The Best One Yet - 🥒 “Peak Pickle Pop?” — Pickleball’s like crypto. TripActions’ business trip. Inflation’s celeb moment.

Episode Date: October 14, 2022

Tom Brady. Brené Brown. A multi-billion-dollar hedge fund. They all have bought professional Pickleball teams — but we’re getting FOMO vibes. TripActions just hit a $9B valuation because business travel is getting regulated. And the Monthly Inflation Report just told us that nobody is listening to the Fed’s screaming.$SPY $DAL $XOM $GISFollow The Best One Yet on Instagram, Twitter, and Tiktok: @tboypodAnd now watch us on YoutubeWant a Shoutout on the pod? Fill out this formGot the Best Fact Yet? We got a form for that tooLearn 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. It's Friday, the real Friday, October 14th, and today's pod is the best pod we've ever done, Jack. Yeah, it is. This is a T-boy. Oh, but Stocks, they surged yesterday for one of their best days of the year. The Dow jumped 900 points Thursday after dropping early in the day. And the reason is... Kind of related to one of our stories?

But nobody really knows? Nobody really knows why stocks jumped yesterday. What's our first story? Tom Brady, Bray Brown, and a major story. your hedge fund all just bought pickleball team. Pro pickleball teams, but will we see in pickleball what we already saw in crypto? For our second story, the monthly inflation report shows an even worse 40 year high than before. All right, yet is when Jack says inflation, take a shot of overpriced orange juice. That's the game. And our third and final story, trip actions just

hit a $9 billion valuation to corporatize your corporate travel. Trip actions wins if markets are up, but they win if markets are down. I pull that one off. Must be nice. In this economy? But yetis, before we hit that wonderful mix. Honestly, the best mix before a weekend, man. I love it.

We got some serious drama in the candy aisle. Yetis, we got some craziness in the cookie jar. We're talking, of course, about the chocolate bunny debacle. Oh, that big chocolate bunny jack. It is an Easter staple in your basket. Because St. Peter was a rabbit. Yeah, so you nibble his nose and then you eat away at the ears. That's how you eat it.

But get this. The Swiss just ordered. that all candy companies must destroy all their chocolate bunnies in their inventory. We're looking at you Nestle. We're looking at you Kit Kat and don't go anywhere, Cadbury. They want you to burn those bunnies. Because the Swiss chocolate brand Lint invented the chocolate bunny. Ipsafacto Lint is the Willy Wonka of chocolate bunnies.

And apparently Lint has a trademark on chocolate shaped like a rabbit. Yeah, that adorable indulgence, they've got a trademark on it. It belongs to Lint. And Lint doesn't want you baking your own bunnies. bunnies. So the Swiss courts threw away their history of neutrality and just ruled that only lint can sell chocolate bunnies. Anyone else making cocoa bunnies? You must melt them immediately. Seriously, if you got a cocoa bunny from last year you haven't eaten yet, go stick it in and safe to keep that safe. It's a cocoa bunny crackdown out there, people. Protect your cocoa bunnies.

If you're out this weekend and you come across a chocolate bunnies, talk to me, Jack, what do you think? It doesn't matter if you're hungry. Jack, what are you going to do if you see that chocolate bunny? You got to eat that thing. Because besties, if you don't, the SWCC. West Government will. Let's hit our three stories. Happy National Desert Day. Fifteen years before this song, two boys from the Northeast met in the dawn.

They had an idea to cause a cultural storm. 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. Start the show.

For our first story. Nick, hold that. You just stepped in the kitchen. I did. I stepped in the kitchen. He stepped in the kitchen. It was my fault. I hit it again.

Jack, LeBron James, Tom Brady, and a major hedge fund all just bought professional pickleball teams. Are we hitting peak pickleball? Are we hitting it, Jack? It feels like this pickle could pop. Jack, all right, when you call up your mom, when you call your mom, it's like, hey, Jennifer, what is she saying? It's actually my father-in-law. They can't stop tell me about their latest matchup against Linda Susan and Diane. They're like, I don't know, Maureen showed up late.

She's got a week left hand, so we dropped her from the pickleball team. Pickleball yeties. It's disrupting America's tennis courts. Like literally, people are painting new lines and destroying tennis courts. It's physically disrupting them. Let me back you up to 1965. Beep, beep, beep. That's when pickleball was invented.

It's tennis, but you won't pull a hand. It's a smaller court, so you can have that pregame drink, and you can still perform admirably. The MVP goes to Negroni Nick. Jack, I did play a game on Nantucket once with a lobster roll in one hand and a dark and stormy in the other. Did Nantucket Magazine do a profile on you? Because that's pretty fantastic.

