The Best One Yet - 🏒🏀 “New York Sports, Inc.” — Madison Square Garden’s playoff stock pop. GameStop’s return of the kitty. OpenAI’s ease-of-use.

Episode Date: May 14, 2024

With the Knicks and Rangers deep in the playoffs for the first time in decades, MSG Sports stock is winning right now — But it suffers from the Diva Discount (we’re talking James Dolan).Sam Altman and OpenAI just announced their newest AI breakthrough: GPT4o — But this isn’t about how smart it is, it’s about how easy it is to use.And GameStop’s stock ended the day 74% higher because Roaring Kitty tweeted a meme after 3 years of silence — We’re talking meme stocks again.Plus, the biggest Solar Storm in 20 years is messing with America’s economy — Tractors can’t navigate for the same reason that brought us the Northern Lights.$MSGS $SPHR $AAPL $GMESubscribe to the best newsletter yet: 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 Tuesday, T-Boy, Tuesday, May 14th. And today's pod is the best one yet. It's a T-boy. The top three pop business news stories you need to know today. But I'm sorry, Jack. Pause the pod.

Did we just write the song of the summer, baby? I'm looking for a pod on finance. Real fun, 20 minutes, two guys. I'm looking for a pod on finance. Real fun, 20 minutes. Two guys. I think we just wrote the song of the summer. Three stories for today's show. What are we got, man?

For our first story, with the Knicks and Rangers deep in the playoffs for the first time in decades, one stock is also winning right now. Jack and I are heading over to 7th Avenue to look at the business of Madison Square Garden. For our second story, Sam Altman and Open AI just announced their newest AI breakthrough. Chat GPT 4-0. For the first time ever, an AI isn't just a brain, and AI is also a personality. And our third and final story. I can't believe we're saying this.

GameStop stock rose 74% yesterday because of one man and one cat. Jack, I seem to be back in 2021. Roaring Kitty is back after a three-year hiatus. And Wall Street is confused. But yet is before we hit that wonderful mix of stories. Finance. Really fun. 20 minutes.

Two guys. Nick, I want to talk about thunderstores. Oh, Thunderstores. What's going on? Man, what about snowstorms? There are thunderstorms, there are snowstorms, and then there are solar storms. Solar storms, a storm from the sun. This weekend, most of the United States could see the northern lights up in the sky at night.

Yeah, like us, you may have been wondering, oh, why did the sky just do that over there? The reason the sky did that over there was a solar storm. A solar storm, it sounds like it hurts. I might want to grab some SPF a million. Because over the last few days, the world's been hit by the biggest solar storm. in 20 years. For an explanation, let me toss it over to the local weatherman, Nick Martel. Well, Jack, we got a low pressure system here. We've got a high pressure system there. And we've got a solar storm, which is defined meteorologically as a burst of energy flare up from the sun.

That's right. The sun is just sporadically like exploding liquid hot something. And that huge geomagnetic heat search disrupts life here on her. So this week's solar storm is causing northern lights to be seen in Alabama. But it's also causing flights to be diverted. And it's also caused satellites to be shut down up in the orbit. And now yet is this solar storm and the Northern Lights, it mostly ends later today. The ripple effects of this solar storm, they could last all summer. Because get this, the biggest impact of this epic solar storm may actually be on your food. The solar storm was so powerful, it has broken down farming equipment during the crucial

planting season that's happening right now. According to the John Deere, tractor GPS is extremely, quote, unquote, compromised because of this solar storm. As we mentioned, the satellites aren't working right now. And according to the New York Times, tractor technology is so fried right now that farmers aren't farming this week. So this solar storm isn't just a nice stargazing opportunity. It's also sent farming back to the Stone Age.

Yeah, apparently, Jack, we're planting seeds of corn like it's 1884 out there. So yet is, if you can't find okra at the grocery store this summer, blame the solar storm. Besties, if you're low on lettuce right now, blame the solar storm. And if you can't find the northern lights in the sky this past weekend. Blame yourself. Blame yourself. Yeah, we can see them right now. Holy Helios, Jack.

Let's hit our three stories, baby. Fifteen years before this song, two boys from the Northeast met in the dorm. They had an idea to cause a cultural storm. It's the best one yet, but the best is a norm. It's 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, Madison Square Garden, the world's most famous arena is riding high in the stock markets right now. Because the longer that the New York Knicks and New York Rangers remain in the playoffs, the happier investors will get. Jack, can I take you back to like a third grade playday right now? It's like one of my earliest memories.

