The Best One Yet - 👨‍🎤 “Belieber in Bieber” — Bieber’s $200M music sale. ChatGPT’s Wharton MBA. Tesla’s new growth mode.

Episode Date: January 26, 2023

Justin Bieber just sold all of his music for $200M to a Pure-Play Playlist Stock. ChatGPT just passed its biggest test yet: A Wharton MBA final exam. And Tesla’s most important earnings in years reveal it’s about to go into reverse — From profit mode to growth mode.$SONG $BX $TSLA $MSFTFollow The Best One Yet on Instagram, Twitter, and Tiktok: @tboypodAnd now watch us on YoutubeWant a Shoutout on the pod? Fill out this formGot the Best Fact Yet? We got a form for that tooLearn 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. It's Thursday, the new Friday, January 26th. Then today's pod is the best one yet. Jack, I got one question for you. What's that? On a scale of one to gazuntite, how would you rate that German donor kebab last night? It was phenomenal.

It was fantastic. It had the red cabbage for the crunch that you need. It did keep going. I like where you're going. Well, we had the Brussels sprouts. We did have the Brussels. We also met six Yetis. We ran out to six Yettys.

In the past 24 hours, we've met six besties in Yettys. Six Yetis came up and said hi to us. It felt so good seeing you out in the wild. Wait, they really did. Actually, two of them just DMed us the best fact yet. We'll hit that later on the pot. In the meantime, what is the first story? Justin Bieber just sold his entire music catalog for $200 million. And guess who bought his music? The first ever pure play playlist stock. You better believe it. Jack, second story, what do we get?

Tesla just announced their earnings and they announced record profits in 2022. But here's the thing. Investors don't drive backwards. They drive forwards. And our third and final story is about ChatGPT. It just notched its biggest milestone yet. ChatGPT just passed a warden MBA exam that I took five years ago. Did you pass? Let's wait till our third story, Jack.

Yeties, before we hit that fantastic mix. I love this mix. I love potting in person with you. I'm going to miss you, man. I'm going to miss you, too. I'm going to miss you, though. Do you still have bruises from my bear hug yesterday? Your bruises aren't going to miss me.

It's a great bear hug. is a great fairhound. Yetis, we have an update on the eggflation situation. The eggflation situation, the frittata fiasco. A dozen eggs cost a dozen dollars right now. Ipso facto one egg omelet is the same price as a three egg omelet. But get this. We Americans want eggs so badly.

So badly. We are now smuggling them across the border. U.S. border security has seen a 108% surge in egg smuggling. We repeat, Homeland Security isn't just seizing drugs. at the border. No, they're seasoned eggs. And it's not because we have a sudden craving for Juoelso Rancheros. And it's not because Mexico has plenty of yokes to go around in that breakfast barita. The reason is in the prices. Talk to us about the prices. The average carton of eggs in San Diego is eight bucks. But Jack, what does the average carton of eggs cost you down in Tijuana? Just a few

miles south across the border. That's key. $3 for a dozen eggs. What are we trying to say here, Jack? We Americans cannot afford American eggs. So we're breaking border laws by bringing the Great A good stuff over from Mexico. That's why eggs are going over easy over the border. And that is why they are cracking down on the contraband shells. By the way, if you're thinking about smuggling eggs as like your side hustle, it's a $10,000 fine if you get caught. That yolk ain't no joke. Don't want to go to jail over an egg scramble.

We'd rather hit our three stories. Jack, hide that egg. Hide that egg. Hide the dozen eggs there. Hide it. We've got to hit those three stories. Let's hit our three stories. years before this song. Two boys from the Northeast met in the dorm

that had an idea that caused a cultural storm. It's the best one. 50%. That's a fat tip. Tea Boy City on your at list. If you know, you know, because we're ready to go. We can't wait no more, so just start the show. For our first story, Justin Bieber just sold his entire music catalog for $200 million.

Who owns Bebs' music now? Who is it, Jack? A pure play music stock. It's not who you'd think. though. But first, can we talk about the hardest restaurant reservation to get in New York City for like five years straight? It's Carbone in Greenwich

Village. You can't even look to get a reservation. They tell you they don't even want you. It's so hard to get a reservation. How hard is it, Jack? That the beautiful Justin Bieber two years ago was turned away. I think maybe Haley Bieber could try to get one instead and sneak him in. She couldn't get one either. But last night, the Bebs

got in. And why did Justin Bieber finally get into Carbone, Jack? because he just sold all the music he's made through 2021 for $200 million. He didn't sell his future music. He did sell baby and ghost and stay and sorry and peaches. Not his songs anymore. He sold all of them. This is the only artist under 60 years old.

