This is Nick, this is Jack, and this is Snax Daily. It is Tuesday, Thibeault, Tuesday, November twenty four. Nick, we just transferred our turkey from the freezer to the fridge. Nick Twenty four hours for every four pounds of meat. Jack, did you hear about that guy? You shot his own turkey this year? No.
Apparently everyone at the grocery store was pretty freaked out and this happens to be the best one yet when it comes to snacks daily. Jack, for a story, SNAP rose two percent after launching the most unique social media product of twenty twenty. So they're Connett spotlit.
Jack and I are calling it tick tock, tick tock, tick tock.
Our second story, Adidas, is reportedly trying to sell Reebok. Honestly, Jack, the saddest part about this Adidas stock rose oneword they're breaking up.
That is so awkward. Tough day for Reebok. Third and final story, Jack. What do we got? Warner Music's earnings.
Give us a taste about the entire music industry. A little bit flat, but it's sharp, kind of a little bit off on them in the base of the musicality and your adjectives there. And it's selling the bass. But snackers, before we jump into that wonderful mix of stories, Happy Thibeault Tuesday to you.
Last week, Snackers, we informed you that Amazon was getting into the pool game with its own online pharmacy classic Jeff Bezos got tired of over the counter, wanted to get like behind the counter situation he tossed on the white robe.
So you can get that detached all in your prime pantry, shopping cart, you know, to deal with that thing on the fly.
But we decided we weren't satisfied with the name that Jeff gave Amazon Pharmacy. Yeah, I mean, it's Amazon Pharmacy. We asked Alexa and she didn't have any other ideas for us. So we asked the Snackers, actually, what should we name Amazon Pharmacy. And we got some fantastic responses. There were also some consistent, healthy, quality ideas that were sent our way.
A lot of Amazon plus Prime plus farm plus subscription combinations. Some solid ones get prime encryptions are far Masan good ones. We loved them, got them from a bunch of snackers, but we're doing honorable mention special credit here to our top four, which we sourced on Twitter. All right, so get this knackers. Here are our top four new names for the Amazon Pharmacy. First one comes from Joey. Hey, so Pillowman Center Fofo. It's great.
It works on the fulfillment center for Center. It's great.
Our second one comes from Paul Goldsmith. Get this, Amazon kids are us, Amazon.
It's our US that once that's a combination of the generally medical oId suffix. Yes, it is. Toys R US and Amazon. I like that. Third finalist here comes from Rowand Krishnan.
Jack, the honors, the best hospital, the base, and rolls off the tongue. So like a works audio and two and then a fourth, which is both Nicks and my favorite. Can we say that? I mean, full disclosure, this is our favorite. This one's amazing.
Dr. Bezos, his local pharmacy store and goods sounds like something from It's a Wonderful Life. It's absolutely amazing. But snackers, we want you to determine which of those four is actually the best new name for Amazon Pharmacy. By the way, that last one was a shout out from Alberto Reyes. So vote on the best new Amazon pharmacy name on Twitter at Robin Hood.
Snax, the winner gets a handwritten card of appreciation from making me. I mean, honestly, what's like better than a card? Is there anything else you want more than a card these days, let's say in our three stores?
You tuned in this next day? We spoke to the lawyers and we got to get some illegal out of the way about the food is candy. They don't reflect the views of her family. It's all informational. Just so you know, we're not recommending any securities. Nope. It's not a research report or investment advice, not an offer with help of security by next is Digestible Business Finance LLC member Fembot ABC for our first story, Snapchat.
It just it just completely copied Tick-Tock.
But Nick, they also introduced a potentially game changing differentiator, which is the differentiator about this entire ZIQING situation now before Snapchat announcement. Quick context on the insanity of the Tic TAC app in twenty twenty.
These are the kind of numbers are going to drop on Thanksgiving. Barsoum. Turns out in just the last year and a half Tic TAC crew. Eight hundred percent in the United States. That's right.
From eleven million users back in January. Twenty nineteen, just like the high school middle school kids.
So is tiny so tiny to over a hundred million this August.
Yeah. Do you want to give your your helpful analogy here for everyone.
