The Best One Yet - 👮🤐 “123456” — Netflix’s password crackdown win. Stocks’ 1-year highs. AM Radio’s Tesla problem.

Episode Date: June 12, 2023

The Netflix Password-Mooching Crackdown just began… and we just got the numbers on whether it’s working. Out of nowhere, stocks just hit their highest level in a year — We’re officially in a Bull Market (and it’s thanks to 8 specific stocks). And AM Radio was killed by Tesla and electric cars, but Ford is bringing it back — Because of the zombies in “The Last Of Us.” $SPY $NFLX $TSLA Want merch, a shoutout, or got TheBestFactYet? Go to: ⁠www.tboypod.com⁠ Follow The Best One Yet on ⁠Instagram⁠, ⁠Twitter⁠, and ⁠Tiktok⁠: @tboypod And now watch us on ⁠Youtube⁠ ____________________________________________0:00 - Intro 1:05 - Bonus Interview 3:36 - Bull Market 2023 7:47 - Netflix Password Crackdown 14:23 - AM for every vehicle act 17:58 - Takeaways 18:34 - Best Fact Yet 20:00 - Shoutouts 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. Welcome back. It is Monday, June 12th. And today's pod is the best one yet. It is a tea boy, Jack. You look fantastic, Nicholas. Looking fantastic over there.

How's the wedding this weekend, by the way? You guys have fun? A great wedding. My buddy Z-man. Great guy. You're like still wearing the wedding outfit I noticed, right? My buddy Zeman married a Vermonter. How cool is that?

It's kind of cool, I guess. There's a one out of 50s. He's committed to maple syrup, Nick. Let's go. First story, what have we got on the show, man? Out of nowhere, the stock market is a third. officially in a bull market. Because there are three wildfires on Wall Street, and all three are contained.

For our second story, after years of password mooching, Netflix finally kicked you off your aunt's account last month. And we just got the data on whether it worked. And our third and final story is AM Radio. AM Radio. AM Radio, your dad's favorite for traffic and weather together every hour on the age. Okay, but it looks like electric cars just killed the radio star. But yet he's before we hit that fantastic.

I mean, that's how you kick off a week. What? A mix of stories, Jack. Nick and I have prepared something special for you. Yeah, from when we were back in Los Angeles, Jack and I were working on a little thing for you. We whipped up our next interview bonus podcast. We interviewed a co-founder we respect. Who runs a company we consume. Who chose a product that we chew. That company that we interviewed is sweet green. The billion dollar publicly traded salad, legendary cauliflower chain. And that guest who we chatted with is Nathaniel Rue. The co-founder and CMO of Sweet Green. Yeties, there is no pod episode like this one. Because here's what Jack and I did. This is wild. We built a podcast studio in a sweet green kitchen. Like, they are literally tossing the salads in the background while we recorded the pod.

While Nathaniel is telling us about his salad cover. You can actually hear the dressing getting made. That was avocado and it was extra. And Nathaniel told us some fantastic stories. Yeah, like how all their recipes got stolen on their opening day. Or how he somehow convinced Avichi to headline their salad festival. Or whether robots are the future of restaurants. Now, we are going to drop this bonus episode after Nick and Molly have a baby.

So you can enjoy the entire interview while we're off for a week. But in the meantime, we wanted to offer you a tiny bite of this episode. Jack and I wanted to share a tiny taste of this big interview. There it is. I was fortunate to grow up with two amazing cultures. It ate a lot of amazing Mexican and Chinese. Also, I was also very lucky to grow up with a dad that was a first generation immigrant entrepreneur. And I really think because I saw his business with his partners, it kind of gave me the

permission to start Sweet Green. And I remember even when I called him for the first time and I told him about the idea when I was in college. Yeah. There was a long pause And he just goes That salad dressing better be damn good That's great

And that was his seal of approval Yeah Yettys, you're gonna love that bonus pod Jack, let's hit our three stories 15 years before this song Two boys from the Northeast met in the dorm They had an idea that caused a cultural storm It's the best one yet

But this 50% That's a fat tip Tea boy city on your at list If you know you know Cause we're ready to go We can't wait no more So just start the show. Start the show.

For our first story, the stock market just in its highest point in a year. Yetis, we are officially in a bull market. Who saw this going? The economy is surviving inflation and eight stocks are enjoying it the most. Jack, can we do a little time traveling here? Can you take us back to January 3rd, 2022? January 3rd, 2022. Our stock portfolios were looking fantastic.

