The Best One Yet - 🎷“Invest in Ja Rule” — Jukebox’s song stocks. Rivian’s DINK-mobile. Walmart’s early bird super delivery.

Episode Date: March 8, 2024

JKBX is letting retail investors own a piece of their favorite songs, like Beyonce’s “Halo” — Because the SEC just approved Wall Street’s publicly-traded jukebox.Rivian just unveiled a compact electric SUV, the R2, and surprised us with the R3 and R3X as well  — Because the future of electric cars depends on creating “The DINK-Mobile.”And Walmart just launched what we call “Early Bird Super Delivery”: 1-hour delivery if you order before 6am — Because great businesses don’t look at what will change, they look at what *won’t* change.And look out for a special bonus pod this weekend: The Snooze Pod (The Sleepiest One Yet).$RIVN $WMT $TGTSubscribe to our newsletter: tboypod.com/newsletterWant merch, a shoutout, or got TheBestFactYet? Go to: www.tboypod.comFollow The Best One Yet on Instagram, Twitter, and Tiktok: @tboypodAnd now watch us on Youtube Hosted on Acast. See acast.com/privacy for more information.

This is Nick. This is Jack. It's Friday, the real Friday, March 8. And today's pod, today's pod, it is the best one yet. It is a team boy, baby. The top three pop business news stories you need to know today. I'm sorry, Jack. Am I hearing a cake?

I think I hear a cake getting sliced right now. Is that a cake? You're hearing my one-year-old son trying to blow out his first birthday candle because we just had a party for Brexit. Jack's gotten a party in the studio going on. By the way, your entire family has birthdays this week. I know. It's birthday paloosa.

Wow, there's next on April 9th. It's like you have your own horoscope. Like, you are the horoscope, Jack. Pisces, what are the other horoscopes? I'm totally blanking right now. Aquarius, Pisces, Kramer. Jack, first story for today's show. What do we got?

For our first story, you can now invest in your favorite songs. Like from Beyonce, Taylor Swift, even Stevie Wonder. Because Wall Street just got the first ever publicly traded jukebox. For our second. Second story, Walmart is launching a new thing. We call it the Early Bird Special, because they'll deliver to you in one hour if you order by 6 a.m.

Because great businesses, don't look at what will change. Great businesses, look at what won't change. And our third and final story, Rivian, just launched their next car, plus two other surprise cars. This is the winner of the electric car wars? It's going to be the Dinkmobile. Besties, before we hit that wonderful mix of stories.

Fantastic mix of stories. next before weekend. In case you haven't marked your calendar, this weekend is daylight savings. Yeties, we are springing forward and you are losing an hour. Saturday night, heading into Sunday, we are going to lose one hour of sleep, so beware. So this weekend, you are going to need a deep circadian slumber to make up for it. But yeties, we have a plan to make sure that you sleep well this Saturday night. Besties, we have a dream to help you dream this weekend. Because we've had an idea about dozing off that we've been wanting to do for a while. Jack and I even wanted to do this, but it is the exact opposite of everything that you know

and you love about this show. Nick and I are talking about a T-boy podcast episode, a special bonus episode designed to make you sleep. Jack and I are envisioning a financial lull your eyes closed. We're talking our first ever snooze pod. It's going to be the sleepiest pod yet. Nick and I are publishing on Saturday morning what we're calling melatonin for your mind. It's business news for your beauty rest.

It turns Wall Street into Wall Sleep. So, Jack, how about we whip up a little preview of our sleepy bonus pod dropping Saturday? This is a teaser of the snooze pod. For our one story this weekend, Nick and I are going to read, word by word, line by line, number by number. The entire shareholder letter of one surprise company. It will be the boringest one. Yeties, our first stock markets news pod drops tomorrow for daylight savings. So prep those PJs.

And find your eyewasks. But hang on a second. We don't drift off quite yet. We got a great show coming up there now. Yeah, we do. Jack, we got three fantastic stories. And yetis, we got to wake you up. 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 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.

For our first story, the SEC just approved a new startup that turns pop songs into investable stocks. Because every time a song is played, someone gets paid. Jack, what's our number one favorite line from single ladies? Well, it's everyone's favorite lot for single lates. If you like it, then you better put a ring on it. Well, a new startup called Jukebox has a new business model that is basically that. If you like that song, you can put a ring on it. You better put a ring on it.

Yeah. Well, Jukebox, spelled JKBX, has a new business model that is that lyric, isn't it, Jack? It's literally a financial jukebox. Because Jukebox lets you own the rights to royalties of your favorite individual song. Instead of putting money in to listen to a song, you're putting money in to own a song. Whether it's Beyonce, Taylor Swift, Stevie Wonder, or you two. These are now publicly traded tracks that you can buy on Jukebox. Okay, so here's how this went down.

