The Best One Yet - 🫁 “Bezos harvested my kidney” — Amazon’s One Medical catchup. FaZe Clan’s video gamer stock. AT&T’s phone-bill fiasco.

Episode Date: July 22, 2022

FaZe Clan is a video game team that now has a publicly traded stock. Amazon just jumped into your doctor’s office by acquiring One Medical (“paging Dr. Bezos”). And AT&T stock had its worst day in 20 years because you paid your phone bill a day late… and so did everyone else.$FAZE $ONEM $AMZN $TFollow 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. And this is Friday, the real Friday, July 22nd. And today's pot is the best one yet. It's a T-boy. It's also the final day of a big stock-winning week, Nick. Oh, it's also my half-birththay. Thanks for mentioning it, Jack.

Totally appropriate to send me half a gift or half a birthday cake, but it looks like that wasn't on your schedule. Oh, you didn't get the one shoe I sent you? The one crock. I'm only going to hold it half against you. Let's leave it at that. Jack, what's our first story? Phase Clan.

just became the first pure play professional video game team stock. They're like pro athletes, but they use their thumbs. And now they're on the stock market. Publicly traded. For our second story, AT&T just had their worst day in 20 years because you paid your phone bill a couple days late. And so did everyone else. For our third and final story, this is a big one.

One medical, the boutique chain of doctors offices, has been acquired by Amazon. And it's got Jack and I think in two words. Whole food. You could have really messed with me there on that one. But before we hit that wonderful mix on Nick's half birthday, the perfect mix to go into a weekend with. I love this mix, man.

Yeties, you all know that Facebook has officially changed their name to meta. That's why Zuck called his co-workers Meta mates. But there's a problem here. Meta isn't the only meta-branded company in this universe. Or in the Metaverse. Mark Zuckerberg's meta is a social media company. But the first meta, the other meta, is a company named Meta, that's an augmented reality.

startup. Which brings us to this news, the smaller, original meta company is suing the bigger meta company over the word meta. Because Zuck's meta, Zuck the name meta from that company meta. But even that original startup meta didn't invent the term meta either. No, Jack and I jumped in T-boy style. Little meta actually zucked meta too. Because science fiction author Neil Stevenson created the word meta back in 1992 in the novel Snowcrash. So neither meta nor meta created the word Meta Neil Stevenson did. And yet, meta is suing meta for Zuck and Meta. Even though Meta, Zucked Meta from a sci-fi book.

Now, technically, legally, two companies can be named Meta as long as they're in different industries. Or if they use the term meta in different ways. But Little Meta says Big Meta has such a bad reputation. It's rubbing off on Little Meta. So Zuck's meta is messing with Little Meta's mojo. That's why Little Meta is suing Big Meta. This meta situation is getting kind of matter.

Let's hit our three stories. before this song. Two boys from the Northeast met in the dorm. They had an idea that cost a 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, Jack's dad is not going to like this one. No, he's not. Faze clan is the first publicly traded video game team. My dad is still mad that the Yankees play night games. Like, he wants all games to still be day games. What's with these lights? What's with the lights?

How are kids supposed to watch when it's 11 o'clock and they got school tomorrow? Yeti's phase clan has figured out how to scale athletes. All right, Jack, the other day, didn't like your neighbor just, like, come over? I just remember our pod was like interrupted because there was a neighbor at the door and you're like, went to get him a spind rip or something. He's in seventh grade. He's 13 years old and he came over because he was locked out of his house. Okay, that's nice.

You had an extra key. Well, I invited him to hang out in our living room until his mom came home and let him in. I guess that's the right move. So I offered him my Apple TV and I'm like, you can watch whatever you want. He's like, you still own shares of Netflix? Why did you do that? No. Then he said, do you have YouTube?

And I said, yes. And then at the end, when he left, I said, what'd you watch? He goes, I watched my favorite video gamer play Overwatch live on YouTube. That observation was Key Yetis because video games have made a major shift from individual activity to spectator sport. My 13-year-old neighbor is obsessed with. this video gamer he watches on YouTube. And maybe that player plays for Fays Klan, the most popular e-sports team.

80% of Fays Klan's audience is age 13 to 34, just like my neighbor is. Oh, and you want some more validation here? Jack, what's going on on a recent issue of the Sports Illustrated cover? It's not the Yankees and Derek Cheater. No, it's not the Patriots and Tom Brady. Uh-uh. It's not the Avalanche and some hockey player. You're on a roll. Here we go.

