The Best One Yet - 🦤 “$69 was too high” — Elon’s Twitter offer. RentTheRunway’s anti-flation outfit. Peloton’s switcheroo.

Episode Date: April 18, 2022

Episode 78 of the Elon Show: He’s offered to buy Twitter (entirely). Rent The Runway is renting more runway because your weekend, weekday, and waist are different (FYI, pastel floral blazers are in). And Peloton raised prices… and lowered prices… at the same time. $RENT $TWTR $PTONGot 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/viewformID: 2129125Learn 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. Welcome back. It is Monday, April 18. Today is not a holiday. It's actually an anti-holiday. Yeah, Snackers, your taxes.

They're due to day today. Taxes are usually due April 15th, but this year it's the 18th because April 15th was good Friday. But taxes, kind of patriotic. What would George Washington do? Yeah, send them in, Snackers, before we're done this pod. That's our best tax advice. Avoid the audit. We're not accountants, but we can confirm that this is the best pod we've.

ever done. TBOI. For our first story, yes, you can make an acquisition offer in under 240 characters. Snaggers, Elon offered to buy Twitter entirely. Here's what all of it means we spent all weekend working on this. For our second story, rent the runway, pop 10% on Thursday because your weekdays, your weekends, and your waistline are all different. Welcome to the era of the Revenge Rental Blazer. For our third and final story, Pelton, Pelton just raised price. But Peloton, Peloton just cut prices. Yep, they did both at the same time. Combined.

It's the old switcheroo. We're looking into the old switcheroo. Snackers, before you get that wonderful mix. Perfect mix to start a weekend. This is a special week, Jack. I'm excited for this week. It's not just happy Monday. It's happy fun day.

Not just a fun day. It's an extra fun Monday because Snackers, you may be heading back into the office for the first time. Today might be the first time. You were sent back into your eyes. You're like, Jerry, that's how tall you are? I was picturing something totally different. You really didn't seem that tall.

You've been working with this person for two years and you finally saw the shape. Oh, that's what's below your neck. Okay. So offices are prepping for your return with some pampering. They're going for the pampering perks. They're making the work from work feel more like a play from work. Some offices, you'll be surprised to see some couch corners. Yeah, some offices you may have noticed there is free snack food.

But the new tool to ensure that you're happy back in the office, live music. Snackers, office concerts are now a thing. Microsoft's big office reopening party featured a bunch of local bands. Yeah, a bunch of Seattle finest. Team meeting over in the Mosh pit. Nothing boosts productivity like some grunge. But then Snackers, Google, they kicked it up a notch because they got a budget straight out of Coachella. Google got Lizzo, the legend of lyrics for a live concert.

Snackers, we repeat, Lizzo is performing at the garden. And I mean at Google this month. Google's office now includes nap pods, free snack food, and live Lizzo. It ain't my phone. That your office music comes from an AM FM radio. Don't blame it on the goose. Blame it on the juice. I'm just out here getting loose.

Let's Lizzo are 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 to hear ain't food. It's air candy. They don't reflect the views of the rob 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 or sale of a security. Right. Snacks is digestible. Business news for you. Robberhood Financial, LLC, member Fenra slash SIPC.

For our first story, Elon has offered to buy all of Twitter for $43 billion or three lifts. And advice to Twitter board members right now, don't look at Twitter right now. Most attention-graving show, Jack, that isn't we crashed right now? The Elon Hour. The Elon Hour. It's on every night. Elon Musk dominates the news cycle like only our former president could. First, Elon secretly bought 9.2% of Twitter. Then we learned that Elon filed the paperwork wrong and late, which probably benefited him financially in that stock buying.

And then Twitter offered Elon a seat on its board because that's what you do when you're kind of getting taken over. But then Elon declined the offer to be on Twitter's board. He said he didn't want to be. But Snackers, here we are two weeks later. And now we're facing funding secured part two. On Thursday, Elon filed an official offer with the SEC to acquire the entire company of Twitter for 5420 a share. Yeah.

Jack, do you notice? It's a little 420 that he snuck in there. A little 420. Yeah, I did. Because $69 a share would have overvalued Twitter. So Snackers, that price, that would actually be pretty good for Twitter shareholders, that price. Yeah, $54.20 a share is 38% higher than before Elon got involved with Twitter. But that price, it's also not that good.