Over three years, Jukebox acquired the rights to various songs. And now they're securitizing them. Securitization. When you take ownership of a big thing and slice it into tiny pieces to sell to the public. Now, we know what you're thinking. For years now, like, you could already do this, right? Like the general public could buy stock in music libraries that are exists. But this is the first time we've seen the opportunity to buy stock in an individual song.

Just one song you can own. You're going to own one 18th of a stanza of rumor has it and Adele's going to own the rest of it. Yeah, that's basically the opportunity here. This is Nick and I own shares of the chorus. Madonna is the new Nvidia. What's in your portfolio, Greg? Large caps, crypto and jaw rule. But yet he's huge

Why Jack and I found fascinating about this story This entire business model Is built off of one Simple, elegant observation Every time a song is played Someone gets paid Whether that song is played on streaming

Or on the radio Or in a TV commercial Or on a movie soundtrack Or even the weight song In an elevator Like that jazz music in the grocery store Anytime a published music is played Someone gets paid

So here's how this financial engineering of Jukebox works. All right, Yeties, the first song on Jukebox that you can actually buy stock in is Halo by Beyonce. One of my favorites from high school. They're selling 100,000 shares for $6.78 for a share of HALA. Because when you play Halo on your Spotify account, a tiny bit of your $10 a month goes to the owners of that song. And when you hear Z100 play Halo, then that radio station pays a tiny bit that goes to this stock. So Jukebox collects that tiny bit as royalties and sends you a check with your cut because you own part of that song. Jake, it's usually just Beyonce who gets a royalty check for Halo, right?

Right, but now anyone who owns Halo stock can also get some royalties. And if Halo happens to go viral on TikTok, then those royalty checks will explode. That's the upside opportunity here. Oh, like Jack, what happened with that song from Stranger Things that was like from the 80s that went viral like a year ago? Kate Bush running out that hell. Out of nowhere, it made $3 million in royalties because it went viral thanks to Stranger Things. But Jack, when it comes to Jarl, past performance does not indicate future returns. So, Jack, what's the takeaway for all our buddies over at Jukebox?

What this music stock lacks in finance, they make up for in fandom. Now, Yeties, when you look at these investments from the financial side, the music, it isn't quite as sweet, is it, Jack? No, the royalties you'll collect on Halo, they add up to about three to four percent yield per year. That's not that good. On the other hand, you're probably making more in your savings account at 5 percent, which is risk-free. So Jukebox's financial investment, it doesn't seem to be that lucrative an opportunity. But the CEO Jukebox points out that it is both a financial product and a fan product. It's both a financial instrument and a form of music memorabilia.

Because Beyonce fans, you pay an assert amount of money for a screen. of her silver sequence that fell off her dress at the concert down in Nashville. Owning a musician's memorabilia provides you emotional value. Owning a musician's stock also provides emotional value. So interestingly, these song stocks appear to come up short when it comes to their financial return. But they make up for it with their fan return. For our second story, Walmart just announced one hour delivery service, but it's only

for early birds. And it reminds us of what may be our favorite Jeff Bezos quote. Full disclosure, Yeti, Jack and I are extremely morning people. We're such morning people. We're like night people, like previous night people. I walked River at 445 this morning. I saw the moon rise this morning. So Jack and I were up early because we got to prepare the pot at like 5am.

But Walmart just announced a one-hour delivery service that is only for early birds. It's perfect for Nick and me, because you have to order by. 6 a.m. And if you do, Walmart will deliver whatever you ordered to your doorstep by 7 a.m. Just one hour. And the other one, if you order it's 601, you snooze, you lose. Literally. Now, of course, we all live in a feocrycy. How we live in a feocrycy? What are the fees on this kind of a deal, Jack? It's $10 for that one hour delivery. Okay, brutal. Plus, an extra fee if you're not a Walmart plus member.

Yet he's in an age of Uber Eats, Doordash, Instacart, Joker, and Amazon delivering the same day, Walmart kind of feels late, Jack. It is late. And that's why Walmart's launching this early bird special, because they're late to the delivery party. So yeties, Jack and I were thinking about this Walmart, early bird story. And we were realizing, you know what?

We're in the middle of the instant gratification wars. And this week was a slug fest. Yeah, because Amazon started a fast delivery arms race when they launched two-day free prime ship and years ago. But this week wasn't just Walmart trying to catch up to Amazon. Target launched a missile too. Boom, Target launched their very own subscriber club for the first time to take on Amazon Prime and Walmart Plus. Target is charging $99 a year to be in their club.

