The Best One Yet - 🏍️ “Harley is Anti-Millennials” — Harley-Davidson’s graybeard strategy. Trump’s stock bump. Google’s biggest deal ever.

Episode Date: July 16, 2024

Harley-Davidson’s strategy is to only market to old people… because one day you’ll be one.Markets just reacted to Donald Trump’s assassination attempt… with a stock market party.Google is reportedly making its biggest acquisition ever… because in 5 years, every company will need Wiz.Plus, Target will no longer accept personal checks… So we whipped up the best list yet of “Graveyard Gadgets.”$HOG $DJT $GOOG $TGTSubscribe to our Saturday Newsletter: tboypod.com/newsletter  Watch us on YouTube Submit Facts & Shoutouts Instagram, TikTok, LinkedIn (Nick) & LinkedIn (Jack)About Us: From the creators of Robinhood Snacks Daily, The Best One Yet (TBOY) is the daily pop-biz news show making today’s top stories your business. 20 minutes on the 3 business, economics, and finance stories you need, with fresh takes you can pretend you came up with — Pairs perfectly with your morning oatmeal ritual. Hosted by Jack Crivici-Kramer & Nick Martell.00:00 - intro01:26 - No more checks04:28 - Harley-Davidson’s graybeard strategy09:39 - Trump’s stock bump14:07 - Google’s biggest deal ever19:14 - Takeaways19:57 - OTHER NEWS!21:30 - Best Fact Yet23:32 - Shout outs Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. It's Tuesday, T-boy, Tuesday, July 16th. And today's pod, out of all the pods, we've done a lot of pods. This is the best one yet. This is a T-boy. This is the top three pop business news stories you need to know today. But Yeti's first check the calendars.

We are officially past the halfway point of the halfway month of the summer. It's July 16th. So we have a little less than half of summer left. Well, we still got a whole half of the summer left, don't we, Jack? That means you got to do some things. You got to do some cannonballs? You got to do a slip and slide and you got to make a smore. I know those were on your summer bucket list.

Yeah, so do two of them and always round up. We've got a full summer left as we see it. So, Jack, three stories for today's show. What do we got, man? For our first story, Harley Davidson knows that millennials hate Harleys, but Harley thinks you'll change your mind. Harley Davidson is anti-millennial. For our second story,

markets reacted on Monday to Donald Trump's assassination attempt by setting stocks to all-time high. So Jack and I will tell you who's up, who's down, who, what, where, and why on Wall Street. And our third and final story is Google. Google's reportedly about to make its biggest acquisition ever of Wiz. The Wiz! They want to buy The Wiz because nobody beats the Wiz. We're only going to call it The Wiz for the rest of this podcast, by the way. And Google's buying them because in five years, every company will need the Wiz.

But Yeties, before we hit that wonderful mix of stories. Fantastic mixes story. love the mix for the T-Boy Tuesday. How frustrating is it when someplace only accepts checks? There is nothing more annoying. Oh, only checks. Are you kidding me? Think about it. Mailing someone a check requires a pen, a check book, an envelope, a mailing address, a return address, and a stamp. Oh, and then, Jack, remember, you only wrote on one side. You got it right on the other side, too. They need like a signature on the back and something else on the front. And you definitely paper cut your tongue on that envelope, right? Oh, and talk to us about the paper cuts. Oh,

The paper cuts. And then you've got to go to a mailbox to drop these things in. Well, here's the news. One big corporation just became anti-check. As of yesterday, Target, also known as Targei, will no longer accept personal checks. Get this. As of right now, Target, checkouts don't allow checks. It's Checkmate on the checks at Target. But Jack, remember, when we were kids and, like, Mom would take us to Isle 6 and then, like, oh, one sec, honey, I got to endorse the check. Oh, she was writing the whole signature on it? I got to whip out my checkbook. Yeah, my Nana's going to be super bummed that she can't pay with their checkbook anymore.

Nana ain't happy about this. Yet is soon. The only place that is still going to be doing checks is going to be the PGA tour. Those huge checks, they give Happy Gilmore. The only check left is going to be the biggest check left. But now the Target has killed the check. We need to add the check to the gadget graveyard. We need to add the check to the gadget graveyard.

The gadget graveyard products we grew up with that nobody uses anymore. Jack, could we please pause the pod and have a moment of silence for the floppy disk, the business card, the Rolodex, and the scanner. But of course, who could forget? And we would not want to forget the 2010 Bose speaker with the outdated iPhone dock. You can still use it, though, if you connect three dongles to your iPhone. Toss that thing in the dongle drawer with all the other dongles you're never going to use. So, Yeties, for T-Boy Tuesday, we want to know from you.