Look left. Look right. One of you is a tech doctor. But here's the thing. Snackers that Jack and I find. So while Tic Tacs viral social media feature is an IP protected, so that's why it keeps on getting sucked and copied by all these copycats out. Naturally, the zookeeper extraordinaire, Facebook, they are aggressively pushing your Instagram app with this real's feature, which is the same thing as Tic TAC. Then the other week, YouTube did the same thing.
There's a tick tock by launching essentially the same product. They called it shorts. So yesterday we see a headline. We're like, we've seen this before. Snapchat is finally launching its own tick tock knock knockoff and they're calling it spotlit. Now, here's what Jack and I find so fascinating about the story. One copying is like as simple as coding. A simple feature matching tick tock just isn't enough, so snapshots taken it to the next level. They're building a unique feature into Spotlight.
We're talking like these aren't just like 15 second clips on Spotlight. This is going to be get this like a reality game show within a million dollar prize every single day.
Here's how it goes down. Snapchat will track the engagement of each new spotlight post, basically counting how many people favorite the post and how many shared the bus. And then they're going to add that all up. And whichever spotlight gets the highest engagement is going to win cash. They're giving out a million dollars every day to the top creators of the spotlight. So we know you're thinking Jack and I were thinking the same thing here. Kylie, Jay and the Rock, they're going to win.
They got the biggest following swim I what am I going to do? How can I?
I've got no chance with my seventy eight followers, sixty one of whom are sitting in my direct family tree.
Well, we're all wrong because apparently Snapchat is leveling the playing field here. They're going to show each spotlight snap to a minimum of one hundred other Snapchat. And then if your measly little Snapchat, only your sixty one followers are. If it performs well, they're going to move you to the next level of the tournament, which is a thousand minimum views that you're Snapp's going to see.
And then the Cinderella story, winners from that stage keep moving on and on like the whole March Madness situation.
So the best Snapp's win, regardless of how famous or how insignificant your public profile is. So this means a couple of things to Jaconi. The first is we're making a note to ourselves to check the marketing line item in next quarter. Snapchat earnings report snaps.
Who's paying for this? Pretty sure you are a million bucks every day for the rest of the year. That's thirty seven million. This is going to cost at least. Oh, also, this is the first discovery feature on Snapchat. Usually you're like you're just seeing friends, not strangers.
Now you're going to see strangers. So, Jack, what's the takeaway for all these strangers over with? Our buddies at Snapchat for the first time on social media likes are going to matter snackers. Up until now, the number of likes you give on social media had one strategic purpose. Ads. Ads. Yeah. And then. Yeah, and a little bit of anything. But Facebook sees that you liked another beach picture. They're going to start serving you all these havingness ads straight out of Brazil.
But with Snapchat spot like your likes, they're actually votes that pick the winner of that day's daily tournament for a million dollars. Yeah. Caleb, Simon Cowell, your vote is going to determine who moves on, who goes home in Snapchat. Now, this makes the viewer more than just a passive scroller who's mindlessly clicking like you're an active participant in a game show, which means this new feature Spotlight is part HQ trivia. It's part American Idol. And it's got just the tiniest flavor of Who Wants to Be a Millionaire.
This differentiator could attract creators and viewers on the app who may prefer the social media app where they're like mean something for our second story. After fifteen years living under parent company Adidas, Reebok is reportedly going to be sold. This is looking like a death situation. So we're looking at the Reebok autopsy. Why? Why didn't this work? Now, snackers Reebok is basically it's the most athletic thing out of England since Beckham. Well, first of all, Reebok, it's a type of antelope, actually.
Yes. Not a Springbok. It's a type of Reebok. It is a type of antelope. Yes. The founders of Reebok, they discovered this cool word, this cool antelope while browsing through a South African dictionary. I feel like this is like that little game Jacquier. It's like spin the globe and put your finger on where you want to live in fifty years. Pretty much so.
In nineteen eighty five, it became a publicly traded stock when the iPod and the next decade, the 90s, that was like peak Reebok.