We were loving every minute of it, weren't we, Jack? It was about a year and a half ago, but at that moment, stock started going down. Yeah, and then stocks kept going down. Stocks bottomed out in October of last year. They were down 25% from that January 3rd high. It wasn't looking pretty. It was not looking pretty. But yet, he's get this.

Since October, it has been up and up and quietly up for the stock market. Look over your shoulder. The S&P 500 has snuck up by 20% since October. This guy came out of it. nowhere. Objects in the mirror may be closer than they appear, Jack. The bear market is over. We have a bull market. And now, Jack, we should sprinkle on a little context here on a bear market. A bear market is by definition when the stock market falls by 20% from the recent high. And yeties, this latest bear market was the longest bear market we had seen since 1948.

It was bad. It went from January all the way to October. But now we're looking at the situation and we are technically in a bull market. Last week, the S&P 500 hit its highest point in a year. It's up over 20% since October. Not too shabby. So yet he's Jack and I were wondering all weekend long. Why does the stock market suddenly have all this optimism, all this enthusiasm, all this positivity, man? The first thing we should do is check the economy's vital signs.

We got to check the vital signs because everyone's been talking recession, but this doesn't sound like a recession. I'm no paramedic, but I think the pulse is inflation. Yes, Jack, let's kick it off with inflation. What's going on with inflation? Starting in January 2022, markets got scared that increasing prices would ruin the economy. But since then, inflation has fallen by half. In fact, analysts are now expecting normal inflation next year. All right, inflation's looking good. Let's check the next vital sign. Oil. Oil, because the economy, it still runs on oil. Last year, gas prices hit a freaky $5 a gallon. Everyone was furious. And that was all driven by Putin's war in Ukraine. But today, gas prices

prices are back to a normalish, $3.50. I'm not loving that, but it's better than $5. We'll take it. And the third final sign, we got to check, Jack, the Silicon Valley Bank crisis, the debt ceiling drama, all that financial stuff that's been going on. Those financial freakouts, they seem under control now. Yeties inflation, oil prices, politics, these vital signs to the economy, they could flare up and turn the economy sick again.

But investors are checking the economy's vital signs. everything looks good right now. Oh, by the way, Jack, can we throw a fourth vital sign into this? Yeah, unemployment. We have a very low 3.7% unemployment right now. I mean, get on the scale, get off the scale. Jack, this doesn't look anything like a recession, does it? Step on the scale, Jimmy. Step off the scale, Jimmy. So, Jack, what's the takeaway for our buddies who are everyone in the economy? Eight stocks are driving this stock market. Okay, Yeties, one of the other surprises about the stock markets bull run right now, it's this. It's that eight huge stocks were down big last year,

but they're up equally big this year, and they're carrying the whole market with them. And those eight stocks are Alphabet, Amazon, and Apple, meta, Microsoft, and Netflix, Nvidia, and Tesla. Those eight tech companies are each up by 40% or more this year. In fact, in January, those eight tech stocks were only one-fifth of the total stock market's value.

But now they've grown so valuable. they account for one-third of the entire U.S. stock market. Besties, last year's loud tech sell-off has become this year's quiet tech rally. The stock markets are at the highest point in a full year, and eight giant tech companies are carrying it. For our second story, Netflix finally began its password-sharing crackdown on all the mooters out there last month. And we just got early numbers on how that password crackdown is working for Netflix.

All right, Jack, if we're going to talk about Pactdown, password sharing, full disclosure, guilty here. Victimless crimes. Can we whip out our whiteboard on victimless crimes? My top victimless crime is when you're in the nosebleed section at Yankee Stadium and you see an empty seat down by the field boxes and you go down there and snag that empty seat. Jack, I'm totally on board with that. If someone comes and it's their seat, you just would go back to your seat, right? Like, it's an easy discussion. If someone says that's my seat, I say, thank you so much for letting me enjoy a couple at

bats here. Well, that's a victimless crime. But the biggest victimless crime, but the biggest victimless crime on earth. What is it, Jack? Password sharing. Specifically, Netflix password sharing. Because yet he's get these numbers. Netflix estimates that 100 million households are guilty of password sharing. Nick and I crunch the numbers. What if all 100 million password mooters stopped mooching and bought their own account instead? Well, Jack, carry the one, carry the nine, add a three, and that would be $20 billion a year in revenue for Netflix just from converting password mooters. So Netflix doesn't think password mooters.