Yeah, 5420. It's below the average price of Twitter stock over the past year. All right, so Jack, I'm checking out my TV guide over here. What is up on the next episode of the Elon Hour? Balls in Twitter's court. The board of directors has to decide whether to reject or accept Elon's offer. Snackers, plot twist here. If the board says no, then Elon could actually force a shareholder vote. Yeah.

If you own stock of Twitter, you'd get like a ping on your brokerage app and it would say, do you want to say yes or no to Elon's offer to acquire their company? So as you'd expect, Elon is already full court pressing Twitter's board to just accept his initial offer. He says 5420 a share is his best and final offer. But many experts, they think that Twitter's board is just going to reject this offer. Yeah, because the price isn't high enough. And maybe the offer isn't serious enough. And markets, they don't even think this deal is going to happen.

Yeah, the stock actually fell Thursday. So the money thinks it's not going to sell for 5420 a share. Plus, Jagger and I are looking at this. There's like a 50-50 chance Elon changes his mind and then just goes off and tries to buy Pinterest instead. There's a 50-50 chance he gets distracted by a different planet. to go after. And then merges Pinterest with a doge coin mine and moves the headquarters over to Mars. By the way, Jack, did you see that it's Focus Week over Twitter? Like employees were supposed to cancel meetings just to focus on like product this week. Then the Elon show happened.

So Jack, what's the takeaway for our buddies over Twitter? Elon's Twitter would still have rules. They would just be Elon's rules. Yeah, Snackers, the most interesting like overlooked detail here. If Elon fully controlled Twitter, it wouldn't be under pressure to make money anymore. Elon said on Thursday, I don't care about the economics of Twitter at all. Yeah, Twitter would be a private company without profit pressure, basically running like a non-profit. Instead, Elon said he does care about free speech, democracy, society, and Twitter's important role in all of that. Well, surprise, contrary to what you might think, he doesn't think there should be no rules on Twitter. Yeah, you think he's a free.

speech guy, you think anything would go on Elon's Twitter, but you'd be wrong. Yeah, Elon said Thursday, if it's a gray area, I would let the tweet exist. But that means he might take a tweet down. And he also acknowledged that Twitter could suspend and ban users if he owned Twitter. Yeah, so he wants to edit the content moderation rules, not delete the content moderation rules altogether. Contrary to what everyone expects, if Elon owned Twitter, there would still be rules about what you can and can't tweet. one asterisk, they'd all be Elon's rules. Elon would become the Mark Zuckerberg of Twitter. What he wants goes.

For our second story, rent the runway stock, it just jumped because rent the runway is in a very special window right now. Right now, your weekdays, your weekends, and your waistline are all changing. Snaggers, rent the runway, its stock has fallen nearly 70% since last year's IPO, but it popped 6% on Thursday. Yeah, their ticker symbol is rent. Classic. Not the play, not the musical.

The dry cleaner fancy gown service. Yeah, and Snackers, this company, they doubled the act of clothing subscribers to 115,000 last year, even though they're still losing money. They're still losing money, but more people are rent in that runway. Have they launched a men's line yet?

I literally just searched men on their website, and it says zero results. Not a single result. Really not many rental options for dudes. No, but Snackers, here's what Jack and I find fascinating about this story. Rent the runway is in a very particular, very specific window right now. There's an opportunity. Because we consumers are experiencing a change to our weekends and a change to our weekdays.

Yeah. First, the weekends, Jack, the weekends are wedding Pallusa these days. 2.6 million weddings are scheduled for this year, which is an all-time high. It is. I just went to Abby's wedding. Abby just got married this weekend, Jack. There you go. You're double booked for multi-hashaggat weddings from Maine to Napa. Yeah, and Snuggers, you're wearing the maxi dress for the ceremony. You're wearing a gown to the reception.

And then, Jack, you got to have that first impression at the rehearsal dinner. What are you going to wear? Don't forget the welcome party. Oh, the welcome party. I almost forgot. Don't forget the farewell bites and bellini. We got to have a dress for that too. You got to have one for every single thing. Snackers, 50% of rent the runway's visitors.

