The Best One Yet - 🟠 “Huge” — Trump’s SPAC. WeWork’s Batman. Tesla’s ca$h money.

Episode Date: October 22, 2021

We just got the 1st ever stock chaired by a former US president… and it jumped 350% on Day #1. Two years after it canceled its IPO, WeWork just went public thanks to what Alfred told Batman. And Tesla’s earnings reveal it doing something new with cash money: Instead of burning cash, it’s printing it.$WE $TSLA $DWAC $BOWXGot 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/viewformLearn 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. It is Friday, the real Friday, October 26th. Stocks are at an all-time high as we enter the weekend. Bitcoin and Ethereum at an all-time high as we had into the weekend. Today's pot. Yes, Jack.

Is the best one yet. We got a Friday outfits on and this is a T-B-O-Y. Jack, what's our first story over there? Yesterday we saw people express themselves politically by buying a stock. The Trump stock, new thing is possible because of the smack. For our second story, two years. years ago, WeWork canceled their epically failing IPR. This week, WeWork went public because of what Alfred told Batman.

If you know, you know. For our third and final story, Tesla jumped 3% after their earnings report because they're doing a new thing with their cash. Yeah, wild thing, Jack, and I noticed, instead of burning cash, Tesla has decided to print cash. By the way, I'm going to get this out of my system right now. Please, Jack. Where is Rachel? Show me the earnings you're part.

But Snackers, before we hit that wonderful mix. Could we go into the weekend with a better mix, Jack? I don't even know. I don't think so. You may not have realized it. But whether you have a good day today or a bad day today, it's already been determined. It's out of your hands. Yeah, Snackers.

It was predetermined by an elderly pug, like a dog pug. That's right. A 13-year-old dog living on the Upper West Side of Manhattan is named Noodle. Yeah, and that dog, noodle, has decided whether or not you may have a Bones Day. Or a no-bones day. Yes. Pug has decided which day you have it. You want to have a Bones Day?

You do want to have a Bones Day. You don't want to have a no bones day. No, no, no, no, you don't. Because Noodle the Pug has become the most viral pet fluencer, pet influencer on TikTok, the biggest of his kind, the biggest out there. Every day, 10 million people wake up and it's growing, roll over, scratch their head and open up TikTok to view whether it's a Bones Day or a no Bones Day. Snackers, here's how this goes down.

Jack and I jumped in Snacks style. If noodle the puck rises from his dog bed immediately, then it's a bones day. That's a great thing. And on a bones day, you treat yourself. You get the extra chocolate sauce. You get the extra scoop of ice cream. You ask for the raise. And finally, use that expensive face mask you've been keeping in the pantry.

But on the other hand, if noodle the puck doesn't get out of his luscious dog bed immediately, then it's a no bones day. That's not good. That's right. Sometimes noodle wakes up and just stays there. Doesn't move. And if it's a no bones day, then it's probably raining outside. and you're probably going to get ketchup on your shirt.

By the way, we know what you're thinking. Yes, Pucksatani Phil does hate Noodle the Pug. That's the takeaway to this story. But Jack, you checked it, we checked it on TikTok. What is the situation today? What did Noodle do? Niddle woke up, opened his left eye, scrunched his ear, licked himself, then raised his back leg. And?

He didn't get out of bed. Ah, he collapsed on his chin, so it is a no bones day. But Snackers, good news. Today's pod is our best one yet. Oh, and also good news. It's Friday, so you celebrate the wins. So it's a no bones stack, but it's also a T-boy. And T-boy beats out no-bones.

Let's hit our 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 robberhood family. It's all informational just so you know. We're not recommending any securities.

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. Robahood financial. LLC, member FINRA slash SIPC. For our first story, we now have the first ever stock unprecedented that is chaired by a former U.S.

President. Trump's new truth stock. That's the name. Tells us the truth about SPACs. Yeah. The irony here is that so he couldn't tweet it, but Donald Trump did just announce a new brand spanking SPAC position. That's right.

Trump's plan for a new social media company just got acquired by digital world acquisition corporation. Okay, that name's kind of crazy, but if so facto, there is now a Trump stock and it is called DWAC. DWAC. They'll eventually change the name, though, to Trump Media and Technology Group. Now, unsurprisingly, there are plenty of retail investors out there who wanted to buy a brand new Trump thing. And this was a thing you could buy. Right. So yesterday, presumably MAGA fans sent the stock up over 300% yesterday. We repeat, it went up 315. And this stock climbed so fast, so high, so quickly that stock exchanges literally had to halt trading of it throughout the day.

It wasn't just a wild trading first day. It was a wild meme first day. Yeah, get this snackers. There were more mentions of this new Trump stock on Wall Street bets on Reddit than there were of GameStop. The OG. Now, Jack and I specifically said the words plans before, as in Trump's plan for a new social media company.

