This is Nick, this is Jack, and this is Snax Daily, it is Friday, January 15th. We have a long weekend ahead of us, so we'll be back next on Tuesday. Yet last part until Tuesday, Monday, MLK Day markets are closed. Snax Daily is close to make such a cute abbreviation. It's actually TRD, MLK. Jack, Jack, break it down. What's the takeaway here?
The Reverend Dr. Martin Luther King, Jr., the only name so great. You had to use two breaths for this thing in a tense moment for our country. It's a good day Monday to reflect on Dr. King's messages of love, unity and peace. Yes, it is an snackers. Today's podcast, the best one yet, best one we've ever done. For our first story.
Pockmark is the latest company to pull a double double on their IPO.
Stock doubled twice because the clothing marketplace isn't really a clothing marketplace.
For our second story, we have a new video game idea for GameStop. All right, get this. Get this. It's a video game where GameStop stock dies and then it comes back to life with a vengeance.
For our third and final story, computer chips are having an unprecedented moment. Funny thing, Jack. And I notice here the computer chip industry starting to look a lot like the food chip industry.
People are hungry. People are bingeing them. Yes, they are. People can't stop eating them. That's all we got.
We could have stopped it, too. But Snackers, before we get to that wonderful mix of stories before the weekend, Jack and I noticed an unprecedented instance of justice. As everyone knows, twenty twenty was an unprecedented year for Zuckerman's. Yes, it was sucking. It's a now, Jack, the definition in a sentence.
It's actually a gerund now. And it is when Facebook flagrantly copies your idea and then scale to billions of people. But get this snackers. For the first time ever, justice was just fully served on sucking four thousand miles away from us.
That's right. We have a stage to ZiQing, which was charged, convicted and rectified over in Milan, Italy. OK, so this wild story, it actually goes back to twenty seventeen. That's when Facebook launched a neat little feature called Nearby. Nearby tells you what shops, bars or restaurants are nearby.
Jack, funny thing, because that sounds a lot like an Italian app called Far Around. Far Around tells you what shops, bars or restaurants are nearby. Ipso facto.
Facebook now has to pay that Italian entrepreneur a cool five million dollars for his fucking far around.
It was a blatant ZIQING. And for more justice to be served like this knackers, we have a public service announcement for you. If you see something, say Zucchet. Let's hit our three stars. You tuned in the next day. He spoke to the lawyers and we got to get some illegal out of the way about the rain. Food is see candy. They don't reflect the views of the her family is only formational. Just so you know, we're not recommending any securities.
No, it's not a research report or investment advice not to offer a sale of a security by Nexxus Digestible. Business news by Nancy Pelosi, member Fembot ABC for our first story pockmark just pulled off the double double IPA, the old double double when your stock price doubles and then doubles again.
But in this case, it's on a double trend.
They're hoping for the double trend now pockmark snackers. Here's how the numbers brokedown. Stock jumped over one hundred and forty percent on their first day swimmin in the public markets. How how much they worth? There were three billion dollars, which is like a third of a left. Not too shabby. Jack and I jumped in stacks. Now, we basically spent all of yesterday and there is one IPO paperwork, hilarious situation going on.
On page two. We were also texting about the GameStop story. This comes next. But on page two of Toshima access, one, they defined like three different generations, just in case you weren't sure.
They're like GenZE generation born between 1996 and 2010. I made it by six years. Millennials generation born between nineteen eighty nineteen ninety five. Did they mention the silent generation? Ironically, they said nothing on it, but then they went on to describe boomers. It was amazing. For those who don't now pockmark is an online marketplace for second hand clothing like eBay bumped into Ajam and became an app. So picture if you're going on pockmark you can go the app or the website.
It's basically a digital flea market. You're going to scroll through. You're going to see a twelve dollar Ohio State long sleeved t shirt.
That's what Nixon and I asked him, is it a Woody Hayes era vintage like nineteen eighty one long sleeve t? No, it's kind of just like a beat t shirt.