They come to the website driven by an event. In 2022, we have a lot of events. Okay, so that is the weekends. But on weekdays, you're getting a wardrobe refresh too. You got to look good for back to the office. You got to look good for back to the office. And here's the interesting observation around the runway made. There is a very particular return to office outfit people are going for.

The CEO mentioned on the earnings call that women's blazer rentals are up 166% in the past quarter. Blazers. But these are blazers that are in like past. Castels and patterns and floral prints, not your typical women's blazers. Floral printed blazer? I would wear that. I mean, it's kind of interesting. So, blazers are business attire, but what's on the blazer is more casual.

Yes, and that is key. Oh, and there is one more thing that Jack and I should mention. Snaggers, we should talk about our waistlines because one out of three Americans saw their size change in the last year. If you're trying on medium for the first time, you want to rent it. You don't want to commit to a buy. Exactly. The pandemic changed our size.

So Jack, what's the takeaway for our buddies over at Rent the Runway? The best friend of renting is actually inflation. Inflation is the best friend. You know, like popping prices on everything. That is actually a competitive advantage for Rent the Runway. Buying things is more expensive than ever. So lower priced rentals are looking kind of attractive. Yeah, you're spending so much on gas and goods and granola.

You need to find some savings somewhere. The gown cost $300 to buy. Now. Right now, it might be a good idea to rent it for only $6. Rent the runway. It is a glorified dry cleaner that's washing clothes to re-rent them to you. So as long as inflation doesn't mess too much with cleaning detergent and chemicals and clothes hangers, inflation is rent the runway's best friend. For our third and final story, Peloton's new CEO wants Peloton to be more software than hardware.

So he's charging more for software and less for hardware. He's focusing less on the importing, more on the exporting. Snaggers, full disclosure, Jack and I still own shares of Peloton because we're waiting for that Apple acquisition that's never going to happen. Yeah, we're still waiting for that share price hill climb class. But in the meantime, Peloton stock actually found a whole other way to fall last week. Pretty impressive. The old price switcher-er-er-er-e. Snackers, great news if you're not yet a Peloton customer.

Peloton prices are dropping. Yeah, the bike, they're fancier bike, their treadmill, they're dropping the prices of all of them. from expensive to expensive-ish. Yeah, the bike price is now down almost 20% from 1,700 bucks to like $1,400 bucks. That's still a big birthday ask, though. It is. That's a bar mitzvah situation.

Mom, can I have a Peloton? If you get the Nobel Prize. It's a no. So that's the great news if you're not yet a Peloton customer. But terrible news if you already are a Peloton customer. Peloton prices are rising. Yeah, so they're cutting prices and they're raising prices. Jack, did you get that email this week?

I did. And the first line for my email I got from Peloton because I'm a member, no big deal, not just a shareholder. Sorry, Nick. Must be nice. Peloton pointed out that their monthly subscription price, the price you have to pay even after you already have the bike, hasn't risen since 2014. That's not a good sign.

That's not a good email. No, that's not a good sign. You're like, oh, God, what's coming now? Well, guess what, Snackers? Peloton is raising prices now on their subscription, so like access to their classes, from $39 a month to $44. I think it's called the Connected Hardware subscription.

And here's the thing. If you already dropped like $2,000 for a Peloton bike, you have no choice but to pay this extra price now for the subscription. Yeah, because Peloton's like, hey, it's only 14 cents more per day. That's like nothing. And I'm like, hey, it's 14 cents more for every day for the rest of my life. Or forever. So Snackers, here's what's going on here with Peloton raising prices and Peloton cutting prices.

Peloton clearly wants growth. New members are going to pay less up front because the bikes are cheaper. But old members are paying more for the rest of time for infinity. So Jack and I are looking at this. We're like, so basically existing Peloton customers are subsidizing new Peloton customers. I'm not sour because my stock is down and my membership for the Peloton is up. Current Peloton East is you're paying for Peloton's new marketing push. I'm not really angry about all this.

So Jack, what is the totally fine? Takeaway for our buddies over at Peloton. Hardware is becoming subscriptified. Oh, Snackers, one more thing that Peloton's testing, rent a bike. You pay monthly for the bike and the classes. With rent a bike, there's no expensive $1,700 up front cost to buy the bike.