We've seen sell their music. This is the biggest deal we've ever seen for an artist who's not collecting social security checks. Bebs, yeah. 28 years old. He sold away the rights to the annual royalty checks that he collects from the streaming company. We also just noticed he names all of his songs after single emotions. Yeah, I know. One syllable words.

Sorry, lonely, holy, mood, confident. These are all Bieber songs. Two syllable words, but yeah, emotions. Okay. And what is the reason he sold all these songs now, Jack? Instead of getting an annual check for listening of his music, he wants one big fat check right now instead. Now, yet he's here's why Jack and I were fascinated with this story.

We've noticed there's a land grab going on for music right now, but Bieber's deal just feels different. Let's go to Japan. Where you just came on from, it was lovely. Japan's Sony acquired the rights to Bruce Springsteen's music for $500 million last year. And the year before that, Sony acquired Bob Dylan's music for $200 million. Let's move over now to New York City, where Blackstone, over the last three years has acquired the music rights of Justin Timberlake, Neil Young, and Fleetwood Mac. Okay, but that's not all. Blackstone, this finance company, has also acquired Red Hot Chili Peppers, Rick James, Chain Smokers, Kenny Chesonkers, Kenny Chesze. And now Justin Bieber too. It owns all their music. So Sony, which has a music label, it makes sense that they acquired all this music.

Exactly. But Blackstone is a private equity firm where you can't even stream Spotify on the computers at their offices. Why is a finance company acquiring Bebs as Beats? It's a big question. And the reason Jack and I have shared before is because music is a boring, consistent business in a good way. It's boring, but it's consistent. Every musical song is like a drumbeat. revenue that just consistently drip, drip, drips to Blackstone's coffers now.

So while all the headlines yesterday said that Blackstone acquired Justin Bieber's music, we dug deeper. We jumped in T-Boy style and we noticed there's more to the story. Now that's what I call music 26. So, Jack, what's the takeaway for our buddy, Justin Bieber? We just found the first ever Pure Play playlist stock. Here's the key yeties. It wasn't actually Blackstone, the private equity firm, that,

bought Bieber's voice. It was actually Hypnosis. Hypnosis was the real acquirer of Justin Bieber's music. Right. Blackstone is a major investor in hypnosis. Yeah, Hypnosis is actually a British publicly traded fund that acquires tons of music and then collects

revenues when you stream that music. Hypnosis is like an ETF of beats. Exactly. They find value from vocals. It's a diversified portfolio of tracks. In fact, hypnosis breaks down its portfolio of music by genres. Like, they have investments in pop and investments in blues and investments in

Christian rock. They don't have investments in like tech, industrials and not a motive. Okay, Jack and I jumped in further T-Boy style. This fund has music that has won 156 Grammys. That's not all. Hypnosis is also publicly traded. Right. Anyone can buy shares of the company. So indirectly, you would own part of Justin Bieber's music. Ticker symbol, S-O-N-G, song. We repeat, this British-listed stock called Song now owns 290 of Justin Bieber's tracks on top of like all the Christian rock, the pop and the blues music out there. Which means one thing and one thing only. Yes, Jack? We just found the first ever pure play music stock. Or as we could also call it, the first ever pure play playlist stock. For our second story, Tesla just announced a fantastic

end to a record year. That was 2022. It was. But in 2023, Tesla may pull a reverse. Now, Yetis, Jack and I just want to sprinkle on a little context here. One of the analysts who covers Tesla said that Tesla just had one of the most important calls in the history of Tesla. The call to report on 2022's final results. And Jack, how did that really important call go? Well, the earnings sounded amazing. They sounded incredible.

Over the holiday quarter, profits jumped by 59% for Tesla to a record quarterly amount. Get this, Tesla finished 2022. with a huge $12.5 billion in profits, exactly how big is that check? That's a lot. That's a big price. How big is that? It's double Tesla's record 2021 profits. Tesla basically whipped up a record, a record, a record, a record, a record number of records for Tesla. But like we said, the last time we covered Tesla, record bests are not enough for Tesla. Tesla can't even be happy with records these days.

And the record that wasn't recordy enough? There was one. Number of cars delivered. Yeah. As the economy slowed, so, the number of Tesla's driven off lots. Yeah, Yetis, you are not buying a Model X in this economy? Especially if you own Tesla stock right now. You're not splurging on a new Tesla car. Now, Yetis, the problem with Tesla's record profits is that they're in the rearview mirror. Everything we just said was in the rear view mirror.