It was pretty brutal as open. There are grass stains on it. You might also bump into an eighty five dollar Levi's five or one gene mom jeans style. This company pockmark is basically like TJ Max is how I think you get the satisfaction of a treasure hunt but your thumb is getting a workout, not your legs. And here's how pockmark fits into the whole fashion ecosystem. About five years ago, the world was focused on fast fashion.
It was all about forever. Twenty one who is offering like twelve dollar jeans that basically fell apart in six months.
Over the last six months for over twenty one has gone bankrupt and thriftiness is the new fast fashion thriftiness second hand. The Real Real is a second hand online marketplace that has already gone public and the stock has quadrupled during the pandemic. Yeah, another player in this game, Jack and I like to look at thread up and they're planning to IPO sometime later this year.
Pockmark started trading yesterday. And it has one key difference. It's decentralized. There's no inventory of clothing that pockmark hangs on to. All that POCKMARK is doing is connecting the buyers and sellers and then snagging a little 20 percent fee. As you're trying on the clothes in the back room, think of it more like Airbnb, less like the gap. They don't actually hold inventory. They don't validate that the dress is actually the dress that be selling. It says it is.
They're just like, hey, hands free, we're not involved. You're going to buy that or you're not going to buy that day. Now, that presents a risk. You might be looking at that hundred eighty dollars Gucci dress. You think it's a steal, but it could show up at your door. You open it up. It's actually a Fuji dress, Fuji dress. It's been a photo the whole time. They don't verify.
Add all that up and pockmark brought in one hundred and ninety three million dollars in revenue in the first three months of twenty twenty sharply, up twenty eight percent from the previous year.
That's not that good growth for a tech company, but it's a good profit for a tech consider. Any profit is a good profit for a tech company. They also squeezed a nice little twenty one million dollar profit out of all those jeans.
So, Jack, what's the takeaway for our buddies over at POCKMARK? Don't compare pockmark to fashion or to commerce. This is a social media company snackers.
As Jack and I were hanging out in that IPO paperwork, we did the old command to see what was going on. Jack, how many times did Pockmark mention the word fashion in their IPO paperwork, Ohio State t shirt, mom jeans from Levi's Gucci dress?
Probably a thousand no eleven times. They mentioned fashion, Jack. How many times did they mention the word clothes in their IPO paperwork? A paltry two times. How about sustainability? Nine times neck nine times. Not that many now. But how many times did Mark mentioned Social in their IPO paperwork?
I'm looking at the number. It must be a typo. This is weird. This is awkward.
One hundred eighty eight times this clothing company mentioned social work is basically a visual fashion news feed with a big buy button smack right in the middle. Get this. Eighty seven percent of all purchases on pockmark were preceded. Yes. Like Instagram with a like or that is wild. And the average user, they're spending twenty seven minutes a day scrolling through pockmark, which led to a whopping twenty point five billion social interactions on the platform for twenty seven minutes today.
Dudes are treasure hunting to find that 90s era vintage Michigan basketball sweatsuit pull over. So snackers, if you're looking at pockmark, don't compare it to the real, real or threat. Compare it to Instagram or Tic-Tac, which also takes a ton of your time scrolling. For our second story, GameStop kind of looked like Blockbuster for a while and was like it was heading for bankruptcy. It's now bankrupt. So that's why we're looking at GameStop Stockpot Check.
Can you say that again? I cannot say that again. Stackers, if you can say GameStop Stockpot, send us a video. We want to hear it three times fast. Don't even bother with five seconds.
There is a time when nine thousand blockbuster video locations peppered every strip mall off of I ninety whatever in the United States drive down the highway.
You could see it. They'd have it looked like it looked like the video cassette that someone took a bite at it. I think I thought it was a movie ticket actually like a ticket. It was, I guess it was a movie ticket. Now Americans, we used to venture out for hours to basically go to Blockbuster and argue about which you grant DVD. We should rent. Are we doing Sleepless in Seattle or redoing You Got Mad Early Snack Factor.
More relationships ended at Blockbuster than at any other retailer in the United States.
So true, GameStop seemed to serve a similar role to society. Yeah, they had five thousand. I'm sorry. They have five thousand locations, but video games instead of movies. Pretty straightforward, right? And as movies went to streaming, Blockbuster went bankrupt. We all remember a bunch of investors figured out, hey, you know what? The same thing kind of happening over at GameStop right now.