Please. We're sitting in the purple seats at Madison Square Garden. I'm eating a square cut pizza and my dad is teaching me how to pronounce Mark Messier. That is wonderful. Is that the year they won the Stanley Cup? That's my first memory. Yet he's Madison Square Garden. It is not on Madison Avenue. It is not square and it is not near a park.

True. It is the arena that is shaped like a giant hockey puck. It's also shaped like a basketball because they play hoops there too. And it's also the great democratizer of New York City. Everyone has been to Madison Square Garden. Muhammad Ali fought Joe Frazier at Madison Square Garden. Elvis Presley has played music there. And Marilyn Monroe serenaded President Kennedy with his famous happy birthday song at Madison Square Garden. Jack, how many popes have been to Madison Square Garden?

Two and counting. But there's been one consistent for Madison Square Garden throughout its, what, 100-year history? Yeah. And what is that, Jack? The two teams that play there. The New York Knicks have been playing basketball in the Garden since 1946, and the New York Rangers have been playing hockey at the Garden since 1920. And in a rarity for New York City and the Garden, this year, both the Rangers and the Knicks are making a deep playoff run.

In fact, the current playoff run for these two teams is eerily similar to the year 1994, exactly 30 years ago when both teams made it to their championships. The city is electric. Can I say it feels like 94? We saw people wearing Knicks hats. We saw people wearing Rangers jerseys. Jack got hip-checked on the subway. Fans are that into the Rangers right now. He almost had to drop the gloves. But here's what Jack and I found fascinating about this story. Madison Square Garden isn't just an arena. No, no, no, no.

Madison Square Garden is also a publicly traded company. Anybody with $185 in a broker's account can buy a piece of the New York Rangers and the New York Knicks by buying stock in MSG sports. One share of this company, MSG, is about the same price as a couple of beers at the garden, $185. Exactly. And the deeper that these two teams go in the playoffs. the higher MSG stock continues to go.

MSG stock is up 5% this month. Boom, when Vincent Trochecks scored a double O.T. game winner for the Rangers last week, the stock popped like Dancin Larry. And when Jalen Brunson lit up the Indiana Pacers with 30 points, the stock popped like Spike Lee. And perfect timing because just last week, Madison Square Garden Sports announced their earnings and what kind of numbers were we looking at, Jack?

In the first quarter of this year, revenues are up 12% compared to the year before, because both teams are winning. The New York Rangers, the New York Knicks, they brought in 430 million bucks in nightly sellouts in just the last quarter. Not too shabby. Now, this stock makes money in four different ways.

First is media deals. TV rights. Then advertising deals. This time out is brought to you by Verizon. Then league distribution. The NBA and the NHL, they send checks to all the teams every now and then. But for the Knicks and Rangers right now,

it's all about the ticket day related revenue, the money they make on game day. In fact, Jack, And I jumped in T-Boy style to the Madison Square Garden earnings. And we discovered that the CEO says enthusiasm is driving their sales right now. Apparently, the better the Nixon Rangers play, the more you spend when you're at the games. Over the last quarter, you spent $30 million more when you were at the games watching the Knicks and the Rangers compared to last year. Food spending is up 10%.

Merch splurging is up 10%. 94% of season ticket holders have renewed for next year already. Panarin scores a hat trick on the ice. Apparently, you treat yourself to a third postrogy. Tommy and a fourth jersey. Like we said, I don't want to jinx it, but it feels like 94. I'm knocking on wood right now. Although we should point out that one other thing we discovered, shouldn't we, Jack?

Something is financially off with Madison Square Garden. Motto, Motto, Motto. So, Jack, what's the takeaway for all our buddies over? At MSG. MSG stock is suffering from a diva discount. Yeties, funny thing Jack and I noticed. The Knicks are estimated to be valued at $7.4 billion. And the Rangers are estimated to be valued at $2.4 billion.

So together, these two sports teams are worth $10 billion. So the valuation of MSG sports stock should be $10 billion by that math, but its market cap is less than half of that. That's right. Madison Square Garden stock is actually worth $4.4 billion on the stock market. So Nick and I ask the question, why is this one company, which has two assets worth $10 billion, why does Wall Street think it's worth less than half of that? Because it appears Wall Street is applying a diva discount because of controlling shareholder James Dolan.

