, by the way, while there ended up graduating high school at 15. I was graduating Guitar Hero when I was 15. I was like putting Mentos and Coca-Cola's before lacrosse practice.

That's some adversity, man. The third on our list is Roger Ferguson, the CEO at TIAA. He went to Harvard, but wasn't just studying at Harvard. No, he cleaned bathrooms to pay for tuition and end up getting an economics degree. And then you got Marvin Ellison over at Lowe's Home Goods. Grew up in a poor family with six siblings in segregated Tennessee. Snackers, cheers to all four of these legendary role models who are making up that four out of 500 fraction. They're trailblazers.

They defied incredible odds, and they are leaders. Let's hit 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. The 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.

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 Fenbara slash SIPC. For our first story, Nikola just kind of IPOed.

And this company has all the ingredients for a cult stock. A little flour, little yeast, little water, it's all you need. It's a beautiful thing. Little unbridled enthusiasm. Exactly the key secret ingredient. Now, Snackers, Tesla, it IPOed in 2010. People thought the idea was kind of crazy. Nikola IPOed yesterday.

We think the idea is kind of crazy. And that's because the CEO loves talking about Tesla. He pulls a mind trick here because Nikola Tesla is the Serbian American inventor of like electricity. So you got the CEO of Nikola obsessed with talking about Tesla. It's like, whoa, Nick, is that a Burberry? 50 bucks? No, it's actually a slurberry. It's a slurberry. When you're walking around Soho, it's probably a slurber. Nicola just snuck its way onto public stock markets by merging with a shell company. Yeah, it pulled the old switcheroo. Basically, there was an existing publicly traded company and then they beep, beep, beep, back their way into it through a merger. It's like,

sneaking into a club like through the door because your buddy works at the bar. And he left the little thing held the door open, no alarm sounded. We're done talking about that weird merger thing. We're just going to talk about the company Nicola. Snackers, Nicola was a startup founded in 2015 in lovely Phoenix, Arizona. I'm telling you,

there is more innovation happening in Phoenix, Arizona than like anywhere else in the country. Jack, preach, you got golf, you got dry heat, and he got autonomous vehicle laboratories. And you got Scott from Scottsdale. Great guy. Now, eventually this company plans to make its electric and hydrogen power tractor trailer trucks actually a thing. Right now, they just have

prototypes, and we have to admit, they look awesome. Honestly, it's like they gave the team over at Hot Wheels that designs the little cars, a lot of Red Bull, and said go crazy. Eventually, these things are going to be hauling Red Bull across the country with those tractor trailers, and if you check out their website, they're also planning to develop jet skis, dune buggies, and pickup trucks. Kind of one of those tech companies that feel subtly influenced by Winnebago for some reason. Makes no sense. Yeah. Now, besides the awesome design, they're going to differentiate themselves with their electric engines and eventually their hydrogen fuel cell engines. Hydrogen fuel cells being the kind of engine that is no greenhouse gas emissions,

just water. No fossil fuels allowed at Nicola. But here's the funny thing about Nicola, Jack, and I noticed. Nicola doesn't build trucks until the customers have already signed up for the trucks. You show me the money, I'll show you the product. Show me the money. Show me the money. Show you the park. Anheuser-Busch, for example, they make a lot of business. They make a lot of business. Budweiser, they've signed up for 800 Nicholas. They ship a ton of Bud Light. They figure they might as well sign a deal to get like the first fleet of Nikolas

eventually. But here's the wild thing about that Nikola client. Budweiser has also ordered 40 Tesla semis, the competitor to Nikola. That's right. I always forget that Tesla's got a tractor trailer coming that they announced like two years ago but hasn't seen the road. And that means that Budweiser is one day

going to be eventually to say they've got a fleet of Nikola Tesla's. That's true. Now before we get too excited about Budweiser's Nikola Tesla's. Let's remember neither Nikola nor Tesla have put one of these tractor-trailer trucks on the road yet. We're going to highlight that as a red flag. No product yet. So Jack, what's the takeaway for our buddies over at Nikola? Nikola is the latest cult stock. Snackers, let's go through the checklist, charismatic leader. Check. Revolutionary product. Check. How about the tons of attention on Reddit? Check! Snackers, Nicola is pre-revenue,

a.k.a. no revenue yet, and they've got no trucks on the road. They haven't made a buck, but don't worry. They plan to have their first electric-powered semi on the market by 2021, likely before Tesla semi, and then their first hydrogen-powered semi-truck two years later by 2023. Oh, by the way, another kind of thing we should flag here, hydrogen trucks require hydrogen fueling stations that don't exist yet. You can't pull over at one of those travel centers at Exit 16 and fill up your hydrogen engine. And yet, Jack and I have noticed that Nicholas Stock has tripled in the last two months in anticipation of that whole reverse merger thing that just went down yesterday. Cult stocks. Lots of hype, but not necessarily something that Nikola Tesla would ever buy.

