The Best One Yet - 🏒 “Hockey War” — NHL’s USA vs Canada win. Botox Bars everywhere. Meta’s undersea cable.

Starting point is 00:00:00 This is Nick. This is Jack. It's Thursday, the new Friday. February 20. And today's part is the best one. Yeah, this is a T-boy. The top three pop business news stories you need to know today. And yet is, we have to finish quickly because Nick has an appointment after this recording.

Starting point is 00:00:17 Don't you, Nick? I got a piano license and guilties charge. Was it your New Year's resolution to get back on the piano? I knew his resolution was to learn a Beatles song by the end of the year. I got you, Jack. Really? Yeah, it was. It is.

Starting point is 00:00:28 Do you have one in mind? I had one yesterday, but I can't. I think the song is yesterday, but well done. If you know, you're now. Three stories today's T-Boy, Jack, what have we got on today's pod? For our first story, tonight's NHL hockey game is the U.S. All-Stars versus Canada's all-stars. But this hockey game is also an economic battle and a lesson on storytelling.

Starting point is 00:00:49 For our second story, get this. Meta is building the biggest undersea internet cable ever. True story. It's 31,000 miles long. Because to quote Ariel, the future of AI is, is undidessie. Okay, I love that, but that was Sebastian, not Ariel. Pretty sure it was Ariel.

Starting point is 00:01:06 And third and final story. What's the deal with med spas? What's going on with medspies? America has 10,000 medical spas. Medical spas, Botox, lip filler, butt plumpers. They are a surgeon right now, so we got the numbers on Botox bars. But yet is, before we hit that wonderful mix of stories. I mean, fantastic mix of stories, Jack.

Starting point is 00:01:28 Scientists have discovered the happiest time of the year. They have pinpointed the hour, the minute, and the moment every single year that you are your happiest on average. And the happiest time of the year, yes, Jack? Is at 7 a.m. on Saturday, July 15th. All right, mark your calendars. We'll explain. Researchers at the University College of London tracked 50,000 adult women. And they found that those women are happiest right when they wake up.

Starting point is 00:01:54 Irrespective of the day. True. All of us wake up in a good mood. universal truth. It turns out 6 a.m. to 8 a.m. is the magical mental time when all of us are happiest. It's great news. It is. Now, unfortunately, happiness dips until about 4 o'clock in the afternoon. Then at 4 o'clock, you have a snack, you're done with work, and you get a little bit of a happiness boost. And then your least happy point in the day, on average, is midnight. Turns out the later you are up, the less happy you are. But yet he's certain mornings during the week

Starting point is 00:02:23 are happier than other mornings are. Friday mornings are happier than Monday morning. And certain mornings during the year are happier than other times, too. Summer mornings are happier than winter mornings. Therefore, the happiest moment of the year, Nick? Jack, it would be 7 a.m. on Saturday, July 15th. So, Yetis, if you just woke up, you just grabbed a coffee and you're on the way to work. You look fantastic. You must be so happy over there. But if you're listening to us right before bed, cheer up. Tomorrow morning's going to be a better day. Trust us, it'll be better in seven hours. And right now, take a second to set your alarm for 7 a.m. on 6.m. on 6.m. Saturday, July 15th.

Starting point is 00:02:59 Trust us, we dove into the data, and that is the best moment yet. Although, what's wrong with these 50,000 women? I love the moment right before bed. Like, you're about to enjoy eight hours of sleep in, like, fluffy down comfort. Fow down, Jack, foe down. Let's hit our three stories. Fifteen years before this song, two boys from the Northeast met in the dawn. They had an idea to cause a cultural storm.

Starting point is 00:03:22 It's the best one yet, but the best is an norm. Jack Nick, that's it. I don't even think they need to practice. 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.

Starting point is 00:03:38 Start the show. First, a quick word from our sponsor. For our first story. Tonight, the United States plays Canada in the finals of the wildest hockey tournament in decades. Tickets just hit Super Bowl levels. For hockey? Okay, it's for hockey, Jack. The NHL pulled off a masterclass in storytelling.

Starting point is 00:04:12 Yeties, let's talk numbers. Last week, 10 million people watched on TV as Team USA played Team Canada in hockey. Jack, the context. Was this an Olympics matchup? It was not an Olympics matchup, was it, man. It was the NHL's new remix on the All-Star game. Basically, East versus West, that's a matchup nobody cares about. True.