Because right now, that's all it is, a plan. Exactly. This startup is basically just purely in plan mode. And as a quick reminder, Trump is still banned from both Facebook and Twitter. So interesting timing of this new Trump social media stock because Facebook's approval rating seems to be at its lowest. And now Trump is launching what he calls Truth Social. Truth Social. Right now, Truth Social is just a press release, a very basic slide deck and a mock up of what the app eventually could become. Which happens to look extremely like some kind of a version of Twitter. That's right. And in the mockup, which looks very much like the Twitter app, but no Twitter logo. Which you can check out.

They show that the handle at Jack has been taken. It has. And it's by some Jack's beard thing. This seems like it's an attempt to make fun of Jack Dorsey's beard. But frankly, this beard looks fantastic. I agree. And here's the mission that Trump states for this new truth social company. Okay.

The mission of this new Trump startup is to create a rival to the liberal media consortium and fight back against the big tech companies of Silicon Valley. That's like page three of the slide deck. Okay, but that description of the app isn't what's driving interest in the stock. It is Trump's name, just like all his previous businesses. And those previous Trump business endeavors, they come with a lot of controversy right now. All right. First, four of his previous companies have ended in bankruptcy. Then you got the Trump lenders and contractors who worked on those businesses.

They've been taking huge losses, huge losses. Even bigger is right now because the Manhattan Denver, district attorney recently charged the Trump company, the Trump organization and their long-time CFO, with 15 pretty major crimes. But here's the thing. Trump would tell you not to believe all that. He would tell you it's all part of the giant witch hunt conspiracy by the liberal media. And then he'd probably tell you that you should just go and download the truth app, his plan, social media app, keyword plan.

Oh, by the way, truth is all caps. So, Jack, what's the takeaway for the truth in all caps? Trump just became the SPAC in chief. Yeah, Snackers. Another way to think about Spacks, they start out as shell companies, just a manager with a bag of cash, looking to acquire something and make that thing a public company ASAP. And that thing that Digital World Acquisition Corp acquired, we've never seen a business plan with less substance than this one for truth social. You can check this out yourself. Jack and I jumped in Snacks style. This startup has three business lines.

The first for Trump's startup is Truth Social, which he describes as a not woke version of Twitter. And then to keep up with a trend, you've got Trump Plus. next business line. Which he says will disrupt Netflix and Disney Plus. Because you gotta have a B2B angle these days. The third business line is called Trump Tech. Which he says will disrupt Amazon Web Services and Stripe and never censor anybody. You can check out this whole deck yourself. There's no CEO yet, no roadmap. There are huge promises and it says Donald J. Trump is chairman. It plans to grow into a social media business. But right now, it is Trump reincarnated as a stock. And all that is only possible because of the financial innovation that is the SPAC.

If this deal closes, Trump will get $300 million to do something with. For our second story, WeWork has officially, it is done, it is official, it has been reworked. Two years after their IPO completely failed, WeWork got some WeWork done, and finally went public like Batman. Almost exactly two years ago. Do you remember where you were two years ago? Remember we were doing this? No, but it was crash and burn. I remember Adam Newman's name, we control FTA, was like 7,000 times mentioned in their IPO paperwork. I just meant what you were doing socially. Like, I remember you and I had this great dinner.

We were in Suvla, the marina. I think we had a hummus. Probably had hummus. But we work meanwhile. We work 1.0. Exactly two years ago, we work canceled its IPO. Part of the problem was the business model. Basically, we work was a real estate company dressed as a tech company for Halloween.

Part of the problem was the founder's flaws. Yeah. Adam Newman, the co-founder was as psychologist would. probably say like a charismatic hypocrite with like a dash of cultiness. Yeah. And he hung on to enough supervoting shares that he would always determine the future of his company unless he died, in which case his wife would hand select his successor. You may have also heard that corporate detail if you watch Game of Thrones because that's apparently where it was adopted from. They have the same rules in Westeros. But then the third kicker after the IPO fell apart was

the pandemic. An existential threat to the WeWork business model. Because the kombucha tap became like the COVID cooler. The hustle neon sign, basically it's a super spreader. So WeWork was always a private stock. And that private stock fell by 90% after the brutally failed IPO and pandemic. And it did not become a public stock because the IPO didn't have. But behold, Snackers, WeWork 2.0. Isn't WeWork 1.0?