But investors drive facing forward. Yes, Tesla's 22 profits were amazing. And they should celebrate those wins. It's huge. Celebrate the wins. But in January, in 2023, Tesla slashed the prices of their cars by up to 20%. We repeat yetis. Just this month, Tesla basically tossed its cars on the sale rack like we're working at...

The Tesla January sales event. We didn't see the commercials, but it happened. The average Tesla car got a $10,000 price discount like it was a cute top at Lulu Lemon. Now, we did the math. In 2022, Tesla made a little less than $10,000 of profits per car that it sold. Okay. they made $10,000 in profit on every car, but Jack and I just said Tesla is now discounting its cars by $10,000. So the price cut that Tesla just announced could completely erase the profits made by each car this year.

Which is why all that exciting stuff we said at the beginning of the story isn't quite as exciting right now in the story. So Jack, what's the takeaway for our buddies over at Tesla? Companies graduate from growth mode to profit mode. They do. But Tesla might be doing it backwards this year. Yeties, for 14 years, Tesla was in growth mode. It was spending every dollar Elon could find to build those initial factories and hit a critical mass. Which means it was losing all that money you could find for those 14 years.

But in 2022, Tesla finally graduated from growing to profiting. From losing money to making money. And yet now, it looks like Elon may have to go backwards in 2023, bringing Tesla in reverse. Because Elon knows there's new competition, a slowing economy. a diminished Tesla brand, and all of that are making him choose this one major decision. Do you want growth or do you want profit? Growth mode or profit mode? Tesla is choosing to go back to growth mode by discounting the cars.

And that might mean losing money again. Now, a word about our sponsor, Robin Hood. You know, honestly, your salad, it says so much about you. Nick, you like to blaze your own trail at the salad bar. I'm ordering a salad. I go off menu, man. Like a combo of kale and croutons that has never been made before. Me? I'm not reinventing the wheel. I like to go classic.

If Sweekerian thinks it's a good combo, Jack's not going to change that. Kind of like investing strategies. Someone to build a custom portfolio of stocks, crypto, and options. Others don't want to reinvent. Just give me the most standard ETF. Whether you're tweaking your one-of-a-kind portfolio every day or prefer a more hands-off approach, Robin Hood has the tools. If you're not investing on Robin Hood yet, to get started, go to robin hood.com slash

T-boy to choose your free stock. That's robinid.com slash T-B-O-I. Limitations apply. Stocks offered by Robin Hood Financial LLC, member SIPC. Crypto offered through Robin Hood. All investments involve risk. By the way, this podcast is not owned or part of Robin Hood, and we are not employees of Robin Hood. For our third and final story, chat GPT just passed its biggest test yet, a final exam at the Warden School of Business. The big question, can this artificial intelligence replace MBAs? Well, Jack and I honestly didn't have to jump in too far.

T-boy style. The kidd profiles are nervous right now. Adores me for everything. We didn't have to jump in too far T-Boys style because we have a Wharton grad right here. Yeah. Nick, tell me about this exam. Oh, this exam. I actually really do remember this kind of thing, Jack?

This is a course taught by Professor Christian Turvich. I didn't have him. It's a core class. It's a core class. It's a core class. So like if you're getting your business school degree award. Every student, regardless of the specialty you choose. You have to take the intro to operations management class.

You don't strike me as an operations guy. What made you think that, Jack? I've got a passion for supply chain operational optimization. So did you check to see what grade you got on this final exam? No comment. I technically graduated. So I got through this thing. But like, you know, I am not a huge Gant chart guy.

So Nick's not telling us about his C. No, no comment. But the professor fed his final exam that he gives like every year. Question by question, not to one year MBAs like Nick used to be. Who do you give it to? To the chat bot. known as Chat-JPT. Yeah, while the rest of the Warden MBA cohorts were at Pub Night and Riddenhouse Square,

some computer artificial intelligence program. A final exam. Now, we assume the chatbot failed. You think it got close maybe to passing. Wharton's a top school. This chatbot passed the exam. D? C-minus? This chatbot got a B-minus.

Not too shabby. Wow. Yeah, not showing off, but not falling behind either. But can this chatbot network? That's a good question, Jack. Can this chat bot attend a group trip to Majorca during winter break? Yeties, it's not just Wharton. Yale University found that ChatGPT passed a medical exam for a medical license, too.

If so facto, chat GPT is on its way to getting an MBA and a medical degree faster than you can spell GMAT. My boy's wicked smart. And Yeties, that intelligence of ChatGPT is why Microsoft just confirmed the rumors we were talking about the other week. Microsoft has invested big in OpenAI. The company that owns ChatGPT. Now, if you look at Microsoft, they have Excel and PowerPoint. Those are for execution of tasks. But ChatGPT is for knowledge work, knowledge-based tasks.