Starting point is 00:04:32 So the NHL did the four nations face off instead. Yeah, this is a new comment. and they only chose All-Stars from four countries to play in this new tournament. The United States, Canada, Sweden, and Finland, and those players represent their nation in a round-robin all-star tournament. If you're a player in the NHL not born in one of those countries, well, you just take the week off, you relax, and you watch the action on TV instead. By the way, sorry, Russia. You invaded Ukraine.

Starting point is 00:05:00 So you don't get a spot in the four nations face off. Yarmir Yager, by the way, not happy the Czech Republic wasn't invited. But the USA and Canada were invited. And in their match on Saturday, there were three fights that broke out in the first nine seconds. In the first minute of the game, four teeth were lost on the ice. Get this, the first fight included an American guy. The second fight included his brother. Both.

Starting point is 00:05:26 And when they got to the penalty box, they gave each other a high five. Okay, things got so dramatic that there was so much booing during the U.S. national anthem, the stadium had to remind fans to respect the singing. And the reason things were particularly intense this year was Trump's tariffs on Canada. Also, in his demand, they become the 51st state and his mocking of Canada's prime minister. All of that led to the high drama, which leads up to tonight, the final of the four nations NHL hockey tournament. It's a rematch between the USA and Canada. It's going to be intense.

Starting point is 00:06:00 And honestly, we've checked the numbers. This will be the most geopolitical hockey game since the first. miracle on ice. In fact, that drama is so high, we can actually see it in the ticket prices. Jack, what kind of numbers we've seen on Stubhub right now if we want to go to the game? The lowest price ticket to get into the Boston arena where the game's played is $1,200. Those are Super Bowl prices. Totally. Hockey. It's getting so much attention right now. The Stanley Cup is blushing, Jack. Wayne Gretzky should run for office. This is a big day for my hockey-loving people, Jack. I think Mark Messier now is more followers than Addison

Starting point is 00:06:34 Ray, I love it. So the context here is that the NHL has bucked the trend of terrible and unwatchable All-Star games. Because Besties in the basketball All-Star game, no one plays defense and no one cares. The NFL Pro Bowl, which is their All-Star game, they actually switched recently to be non-contact. It's just flag football now. The players are so financially focused that their goal in the All-Star game is just to not get injured or not get embarrassed. They don't want to ruin their career because they went all out for a play in an exhibition match. It's because it's because, the players are only focused on their paychecks. Their goal in the All-Star game is basically not get injured, not get embarrassed. It would stink if your career ended because you went all out

Starting point is 00:07:14 in the All-Star game and twisted your knee. As a result, the NBA and NFL All-Star games have disappointed and nobody actually watches them. Last weekend, the NBA had their All-Star game, and viewership is down 75% from previously higher levels. And yet hockey, which is last in every metric from viewership to revenue to team valuations of all the big four leagues. Hockey is about to put up NFL numbers tonight in terms of viewership. So Jack and I had to ask, how is hockey's All-Star Games succeeding where other leagues are failing? Well, the NHL... The NHL found stakes. So Jack, what's the takeaway for our buddies getting five for fighting over in hockey? Without stakes, there's no drama. Without drama, there's no story. Yet he's in storytelling.

Starting point is 00:07:58 Stakes are what the character stands to gain or lose. Stakes are why you care. The whole Wizard world and Muggle World could be destroyed by Voldemort unless Harry saves them. If Maximus fails to defeat Cometus in the Great Coliseum, then all of Rome has to live under the tyranny of Joaquin Phoenix. Those are stakes and I need to watch this fight. That's why you love the movie Gladiator. Well, in this case, the NHL manufactured some stakes. They did so successfully by pitting America versus Canada. People care about patriotism and national bragging rights. And they also enjoyed pent-up stakes. The NHL players haven't been allowed to compete in the last two Winter Olympics. So this is like a long overdue Olympics happening tonight. And they got lucky with some

Starting point is 00:08:42 other stakes. Oh, the trade war? That made the stakes of this game even bigger. Now, yes, we should point out, the NHL is unusually international, which made this whole matchup possible. The NBA can't do a league like this because 75% of their players are American. But still, every storyteller out there, from the CEO to the salesman to the sports leagues, benefits from stakes. Why was the NBA's best era, the rivalries of the 1980s? Those are stakes. Why does Tom Rinaldi do an emotional human interest story with the player before every game? Those are stakes. Without stakes, there's no drama. Without drama, there's no story. For our second story, meta is building an underwater sea cable that is longer than the Earth's circumference.