It just went public via a SPACquisition. And the stock with ticker symbol, we just rose 12% at one point. yesterday. Unlike the two-year anniversary, we're talking about WeWork stock, which has now doubled its valuation from its all-time low to $10 billion today. 10 billion dollars is the value of we work. That's still a far, far distance from the $47 billion it was worth we back went. And here's the kickers-knackers ex-CEO-RILL, Adam Newman. He owns 11% of We-Worksdale. Ipsophato, Adam Newman got himself a cool billion dollars out of this thing. Yeah, so he's celebrating, which like, according to the transit of rule, I don't think we

should be celebrating. No, we shouldn't be. And the New York Post was on top of this because this is where they do their best financial reporting. And apparently Adam Newman was hosting a champagne party. It was at the standard hotel, right? At 9 a.m. in the morning? It was. Yeah. Meatpacking, sandals only. You show up in a T-shirt or you don't show up. We assume everyone was holding hands and doing something all at the same time. And the reason that WeWork has had this WeWork 2.0 Renaissance is, frankly, because of the pandemic. Yeah. FlexSpace has become the compromise in between working from home and working from the office you used to work out. So shockingly, WeWork has suddenly had this revenue rebound.

Desk occupancy is up to 60%, which is pretty good. And the cash flow situation has improved by $1.6 billion a year, although still probably negative. And at the same time, WeWorks costs, those have dropped. They dropped big. New management managed to renegotiate 500 leases, which is huge because back when Adam Newman was running the house, a landlord's like, oh, this is a WeWork rent. I'm going to double the rent and Newman will still pay.

Well, they changed some things around, say, $400 million. So, Jack, what's the takeaway for our buddies over at rework, WeWork. WeWork. The Alfred Principle, why do we fall, Master Bruce? Snackers, as Alfred the Wise Butler told the future Batman, we fall so we can learn to pick ourselves up. When companies survive a near-death experience like WeWork did, they learn to come back even stronger.

Take Airbnb. Their valuation plummeted during the pandemic to $19 billion. But today, Airbnb is worth over $100 billion. Or a restaurant tech company Toast, which almost shut down during the pandemic. But last month, IPOed at a huge valuation. Or as Axios just pointed out, Apple almost went bankrupt. Apple almost went bankrupt back in 1997. And now it's worth over $2 trillion, the most valuable company in the world. So most companies that fall down, they don't stand back up, Master Wayne.

But those that manage to stand back up, often get back up even stronger. like Batman. Where is you? For our third and final story before the weekend, Tesla's profits quintupled from a year ago. Tesla has gone from a cash burning machine to a cash printing machine. Okay, first of all, Jack,

I think we've used the word quintupled like three times on this podcast ever. That's because it's the highest up up all that we know how to say. No one knows what happens after five times. Well, then we start saying X'd, five X'd, six X. We whip out the VC playbook. But Tesla, meanwhile, Tesla delivered a whopping 241,000 cars last quarter. That's how many they delivered.

That's a record best for Tesla. And that is 73% more than the same quarter last year. And Jack, I just realized technically, I guess I was one of those people they delivered it to. I was waiting for you to announce it to the Snackers. I didn't even realize it. Yeah, they delivered us to Tesla. By the way, they actually deliver you the Tesla. Like literally, like someone drives it to your apartment.

And the person that calls you in advance of showing up is like, a total hype person. Julie, she was like, you're getting a Tesla. You're so excited. And then here's the thing. She gave us the car. And then I don't know where Julie went. I think she like Ubered back to the showroom.

It's like a stork with a baby. They drop it off like DoorDash. So after I learned that Nick got an electric car, I bought myself an electric lawnmower. As one does. As one does, Jack. So thanks to help from Nick, Tesla seems to be self-driving their way around this chip shortage. That's hurting the rest of the industry. Yeah, but here's like the kind of funny thing happening with Tesla.

their two newest cars are also their two cheapest cars, and those cheap cars happen to be their two top selling cars. We're talking about the lower priced Model 3 and Model Y, which are in the highest demand, again, thanks to Nick in part. Tesla's two cheapest cars are 79% of the cars that it sells. Tesla also announced that the Model Y will begin production at their Austin factory and Berlin, Germany this year. Now, because it's Tesla, they got to pair the little bit of good with a little bit of Cyber Truck, which a lot of fanboys are really pumped about, is being delayed another year. Yeah, so we're not getting the Robocop truck until like late 2022. At best, soaking wet on a good day.

But here's what you got to do with your mind snackers. Forget about cars when it comes to Tesla. Tesla is all about cash. The real achievement is Tesla's cash transformation. Now, when it comes to the financial statements, the three big financial statements, most people are aware of the famous one. You got like the income statement. That's where the profit and loss is showing.

And then you got the famous balance sheet. That's basically your corporate checking account balance. Now, those are the two celebs of financial statements. The third one, the cash flow statement, just doesn't get that much credit. It's required. Every company must produce a cash flow statement. God have it. But it gets the least attention.

And the cash flow statement deserves some love because it's shown us how much cash money was generated or eliminated by the company. Which is different than the profit of loss. With cash, it's more real. It really matters. We'll get this. past 12 months, Tesla generated a whopping $10 billion in cash from their core business selling cars. And that is four times more cash generated than in 2019.