Yeah, but with video games instead of movies. So the stock of GameStop steadily declined from sixty two dollars back in twenty seven to three dollars this past April. But then snackers, just recently something happened. We thought GameStop was dead. Yeah. And then its finger wiggled. Yeah.
This happened in December. Chewey, one of Chouest co-founders near the pet retailer online that we apparently talk about in like every podcast lately, one of their co-founders bought twelve point nine percent of GameStop stock. It wasn't even that expensive because the stock price was so low and it still wasn't that hard.
And that chewy guys, big acquisition that signaled to investors a pivot for GameStop online, since Chewey is basically the Amazon of animal stuff and then some.
This happened then one of game stocks, eyes opened, that was this past Monday when GameStop announced that e-commerce sales over the holidays quadrupled. Yeah, and then I think I blinked. Back then, GameStop stood up like a Frankenstein situation board reorganisations.
The Chewey co-founder became on the board of directors and two of his buddies joined the GameStop board to boom result of that four of game stocks, brick and mortar, old school board members, they end up getting kicked out new schools in old schools out. So GameStop stock kind of came alive. But then GameStop stock rose. Fifty seven percent on Wednesday, by the way. That was. That's right. There was a resurrection of both our figurative metaphor and GameStop stock.
And we think this rise on Wednesday really had to do with a short squeeze. That's what I think thousands of investors thought GameStop has gone bankrupt, so they placed short investments on the stock, hoping that GameStop price would fall. And that was offset by a whole posse of retail investors who were reediting about GameStop. Yeah, and the retailers were right when GameStop stock rose short sellers on the other side who were hoping it would fall, they had to buy the stock to end their failing bet.
And that caused GameStop stock to rise even higher in a self reinforcing, cascading flurry of buy orders. And that is how GameStop stock is up seven times higher yesterday than it was in August.
So, Jack, what's the takeaway for our buddies over at GameStop stock? The board reveals the ambitions snackers.
Yeah, people are playing more video games than ever right now, but it's all being done digitally. You're paying 50 bucks for Red Dead Redemption. Too aggressive, but you're doing it by downloading it online. You don't need to visit GameStop and other games. They're literally free to stream. You just pay for like the swag and the dance moves once you're playing the game.
GameStop new board knows all this. That's why they're focused on selling physical gaming consoles like PlayStation five that you can order online and pre owned video gaming consoles to. Yeah, and the new Chewey board member, he's going to accelerate the whole transformation to digital sales only online.
They hope to boost the relationship with hardcore gamers through a rewards program and through EA Sports. The board of GameStop focused online. So the company GameStop is going to focus online and investors think GameStop is a little more like Chewey. Now for our third and final story, the chip industry has never been in more demand. The chip industry also has a dramatic headline every day this year. It seems it's kind of insane, but snackers this story like all good stories.
Honestly, Jack, it begins in Louisville, Kentucky. Louisville, Kentucky, the home of Jack Daniels. Check Muhammad Ali. True, true. And a Ford Motor Co. factory that makes the Ford Escape not just any Ford Motor Factory a pretty big one, but get this snackers, that factory just suddenly out of nowhere, it just shut down temporarily.
Thirty eight hundred Ford workers are at home. Instead of working, they're actually getting paid.
Seventy five percent of normal wages, Jack, are they out of carburetors? No, Jack. Are they out of Chasez? Plenty of chasez. OK, turns out snackers. What do they add? A jack computer chips. Yeah, average car snackers uses fifty to one hundred computer chips. And while you're shocked by that number, guess what? You're also to blame for this issue. Yes. Because all the work from home and going on all over the place, it ate up all the computer chips in the market, add up all the chips you got laptops, Chromebook, PlayStation's, the new 5G phone.
All those things are eating up computer chips, carmakers. On the other hand, they didn't expect many sales this year, but then sales for cars rebounded big time and they were short on chips. So while most of us never really think about chips that often, chips have never been in more demand and they're causing some freakouts, a whole bunch of drama in chips. But first of all, Nick, last year, if you needed like a big box of chips for your car factory, it would take two months for them to arrive.