For our second story, yesterday, we told you about the biggest IPO of the year. Warner Music, aka the Bruno Mars IPO. Today, we're telling you about the biggest tech IPO of the year. Zoom info, which just jumped 70% on its first day of training. Gotta make a distinction there, not Zoom, Zoom Info. No, the New York Times identified hilariously a bunch of startups, mainly in the Bay Area. Shocker. That have Zoom somewhere in their name. You got Zoom with the UMLOATs, and you got Zoom the Pizza Company.

Rest in peace, Zoom Pizza. Then you got Zoomed with an apostrophe D and ZoomE with an I. Then you got Zoom E with a Y and Zoom E's that's plural. Zoom in, Zoom V, Zoom Lee. And then, of course, you've got to wrap it up with Zoomf. Zoom, like put a little more oomph into it. And toss a little Zoom at the beginning. But Snackers, the company we're talking about, ticker symbol, Z-I, Zoom Info.

Yes, Zoom info. Do not look for Z-O-O-O-M because that is Zoom, not Zoom Info. This is Portland, Oregon's Zoom Info, an $8 billion IPO, and a company that is extremely upfront about what it does. Oh, by the way, Ashton from Portland, yes, we're talking about Portland once again on this pod. This is Nick and neither Jack or I have any financial connections to the Pacific Northwest, but we've mentioned it a lot later. Zoom info slogan is, info you need to hit your sales numbers. No joke, nothing magnanimous about it. They just want you selling, sellin, sellin, selling. I can tell you from experience from my days at the Olive Garden, salespeople spend one third of their time selling, two thirds of their time researching.

Jack's like, does this Kianti have any nitrates in it? Now, Zoom Info promises to take care of that two-thirds part by providing you like excellent research reports. That's right. Zoom software crawls the public information on the web and gets that on 14 million companies. They've got a proprietary web crawler, which pretty much replaces the intern in your office. Hey, Johnny, can you write up a report with everything you can find on Johnson Electronics ASAP? We got a seasonal insurance bundle that no one else wants it. I think I can sell these guys. It's the best kind of insurance bundle. Now, Zoom Info says that these reports, it turns out, are 95% accurate.

Yeah, and this web crawler thing sounds extremely matrixy. 95% accurate also sounds better than Johnny the intern, watch out interns. Now, it's basically providing a freakish amount of information focused in a few key areas. For example, network connections. They'll tell you that Bruce can introduce you to Alicia, who's managed by Loretta. And then they're also providing you with org charts. Loretta controls the 2020 Q3 budget of Johnson Electrics, so might be able to buy that thing you're trying to sell.

And then they give you the intel on the funding for that company. They raised $25 million last quarter. They're going to have to show investors big sales growth. That means Loretta? Probably going to buy those slam and salmon sweaters you're trying to sell. That's the kind of report Zoom info provides customers, and its revenues jumped from. 42% last quarter. Shocker, it's actually had a profit, not last quarter, but it's had one before.

It's been profitable before. It's an aggressive form of LinkedIn. So Jack, what's the takeaway for our buddies over at Zoom Info? Zoom Info is just the dairy farmer. It doesn't actually control the milk. Snackers, a key risk that Jack and I noticed verbatim in their S-1 filing documents, we rely heavily on internet search engines. Zoom Info is basically built as a layer on top of Google. If those search changed their algorithms, that messes with Zoom Info's entire core product. We looked into it further. 99% of the revenues that Zoom Info makes with their subscriptions are at the mercy of Google, which could tweak its whole system any moment.

So Zoom Info sounds incredibly powerful knowing that like you work for him and she works for her. But it's milking all of that data and all of that information from Google, which is the cow. And because Jack and I aren't lactose intolerant, kind of feels like an all eggs in one basket situation. Or all their milk is in one Google. For our third and final story, airline stocks are soaring. We're hitting cruising altitude situations. It was insane what happened yesterday, and the reason for the stock price jump of the airlines explains why markets are so high. Warren Buffett just choked on a seized chocolate and spat out his coke. The 90-year-old man sold all his airline stocks last month, and they're way up since. Good thing he's immortal.

Now, in March Snackers, Jack and I noticed a gem of live, real-time data, courtesy from our friends over at the TSA. We went to TSA.gov, and we checked out how many people are taken off their shoes, removing their laptop, and definitely violating the toiletries pause. Oh, yeah, I swear, it's six ounces. It's got to be less than three ounces. I think it's one ounce. Yep, I put it in a separate, transparent bag.

And then I wrapped out another saran wrap bag. Now, we hit rock bottom on April 16th in terms of the number of people traveling through TSA security at airports. Right. It was only 3.6%. of the name same people who went through the same checkpoints last year. Right. So April 16th was peak COVID. Travel was trough at 3.6%. Traff's just a ridiculous word. I was going to point that out.