What else should we add to the gadget graveyard? Leave a comment on YouTube, Spotify, or Instagram for us. What other products were lost in our millennial lifetimes in addition to The Check? And as we close, Nick is going to read a passage from Cardi B. I was born to flex, diamonds on my necks, but nothing in this world that I like more than checks. Check please! Let's hit our three stories. Let's hit him, baby! Fifteen 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 the best one. Best is a norm. Jack Nick Dix. 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. Start the show. First, a quick word from our sponsor. Our first story. Harley Davidson's big strategy bet is to ride or die with the graybeards. Harley Davidson is targeting boomers today. And then, millennials. Once we turn gray.

Harley thinks you're going to turn into your mom is what we're saying. Or your dad, yeah. But yet, it's funny thing Jack and I have noticed about Harley Davidson. Harley Davidson, they don't do customer surveys, do they, Jack? One to five stars, I put a tattoo of your logo on my bison. Yeah. What do you think I think of Harley Davidson? Nothing screams brand loyalty like permanent ink on your forehead.

It's a good luck. But yet it is Harley Davidson, the brand. It can take you out back and messier around a bit. It's a badass brand. But Harley Davidson, the company, They're kind of running on empty. Hold on to your hog because sales at Harley-Davidson have fallen for nine of the last 10 years. Last year, Harley sold nearly half as many bikes as they did back in 2006.

Oh, and Jack, can you put it in reverse, jump us on the backseat, and tell us how the stock is looking over at Harley? Over that 18-year period, the stock is down more than 50%. Oh, Yeties, the bikes are allowed, but the business is not. At $5 billion, Harley's market cap is smaller than Lyft. Add it all up, and Harley is looking more like Huffy. Less hell's angels, more Charlie's angels. Not in a good way. So, Yet is Jack and I?

We were curious. We jumped in T-Boys out. We checked out the number. Jack, what has gone wrong over at Harley-Davidson exactly? If I had to describe it in four words, I'd say, Harley-Davidson hates millennials. Okay, if we use three words, we would say Harley hates millennials. Either way, you know what we're getting at.

And that may be a problem. Nick and I noticed that over the past five years, Harley made some strategic changes to their products and their prices that basically resulted in ignoring anybody who's under Ford. All right, Jack, let's talk about what they did. First, Harley Davidson cut their entry-level models. Then they eliminated the lower-priced Harleys. And then Harley spun off their electric bike company into a totally different business. Basically, all the things Nick and I might have been convinced to maybe try out. I was looking. I was curious about the electric bike. They don't exist anymore, Harley. Instead, Harley Davidson decided to focus on their biggest, most expensive, most profitable big cruisers.

Basically, the love seats that ride on two wheels. Yeah, when you see a Harley bike and it looks like a sofa with two wheels, that's what they're focused on selling these days. Wall Street Journal calls it the graybeard strategy, because that's who they're targeting. People with gray beards on their face. Yeah, basically what Harley did was they got rid of the bikes with the metaphorical training wheels, is what we could say. And we are saying. In Wall Street terms, Harley is putting profit above growth. They're selling high-end Harleys to hardcore fans.

In cultural terms, Harley is putting boomers over zoomers. They stop selling the beginner bikes. Now, Harley Davidson, they blame millennials for this pivot that they made. Yeah, why do they blame us exactly? Jaggers is pretty funny. They told Wall Street Journal that younger generations are wary of risky activities, unlike their braver forebears. I'm sorry I wear a life jacket when I go water skiing these days.

I mean, like, we're wearing seatbelts. I'm sorry I don't like driving 70 right next to an enormous suburban that could tip me over with a tiniest nudge. Either way, Jack and I discovered one statistic, one hero stat that says everything you need to know about Harley. In 1990, the average Harley customer was 35. Today, the average customer is 49. Full disclosure, you know my dad's got a Harley. My dad used to have a Harley, too. Actually, my dad is two Harley.

What? You know what they call them when they ride into town? Howell? I don't know. His name's not Hal. I don't know why he said that. They call him Mike on the bike. It's kind of a great term and I love it. I want to get on that thing. Well, it's his love seat and there's two seats. There's plenty of space for you. So Jack, what's the takeaway for our buddies over at Harley Davidson? Millennials will turn into boomers someday. That's Harley's big bet. Yet he's, Jack and I have shared a takeaway with you before about how a business can grow with its customers or can stay focused on the same age.