I'm not even going to tell you what I did with the paddle. Yeties. But Yeties, here's the new milestone. Pickleball has gained some very serious audience in just two years. And where there are eyeballs, there will eventually be dollars to. Yeah, that's what we say. So there are now, get this, 5 million registered players of pickleball in the United States. That is up 39% since before the pandemic.

It's the fastest growing sport in the United States, according to every newsletter that tells us, Now, Gen Z, yeah, they've got TikTok. Millennials and everyone else, we've got Pickleball. Grandma can play too. Yeah, that's the key. Oh, yeah. Now, here's what Jack and I have found shocking about pickleball yeties. Pickleball is creating its own economy.

Money is flowing in, and it's flown in from private and public markets. Nick, is this right? Skechers, the shoe company, signed a couple of professional pickleball players to a shoe deal. According to our research, that is right? Jack, is this right? Apparently Costco mentioned pickleball paddles in their latest journey. Oh yeah, it's happening. But yet he's, here's what Jack and I have noticed about the flow of money.

The big money isn't in selling stuff. No, the big money is in centralizing stuff. Enter the professional pickleball league pickleball known as Major League Pickleball. Major League Pickleball. The old MLP. That is the big money. Actually, I guess it's the new MLP, Jack. Now it's the new MLP.

And within the MLP, Major League Pickleball, there are a bunch of sports teams. And sports teams, those are basically ego trophies for the old. ultra-rich. Yeah, for some reason in America, there's always been one major sports league. Always. And for some reason, those professional leagues, they're limited to 32 teams. That's the maximum number of teams you can have. Basically, sports leagues are just scarcity and monopolies. It's like an economic petri dish. It's perfect. Which leads to this news. Major League pickleball just added four new expansion teams. All right. We're talking new team owners, Jack, who we got. The new ones are Tom Brady and Kim Kleisters, but you also got LeBron James, Brunee Brown, Gary V.

It's an all-star cast. Some of these are podcasters, not too shabby. Oh, and then, Jack, you've even got Wall Street involved. How about that hedge fund, Knighthead Capital? They just bought a team, too, and they say that they're approaching their pickleball team ownership very seriously like it's a business, unfortunately. That sounds like a lot of fun. Get ready for price hikes on those iced teas.

I'm sure Knight Head Capital is going to love having your aunt Susan on the team. They're going to start selling collateralized nugget obligation. Jennifer brought lemonade. As long as it's below cost, we're cutting costs on the team. Now, Besties, because there is only one major league per a sport, and because there are only 32 teams per league, Jack, what does it cost to own a team these days in Major League Pickleball? A Major League Pickleball team is selling for millions of dollars. We repeat, this is a league that, like, didn't exist a few years ago. Now they're selling million dollar assets.

You thought it was a joke when we said Major League Pickleball? They're selling for seven digits per team. Sit down, stand up, and stretch out the hammies. This brings us to the big question and what is that question, Jack. Does this mean we've hit peak pickleball? Is the pickle about to pop? So, Jack, what's the takeaway for our buddies with paddles playing pickleball? Pro pickleball looks a lot like crypto right now.

All right, Yetty's professional pickleball teams. They went from hobby to million-dollar teams in just two years. The teams were zero dollars, then million. Powered by celebrities, FOMO, and a sense of scarcity. All right, interesting. Well, there's only one other asset we've seen in the same time frame, move just like that lately, and that asset is NFTs and crypto. Remember the Bored Ape Yacht Club?

Totally, Jeff. Selling for $300,000 or more? $300,000 for a digital picture of an ape. Well, those prices are down by 75%. Well, Major League Pickleball, like the Board Ape Yacht Club, is probably here to stay. That is a beautiful, beautiful thing. But this may just be the latest celebrity-fueled FOMO investment. It may not be peak pickleball, but it feels like a pro pickleball.

For our second story, we got some celebrity news. The most important economic report out these days just came out. It's the inflation report. Unfortunately, we just hit an even worse 40-year high than before. Oh, Jack, we're supposed to be spending less, but we're not. Yeties, two months ago, we said the monthly inflation report had become a celebrity. I mean, basically, the inflation report has replaced the jobs report as the must-read sign of our economy's health. It's page six. It's a financial Kardashian. Yeah, Jack and I,

we jump into the inflation report like we're paparazzi. We're just looking for those juicy details. And I'll tell you, we're going to need an IV after reading this latest report. I heard the inflation report and Brad Pitt met up in LA last week. Yet he's in September. Prices on average in this economy were up 8.2% from last year. I know Jennifer Anderson's a listener, but we just got to say it if we see it. For Jack and I should sprinkle on a little context. here. That inflation 8.2% jump that's not as high as some previous months over the last year. But core inflation. Oh, core inflation. Good point, Jack. Core inflation was worse than previous months. A Yetis, we should be talking about core inflation because core inflation,