It's Faze Klan. Faze Klan was on the cover of Sports Illustrated. Try explaining that to your uncle who's still mad that Steinbrenner traded Jay Buneer. Now, Faze Klan just went public this week. They're trading on the stock markets under ticker symbol, Faze. The stock fell 25% on its first day, but this is still a $700 million company. It's like, you know, it's an eighth of a lift. Phase Klan makes money with its team of 90 professional video game players who are really just online creators.

Okay, and this is where things get interesting. Bizzle actually joined the team in 2020. I'm sorry I should back up. Jack, can he introduce us to Bizzle? Bizzle is one of the 90 players on the team, and he is the best Fortnite player in the world. Now, here's the key to this publicly traded sports team. Remember, it's a team. Bizzle is just one of the players, but he has over 100,000 followers and subscribers each across five different social media platforms. Okay, so Faze Clan is leveraging that reach. They're making ad revenue on YouTube. They're selling merchandise on Instagram. They are building a best.

betting platform. Right, so that my neighbor can put money on Bizzle winning the Fortnite World Championships, which are coming up in Germany next. Okay, we should check his age on that one, but still it sounds like a good move. And that is how Faze Clan made $53 million last year because each employee, each teammate, each gamer, all of them, is really an online creator. So Jack, what's the takeaway for our buddies over at Faze Clan? Pro athletes are simply contact creators who are in fantastic shape. Besties, why is LeBron the best? It's because he compels us to watch. And watching, that's your eyes, that's the audience, that's the money. The NBA sells tickets, they sell merchandise, and they sell

TV deals based on that incredible content that LeBron creates. Well, our buddy Bizzle is a gamer just like LeBron, but he uses his thumbs instead of his biceps. Bizzle creates compelling, watchable Fortnite content. He monetizes his product very similarly to how LeBron does. It's just more Gen Z-focused. LeBron depends on your uncle, paying $100 a month for cable. Vizzle depends on Jack's neighbor watching and play Twitch live in Jack's living room. Professional athletes, Yetis, they're simply content creators. And with video games, they don't have to be in fantastic shape. For our second story, AT&T just had their worst day in 20 years.

Because you're paying your cell phone bill two days late, and that means everything. Okay, Yeties, let's just set the scene for you. You got an A on the paper. you were named MVP, you got Gwok for free. What do you do in this scenario? You call mom and you stick that report card up on the fridge. Boom, you call your mother. Well, AT&T, they're celebrating too.

What's going on at AT&T, Jack? AT&T just announced 800,000 new wireless customers last quarter. Sit down, stand up, sit back down again. 800,000 new customers in just the last three months. AT&T's like, Mom, I did it. 800,000 new subscribers. They said I can only do 500 and look at me now. Mom was celebrating.

AT&T's investors were not celebrated. Yeah, here's the problem, Yeties. The stock of AT&T, it fell 8%. Worse day in 20 years. They burned the report card. So, Jack, let's get this straight. AT&T just added the entire population of San Francisco to its business and yet Wall Street wasn't even impressed.

The reason? you're paying your bill for AT&T two days later than usual. And so is everyone on your contact list. Boom. That's why CEO John Stanky got on the microphone stand and said, Hey, is this thing on? I just want to clarify something here. John Stanky wanted to reinsure investors

that customers are paying their monthly bill like usual and they're paying it on time. Right. He's just like, wait, it's just that they're paying two days later on average than they usually would pay. So let's say the average customer pays on a month. Monday. This last quarter, for some reason, they paid on Wednesday. Tuesday was hard for me. Wednesday, I had this thing and then I'll just do it on Wednesday. So this is very strange. Nick and I figure,

as long as everyone is paying their AT&T bill on time, that's what matters, right? Well, that's what Jack and I figure, but apparently that's not what investors figure. They strongly disagree. Investors think that those two days of lateness mean everything. Now, Jack and I are not going to quote your mom about the value of being on time in this case, but we are going to quote, Well, Farrell. So, Jack, what's the takeaway for our buddies over at AT&T? To quote Ricky Bobby, if you ain't leading, you're last. Okay, so Ricky Bobby actually said, you know, if you ain't first, you're last. But you know what we're talking about. You get the point. We're talking about leading indicators here. A leading indicator is data you can see today that tells you about the future.