Harley has decided to focus on the same age. Yeah, we notice Harley's big bet seems to be that you will turn into your parents. Millennials will become boomers. So instead of offering entry-level products for young people, they're just waiting for young people to turn old and gray. When I'm 64, Harley thinks I'll act like my 64-year-old father. And buy two Harleys, apparently. Despite our generational divide. After all, you made fun of your dad's goofy sneakers, but who's wearing the new balances now?

You mocked your mom's beauty sleep, but now you're in bed at 8 p.m. on a Friday night. And today, you think Harleys are huge, loud, obnoxious, and expensive couches on wheels, but in 30 years, Harley thinks you'll want to buy one. It's a big, it's a huge, it's a risky bet. But that bet could drive Harley to sustainable profits if they're right. Or it could drive them out of business someday if they're wrong. Harley looks like they hate millennials, but really, they're just waiting for you to go gray. For our second story, on Monday, investors adjusted to a higher likelihood of a Trump victory in November

by hitting new stock market highs. This story has two business takeaways. One is the Trump stock bump, and two is the Trump policy trade. All right, Jack, wow, things suddenly moving very fast in presidential election politics right now, man. Yesterday, the Republican National Convention began with a whole bunch of speeches. Also yesterday, Trump selected Jady Vance from Ohio as his running mate to be his next vice president. And then Donald Trump's chances of getting elected soared over the weekend after Saturday's assassination attempt. Because a one-two combo of powerful images could sway a critical number of undecided voters in November. The first image was of President Biden, who looked weak in last month's debate. And the second image

was former President Trump looking strong after being shot at on Saturday. Now, Jack and I were curious how things would shake out this week on Wall Street. So we check the numbers. What did we check exactly, Jack? Over at 538, a website that crunches election data and polls, they say that Biden and Trump statistically have a roughly equal chance of victory as of the data as of Monday. But interestingly, betting markets say that Trump now has a 67% chance of likelihood to win his highest percentage ever. And Wall Street, they trust betting markets over pollsters. Yes, they do. So, So, Jack, what did we see in the markets on Monday? We saw Wall Street bake in a higher likelihood of a Trump victory in one big boy by boosting stocks.

Specific stocks got the Trump bump. For example, gun stocks, prison stocks, and the stock of Trump's very own meme company, DJT. Those all jumped on expectations Trump would loosen gun restrictions and tighten criminal laws. And because Trump Media Corporation has become a proxy for his election chances, it's a meme stock for Trump. But here's the other interesting thing. The entire stock market also hit a record high to kick off the week. Because Trump policies, generally speaking, are just good for corporate profits. First, if Trump wins, he would work to extend the Trump corporate tax cut. Second, if he wins, he would cut more environmental and safety regulations like he did his first term. And finally, just like he did during

his first term, if Trump wins, he would increase tariffs on other countries. Now, economists say that increasing tariffs would exacerbate our inflation problem, the impact of tariffs on profits are a little less clear. But here's the surprise. Trump 47 might actually be different than Trump 45 in some really meaningful ways. Because we've seen Trump flip on several policies recently to win support from different groups of voters. For example, crypto rose on Monday because in his four years out of office, Trump suddenly flipped to become pro-c crypto. And TikTok executives, they're probably pretty relieved right now because Trump has flipped his position to become pro TikTok. But the way Jack and I see it, the biggest area of the economy and markets where Trump 47 could be different than Trump 45

is with electric vehicles. It's actually with electric cars. So Jack, what's the takeaway for our buddies who are everyone in the economy wondering what's going to happen in the election? The biggest winner of a Trump policy trade could actually be Elon Musk. Now, yet is Donald Trump famous? said that climate change was a hoax created by China, and famously, he exited America from the Paris Climate Accord. He's still very much pro-oil. He reportedly pledged a bunch of pro-drilling policies if oil executives would donate to his campaign. So if you add up everything Jack and I just said, similarly, Donald Trump has historically been anti-electric car. But on Saturday, as expected, Elon Musk fully endorsed Trump for president after his assassination attempt. Yeah, and in exchange for