So Jack and I are looking at these numbers and we're like, instead of printing new stock to pay for new factories as a fundraise, Tesla is printing cash by selling cars, what it does best. And with that 10 billion of cash generated from selling cars, they invested seven billion of it in brand spanking new gigafactories across. the plan. $7 out of every $10, Tesla's bringing in is going to build a new factories to build a new Tesla. So, Jack, what's the takeaway for our buddies over Tesla? Tesla's performance is the opposite of the rest of the car industry. All right, Snackers, let's step back here for a second, sprinkle in a little context. In the 2010s, car companies, they were scoring record profits. They were selling bagillions of gas-guzzling, high-profit SUVs and pickup trucks. Well, at the same time, Tesla was losing money every year during those same 2010s.

Because Tesla was investing long term in battery factories, in electric vehicle technology. Well, now Tesla is making increasingly growing profits while car companies are experiencing increasingly shrinking profits. Because the same investments Tesla made 10 years ago, the rest of the car industry is finally making today. So Tesla, it had a 10-year head start on 10 years of loss making electric vehicle investments. But that means it also has a 10-year head start on the electric vehicle profits. It's enjoying today.

Tesla's performance, it's the opposite of the rest of the car industry. Jack, can you whip up the takeaways for us over there? Truth Social, a Trumpy version of Twitter, could launch next year. Trump is now a spacker in chief. For our second story, WeWork is finally a stock. Tickor symbol, wait. It's stronger today because of the Alfred Principle. And Tesla's third quarter profits quintupled from a year ago.

Great word. Tesla's performance is the opposite of the entire rest of the car industry. Now, time for our snack fact of the day. This one sent in by Savannah Westwood from lovely Orlando, Florida. Despite its name, the strawberry isn't a berry. No. Scientists actually call a strawberry a false fruit, aka a pseudocarp. It's lying to us.

The berry. Tom Brady calls it the fruit that must not be named. Tom Brady calls it not breakfast. And the reason scientists call it a multiple fruit, which consists of many tiny individual fruits embedded within one fleshy fruit receptacle. Yeah, Snackers, those brownish or white as specks you see in a strawberry, those look like seeds. They're actually little tiny fruits. Those are the true fruits. Those are the true berries. And each of those tiny, mini fruits surrounds a tiny mini seeds. So what we're trying to tell you is that strawberries are

basically an inception fruit. A fruit within a fruit or a berry within a fruit. But it's not a berry yet it's a fruit. A false fruit. Snackers, as you can tell, it's a no bones day, but it's also still a T-boy, and you should celebrate the wins because it's Friday. Are we going to start calling a strawberry just straw? Jack, the real question here is, what does a strawberry call us? The answer is Coobasid. Snackers, we're running out of snack facts, by the way, full disclosure. So please send us your snack facts.

Snackers, we got a link right here in this podcast episode for you to send us a snack fact. Nick and I, we'll see you Monday. If you know, you know. And before we go, Snackers, Tom Heckmaster is celebrating his birthday in Budapest, Hungary. Celebrate that win. Happy birthday to Roman Piccolanko in Helsinki, Finland. And to Julian McDonald, down in Austin, Texas. And to Ryan in lovely Orlando, Florida.

And John Scato in Spring Lake, New Jersey. And Tyler Lutz in the great state of Ohio. And Alan Rodriguez, happy eighth birthday in the great state of Rhode Island. Happy birthday to Ethan in Boise, Idaho. And Dave Varelli in Alamo, California. And Ava Schmidt in Oceanside, California. Jack, Vanier Myers, just got a new job over in Brooklyn. Happy fifth anniversary to Sunday and Simon in Wuhan, China.

And Tariq Suflai, congrats on the anniversary with the girlfriend in Columbus, Ohio. Happy anniversary to Jess and Amy Forster in Oakland. James and Brandy are getting married this weekend in Seattle. This is going to be a T-point. Congrats to Lauren and Colby, who are also getting married in Dallas, Texas. And Jack, we're really hoping this ceremony doesn't disappear, but legendary magician John Stessel and his fiancé Allie are getting married. They're both from Jersey.

Big congrats. So anybody else celebrating something today, make it a T-boy. Celebrate the wins and pull that ring out of a hat. This is Jack. Nick and I both own stock of Airbnb. We both own Ethel, separate Ethereum. And this is Jack. I own some Bitcoin, some Netflix and Amazon stock too. 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 as the basis for any investment decision. Any third-party information provided therein does not reflect the views of Robintoe Markets Inc., Robinto Financial LLC, or any of their subsidiaries or affiliates. All investments involve risk, including loss of principle and past performance. does not guarantee future results. Robin Hood Financial LLC, member FINRA SIPC.

Probably at hummus.