This year, you're going to have to wait six months. We're talking like Beanie Baby levels are waiting on this stuff. That's why there's so much drama. Intel just fired their CEO while Qualcomm bought up a chip making startup. But then Intel sold off part of its core business while AMD splurged on another chip company. It's all about chips and on the surge in demand for this product. The biggest chip companies and video, Qualcomm, Nnamdi. Their stocks have nearly doubled in the past year.
Meanwhile, Apple is looking at this whole situation. And Apple's like, hey, we kind of depend on chips. We're not going to deal with this kind of drama. They don't want to get in the rat race. So they're making their own computer chip. It's called the M1. So, Jack, what's the takeaway for all this chip stuff over in the chip industry?
The computer chip industries, just like the beverage industry, there's different shelfs snackers.
You tend to think a chip like oil, you got like every barrel. That's the same. No one special. No one's getting a participation trophy.
You think chips are a commodity, but we're actually seeing a beverage style, top shelf, middle shelf, bottom shelf hierarchy evolve in these silicon products. So every chip company is seeing record sales right now. Which begs the question, Jack, why is Qualcomm stock? 70 percent, and yet Intel stock is down, it's because Qualcomm focuses on only the highest shelf liquor chips, the ones that are in the highest demand this year, we're talking the champagnes of chips.
Qualcomm is the leader in 5G modems for next generation Internet connected devices. In fact, two years ago, Qualcomm stopped making server chips, which are like just basic chips, like the Bud Light of chips so it could focus on the champagne of chips.
So while all the chip companies are enjoying record sales because everything needs chips these days, it's the ones making the high end 5G versions they're pulling ahead in the pack.
Jack, can you whip up the takeaways for us before the weekend? Pockmark stock got an extremely warm embrace by Wall Street on its IPO. I know you want to say GameStop stock, by the way, it's the fashion company that's actually a social media company that's got to think of it. Our second story, GameStop was doomed to be blockbuster, instead pivoting GameStop. It's getting to a fight. That's what it's doing for a third and final story. Computer chips, they're basically in everything, but it's the top shelf, next gen champagne, computer chips that are pulling away from the entire pack.
Now, time for our snack fact of the day. This one sent in by legendary Snack Fact Snack or Kelsi Black in lovely Austin, Texas. It turns out Martin Luther King Jr. was born as Michael Michael King Jr.. No, Martin, no Luther. That was his real name.
When MLK when Michael King Jr. was five years old, his father, a pastor, ended up traveling to Germany. He traveled to Germany to learn about the Protestant Reformation leader, Martin Luther. And he became so enamored with Martin Luther that he ended up changing his own name at the age of like 40 years old. And his son's name. That's right.
At five years old, Martin Luther King Jr. became Martin Luther King Jr. and that's how the iconic name was born. Snackers.
Have a fantastic three day weekend. Jack and I are going to miss you, but we're going to see a Tuesday. Happy Martin Luther King Day. We will see you Tuesday and remember his message.
And before we go, snackers, congrats to Cody Guterman, legendary guy, new job down in San Francisco. And happy birthday to Ethan Michael in Atlanta, Georgia, and Allison Bowden in San Francisco as well, and Laura Schulz in San Antonio, Texas. And Mauro Barron in Brayer, California. And Roberto backor Rizzo in Weston, Florida. And Kristian Escobar in Dallas and Tyler in Nashville. And Brian Jay and Lockport, New York. And Mario Giardini in Pennsylvania.
And Lindsey Drager in Chicago. Logistics and thank you to Annie in California, who shared snacks daily at our company show. And also, congrats to Brandon and Savannah Stoler, both past their series exams over in Indianapolis, Indiana. Congratulations to Zach. And Janelle just got engaged in New Hartford, Connecticut, and Evan and Jessie Johnson, one year anniversary down the street in San Francisco. And happy five years together to Joel and Alison Chang in Pasadena, California.
This is Jack, I own stock of Amazon, Nikken, stock of Apple, the Robinhood 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.