it's different than your typical inflation. Core inflation is the price of stuff that went up if you don't include energy or food. And the price of stuff that went up if you don't include energy or food, those prices went up by their most inflation. 40 years. Now, we are glad to see that the price that the pump has come down. Yeah, it's great. Gas prices are down. Even chicken wings have chilled out in their price hikes. Go to Olive Garden, enjoy a night out. But yet these food and gas, those are volatile. So economists like to exclude them and look at just the price of the more stable stuff in our economy. The stable stuff, the core stuff, the stable stuff. For example, flight prices. Airfare. Flight prices jumped 43%. That's supposed to be

stable, but airfare jumped 43%. How about health insurance? The price of health insurance is 28% higher than last year. Pet food, you're playing the same for kibbles and bits, except you're not. Pet food jumped 14% from last year. Because puppy, even sewing machines were up a shocking 11% compared to last year. People ultimately prioritize puppies. Yeah, yet these core inflation, it's supposed to be the stable stuff. Stable. But that stable stuff has been stably increasing in price. Oh yeah, it has. The economy, it isn't just coughing inflation these days, we just saw the signs of internal injuries. Yeah, 8.2% internal injuries. Take a shot of that overpriced orange juice. So, Jack, what's the takeaway for our buddies who are everyone in the

economy? We are not listening to the Fed. So the Fed is going to scream even louder. All right, yeties, every economic indicator is showing that we keep making inflation worse because we keep spending. Pepsi just announced that they jacked up soda prices last quarter, but we keep paying for it. Landlords just said that they raised rent 7% nationwide, but we keep signing leases. So the Federal Reserve has one tool to stop us from spending so much, one tool to stop prices from rising so much. And that tool is interest rates. The Fed keeps raising interest rates so that it's more expensive for us to borrow and spend money. Well, that's what the Fed has been doing to stop inflation, but this latest inflation report makes one thing clear. The Fed is about to crank up interest

rates even more. scream louder at us until we stop spending so much. Now, a word about our sponsor, Robin Hood. A lot of Yetis don't realize how much prep work goes into this pod. We spend hours every morning jumping in T-boy style to earnings reports, CEO tweets, breaking news headphones. Jack and I are toggling tabs like you toggled IM Convo's in 2004. Having eight tabs open can be stressful.

You don't need that, especially when invest. Robin Hood offers it all in one app. Whether you want to trade options, ETFs, or stock. through Robin Hood Financial. Or you want to buy some Bitcoin on Robin Hood Crypto. You can do it all on the Robin Hood app. If you're not investing in Robin Hood yet, to get started, go to robin hood.com slash T-Boy and choose your free stock. That's robinood.com slash TBOY. Limitations apply.

Robin Hood Financial LLC, member SIPC, all investments involve risk. By the way, this podcast is not owned or part of Robin Hood. We are not employees of Robin Hood. For our third and final story before the weekend, Trip Actions is prepping to IPO, But in the meantime, they just got a huge venture capital check. Trip Actions is still growing because it speaks both bull and bear. All right, Jack, how about we start this in the airport lounge over by Gate 43B? That worked for you?

All Polaris class business travelers may now board the airplane. All business class passengers, please have your boarding pass available. Yeti's Delta just announced earnings. And that Delta earnings, it had an interesting theme. Business. That's the theme. Business travel fuel. their profits last quarter. Business travel, it got crushed during the pandemic. People thought it

wasn't going to come back. Right. But Delta just said it has mostly come back. They're at 80% of their pre-pandemic business class levels. Well, perfect timing, Jack, because more of that business class travel is apparently getting booked with a company called trip actions. Trip Actions is the corporate concierge for business trips. Bestie's Trip Actions just raised $154 million. They are now valued at $9,000. billion dollars because business travel is bouncing back but it looks a little different it does look a little different yet he's like the new business travel it has a theme the theme of the new business travel it's um no cheating yeah you're not going to get away with it don't even think about it you're going to put the two martini three dozen oyster lunch on the corporate card good luck and we're seeing that with the trip

Actions product. It is a software that lets employees book the trip, but you have to book the business trip within trip actions. And since you have to book within trip actions, that means the boss gets to set all the rules he or she wants. The new world of business travel is letting companies set dozens of corporate spending limits for that corporate travel for your business trip. A taxi ride may not be more than $20. You may not travel business unless it's across the ocean. Yeah, you can go to Kansas City, but not if you stop in St. Louis. Funny you mentioned, that because Kansas City hotels $200 max. St. Louis, 300. Jack, I'm sorry to burst your bubble, but don't even think about using that T-Boy corporate card to drop $601 at the Ritz. No, no, no, no, no, no,

Carol in accounting? Yeah, she's going to notice. Because Trip Actions will simply block you from booking it because it's $1 over the corporate spending limit. Oh, now, here's the shocking thing, Yeties. It's not just a software product. Trip Actions also created this company card that incentivizes employees to save business money during the trip. Let's say Carol says your company has a $200 a night policy for hotels in Oakland. Yeah, so you text your buddy Timmy and you're like, hey, I'm traveling to the Bay Area and he maybe invites you to crash on his pad. Timmy's like, my couch is luxurious.