that influential support, it wouldn't be surprising for Trump to reward Elon just like Trump rewards his other loyalists. Like if Trump decided to boost Tesla, he could also frame that as consistent with his tough-on-China brand. In fact, Tesla stock hit its highest level since October on hopes that Trump could flip to become pro-EV or at least pro-Tesla. That's why the biggest winner of a Trump policy trade could actually be Elon Musk. Now a quick word from our sponsor. For our third and final story, Google is close to its biggest acquisition ever. $23 billion for a cyber cloud security company. Because when everything goes digital, which everything is doing, everything needs a digital

lock. Oh, now, Jack, how about we go down memory land for a second? It's always fun going down memory lane in our old East Village apartment, hanging out together. Do you remember in 2018, we were visiting Robin Hood, considering selling our company to them? But we still had to record a podcast that day. And Jack, what did we record a podcast on that day almost half a decade ago? Bird, the electric scooter company had just done a fundraise and became the fastest startup ever

to hit a $1 billion valuation. But get this, Yeties. What Jack and I are about to tell you may be even faster than that. Because in just four years, a company called The Whiz. The Whiz has gone from nothing to a $23 billion valuation. The Whiz. A company founded by four. four ex-Israeli military guys just four years ago is now worth four lifts. And they did it with

military precision. Yeah, because in their first year and a half after launching the company, they were already doing a hundred million bucks in revenue a year. That's wild. We should also point out the company's just called whiz, not the whiz, but we're going to keep calling it, though, whiz. Because if you know, you know, the whiz is a cybersecurity startup, and it's about to have the biggest exit of the year. The Wall Street Journal reports that Google is about to acquire the Whiz for $23 billion, which would be Google's biggest acquisition ever. And this would double the Wizz's valuation from just the month of May. Funny thing, though, that Nick and I should you about. Yes, we should, Jack. Google's got a thing for hummus, apparently. Is it hot as a

falafel in here, or is this the ninth Israeli tech company that Google has acquired? You remember ways, like the alternative to Google Maps, that was an Israeli startup that Google acquired. But now, Google may acquire The Whiz, which is also an Israeli startup for 10 times that price. So why is Google spending more money to acquire the Wiz than they spent on YouTube? Well, it's because there's a battle in the sky. Look up. Don't look up. Actually, you can look up, because it's not in the real sky. It's in a fake sky. What Nick's referring to is the Cloud Wars. Ah, the Cloud Wars. It sounds like the next Star Wars movie, but it's actually... Has to do with the cloud. The digital cloud. Because for years, Google has been a distant number three in the cloud computing market, trailing Amazon and Microsoft.

Now, you'd think Google has an advantage in cloud computing, given their customer base in Gmail and Google workspace. Like Jack and I, we use Google Docs every single day. But that advantage isn't translating. No, it's not. So Google Cloud is a huge corporate disappointment over in Mountain View. Yes, it is. Just 3% of Google's profit last quarter came from their cloud division. On the other hand, 61% of Amazon's profit came from their cloud division. On an absolute value basis, Amazon Web Services made 10 times the profit of Google Cloud did last quarter. Sit down, stand up, and download that fact again.

Google is making a 10th the profit of Amazon when it comes to the cloud business. thought that. Google Cloud is getting rained on by Amazon's cloud, and there's a flood. Let's put it that way. Or Jack, is Amazon's cloud making it rain, and Google's cloud is just a rainless crowd? I think that's going to be a billboard off the 101 between San Jose and San Francisco. The engineers are going to love it. Yeah, it is, if this deal goes through, Google has got a new selling point, the most secure cloud, because nobody beats the whiz. I was waiting for you to say it, too. So Jack, what's the takeaway for our buddy is over? Everyone who has a thing.

Like, I think that's what the takeaway is for here. Every house has a lock. Everything digital will have one too. Now, yet he's interesting detail about WIS's clients. It's not just random software companies you've never heard of that uses the WIS's cybersecurity. It's also companies that make physical things like BMW. That car company is a huge cybersecurity client of the WIS's. whiz. Because if cars are now computers on wheels, as we've said they are, then a car can get hacked

just like your email can. In fact, experts agree that if a car is self-driving, there's a risk that hackers could take over and command the car. Oh, and if your thermostat in your house is connected to the internet, yeah, that thermostat, that thing can be hacked too. Every company that stores data on the cloud, which is most companies, they, of course, can get hacked too. So the way Jack and I see it, we're all used to physical locks. Every house has... one. But now everything digital is going to need one too. And that is why Google is making its biggest ever acquisition for a cloud cybersecurity company. Jack, could you whip up the takeaways for us for T-Boy Tuesday? Harley Davidson has stopped trying to get young people to ride. They'll wait for you to