is a victimless crime at all. They think they've been robbed of up to $20 billion, which represents two-thirds of their actual revenue. So, after warning us in January, Netflix began its password-sharing crackdown in America on May 23rd. Starting on May 23rd, if a person outside the household of the main account holder tried to log in,

they got a prompt that you can't do this anymore. You got to get your own account. And let me tell you, Jack, from personal experience, that's an awkward phone call when you have to reach your mother about it. My mom. I'm just calling to catch up. Oh, by the way. Yeah, one more thing. Well, Yetis, we just got the numbers on whether this password crackdown is working. Jack, how is it working? It's working. It's working big time for Netflix. It is. Yeties. According to analytics company Antenna, Netflix just saw their biggest four-day

subscription boost since they've been keeping track of subscriptions. That's right. From May 25th to May 28th, Netflix got more sign of than in any four-day period since at least 2019. Sit down, stand-ups, sit back down on the couch again. The number of new subscribers every day on Netflix doubled starting on May 23rd. In that four-day period, Netflix got more new sign-ups than they did at any point in the pandemic. They got more new sign-ups than Season 2 of Stranger Things. They got more new sign-ups than Squid Game.

They don't love his blind Squid Game spin-off Jack. Now, yet, he's, Netflix hasn't confirmed these numbers. This is super secret early third party data we're talking about. But Wall Street has been confident nonetheless. Netflix stock is up by 17% since the crackdown started on May 23rd. Because when some Wall Street analyst gets a text from his nephew about not logging into that Netflix account, oh, Jack, what's he doing? That analyst puts a buy recommendation on Netflix stock.

Cha-ching, cha-ching. Actually, full disclosure, Jack, I actually switched Netflix accounts last month off of my parents. You're one of the converters? Yeah, I was. You're one of the people that antenna found data. But I felt kind of bad, so I just kept my mom's password. I'm using the same password she uses. That's just weird.

I think you should get your own. It's kind of weird. I need to move on. So, Jack, what's the takeaway for our buddies over at Netflix? There is no one who bluffs like an overconfident customer. Yeties, our favorite lesson from this Netflix password crackdown is on consumer psychology. Yeties, J.P. Morgan Chase surveyed a bunch of Netflix. password mooters, and two-thirds of them said they would not get their own account if Netflix

kicked them off. Let that sink in. A vast majority of mooters would rather lose Netflix than pay for Netflix. Which explains the hashtag cancel Netflix that's been trending on TikTok the past couple weeks. But here's the shocker. The early numbers suggest that they will pay for Netflix. And economists aren't surprised.

They know that consumers tend to overstate their resistance to change in surveys like these. Yeah, Jack, it's almost like consumers are trying to scare. Netflix with their survey responses. Yeah, Netflix, don't you dare kick me off? Because there's no way I'm paying. And now, Yetis, we'll see where the numbers ultimately end up. But the early data, it looks strong for Netflix. It looks like a lot of those moochers were bluffing. Because most customers are pretty overconfident. For our third and final story, Tesla, the pioneer of electric cars, has killed off the AM radio. But Ford just recommitted to AM radio because of the HBO show, The Last of Us.

That show still kind of scares me, Jack. You stopped after three episodes, right? Are you kidding? How did you continue? I was freaking out. It was terrifying, but it was a real kind of thrill. Only show I watched with a locked door jack. It's the only show I watched with antifungal cream.

And the only show I watched with a valium. But yet he's AM Radio. It is the OG of radio. AM Radio was like the first radio on the radio wave. 1895. An Italian invented AM Radio, kind of by accident. AM Radio. AM radio. It's the low end of the dial. If you're doing AM radio, you got to be like AM radio.

It's a lot of ASMR. AM radio is not the Z-100 Z morning zoo with Elvis Duran, is it, Jack? No, it's traffic and weathered together. You give us 22 minutes. We'll give you the world. Except if you're driving a Tesla. Because Tesla abandoned AM radio. Yeah, Elon Musk claimed that electromagnetic interference was messing with the frequency in electric cars. It's not clear if the car messed with the radio or if the radio, or if the radio, was messing with the car. But either way, Tesla started a trend because eight of the 20 major car companies killed off AM radio in their electric vehicles. Nick's Tesla. My Volkswagen, neither of them have AM radio, and neither Nick nor I knew that was going to be the case. So yet he's AM radio's top source of

listenership, Cars, was destined to end in the electric car era. The more that electric vehicles took over cars, the more extinct AM radio would become. Until last week. Ford, which had already killed off AM radio in their electric cars, just changed its mind. They just changed their mind. They did a reverse 180. Ford's CEO announced last week a software update was going to come to all Ford electric cars. Just like that, AM radio is going to show up in electric cars again, right next to FM radio, auxiliary courts, satellite, Bluetooth.