Their club is called Circle Plus. Brutal name. But if you remember, you get same day delivery as fast as one hour with no additional fee. Now, Jack, because we now have three players in this brutal instant gratification wars game, can you whip out the whiteboard and tell us the prices, please? Target Circle Plus is $99 a year. Walmart Plus is $98 a year. And Amazon Prime is now $139 a year. The big box subscriptions is starting to look like the Hogwarts houses.

I guess so. We just need Best Buy to jump in there. Here's new Hufflepuff Jack. But Yeties, why are all these retailers suddenly offering instant gratification clubs and leading to this instant gratification war? Because once you join your club, you'll buy everything from that club. That 5.59 a.m. emergency toilet paper delivery that you're going to order from Walmart, it's not a profit puppy for Walmart.

But it becomes a profitable thing when that customer tosses in toothpaste and bananas and almond butter and a set of snow tires into that order. What the heck? Throwing a jaw rule CD. You're paying 10 extra bucks for the delivery, Jack. You may as well load up that car. So, Jack, what's the takeaway for our buddies over at Walmart? The most important question about the future is what won't change? This story, it reminded Jacoby of this amazing interview that we watched with Jeff Bezos of Amazon.

Jeff Bezos was asked this question, what will change about the world in 10 years? And Jeff Bezos said, the more interesting question is what won't change about the world in 10 years. Because it's easier to predict what will stay the same than it is to predict what will change. What's new in 10 years is exciting. But what stays the same is a better investment. Jeff Bezos has answered that question, what will stay the same? it was always fast delivery and low prices. That's what customers will always want.

And that's why Amazon has always put more resources into those two sure things than any other opportunity. Low prices and fast delivery. And that's exactly what Target Amazon and now Walmart are doing with super delivery. It's exciting to think about how the world would change in 10 years, but it's more lucrative to think how it will stay the same. Now a quick word from our sponsor.

For our third and final story before the, weekend. Rivian just surprised everybody financing not just a new car, but a fourth and a fifth surprise car out of nowhere yesterday. We thought we were getting one new car and they gave us three. It's like Oprah, but the real reason Rivian stock rose because Rivian finally has a dinkmobile. Yeties, Rivian. It's the closest thing there is to a Tesla rival. It's a pureplay electric vehicle with some awesome cars on the road. They're like hummingbirds. You rarely see them, but they're beautiful. You've got to point them out.

Only problem with Rivin, their first two cars, the pickup truck of the big SUV, they were $70,000 and $75,000. The problem with Rivian was the price. So Rivian was more like a Mercedes than a mainstream car. But here's the news. Rivian finally unveiled a mainstream priced SUV. Yesterday, Rivian unveiled the R2, which is their compact SUV that's a lot like the Tesla Model Y.

This brand new Rivian is starting at 45. $5,000, which is the same price as Tesla's Model Y. And it's estimated to be delivered in 2026. Which really means probably 2028. Yeah, it does. But yet is then Rivian pulled a Steve Jobs and shocked the world. CEO, RJ Scorange, pulled a one more thing post-script at the end of the presentation. Because then Rivian whipped out two more cars that were totally secret and no one expected.

They unveiled the R3, which is an even more compact SUV. and then a performance version of the R3 called the R3X. Now, the price and the timing of those cars is TBD, but Wall Street was impressed. Rivian just went from having two cars to having five cars, so the stock jumped 15%. But yet is, before you start celebrating, Jack and I got to pull over and sprinkle on a little context, don't we, Jack? License and registration, please, if you know what I'm saying. Yeah, is Rivian needed this win because Rivian has been going in reverse.

Its stock is at an all-time low right now. Going into yesterday, the stock was at a brutal all-time low. It's all because of one metric that Rivian hates hearing, but honestly, Jack and I still got to share with you. Get this. Every time Rivian sells a car today, they lose $30,000. Sit down, stand up, and buckle up again. Every time Rivian sells a car, they're losing money on it.

$30,000 of money on. Rivian is deeply unprofitable. And they expect to produce the same number of cars this year as they did last year, just 50,000 cars. And the core problem here, there just isn't enough demand for Rivians so they're not getting economies of scale. That's why Rivian lost a shocking $30,000 per car that they sold. But Jack and I were thinking about this, and we believe that Rivian could actually sell more cars if they just made one specific change. One crucial change. Target a different type of customer. So Jack, can you come on down to the dealership and tell us what's the takeaway for our buddies over at Rivian?

Rivian finally created a dinkmobile. Yet is, according to a 2023 Pew Research study, the older you are, the less likely you are to want an electric car. And at $70,000 each, it was only older people who could afford a Rivian. Which according to that study, are the people who don't want electric cars. That was the core issue in our opinion. They're priced for old people, but old people don't want an electric car right now. Plus, Rivian wasn't just targeting the wrong income in the wrong age bracket. it was also targeting the wrong type of person.