get old instead. That's the gray beard strategy. Their bet is that millennials will become baby mooners. Yes, you will turn into your mother. For our second story, stocks rose as investors baked in a higher likelihood of a Trump victory in November. Trump is making policy trades and a big surprise winner could be Elon Musk and electric vehicles. And our third and final story, Google is reportedly acquiring the whiz for $23 billion to make their cloud the most secure there is. Because every house has a lock and everything digital will have a lock too. And nobody beats the whiz. Nobody is just a fact. But Yeties, this pod's not over yet. Here's what else you need to know today. Spain, it is feeling Royal again over in Bartholona, baby. What do we got, Jack? The Spanish men's national soccer team

won the Euro Cup, their fourth major tournament victory since 2010. Oh, and then on the same day, Carlos Alcaraz won Wimbledon, not too shabby. One of those things happened against England. The other one happened in England. Spain! They're feeling like 1490 again. Jack, get that Armada going. And second, Burberry, the fancy British fashion company, is not living a royal life right now. Ah, burberry sales plunged 20% last quarter, and they issued a profit warning, and they fired their CEO. While luxury sales overall are slowing, burberry is facing a more specific issue. And there's just something about that beige-plad burberry pattern. It's just not landing with consumers, and they are suffering the worst. And finally, remember last month when we told

you about the hot new investment trend, buying dinosaur skeletons? Dinosaurs, Jack and I been trying to get into dino vestments for years, or actually for centuries. The entry price is pretty high to make an investment. Yeah, some more private investors are buying dinosaur bones, like we told you, including one that goes to auction this week tomorrow. A 27-foot, 161 million-year-old Stegasaurus is hitting the auction block tomorrow at Sotheby's. It's expected to go for $6 million, and you could bid on it, but then you have to ask yourself the big question.

What's the big question? If I was so focused on whether I could, maybe I should have focused on whether I should. Yeah. Now, time for the best fact. yet this one whipped up by Savannah Westwood, a legendary Yetty down in Orlando, Florida. There's a wild extracurricular course over at Florida State University in Tallahassee. And Jack, what is that course exactly? The circus. Oh, it's the circus. Yet he's back in 1947 and since then. Florida State has had the flying high circus. Student performers rig up all their own equipment,

sew their own costumes, produce lights and sound for an epic performance, and even erect a big on campus for their circus. Yet is the Florida State Seminole Circus generates its own revenue by hosting shows under its own big top circus tent, just like the Big Apple Circus. In Gainesville, they've got gators. In Tallahassee, they have trapezes. It's the only college we know of with a circus. Clowns, you either love them or you enroll them.

What's your major again down to Florida State, Jack? Oh, my major? It's balancing on a spinning ball while balancing another ball on my nose at the same time. One sec, Jack. I got a term paper due for Cirque de Soleil. Yiddies, you looked fantastic for T-Boy Tuesday. Jack, you were glowing over there. I heard one of the Yetis wanted to get your skincare routine, by the way. Are you going to share that thing? That's right. I finally got a compliment of my physical looks in a YouTube comment. Yeties, Jack will respond on YouTube detailing all 46 steps of his two-hour routine. I got to see it last week.

Yeah, I was less a compliment of my looks, more a compliment of my product, apparently. Well, I've seen you without the makeup. And I also think that looks fantastic. Now you're making me blush. And besties, before you go, if you've got a gadget graveyard, we should add to our gadget graveyard, let us know. Comment on YouTube, Instagram, or Spotify. And Nick and I will be with you tomorrow, the day after that, and the day after that. We'll fax you, and then we'll scan you.

And maybe, just maybe, we'll buy it Harley someday. Jack and I will see you for Zavich Wednesday. And before we go, congratulations to Yeti's Rob and Justina Lewin. from Riverside, California, 30-year anniversary. Not too shabby, congratulations, guys. And congratulations to John and Karen Engerman, the new pop-pop-ponanah in Mawah, New Jersey. Their new granddaughter, baby Louise Joy,

she was just born, and she's looking fantastic. Happy 40-licious birthday to Mark Thurstlick in Queens, New York. Quench that Thurstleck! And Jennifer Wang has turned 26 years old down in Hotland, Atlanta. Although she's moving to the Big Apple for her new job, So she may ask you for some restaurant recommendations next. Jenny, we got your back. And to anyone else celebrating something today, make it a tea boy.

Celebrate the wins. This is Jack. I own stock of Amazon.