You had like Shaq was wearing Reebok, Allen Iverson was wearing Reebok jacket. Remember the pump. I do remember the pump and I also remember the answer. Those Allen Iverson basketball shoes. They were amazing not talking Dalene by the way, this isn't like a hazelnut situation over at Dunkin. We're talking the shoes that would. Yes.
And also those Allen Iverson shoes, they were the envy of every fifth grader in Vermont.
Allen, send us tweet us a snack fact already. What's taking so long now? Even though those were the highs for Reebok, they also experienced some lows around that time. The official apparel provider of the Canadian Football League. Yeah, we don't need to say more on that, but probably not the best of them. Not the ideal branding move.
The reason we're talking about Reebok today, they were acquired by Adidas back in two thousand five four three point eight billion dollars. So here's what fascinated Jaconi about this story.
Reebok is now apparently about to be sold for potentially under one billion dollars, according to the Financial Times, bought for three point eight billion, selling for under one billion.
I believe the technical term, Jack, is ouch, not a good investment.
So Jack and I said, hey, let's whip up the history books. We jumped in snacks, Bible and looked back on Adidas is history and we started noticing a pattern. In nineteen ninety five, Reebok decided to open up a gym in the Upper West Side. That was one hundred forty thousand square feet and six floors in New York City. It's a Whole Foods market of sweaty meat.
Then in 2011, they partnered with Cross Fit as the exclusive apparel provider.
And we all of that one buddy, we're like at a wedding and like it's in the middle of nowhere is. Oh, yeah, I know the Crossfade in this part of Iowa, you're like, why? Then a few years later they threw on a couple forty five pounds on each side of the dumbell and became the official brand of Ultimate Fighting Championship. That's when they changed the logo to look like a submission hall to which was an interesting move. I said, Jack and I have spotted each other many times.
Now as a brand, you either need to stand for something or stand for nothing, stand for something or stand for nothing. Reebok stood for something and it was indoor fitness. That's the pattern we saw. So, Jack, what's the takeaway for indoor fitness buddies? Over at Reebok? Fitness has become fashion and fashion depends on moment stackers. We've talked before about the power of the pivot on this podcast. Well, Reebok pulled off a pivot, but it was in the wrong moment.
In the era of covid, fitness has become like the third of three things that you can do after work and Netflix are done. So when Jack and I are looking at like the fitness apparel winners of covid right now, we're looking at Nike. Stock's up 30 percent this year. Lululemon stock's up 50 percent this year. Even Crocs, their stock is up 50 percent this year. Nike stands for style, Lululemon stands for comfort and Crocs stands for function, which is very complimentary of us for Crocs is thrilled to be included in this group.
That was very generous. We did a rounding up situation there. Now, these brands have to be perfect for this moment in fitness because of the UN socializing relaxed workout.
You're going through fitness apparel, losers during covet. We're looking at Reebok as number one. Their sales fell forty two percent in the spring and another seven percent last quarter because the Reebok brand, it stood for something working out but indoors. But that something is wrong for this moment.
For our third and final story, Warner Music is one part, Spotify, one part live nation, and completely dependent on stars and content, completely dependent snackers. We're going to have to travel back to June when Warner Music iPod and became the first pure play music stock. We called it the Lizzo IPO because if you own stock of Warner Music Group, you're a partial owner of Juice and Good as Hell and every other hit put out by Lisanne. So Warner Music just updated us on their earnings to let us know how the how the summer went for Warner Music went.
Great for streaming, bad for everything else. Yeah, pretty much. Digital revenue rose a whopping fifteen percent. Very impressive. But sales of physical CDs and records, they were flat posters, T-shirts and other like band swag that all dropped because concerts have been canceled.
Now, if you listen to Snax daily, you actually could have predicted everything that we just said. And that's because Warner happens to be a very particular company. Warner Music Business covers an entire industry, so each of its revenue streams is basically like an entire company.
So three weeks ago, we learned that Spotify is revenues rose by 14 percent last quarter. Well, Jack, that looks very familiar to Warner Music, 15 percent growth in digital revenue. That's because Spotify pays out a big portion of their revenue to the record labels that own the actual music that's being streamed. So we also found out that the CEO of Warner Music was very excited about Spotify, planned price increases and international expansion because that money is going to come to him and Warner Music is dependent on Spotify.