Although we can all buy stock in MSG, the majority of the stock is owned by James Dolan. So he wears the crown at MSG. An analyst say that James Dolan's involvement hurts the success and the value of both the teams that his company owns. James Dolan, who inherited both teams from his father, is not liked by fans, by players nor by investors apparently. So for MSG, it's called the Dolan discount. The company appears to be worth less with him in charge. If James Dolan sold his majority stake in the Nixon Rangers,

investors seemed to think it'd be the best thing that could happen to the stock. It's like fans and investors seem to agree. Dolan, kind of a diva. We call it the diva discount. And Madison Square Garden stock is a perfect example of it. For our second story, Open AI, just rolled out their latest and greatest artificial intelligence. It's called GPT4O. But for the first time, they didn't show off how smart it is. Instead, they showed off how easy it is to talk to. All right, Jack, can I ask you a question straight out

of San Francisco over here? I'm ready, man. Are you even a tech company if you haven't live streamed a product launch event yet? That happened yesterday. Sam Altman and OpenA.I just did their best Steve Jobs impression. Yeah, they went full PowerPoint presentation. And next slide and next slide. A small handful of polished executive slowly read the teleproctor with meticulous executive precision. Open AI is the $80 billion AI startup backed by Microsoft. And they just introduced GPT40. Not GPT40, GPT40. And Jack, I got to ask the question.

Why is the name of this product GPT40 and not GPT40? Because the O stands for something. It stands for Omni. Because this AI is Omnisensory. And by Omnis Sensory. What Jack and I are saying is that OpenAI's new artificial intelligent assistant can understand text, voice, or image prompts from anyone. So in your college admissions interview, you said that you were a multifaceted, goal-oriented student. Pretty sure I said exactly that, Jack.

Well, ChatGPT actually is that now. It's multifaceted. It can write for you, it can chat with you, and it can even look straight at you. And unlike previous announcements from OpenAI, anyone can use this feature, not just users of the page. version. Now, Yeti's Jack and I jumped in T-boy style to this epic Sam Altman presentation. And like any leap in technology, to understand that leap, you need a demonstration. And the demonstrations Open AI showed off yesterday were impressive. Oh, the demonstrations they whipped up yesterday were like the Cirque de Soleil of AI, Jack. They were jumping through hoops, leap it over here. Now, the first demo, they wanted to show that you can interrupt this AI and it's perfectly fine. Interruptions are

welcome. Have you ever tried interrupting Siri? Doesn't go over that well. She continues her whole sentence and you're like, no, no, no, no, no. On the other hand, with the new chat GPT, you can ask it, um, what's the origin story behind the Beatles? The Beatles are a biological family of

insects with wings, antenna. I don't know. If it starts talking like Jack just did and like talking about Beatles, the animal, you can now interrupt chat GPT and say, hey, I'm actually referring to Beatles the band. The Beatles are a highly influential British rock band with famous hits like Hey Jude, blah, blah, blah. Exactly. You see, what I did there is I interrupted

chat GPT and it responded to my interruption by correcting itself. Like we said, it was impressive. But it's not just the interruptions in this new chat GPT. It's also capable of image processing and vision. For example, you can show it an algebra question. Like, you can show it on your paper the algebra question that your teacher gave you for homework. Literally, you hold your textbook up to chat GPT now and it will do the homework for you. Or, It can just show you how to solve it yourself. It'll say, have you tried to cross-multiply? 13x times 2 equals 7 y times 3, then isolate the variable.

So yet he's added all up. And overall, what this wild new AI demo showed is personality. It doesn't just have the intelligence of a human. It has the personality of a human too. It's not just a human-like brain. It's got a human-like interaction. It showed off conversation skills. It expressed emotion when appropriate.

And it even varied its tone depending on the words it was saying. But the main feature they highlighted was actually something different. So Jack, what's the takeaway for our buddies over at ChatGPT? The next phase of the AI arms race is ease of use. Yeah, it is OpenAI meta, Microsoft, Google, Amazon, Salesforce, and IBM. Those seven big tech companies are all fighting right now in an epic AI battle. And the winner of that epic AI battle, will be the one whose chatbot is easiest to use.

