The Best One Yet - 🍿 “Profit Puppy Popcorn — Elon’s $20B giveaway. AMC’s popcorn pivot. Infrastructure’s $1.2T winner.

Episode Date: November 9, 2021

Elon just let you decide on Twitter what he should do with $21B… but stock in Tesla is stock in Elon. AMC reported earnings, but we’re more focused on its 1st new business line: Popcorn Stores (real, live, buttery, profitable popcorn stores). And we’re breaking down what $1.2 trillion in hard infrastructure means for your daily life — hint: Amtrak fun. But first, what’s the most valuable house on Earth? More in today’s pod.$AMC $TSLAGot 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 Tuesday, T-Boy Tuesday, November 9. This pie. Yeah, baby. It's the best one yet. It's the best one yet.

TV-O-Y, Jack, I love what you're wearing today. You know what that looks like? No. That looks like an extra hour of sleep if I'm going to be specific. Ah. There's a lot. That looks great on you. Keep doing it.

You know what else looks great? Talk to me. Elon on Twitter, letting you decide what he's going to do with $21 billion of Tesla. Snackers, that's our first story. It's like a game show, but it's real life and it's with three and a half million participants. For our second story, AMC movie theaters just reported their earnings, but we need to focus on AMC popcorn. AMC, they just launched their first new big business, profit puppy popcorn. Hold the butter, I'll apply it myself. Which means extra butter. Third story, what do we got? No more proposed legislation. No. The bipartisan infrastructure

bill has passed and is about to become law. Snackers, here's what Jack and I whipped up, how $1.2 trillion could actually affect your daily life. I'm so excited about this, Max. This is how you do it Tuesday. Before we hit it, though, last week we talked about Zillow, shutting down their house flipping operation. We're talking to tech company that bought too many houses, and now it is ditching a whole lot of houses. But Zillow ditching house flipping is not going to stop our fantasy scrolling of homes that we can't afford on truly a late night. I'm sorry. One second, Jack. It's a five-bedroom chateau with a Yeti-inspired outdoor patio.

I'll take two. Wait, on the beach and in the mountains, there's never been something to hit two of those filters. Unprecedented, the first of its kind. But we want to kick your house swiping, fantasy swiping up a level or two. And Snackers, that is why Jack and I have found the home of all homes, introducing our T-Boy Tuesday trivia question, Jack, the honors. What is the most expensive home on earth? What is the most expensive home?

Here's a hint. It may have more bedrooms than your apartment has square feet. Here's another hint. It is not the house that Ruth built. Snack is another hint. There's a garden and it's the size of your entire hometown. The value of this home isn't measured in millions of dollars. No, the value of this home, it's measured in unicorns. This home is worth $3 billion, which is one-fifth of Lyft, the company. So the answer to the most expensive, most valuable, most splurget-tastic home on the planet is at the end of this pot. our three stories.

Our first story, Elon, he just let Twitter decide if he should sell, get this 10% of his Tesla stock in potentially the biggest tax bill in U.S. history. This is a Hollywood twist in the debate about billionaires and taxation and Elon Musk. Honestly, I kind of took a break from Twitter this week. Did you tweet anything this weekend? I tweeted nothing this weekend. I saw this cool mushroom. I almost tweeted the mushroom. Then I'm like, my mom would enjoy this. I'll just text it to my mom. Well, Elon's tweets this weekend were a little more meaningful. and heavy than yours. Yeah, Snackers, on Saturday, Elon tweeted a triplet of tweets, and here was

tweet number one. Much is made lately of unrealized gains being a means of tax avoidance. So I propose selling 10% of my Tesla stock. Well, Snackers, Elon owned 17% of Tesla stock, a trillion-dollar company, ipso facto, that would be $20 billion of Tesla stock he would sell. Tweet number two, Elon asked Twitter, do you support this with a yes or no poll? And he noted, I will abide by the results of this poll, whichever way it goes. Jack, I'm looking at the numbers right now. And three and a half million people voted. 58% voted, yes, you should sell $20 billion of stock.

And so he's going to do this. He's going to sell this stock. If he's a man of his word. Here's tweet number three. Note, I do not take a cash salary or a bonus from anywhere. I only have stock. Thus, the only way for me to pay taxes personally is to sell my Tesla stock. So Elon has grown to become the richest person.

person on planet Earth, but doesn't owe any taxes in the U.S. unless he actually sells the stock, which Jack seems like he will do. If he's a man of his work. So to recap, Snackers, if you woke up on Sunday morning, you checked your Twitter, you didn't see my mushroom pick, and Jack hadn't posted anything, then you would have seen all of this on Twitter. Elon offered to sell $20 billion of Tesla stock in order to finally pay some taxes, and then he let his Twitter followers decide in a poll. So, Jack, this is basically like voting on American Idol, but for the the biggest tax bill in U.S. personal history. Funny thing about that tax bill.