Starting point is 00:09:29 Because Zuck wants Instagram flowing through his internet. Zuckie Zuckie Zuckie's Mark Zuckerberg. Jack, he looks a lot like Bob the Builder these days. Who's Bob the Builder? Jack, if you don't know who Bob the builder is yet, the Podson is going to introduce you by around first grade. Well, yet, here's the news. Meta announced this week, he's building the longest underwater sea cable ever. This thing is 31,000 miles long. Jackie, sprinkle on a little more geographical context, please.

Starting point is 00:09:57 That is longer than the distance of the Earth's circumference, because it will connect five continents with high-speed internet. The U.S., Brazil, South Africa, India, Australia, they're all going to be connected on Zucks Highway in the ocean. Now, what does this actually look like? Well, 24 cables braided together into one giant internet cable. Watch out, Nemo, because draped across the ocean is going to rest this cable as deep as 7,000 meters. They're also going to bury the cable in high-risk zones to prevent accidental or intentional cutting of this expensive internet cord. Yeah, Jack, a ship knocked out a cable off the...

Starting point is 00:10:34 coast of Egypt a few years ago, and internet was out for 75% of the country. Sometimes it's by accident, other times it's geopolitical. So Zuck's new underwater cable? It's like hands across America, but on internet steroids. Nick, did you hear that meta's stock just finished a record 20 straight days of rising? Not too shabby. Meta can afford this 31,000 mile cable cord. Longer than the world. But yet he's Jack and I still got curious. Why is meta dropping $10 billion laying internet fiber across the ocean floor?

Starting point is 00:11:06 Why is meta leading on the invisible infrastructure that the world needs, but none of us ever see? Because meta, they ain't UNICEF, are they, Jack? They're not improving the world's internet as like a give back to society. No, no, no, no, no. So we looked at the numbers and here's the hero stat. Get this. Meta's websites account for 10% of all internet traffic globally that happens on fixed internet connections. In fact, meta's apps account for 22% of all.

Starting point is 00:11:33 mobile traffic too. The only company that does more internet traffic is Google. Oh, and Netflix is third, by the way, and why is that, Jack? Because you've streamed every season of Great British baking show, and that's a lot of data. Dylan got robbed, but this story is about meta, isn't it, man? Meta's business depends on strong internet reaching every corner of the world. So much so that Zuck will invest in cables that the whole world can use, even his rivals. The ties that bind us are made of fiber and sit at the bottom of the Caspian seat. Or Jack, again, to quote Ariel, the future of AI is under deceive.

Starting point is 00:12:12 Sebastian did. It's the lobster. I think you're misremembering her accent. So, Jack, what's the takeaway for our buddies who are everyone using the internet? America's biggest export is Instagram. These cables are how it happens. Yeties, with Trump's tariffs on physical goods, the world could begin trading less stuff with each other.

Starting point is 00:12:32 But that's only for physical goods. Digital goods and services are unaffected by tariffs. And honestly, that is a huge relief to Zuckerberg. Because 95% of his 3 billion users, they actually live outside of the USA. So he's building out cables to ensure that he can deliver his apps to whoever he wants, however he wants, across the whole world. Basically, Zuck's thinking, if meta builds data centers in America, he wants the rest of the world to be able to access that compute.

Starting point is 00:13:00 If meta decides to store his AI data servers in Ireland for tax reasons, this cable can bring that intelligence all the way to Idaho. Basically, Zuck wants to control his digital destiny by owning the rails that his Instagram flows on. Because there's physical trade, and then there's digital trade. And Instagram is actually our biggest digital export. Now a quick word from our sponsor. For our third and final story, the hottest new trend in retail is MedSpot. The number of medical spas offering Botox, lip filler, and laser hair treatment has six-xed since 2010. So Jack and I are calling it the Botox bar trend.