Yeah, profits, for example, are not a leading indicator. Profits tell you about today and yesterday. AT&T's profits last quarter were great. They nearly doubled compared to last year. But if you buy AT&T stock because of that, you're going to be laughed. Yeah, because the stock fell yesterday, not due to the great profits, due to the leading indicators. If you're taking two more extra days than usual to pay your bill, it's a sign you're concerned about how expensive that bill is. And that is a leading indicator that you may downgrade your AT&T plan or switch to a cheaper carrier. Investors are always looking for leading indicators. And AT&T's leading indicators suggest that this next year,

could be tough. If you're not acting on leading indicators, you're going to be last. Shake it back. And now, a word about our sponsor, Robin Hood. So for the last three and a half years, Jack and I were running a startup within a startup, basically. We turned our company market snacks into Robin Hood Snacks, the news arm of Robin Hood. And at Robin Hood, we co-hosted the Snacks daily pod that you got to know and love. At Robin Hood, we also got to hire an awesome team of news people who run the Robin Hood Snacks newsletter. Wild fact here. The biggest newsletter in America, Robin Hood snacks. A key detail vote, not many are aware of, is the editorial independence. So Jack and I set it up so that we could independently cover the most interesting and most

important news stories of the day. Robin Hood's commitment to free, digestible news snack style was an awesome differentiator. Yeah, if you're not investing in Robin Hood yet, to get started, go to robin hood.com slash t-boy and choose a free stock. That's robinood.com slash T-B-O-Y. Certain limitations apply. All investments involve risk. member SIPC. By the way, Robin Hood is no longer affiliated with us or the podcast. For our third

and final story before the weekend, one medical was disrupting the doctor's office and then Amazon just acquired one medical to primify your doctor checkups. Paging Dr. Bezos, pacing Dr. Bezos. You're needed in urgent care.

Urgent care. Yeah, it is Amazon issued a press release yesterday announcing they're buying one medical for $3.9 billion. And one medical stock jumps 70%. They've got 760,000 members paying $200 a year to access 182 medical offices, and yet we've tried it. I'm a former member. I am a current one.

It's a comfortable experience. Yeah, it is. One medical is like Equinox. It's a health club. But for seeing doctors not dumbbells. Like Equinox, one medical has nicer furniture than your home does. One medical side hustles in interior design. It's really nice in there.

Just put your legs up on the West Elm sofa, why don't you? Oh, could you put a coaster underneath that bio, please? You're not met by a nurse at a one medical. You're met by a concierge. There's more succulence per patient than any facility we've ever seen. They didn't send me home with a lollipop, Jack. They gave me a chocolate truffle from Switzerland. All right, so now that we're done ripping on One Medical,

we should update you that Amazon has quietly built up a medical practice already. Weren't we just raving on one medical? Yeah, that was kind of raving. In the meantime, Amazon, they've gone full gray's anatomy. In 2018, Amazon acquired a pill delivery startup called PillPack. And then they launched their own primary care clinic internally for employees. And then they embarked on an ambitious voyage with J.P. Morgan Chase, Warren Buffett, to disrupt health care altogether.

That thing fell apart, but still, they managed to launch an online pharmacy during the pandemic. And now they're buying brick and mortar's medical clinics. Funny thing Jack and I noticed here. Within the healthcare industry, this part of the industry is like the totally least profitable. Pharmaceuticals, that's the healthcare profit puppy. Prescription meds are selling for a price 10 times to like 100 times the cost to actually make them. On the other end, paying for expensive offices and paying doctor salaries? Yeah, Jack, one medical, it's not a profit puppy. But that is exactly why Amazon finds it attractive. Yes. Amazon thrives on on tiny little profit margins, but on a massive scale.

Amazon likes to surgically slice a little profit from a whole bunch of patients, not remove a big profitable organ from the patients. And now Amazon can bundle this premium healthcare service into Amazon Prime and keep Prime stickier than ever. There we go. So Jack, what's the takeaway for our buddies over at Amazon and one medical? There is nothing more expensive than having to play catch up. Okay, Yeties, the three biggest purchases that Amazon has ever made,

they were all to play catch up. Whole Foods, MGM Studios, and now one medical. For example, Amazon dominated every e-commerce vertical except for food, so they had to catch up. So they had to acquire Whole Foods for $14 billion. Or Netflix, Disney and Apple. They were all pumping out streaming content, so Amazon had to catch up.