Come on over. Yeah, we all know our buddy Timmy's couch is not as nice as that four-star hotel. But now trip actions is letting you split the savings if you stay with your buddy Timmy. Since you didn't stay at a hotel, you saved the company $2. 200 bucks. And guess what? They're going to split those savings between you and the company. You get 100 bucks and the company still saves 100 bucks too. So the new world of business travel kind of sucks. So Jack, what's the takeaway for our buddies over at trip action? When you speak both bull and bear, your direction is up.

Here's what Jack and I noticed yet is when our economy is doing well, trip actions speaks bold. Trip actions is going to tell their client, hey, you're a growing company. You're sending salespeople across the country. This is what we do. And when the economy is doing poorly, Trip Actions just switches over to speaking ban. It's a tough economy. You have to save costs on travel. This is what we do. Okay, so Trip Actions is letting your company splurge in a bull market, but they're incentivizing employees to save in a bear market. Tripp Actions knows how to speak when the economy is doing well and badly in a bull market and a bear market. And when your marketing speaks bull and bear, you hit a $9 billion valuation.

Jack, can you whip up the takeaways for us for the new Friday? Oh, wait, the real Friday. Pickleball the game is popping. But the pickle investment, is it about to pop? Yeah, pro pickleball kind of reminds us of NFTs and crypto. For our second story, inflation is chilled a tad, but core inflation is even worse. So the Fed is probably going to actually the Fed is definitely going to yell at us even louder. They want us to stop spending.

They're going to scream. Our third and final story is trip actions. The business is booming because business travel is getting regulated. When you speak bull and bear, the direction. is up. Now, time for the best fact yet. This one sent in by legendary Yeti, Savannah Westwood, from lovely Orlando. Sadly, it turns out dessert is not a profit. We all love dessert, but apparently not restaurant owners. Because most people aren't willing to pay that much for a dessert. Yeah, like you'll cap, you're not going to spend more than 25 bucks, I would, but you're not

going to spend more than 25 bucks on dessert. So margins are low for dessert. But if you do order dessert, you're going to tend to stay around the table and occupy for like another half hour. So not only is the restaurant not making much money on dessert, then you hang on the table and they can't turn it over to make more money on a new table. So people love desserts. Yeah. But the restaurant industry doesn't love desserts. Ipsop facto, if you see a chocolate bunny today, eat that chocolate bunny.

And the next time you're at the Olive Garden, take your dessert to go. They'll love you for it. Yeties, you looked fantastic all week. Happy National Dessert Day. And remember, eat a kid. We'll see you Monday. Yeah, we will. And before we go, good luck to Yeti's Stephanie and Brian

who are running their first half marathon together in Detroit. The only race in North America that crosses the international border twice. And a good luck to Molly Caldwell, who's running two half marathons back to back, also known as a full marathon. 13.1. And Michael and Emily Side In from the Upper West Side are getting married on Long Island. And a happy birthday and congrats on the new job. to Jonathan DeArmis over in Raleigh, North Carolina.

And happy 30th to Kristen Wolf in Charlotte, North Carolina. And Army legend Tommy Morin is turning 25 in Hope Hills, North Carolina. And happy birthday to E. Monson in Vieira, Florida. And Sarah Nusslin, it's her birthday at the Kellogg School of Management over at Northwestern. And happy birthday to Denham Dan. I mean Tim Tam, who is wearing denim on his birthday in Vancouver. And Josh, the skateboarder Baker, happy birthday in Gilbert, Arizona. And happy 30 night to Chance Kramer at a beer fest over in Missouri.

This is Jack Nick and I both on Stock of Robin Hood. Now a word about our sponsor, Robin Hood. A lot of you listen to our show while you're driving. Two hands on the wheel. Keep it 10 and 2. You might be cruising Chris, no rush. Stay in the right lane. Or you might be doll lane from Duncan, dotting from lane to lane.

And there are different drivers on the road. They're different investors too. Maybe you're cruising down the long-term lane with stock investing. Or maybe you're a more advanced full speed trader. Well, the Robin Hood app helps put you in the driver seat wherever you're at in your investing journey. If you're not investing on Robin Hood yet, to get started, go to robinood.com slash T-Boy and choose your free stock. That's Robin Hood.com slash T-B-O-Y. Limitations apply. Robin Hood Financial LLC, member SIPC, all investments involve risk.

By the way, this podcast is not owned by or part of Robin Hood, and we are not employees of Robin Hood.