Starting point is 00:13:47 But Yeties, if you happen to live in Park Slope, a lovely neighborhood over in Brooklyn, and you walk down Fifth Street, what are you going to notice on your right-hand side, Jack? A store called Cool Sculpt, another place called M-sculpt, and another place called Sculptra. And you're going to look at all these verbs that are offering nine different med spa treatments and wonder what the heck is going on on this avenue. I think Sculpt is code for when you walk out of here, you're going to look better. Things are going to fall off your face because there is literally no friction, baby. Med spas. Basically, it's short for medical spas. And they're occupying avenues all over Brooklyn.

Starting point is 00:14:24 They're everywhere. And they have 100% focus on beauty and cosmetics. They offer Botox, hair removal, lip filler, butt plumping, services, fat dissolving services, and IV drips in case you have a hangar. Okay, first of all, butt plumping sounds like a story for another pod, but I hope we still get to it today. In the meantime, these med spas, they have the same layout and the same business model as your typical nail salon. But they have trained medical staff for these like vaguely medical cosmetic treatments. It's like the Starbucks for Botox. You walk in with stress

Starting point is 00:14:55 wrinkles around your eyes and you walk out looking like a porcelain doll. Exactly. Now, in 2023, we covered the male Botox trend in America. Yeah, we called it Brotox. Well, this is the retail extension of it with brick and mortar stores. And we call this the Botox Bar. Now, the surge of Botox bars is not limited just to this cool neighborhood in Brooklyn.

Starting point is 00:15:16 It's a nationwide trend. And Bloomberg calls them the vape shops of the healthcare world because technically it's not really that regulated a space. And the lack of regulation has led to some numbers that will freeze the skin between your eyebrows. Because the number of med spa locations in America has jumped six X in the last

Starting point is 00:15:36 decade. We now have 10,000 med spas across the United States. Can you spring on some context, please, Jack? 10,000 med spas compared to our 13,000 McDonald's. There's almost as many med spas as we have McDonald's. And what kind of numbers are they putting up, Jack? What kind of average revenue per location? $1.4 million, which is about three times the amount a nail salon brings in and twice as much as a blow-dry bar. And by the way, the average customer at one of these med spas is dropping $500 per a visit. And insurance doesn't cover these kinds of cosmetic treatments. So it's an all-cash business. And all-cash is a profit puppy.

Starting point is 00:16:11 So these med spas are getting 30% margins on each of those Botox drops. And you know the list of like beautifying treatments that I mentioned earlier in the story? I think they call it a menu, Jack. But yeah, we can go a list too. Well, these places add whatever health hack du jour to the menu when it comes. point. So it turns out now 15% of med spa treatments are off-brando-Zempic. They're basically doing weight loss shots. Add it all up and there's a record number of Americans hitting Brotox bars at lunch for a $500 midday butt pump. Butt pump's a medical term. That's right. After a hard night out,

Starting point is 00:16:48 you're not going to soul cycle. You're getting a butt pump with your buddies. So Jack, what's the takeaway for our buddies over in the medical spa industry? The rise in med spas is a reminder that trends are a mosaic. Now, yet, it is easy to think that trends just happen. Like a person, an event, or a video just kicks them off and boom, they're happening. They're done. They're gone. Sometimes that's true, but usually trends are more complex. It's a number of unrelated forces coming together over the course of years. And that's the case here. Because on the supply side, low barriers to entry, like minimal licensing and two-month training or no doctors involved, that helped the growth of medspas. On the demand side, millennials are hitting middle age.

Starting point is 00:17:29 socially we see on Instagram everyone's got Botox and professionally you have to log into Zoom so your face is more important than ever. But these factors contributing to the Botox bars they go back even further all the way back to 2020. That's when the FDA first approved Botox for cosmetic uses. And then 10 years later with the rise of reality TV,

Starting point is 00:17:50 the real housewives of anywhere basically normalize this. And then the Great Recession led to low interest rates for 10 years, making it easy for anybody to open up their own clinic. Boom, low rate? Yeah, let's get a loan and open up a Botox bar, bra. So the med spa trend that's booming across America today, it's actually a result of micro and macro forces for the last 20 years. By the way, I hope nobody's looking at the skin in between my eyebrows. Because I'm self-conscious about it.