Rivian's first car was a pickup truck. But truck owners aren't early EV adopters. Rivian's second car was a huge SUV perfect for huge families. But huge families are not early EV adopters. So finally, with these new Rivians they announced yesterday, they can target the right demographic. Younger people without kids. Yet he's added up and Rivian's first cars were targeting older, wealthy people,

the wrong demographic. So Rivian stock jumped Thursday because they're finally targeting the right demographic, the dinks. Rivian finally created an electric dinkmobile. Jack, can you whip up the takeaways for the Real Friday? Jukebox lets you buy a slice of your favorite music song so that you can collect royalties from it. What Jaro, I'm sorry, what Jukebox lacks in financial return, it makes up for with fandom. For our second story, it's Walmart.

We're calling it the Early Bird Special. They'll deliver to your door in 60 minutes if you order before 6 a.m. What will change is exciting, but what will stay the same is more lucrative. And our third and final story is Rivium. The launch of their R2 compact SUV is huge for their business. Because they finally have a Dinkmobile. And Dinks are the ones who are buying EVs right now. But Yeties, this pod's not over yet.

Here's what else you need to know today. First, our buddy's over to Harry's. The company behind Harry's Razors have reportedly filed to go public with an IPO. We interviewed their co-founder, Jeff Rader, on this. show last year. You should check out that bonus episode. Oh, it was fantastic interview. You're going to love it. And second, New York Community Bank, which rescued another bank last year, is now in need of its own rescue. It was rescued this week with a $1 billion investment led by former Treasury Secretary, Stephen Mnuchin. Looks like the Silicon Valley Bank crisis from last year is still not quite over.

And finally, the Oscars are this Sunday night. Barbenheimer's the favorite. How many nominations did it get? 11? I think it's 1,000. Well, this year's Oscars are hosted by Jimmy Kimmel. They are not hosted by Matt Damon. Now, time for the best fact yet. This one whipped up by Jack and me because we had a special one for you. Today is the International Women's Day. It actually goes all the way back to 1911 for the International Day of Women.

In those 113 years, there's been a whole lot of women's history. Yeah, our ask of you, by the way, Eddies, is if you have a fantastic best fact yet on women's history, we want to hear it. We want to get it on the pot. We're going to put them on the pot all month. But in the meantime, Jack and I found one best fact yet to kick it off. What do we got, Jack? The first female CEO of a Fortune 500 company, who was it, Nick? She was in the news industry, which is pretty cool.

It is Catherine Graham from the Washington Post. From 1963 to 1991, she led that prestigious newspaper, which at the time was a publicly traded company, including through their biggest moment ever breaking the Watergate scandal. And she's played by Merrill Streep in the awesome. movie about the Watergate scandal, The Post. Who deserves her own best fact of the day, Jack? Yeties, you've looked

fantastic all week. And Jack, we got some wins to celebrate because we've moved up to like two bonus podcasts in just the last week. We did the self-driving pod last week, which you should watch on YouTube, by the way, because the video is way better than the audio. We literally moved our podcast studio into a self-driving

Robo Taxi and filmed the entire Monday episode there. You got to watch it if you haven't seen. And tomorrow we publish the News Pod. You're going to want to watch that one on video too. Jack and I literally got into a bed for the sleepiest pod yet. Besties, have a fantastic weekend and enjoy those two episodes. Jack and I will see you in the bonus pods. I can't tell if that's sleepy or sultured. That means I'm doing it right, Jack. I'm doing it right. And before we go, a happy birthday to Yeti, Alex Dressler, who's celebrating down and lovely Oceanside San Diego. And happy 60th birthday to Rob

Breger in Richmond, Virginia. And the Marones are celebrating an anniversary down in Miami. Enjoy that win, Yeti's. Congratulations to Alexa Lorenzo, who's got a new job in Queens, New York. And Jonathan and Rachel Harell just got their first new baby, Gianna, in lovely Lafayette, Louisiana. And congratulations to Mitch John, who, after 10 years of training, just signed a contract to be a full-time orthopedic surgeon. Also, in Lafayette, Louisiana.

And congratulations to the city of Lafayette-Louisiana. Louisiana, which has a whole bunch of Yeti's and Vesties. Which has a whole bunch to celebrate this weekend. This is Jack. I own stock of Instacart, Amazon, and Netflix, and Nick and I both own stock of Spotify. And by the way, we both drive dinkmobiles. We both have, like, compact, middle of the range. Electric SUVs.

S&V.