It's going to be there. And Ford's reasoning? They said they listened to policymakers and they were persuaded. Yeties, just last month, we got a kumbaya bipartisan moment. In Capitol Hill, liberals and conservative senators co-sponsored a bill about AM radio. The bill was called the AM for Every Vehicle Act, or AMEV Act for short. And that bill requires that every car, no matter what kind of car it is, must have AM radio. The reason for when disaster strikes.

The explanation? It's in our takeaway. So Jack, what's the takeaway for our buddies over in AM radio? Companies hope for the best, but they have to plan for the worst. Yeties, anyone who has seen The Last of Us or like any zombie movie is going to understand what we're talking about here. Your iPhone will not work in an apocalypse. I'm not getting to signal, buddies. I'm not getting to signal. The minute episode one of The Last of Us ended, I went to Amazon in order to crank generator AM radio for my like fallout shelter.

Because policymakers told Ford that when a natural disaster strikes, government agencies, they depend on AM radio. That's right. National Emergency Broadcast go out. on AM radio and in rural areas, that's the only way you look at the message. So only 5% of drivers use AM radio on their commutes. But when the cell signals out, 100% of them are going to depend on AM radio. This bipartisan AM radio bill hasn't even passed, but it was enough to convince Ford. Because companies hope for the best, but sometimes they need a reminder to plan for the

worst. Jack, can you whip up the takeaways for us to kick off the week? The stock market has quietly snuck into a budget. bull market. We are up 20% since October. And eight giant tech companies are carrying the market on their backs. For our second story, Netflix's crackdown on password sharing is resulting in record new account signups. Customers are overconfident and they tend to bluff and surveys. And our third and final story is AM radio. It was destined for extinction thanks to electric cars, but not anymore. Because sometimes companies need a reminder to plan for the worst. Now time for the best facts. Now time for the best

yet. This one sent in by Varshit O'Leese from lovely Cincinnati, Ohio. Yet he's the first ever webcam. You know the ones you used to stick on the top of your computer? Classic webcams. It was actually a monitor specifically for a coffee pot. Get this. Back in 1991, researchers at Cambridge were tired or running out of coffee every day. So they connected a camera to the internet and pointed that camera directly at the coffee pot. And then they could just check the status of the pot of coffee from their computers using this new technology, the World Wide Web. The first ever live cam, the first ever webcam, it was all about coffee. We take streaming for granted, but it was all thanks to coffee.

And some really nerdy researchers. Who don't like walking a few steps. And don't like tea. Yeties, you look fantastic to start the week. And remember, the best way you can grow the show, the best way you can double the number of listeners on this show is to find someone and grab them and say H-Y-H-T-B-O-W. Grab them gently. Yes, yes.

It's more of a light nudge. Tap them. You know what? Let's walk it back a step. I don't even know why I say grab them, Jack. I kind of regret using that verb in the first place. I could say, excuse me? Do you have a second of time?

But then you should say H-Y-H-T-B-O-W. Have you had the best one yet? If you know, you know. Nick and I, we'll see you tomorrow. Can't wait. And before we go, congratulations to Yeti's Sam and Courtney Benkort, who have a two-year wedding anniversary that they're celebrating playing some magic cards. They're playing the game. And congratulations in Bon Voyage to Julio and Joanne Perez, who are on their first

international trip together headed to where else but Japan. You got to go to the Tokyo fish market. You got to go to the sushi. It's incredible. And congratulations to Amanda and Mickey, who just got engaged on a beach on Camp Cod with some champagne. Let's see the ring. And Lincoln Wilcox is graduating from Kellogg with an MBA, not too shabby. Congratulations, man. Good luck to Emma Kane, who's headed off to UNC Chapel Hill. And Gary and Arushi are getting married today here in San Francisco. We can see them from here. Here you go, guys.

And congratulations in Mazel To our buddy Ben Zorak and Sarah Lovett, who just got hitched over in Smuggler's Notch. Jack, do we have a wedding hashtag for the Z man? Pentine Pro Z. And a happy birthday to KG, the OG Yeti, who's engineering some software over in the Bay Area. And happy birthday to Luke War Camp in Boise, Idaho. And Casey Williams, happy birthday up in Lake Oswego, Oregon.

And happy 13th birthday to Varaj Patel, who's on his way to some taekwondo practice. Celebrate that win. Celebrate the wins. This is Jack. I own stock of Amazon, Ford, Volkswagen, and Netflix. And Nick and I both own stock of Apple. And we both own some ETFs of the S&P 500. graph it.

I did immediately. As soon as I said it, I immediately regret it. Well, dude, that's the best thing. People say things they regret. I'm your co-host. I'm here to say something. I mean, the keyjack is I didn't double down. It wasn't like you grab them and then you shake them and you say H-Y-H-T-5.