Starting point is 00:18:20 Jack, could you whip up the takeaways for us for the new Friday? The finals of the NHL's Four Nation faceoff is tonight. USA versus Canada is getting Super Bowl. like attention. But the reason the NHL's All-Star Games succeeded, it had huge stakes. For our second story, Meta is building the world's biggest underwater sea cable, 31,000 miles long. Because as Ursula taught us in The Little Mermaid, Instagram is our biggest export, and this is how we export it. And our third and final story. Med spas are easy to open. They face no regulation, and they enjoy sky-high Botox demand.

Starting point is 00:18:55 But this Botox bar trend is actually the result of a mosaic. But Yetis, this pod's not over yet. Here's what else you need to know today. First, Apple just launched a new cheaper iPhone for $599, but it is still powerful enough to use AI. They call it the iPhone 16E, which replaces the old iPhone SE, the cheapest phone they offer. Now, some quick context here, iPhone sales actually disappointed last quarter. The first AI iPhone did not cause a replacement megacycle like Apple hoped. And second, is it just us or have Uber prices gone up lately?

Starting point is 00:19:32 They've gone way up and we got data for it. We do. Uber and Lyft prices are actually up 7.2% in the last year. The median fare is now $15.99. Nick, that's a high price. And the earnings report shows that consumers are starting to push back on those surge prices. So best is if you're walking to work right now because your Uber to work suddenly looked like 30 bucks to midtown, this is why. And finally, when Warren Buffett spends money, we look at the receipts.

Starting point is 00:19:57 And his latest spend, he's thirsty for beer. Yeah, Berkshire Hathaway just invested $1.2 billion into Constellation Brands, the owner of Modello and Corona. The stock is down 26% recently, so Warren Buffett is buying the dip. In fact, even though alcohol consumption is down, it is still growing for premium alcohol. So Warren is betting on the top shelf stuff. At the next shareholder meeting, Warren's going to go, stay thirsty, my friends. Or he's going to say, earnings per share was bad too.

Starting point is 00:20:27 $0.70. Now, time for the best fact yet. This one sent in by Ashley all the way over in Queens. Yesterday, we mentioned the legend Lonnie Johnson, who invented the Super Soaker. Yeah, Lonnie, a black American who grew up in the segregated South, but invented the best-selling water toy of all time. Well, Ashley from Queens jumped into the story

Starting point is 00:20:49 and found out that Lonnie actually had to sue Hasbro in 2013 to get his money. Yeah, he noticed that his royalty payment. for the Super Soaker weren't keeping pace with the Super Soaker sales. He ended up winning that lawsuit and walked away with $73 million payout from Hasbro. Not too shabby. Congratulations, Lonnie. Another bit of adversity that Lonnie Johnson overcame. Yeties, you look fantastic over there, especially you, Jack.

Starting point is 00:21:16 I noticed you're wearing a black Patagonia fleece, if I'm correct. Not too shabby. It's my pullover of choice and the best idea yet, actually. Yeah, we have been getting so many DMs about, people listening to our Patagonia Fleece episode are the best idea yet. Have you seen this, Jack? No, I haven't seen these DMs. They're very into it. Okay, right now, Jack looks like he's either

Starting point is 00:21:35 scaling a mountain or scaling a spreadsheet. Either way, the Patagonia Fleece is a fantastic story, and you've got to check it out on the best idea yet our weekly show. We've got a link in the episode description, so it's easy for you to listen to. So Yeties, enjoy that pout after this one, and Jack and I we'll see you tomorrow. And before we go, a happy ninth birthday to Harvey Snyder,

Starting point is 00:21:59 the Pokemon Master and Master Baker over in Spokane, Washington. Happy birthday to Chase McElroyd in Costa Mesa. The legendary Chase, and Jen Tan in Alameda, California loves Fleece and her pet hot dog named Ridiculous. And a big shout out to Moises Guzman, who's listening over in Deutschland via YouTube. And Tristan Rogers down in Los Angeles is new to the show. Tristan, fantastic to have you with us.

Starting point is 00:22:22 And to anyone else who celebrates something today, make it a tea boy. Especially if at 7 a.m., the happiest moment of the day, celebrate the wins. This is Jack. I own stock of Berkshire Hathaway and Nick and I both on stock of Apple.

The Best One Yet - 🏒 “Hockey War” — NHL’s USA vs Canada win. Botox Bars everywhere. Meta’s undersea cable.

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