Because the biggest barrier to artificial intelligence right now is how hard it is to add to your daily life. That's why Mark Zuckerberg gave their new chatbot prime real estate in the search bar of Instagram, Facebook, and all their other apps. That is why Apple may reportedly replace Siri with an AI app alternative. And that's why OpenAI just gave their chatbot omnisensory skills and a new desktop app for MacBooks. one year ago, the tech companies were showing off their AI brains.

They were showing off how smart their AI was. But now we're noticing that they're showing off their Ae's. They're showing off how conveniently consumers can integrate it into your daily life. Because the next phase of the AI arms race is an intelligence, it's ease of use. Now a quick word from our sponsor. For our third and final story, it's the GameStop stock repop. Game Stop. It's stock soared as much as 90% yesterday as Roaring Kitty has reemerged from a three-year hiatus. And I can't believe that is the headline of a story we're doing right now, Chuck.

Well, as meme stock investing is returning, so does FOMO vesting. And we got to talk about it. Which means we got to talk about Roaring Kitty, the Twitter alias of a man named Keith Gill, who looks like, you're out of the mill white dude. He's a couple years older than us. He loves bandanas and he grew up just outside Boston. He's also a track and field All-American and a chartered financial analyst, but as a YouTuber, he's something different. He's known as Roaring Kitty.

He is one of the most famous internet trading influencers there's ever been. Bandana and all. And during the pandemic, this man, Keith Gill went to Reddit to cheer users into buying a particular stock. And that stock was GameStop. From what looked like the basement of his mom's house, he sat in front of a webcam and cheered people on to buy game stock. Yeah, this one man and his cat sparked the meme stock craze at 2021 and Gamestock stop pop to the moon. He ended up testifying in front of Congress and he's the star character in the recent Hollywood movie, Dumb Money. But here's the shocking thing yet he's.

Warren Kitty has been in hiding under a couch since June 2021. We don't know where he's been hiding. but he hasn't been posting anything since June of 2021. Until yesterday, the freaky feline financier Roaring Kitty just tweeted, and Wall Street had no idea what to do with it. Now, about the tweet, it was kind of a dumb tweet. It was kind of a dumb tweet. I think we can say that. It's fair.

But it was also a siren call to the dormant meme stock investors across the world. Because Roaring Kitty's tweet quickly got the attention of Wall Street bets, the Reddit community at the center of the district. January 2021 meme stock rally that Jack and I experienced while we were working at Robin Hood. The tweet that came yesterday had no words. Roaring Kitty just tweeted an image of a man playing a video game moving from like a relaxed video gaming position to a leaning forward focused video gaming position. But Jay, you don't have to be an English literature major to figure out what's going on

between the lines there, do you, man? The message was heard loud and clear from the retail investing community. Game on. Game on. Because this single wordless tweet was viewed 18 million times as of this recording. This single wordless tweet drove GameStop stock up 90% yesterday. This single wordless tweet gave GameStop its biggest day of buying and trading activity in three years. Because as one Wall Street bets user said on Reddit, the stock's going to hit 50 by Friday. With absolutely no basis of financial justification whatsoever.

Yeah, this is meme investing. There's nothing financially, fiscally, or fundamentally that's changed to GameStop. No, there isn't. It's just a dude who's tweeted a picture that happens to be related to GameStop. And that activated masses and masses of people who have buy buttons on their phones. Because every meme, meme stock that was out there three years ago suddenly got reinvigorated like those scenes of the dead people in Game of Thrones, Jack. The party was on. And AMC, Hertz, Reddit, even Robin Hood stock, they were all invited. to the party yesterday. So, Jack, what's the takeaway for all our buddies over at GameStop? For every GameStop winner, there's also a GameStop loser. At the end of the day, GameStop stock ended up 74% and a lot of people made a whole lot of money on it. But that stock price is virtually

assured to fall back down eventually. Just like it did three years ago when Game Stock Stop popped 2,000% and then it fell way back down. It fell all the way back down. Because this valley, like the last rally is driven by one source and that source is FOMO. But once people start selling eventually, FOMO quickly becomes no-mo. In 2021, some people became millionaires as they put their life savings into GameStock stop on their way popping up. Other people put their life savings into GameStop stock as it was going down and they lost all their money. Because FOMO isn't sustainable. FOMO runs out and ultimately, reality and fundamentals take over the company. Which means in the long run, for anyone who makes money on meme stocks, somebody else lost money on meme stocks.