All right. So that Spotify earnings was three weeks ago, but let's check out the Live Nation revenues from just two weeks ago. Right. This is the company that runs concerts and their revenues fell by ninety five percent last quarter.
So Warner Music doesn't tell us exactly how much money it made on concerts. But Jack and I are going to take a gander given every concert was canceled, that it's roughly ninety five percent. Right. So Spotify and Live Nation, they're proxies for two of Warner Music's business lines. So, Jack, what's the takeaway for our buddies over at Warner Music? We could have predicted Warner's earnings, but we also could have predicted the number one Warner problem. Yes, because Starz took 20, 20 off snackers.
We've said it before. And Jack and I will say it again. Let's go to the IPO paperwork on page 20, when the IPO back in June, they warned us the absence of superstar releases. That's a big risk to our business. So the current roster report over at Warner Music, it's basically stock with your dad CD collection. Warner Music owns the music of Led Zeppelin, Madonna and Green Day.
Even John Williams, the brilliant composer from Jaws and Harry Potter and all those other great movies. Every time he writes a song, I shot it here. It's all Warner Music. But the revenues for Warner Music today, Jack and I notice they're driven by new superstars releasing new hit albums. Ed Sheeran is in Warner Music, Bruno Mars, Coldplay. These are the stars whose music is owned by Warner Music Group. But kind of a big problem here.
None of those stars on a Warner Music roster put out new albums this year.
So earnings last quarter, they were devoid of Grammys and they were also devoid of album sales.
But snackers, you didn't have to wait until Warner Music stock fell three percent yesterday to have realized all that. Jack, can you whip up the takeaways for us over there? Snapchat just launched its tick tock thing. It goes above and beyond making your likes votes for an a million dollar cash prize. For a second story, Reebok went all in on indoor gyms in the 90s. That was the wrong pivot for the wrong covid moment for our third and final story, Warner Music.
Streaming revenues were good, but concert related revenues were bad.
And we could have expected that if we just looked at some other company's earnings, which I guess we did, which we did with it. Now time for our snack. Back to the day this one tweeted in by Andrew in lovely Mill Valley, California. Jack and I enjoy the tacos over at Playa. Just going to throw that out there. More of a smoky Mesko. I get it every time I get anywhere near Tesla.
Just joined the S&P 500, actually.
It's going to join in December, but it is in the meantime, technically the most valuable car company on Earth. Right, because Tesla is worth four hundred ninety four billion dollars. If you add up all of the shares that are out there of Tesla at today's stock price, that means that Elon Musk's 20 percent ownership of Tesla means Elon Musk has about ninety eight point eight billion dollars worth of Tesla stock. Now, if you look at the Detroit competition of Tesla, you see that Ford is worth thirty five billion dollars and GM is worth sixty four billion dollars.
So that means the value of Elon Musk's stake in Tesla is actually now worth as much as Ford and General Motors entire company values are worth.
It's a story of magnitudes now snackers. Before we go, remember to go to Robin Hood Snax on Twitter and vote on the winner of the Amazon pharmacy near the base hospital. We'll see you tomorrow. We'll see you then. And before we go, big congrats to snacker Laura from Jacksonville, Florida. Just passed the bar exam. That's you. And happy birthday to Bree from Nova Scotia and also up in Canada. Happy birthday, Annie in Vancouver. And Darcy Biolab in Manchester by the Sea Massachusetts and Mac Yakup over in Denver.
And Happy twenty nine to Julia in Mills, Massachusetts, and David Jensen in Springfield, Missouri. And Eddie Padia in the Bronx and COUNTERCURRENT in Naperville, Illinois. And Mark, gleni in Louisiana. And Ari Ruban in Cincinnati, Ohio. And Russell Williams in Eastland, Texas. No go west. And happy birthday to Ed White in Portland, Maine. This is Jack, I own stock of Spotify and Amazon, Nikken, stock of Lululemon, the Robin Hood Snax 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.