It's an ugly word, isn't it? It's a terrible word. It doesn't bring up good images. Now, yesterday, Snackers, we rose all the way up to 13% of the same people who went through TSA last year. Right. So we're at 13% of normal travel. But the airlines think that that percentage is going to climb a lot higher pretty surprisingly soon. And then Jack and I were fascinated by this news from American Airlines. They just announced they are increasing the number of flights that they will offer in July to the level of 55% of like normalcy. The impact of that on the airline industry stocks was something we'd never seen before. 41% jump for American Airlines on that news.

Delta Airlines jumped 14%. And then they figure if it's good for Delta and American, it must be good for JetBlue, which rose 16%. And even Southwest Airlines, jumped 5%. It's your classic ducks fly together all for one, one for all situation. It's like they turned each one into a tech company. Now, bear in mind, American Airlines is still down 50% compared to where the stock was before COVID-19. But the signal from American Airlines to investors were that airlines are less likely to go bankrupt now. They could fly themselves out of this problem. So, Jack, what's the takeaway for our buddies flying together over in the airline industry?

Forward-looking data is showing a return to a normal economy. And that's why, stock markets are up. Snackers, yesterday, the NASDAQ 100 index hit a record high. Tech stocks have never been higher. That is a true shocker. Tech stocks have never been higher, the top 100 tech stocks. And that's despite a 20% unemployment rate and half the economy getting shut off. Not to mention a once in a generation civil rights activism moment after the George Floyd killing. Oh, and Jack, by the way, can we throw in the trade war, which is still happening? And like is looking really bad with China. Yeah. You probably woke up today, wonder. how this could be and the stock market be where it is, Jack and I do the same thing. We call

each other, same discussion. We think the reason is this. Investors don't care about the past and they don't care about the present. It's all about the future. Weekly jobless claims, which we get every Thursday, it tells us how many people got laid off last week. And it was a horrifying number, two million people, but investors don't care. They care about the future instead. Think about Facebook Snackers. That company was worth $100 billion before it ever made a single profit. investors predicted that profits would come in the future. And guess what? They were right with Facebook. Airlines, meanwhile, they can predict the future because they sell tickets for the future, June, July, August, and all the other fun months after that. If people are buying tickets to a flight to Florida in July,

that could be good for the economy in July. Data like American Airlines is shows us a return to normalcy. The data could change tomorrow. Let's be honest. But investors like what they see today. Jack, can you whip up the slamming salmon takeaways for us before the weekend? Nicola hopes to do to semi-trucks what Tesla has already done to cars and SUVs. Make them greenhouse gas-free, but we kind of think it's a cult stock. Second story, Zoom Info shoots out automated research reports so you can nail that sale. Always be closing and always hope that Google doesn't break your product. Third and final story, airline stocks blew up Thursday on hopes that traveling will return to normal this summer.

Investors care about future-looking data, not backward-looking. Nick, you must be offended as a history. major. Just the neglect of historical appreciation. It's like, we're right here. We're right here. Now, time for our snack fact today. This one set in by Adi Timpo Thomas in lovely Atlanta, Georgia. And this snack fact is about redlining. So we have to start with a quote from Ta-Nehisi Coates, because he is the authority on redlining. In 1930, only 30% of Americans owned their own homes. By 1960, more than 60% were homeowners. Homeownership became an emblem of American citizenship. Totally agree. Owning a home is one of the most powerful ways to create your own wealth.

And then hopefully, if things go well, pass that wealth down to your kids by giving them your house. But guess who is left out? Systematically, people of color. Redlining. It's the process of banks refusing to offer mortgages in black neighborhoods. The name comes from the fact that companies would literally red mark on a map where they wouldn't do loans for certain neighborhoods. Yeah, they're like mortgage application for 26 Broad Street. Oh, nope, that's in a red line neighborhood where you refuse the loan. famously happened in Chicago, but many other places as well. And the federal government didn't ban redlining the racist practice until 1968.

So if you're a black family outside Philadelphia who could have bought a home in 1960 for $20,000, imagine what that would have been worth today, 60 years later. Would have been worth a lot of money. There is no telling how many people had to rent their entire lives because redlining prevented them from owning all. And now we've got 11 million Americans today who are living in what were once redlined areas. So we're talking about a lot of affected people. And a lot of wealth.

Now, before we get out for the weekend, we do want to wish happy birthday to Andy in Vancouver, Washington? Vancouver, Canada. Jack and I have hit the Pacific Northwest so much the last two days. It's going to start raining on us. It really is Vancouver, Washington. Apparently, it's right outside of Portland. He's snacking while he trades his stocks.

Snacking while stocking while stocking. When you hear the puppy barking, Andy, that means you should stop buying and start selling, because the pod's halfway over. Snackers have a fantastic and say, weekend. Remember, you can always reach Jack and I at T-Boy Jack and at Nick of New York. We have love spending time with you this week, especially this tough week, and we can't wait to be back with you again Monday. Cannot wait, have a fantastic weekend. This is Jack. Nick and I don't own

any of those stocks. 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, 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.