And you could be either one of them. It just depends what your timing is. So as meme stock investing lights up again, the temptation is clear. But for every game stop winner, there's also a game stop loser. Jack, could you whip up the takeaways for us for T-Boy Tuesday? As the Rangers and Knicks fans enjoy playoff runs, so are the investors of MSG sports stock. But the stock could be worth twice as much, if not for the diva discount of owner James

stolen and the incredible chin line of Henrik Lundquist. So our second story, Open AI just unveiled chat GPT40. It's a multi-sensory chatbot that speaks, hears, and sees. Because consumers don't want the smartest AI. Consumers want the easiest AI. And our third and final story is shockingly a real headline. GameStop ended up 74% yesterday because Roaring Kitty broke a three-year silence. But for everyone who wins investing on memes, someone's losing.

investing on memes. But Yetis, this pod's not over yet. Here's what else you need to know today. First, yesterday, OpenAI announced their AI update very strategically to upstream their competition. Today is Google's AI Day, and they're going to announce their latest AI, which is called Gemini.

And those Google polished executives will slowly read the teleprompter with meticulous executive precision. And second, Squarespace, the website building company, is going private. 100% of Squarespace stock is being acquired by a private equity firm, valuing Squarespace at a cool $6.6.6 billion.

Fun fact, our first website, MarketSnacks.com, we used Squarespace to build it 10 years ago. Look at it a shared password. I believe it was Market Snacks, exclamation point, exclamation point. And finally, the very first Indiana Fever WNBA game with star, Caitlin Clark, is tonight. And people are paying an average of 300 bucks, per ticket to watch Caitlin Clark tip off.

In fact, court side tickets to Caitlin Clark's first WMB game have passed $1,000 the highest prices yet for a WNBA game. Now, time for the best fact yet. This one sent in by Carla Rosado from lovely St. Louis, Missouri. Is it canned or cons? Actually, neither, Jack. You're going to have to work on that before the France trip. Con film festival.

That's what I've caught. It's nut-pussible. That's the answer. Con film festival begins today. It's the most famous French film festival there is. Well, the Oscars are known for their red carpet where the stars take pictures on the red carpet before the show. But the Cannes Film Festival is known for the red stairs.

24 iconic steps draped in red carpet. And that red carpet at the Cannes Film Festival gets changed out three times a day so that the red remains pristine. That means over the course of the two-week film festival, they go through 1.2 miles of red carpet because they swap it out so often. 1.2 miles of carpet for you to walk on on your way to the Can Film Festival. Don't slip. The red carpet is glamorous.

The red carpet laundry room. Probably not so glamorous. More starch? Not possible. Is that really how French people are going to treat me when I go to parents? I just find out in August, Jack. Yeties, you look fantastic today. And if you haven't yet, click to follow us so you get the best one yet every single day.

And remember the best way to grow the show is H-Y-H-T-B-O-I. Have you had the best one yet? Which stands for looking for a pod in finance. Real fun. 20 minutes. Two guys. Finance. Finance.

Before we go, a happy sixth birthday to Yeti Carolina Corquia in Roswell, Georgia, who's celebrating with a fun family. Happy birthday to Jennifer Dew in Chicago, Illinois. And Neil Zogue is celebrating a birthday today. shout out to Sean Tipner, the legendary Yeti, who introduced him to the T-Bahort. And happy birthday to Devonte Lee in Houston, Texas, who's celebrating today with a day off. And a happy birthday to Yeti Maria Louisa Shikovsky, celebrating in Kordechiba, Brazil with a road trip with her dad. And happy birthday to Honeybeen in Houston, Texas.

You better slay. You better. And Jay Agascar in Brooklyn, New York is crushing it as a data scientist rock star with that tech MBA at Cornell University. Congratulations to Zachary Velazquez, who's graduating with a master's degree in getting ready for his new Coast Guard placement over in Baltimore. And a very personal shout out and appreciation from Jack and me to Fernando the firefighter in Arizona who saved our T-boy colleague Rachel from a hailstorm in the middle of a bike ride. She was a biker in distress, and you gave her your firecoat. If there was no Fernando, there would be no T-boy Instagram post today. It's true, which is a subtle CTA to go to T-Boy podcast. If it's there, let's appreciate it.

This is Jack. I'm stock of Amazon and Nick and I both on stock of Apple and Robin Hood.