You just pay bigger monthly payments. Yeah, so like you'd pay $100 a month instead of $45 a month, but that's going to get you access to the classes in the app and the Peloton bike. Makes sense because the new CEO came from Netflix and Spotify. So those are fully subscriptified businesses. He's trying the same thing with Pelton. Well, funny timing. Because just the other week, we heard that Apple is doing something similar with

subscriptifying their hardware. That's right. Apple may turn the iPhone into a monthly subscription that you pay for every month. Okay. So Snackers, you may start to feel subscription in your life with software like all the streaming music and video services out there. But get ready. Subscripturation?

It's coming after our hardware, too. Jack, can you whip up the takeaways for this big week? Elon offered $43 billion if Twitter would sell everything to him. But contrary to what you'd expect, there will be rules in Elon's Twitter, and he will write those rules. For our second story, Rent the Runway is up because people's lives are changing this stage and the pandemic. And because inflation is shockingly renting's best friend. Our third and final story, I'm not sour about. at all. Peloton is raising prices for existing members, dropping them for new members.

Yeah, because subscriptions, they're coming after our hardware too. 52 week low. I'm not upset about it. So if I get a Peloton bike, I should be thanking you too because like you're basically paying for it. Actually, the stocks at a 52 week low. Yeah. How much I pay for Peloton is in a 52 week high. It all comes full circle. Snackers, time for our snack fact of the day, which to be fully transparent is a correction to air the pod from last week. We made a mistake. Oh, yeah. We Sports. We said 82 million copies were sold, the most Nintendo games ever sold ever. We did say that. Well, that's kind of because Wii Sports came included with a Wii gaming console. But yet, Jack and I have a snack fact within this correction. Nintendo still sold more Wii consoles than Michael Jackson sold Thriller albums.

That's still a big deal. Be that. Oh, and by the way, if any snacker has a leftover guitar, Tar Hero situation. In the closet. Doesn't have to be new. I'm interested and I'll buy it off you. So hit me up at Jack Kramer on Twitter, at T-Boy Jack on Instagram. We got some jingle ideas for the pot. Snackers, you look fantastic to start the week.

Jack, I cannot wait for this week with you. Nick, I'll see in a couple days in SF, actually. I've got a very good reservation that you may or may not like. Project Juice. Actually, Alcatraz. I'll see you Thursday. And before we go, congratulations to Snackers, Paul and Tom. Jack, they are moving in together up in Toronto.

And congratulations to a 65-day Whartle Street winner over in Panama City, Pamela. I'm talking about the one, the only, Nakale Mookie. And Long Islanders, Mike and Michaela enjoy celebrating that anniversary down in Disney World. Congratulations to Juan Corre now, who's got a new job in Brooklyn. after eight years at his old game. And happy birthday to Bonnie from just outside of Boston. Big happy birthday to Matt Dwyer, still rip and twine at whatever age he is today. He's from Nantucket, but really long Iowa.

Big guy over at the Little Green. And happy 37th birthday to Jorge Rodriguez in Fort Lauderdale. And investment banker Jerry Yao is turning 24 with some bottle service in New York City. Happy birthday to Sorab, Gupta, in Silicon Valley. And Julia, happy birthday in Los Angeles. and Mike Payne in Beaverton, Orr. And Brandon, Gary Gray, happy birthday down the street in San Francisco. And to anyone else celebrating something today, make it a team.

Celebrate the wins. This is Jack. Nick and I both on stock of Pelton and Nick on stock of Apple. Robin Hood Snacks, Newsletters, and Podcasts reflect the opinions of only the authors who are associated persons of Robin Hood Financial LLC and do not reflect the views of Robin Hood Markets, Inc, or any of its subsidiaries or affiliates. They are meant for informational purposes only and are not a recommendation to buy or sell any security, cryptocurrency, or investment strategy in any account. This is not an offer or sale of a security, not a research report, and is not intended to serve on the basis for any investment

decision. Any third-party information provided therein does not reflect the views of Robin Hood Markets, Inc., Robin Hood Financial LLC, or any of their subsidiaries or affiliates. All investments involve risk, including loss of principal and past performance, does not guarantee future results. Robin Hood Financial LLC, member FINRA, SIPC. Don't forget the farewell bites and bellini's.