So Microsoft is planning to build this artificial MBA into LinkedIn, into Bing. It will. And into all the Microsoft Office products. And then Microsoft can start marketing its business software as having a built-in business school level assistant. Wow. Yeah. That's pretty compelling. Now, Microsoft sees Chat GPT as a tool for its business professional users to use. It does not see ChatGPT as a replacement for those business professionals themselves. And that distinction is what got Jack and I curious. So Jack, what's the takeaway for our buddies over at ChatGPT? New technologies lift everyone's abilities,

but they don't replace experts. Yeties, here's how Jack and I see it. ChatGPT is going to give the average person decent skills, but not expert skills. ChatGBTGBT is a new technology, like the calculator once was. Exactly. And the calculator made us all better at math, but it didn't make any of us mathematicians. Let's step up a level from that. The iPhone makes everyone a decent photographer, but nobody's going to pay you for all those decent picks. Another crazy technology is Google translate. It's powerful. It lets you translate Greek to English, but it doesn't make you a translator. So Yet he's chat GPT. It's getting crypto level hype right now, but it really should be viewed just like every other tech breakthrough that we've seen. It gives the average person better skills, but it doesn't make the average person a pro.

MBAs, other professionals, we think you're safe. Jack, can you whip up the takeaways for us for the new Friday? Justin Bieber just shockingly sold his entire music catalog to hypnosis for $200 million. And we just discovered the first ever Pure Play playlist stock. story is Tesla. Their 2023 might sacrifice profits for growth. Companies graduate from growth mode to profit mode, but Tesla might be going backwards. Their third and final story, even though chat GPT can pass a final exam at a top business school. We think that MBAs and other professionals are safe. Because new technologies lift everyone's abilities, but they don't replace experts.

So your operations test exam score doesn't matter. Slow rate or through rate? Round up. Now, For the best fact yet, this one sent in by a couple Yetis, Jack and I ran into a dinner last night at Radhouse in San Francisco. Dana and Tucker. Dana and Tucker tell us that Walt Disney wasn't just whipping up Mickey Mouse and Daffy Dye. Walt Disney wasn't just splashing through splash mountains and space mountains. Actually, Daffy Duck might have been Looney Tunes. That's a fair point. And we may get sued by their lawyers on this.

What Walt also did was envision, design, and pay for the opening and closing ceremonies of California's 19. 1960 Winter Olympics at Lake Tahoe. Okay, Yetis, we repeat. The founder of Disney basically made the 1960 Winter Olympics happen in California. He helped build them. Did he get a gold participation trophy? He should have gotten one. Honestly, people talk about saving the Olympics.

Have Disney do more Olympics, right? Yeah. Do more, have Disney make all the Olympic venues. Just host the Olympics at Disney World. That's how they should do it. Good, clean family fun. Yeties, you looked fantastic today. Jack, you looked fantastic.

By the way, we just recorded our latest interview podcast. A bonus episode. Jack is about to jump on a red eye flight. You do look great. We actually have recorded two episodes today. This is our second podcast today. I've had a great time with you. Sit down, stand up, and then pop a melatonin for your flight, Jack.

I'll see you on the pod tomorrow. Can't wait. And before we go, happy 25th birthday to Yeti Lauren Howpyshine in Charlotte, North Carolina. And happy 27th to Chase Edmonds in Houston, Texas. Hylner, we know you're walking your dog right now in Ridgewood, New Jersey. Enjoy that birthday celebration. And big shout out to Shannon Ahmaud at Boston Consulting Group for listening to this pod for years. And Lucy and Peter Minut in San Francisco, thank you for letting me borrow your air mattress. Let me sleep on Nick's bed. So I didn't have to sleep on a couch.

This is Jack. I own stock of Disney and Nick and I both own stock of Lulu Lemon and Robin Hood. Now a word about our sponsor, Robin Hood. Okay, so Jack and I both worked in finance for a while. And we know the six-monitor Bloomberg jockey with charts, numbers, balances, and more charts. They got coffees in both hands while they're executing some complex trade on a soybean future. Well, we're not trying to impress with our mission control trading center. Just give us an app, please. Robin Hood, with its mobile first and intuitive design, it lets you trade with just a few quick taps on their app.

And even if things still don't seem easy, Robin Hood has your back 24-7 with its live and robust customer support. If you're not investing on Robin Hood yet, to get started, go to Robinhood.com slash T-Boy and choose your free stock. That's Robinhood.com slash T-B-O-I. Limitations apply. Robin Hood Financial LLC, member SIPC, all investments involved for us. By the way, this podcast is not owned by or part of Robin Hood, and we are not employees of Robin Hood.