So they had to drop $9 billion to acquire MGM studios. And now, with one medical, Amazon is buying a physical footprint. It's buying trust. It's buying a fancy premium brand. Amazon is catching up by acquiring entire companies. It's fast, but it's expensive. In a running race, you burn more energy sprinting to catch up.

In a business race, you burn more cash acquiring to catch up. Jack, can you whip up the takeaways for us for the Real Friday? Phase clan is a very unusual stock. It's a team of video gamers. Just like LeBron, their content creators just not in fantastic shape. For our second story, AT&T just announced that the past quarter was great, but they hinted that future quarters may be rough. As Ricky Bobby said, if you ain't leading, you'll last.

Our third and final story is Amazon. They're acquiring one medical for $3.9 billion. Because no game is more expensive than playing catch-up. Now, time for the best fact yet this one tweeted in by Derek Ernst from lovely Minneapolis, Minnesota. There's a heat wave coming to the U.S. It's here right now. Stay cool, Yeties. But if you look at a thermometer this weekend, you're going to feel lonely too.

Because no one uses Fahrenheit. In fact, Derek whipped up a list for us like nobody, like hardly anyone uses Fahrenheit. The only countries using Fahrenheit are us. Yeah. Belize. Great country. Palau. Like it.

And the Bahamas. A lot of islands. And the Grand Cayman Islands. That's who's using Fahrenheit as their official temperature scale. It's a fraction of the world. Oh, and Nick, what's the only temperature that's both the same for Fahrenheit and Celsius? It's a trick question. it's not a temperature, it's a color.

The temperature is negative 144. Look it up. That's the correct answer. Yetis, you look fantastic this week. And if you want to help this pod grow, the number one thing you can do at brunch is H-YH-T-B-O-Y. Ask the person next to you, have you had the best one? If you know, you know.

They're going to be like, yeah, these wavotroncheros are good. Dr. Bezos, Dr. Bezos. Have a great weekend. We'll see you Monday. And before we go, happy birthday to Yeti, Jason Fisher, over in Lancaster, Pennsylvania. And happy 45th to a kid. Kane Kadani, who's 45 and working harder than ever in Brooklyn.

And Kingsley's turning 28 over in Big Bear. Happy 22nd birthday to Sophie. And happy 600th day with her boyfriend, Steve. Congrats to Steve. And Jen So just got LASIC surgery in Los Angeles. Smash those glasses. Melt those contacts. And Marissa just got a new job as a financial advisor.

But Jack, she's studying for the SIE right now. Brutal test. Nick and I both took it. We did. We both passed. You got this. And happy one year wedding. anniversary to Jordan and Delaney Clements in Lockhart, Texas. And Greg and Kelly, enjoy that five-year anniversary in Raleigh, North Carolina. Congrats on getting engaged to Rina and Noah, who got engaged in Washington, D.C.

Celebrate that win. Happy half-birthday, Nick. Round up. This is Jack. I own stock of Amazon, Disney, and Netflix, and Nick and I both own stock of Apple and Robin Hood. And now word about our exclusive sponsor, Robin Hood. Look, we're not tech guys. We're not engineers.

Nick, I'm no product manager. You look great, but we're not technically. When our computer's not working, Jack and I turn it off and then we turn it back on again. But when we moved to California to join Robin Hood, we were in tech's mecca. So we were soaking up as much about the tech industry as we could. One thing we saw about the tech industry at Robin Hood was insane customer focus. Every product launched, every tweak made to the app was a laser-focused move on customers. Robin Hood would be interviewing hundreds of users to figure out of one tweak of one button in the app

would improve the experience. Inside of Robin Hood, we saw that everything the company did was focused on the best outcome for you, the customer. If you're not investing on Robin Hood yet, to get started, go to robinood.com slash T-B-Boy and choose a stock. That's Robinhood.com slash T-B-O-Y. Certain limitations apply. All investments involve risk. Robin Hood Financial LLC member SIPC.

By the way, Robin Hood is no longer affiliated with us or this podcast. What is a group of seagulls called? Seagulls. Not a flock. Not a flock, actually. A goal? Is it a nice of my head? Is it a goal?

No. It's a great one. Are you Googling the answer right now? You're asking me a too question and you're Googling the answer. Nick, you want to take one more guess at this one while I just wait for you over here? Are you ready? You know, I can Google it too. Never been so built up.

And then so. Crushed back down. It's called the squabble of seagulls. You know what? That was worth the wait. Okay. It was worth the weight. And flamingos is called a flamboyance.

Okay. Now you're just making things out.