Hold my LaCroy, Kelly Clarkson. Elon's not a huge fan of taxes in general, so we were surprised by this voluntary payment. Elon, he is in UNICEF. It turns out Elon needs $15 billion of cash by this summer. Back in 2012, Elon was awarded some stock options, which expire this coming August. And here's the thing, Snackers,

to exercise and not waste those stock options, Elon has to put up $15 billion to pay those taxes due on those stock options. So it looks like this isn't generous Elon voluntarily selling his stock to pay some taxes to Uncle Sam. It's actually a necessary sale to get new stock for Elon to get even richer. So Jack, what's the takeaway for our buddies over Tesla? Owning shares of Tesla means owning shares of Elon Musk. Snackers, Tesla stock? It actually fell. 5% on Monday and not because of anything fundamentally wrong with Tesla's car business model. It seems the stock dropped because the CEO let Twitter followers decide on a very big personal finance decision. Jack, these Twitter polls are like the magic eight ball of social media.

Turns out Elon's selling stock matters to Tesla. They literally said in SEC filings, it impacts the firm when he sells stock. And we can think of five times that Elon has tweeted something with no mention of Tesla and still moved Tesla stock. So to recap, selling one 0.7% of all the Tesla stock that's available. Which is what Elon would sell. That shouldn't affect the stock price market. Because it's not that much Tesla stock. But owning shares of Tesla means owning shares of Elon.

And whatever Elon tweets. For our second story, movie chain, meme stock, AMC just reported its quarterly earnings. But I love popcorn. And that's what the story is about. We're going to talk about popcorn because Jack loves popcorn. Jack, remember when you went vegan for like two months, two years ago? Yeah. Popcorn's vegan appropriate. That was all you were eating. You were only eating popcorn, the kernel to calorie ratio.

No butter. I guess you went vegan for one month, but you talked about it for two months. Snackers, AMC, it's not just a meme stock. It is the original meme stock before game stock became the meme stop sequel. You want to know how AMC is doing? What numbers are we talking about? The stock so far this year, looking backwards, is up 2,000%. How do you like damn apples? And yesterday the stock jumped 10%. I got a number. And it's 10%. Well, they just announced results for their first quarter since the pandemic when all of their movie theaters were open for the entire quarter. Jack, how was the third quarter for our buddies over at AMC movie theaters?

It was great. Sales were more than six times higher than the same quarter in 2020. Jack, how was it really? Let's drive into the script. Sales were still 42% below the normal days of the pre-pandemic. But investors, like slow clap cheered this on. Nick, they applauded like they were watching Air Force. One. Harris and Air support's like, get off my plane. Yeah. Now, Snackers, the AMC stock.

It is down a tad and after hours trading. But Jack and I, we think there's a bigger story here, a more fascinating story here. AMC announced last week, they're expanding beyond movie theaters to get this. Packaged food. Behold, AMC theaters perfectly popcorn. That's a new thing. They're opening up little retail stores and big kiosks. in malls across the country starting next year.

Basically, AMC is spinning off nature's most messed with vegetable into its own separate business line. There you go. They're not just going to sell popcorn at these shopping malls. They're also going to sell juji fruits and junior m&Ms and Reese's PCs and Sour Patchkins. So AMC is selling everything but the movie. This is just the concession stand. Is it going to be like a bucket of freshly popped popcorn or is it going to come in a bag, like pre-popped? Well, I think you're already asking more specific questions than any of the analyst did

on the earnings. That's true. These kiosks, though, they're going to be at shopping malls, supermarkets, and convenience stores. They plan to expand this thing. This is literally a spin-off. It is its own thing. It is its own space. Now, why is AMC expanding to a new business line of selling packaged popcorn outside of their movie theaters? Well, actually, Jack, I kind of love what the CEO said. He said that this is natural and logical. I'll tell you, the butter is definitely not natural. And eating an entire box of this stuff is definitely not logical. But I'll tell you, It's smart because people prefer watching from the little screen away from AMC's big screen, but AMC still gets a piece of it this way.

So you can literally be at home watching Squid Game on Netflix, but you're going to be enjoying AMC's off theater popcorn. Take that, Netflix. Take that. So Jack, what's the takeaway for our buddies over at AMC theaters? This isn't just a brand extension. It's a brand explosion. Yeah, Snackers, Jack and I are looking at the situation here.

And honestly, most brand extensions are necessary marketing costs. They're not about profit maximized. Like when Taco Bell added their own clothing line, that was for a PR splash, not to make money. But here's the funny thing, Jack, and I noticed when we jumped in snack style, popcorn is actually the most profitable part of AMC's entire movie business. That's why we're calling it the popcorn profit puppy, the most pure of all the profit puppies. And it's why we also noticed this funny quote from AMC's CEO. Fortunately for us, guests are splurging on our food and beverage offerings.

Which admittedly is quite a high margin business. So AMC, they're not just trying to extend their brand. They're exploding their brand and they're doing it for profits right now. Look, popcorn's not going to save the future of the movie theater industry. No, it's not. But it does capitalize on AMC's current brand relevance, which is really high. And popcorn is a profit puppy. For our third and final story, America's old and decrepit infrastructure is getting a major facelift.

We are breaking down this bill that is becoming law. Jack, there is nothing like getting a paycheck, hitting your bank account right before the weekend. Celebrate that win. Well, America's infrastructure just got a $1.2 trillion payday. Here's how they're splurgeoned. Snackers, if there was a stock in Amtrak, this would have been its biggest day ever. Amtrak, the ambiguously public railroad entity. What's going on over there?

Can we just get some kind bars? They're getting $66 billion in new funds. which the Amtrak CEO says is more funding than they've had in their 50 years of history combined. Yeah, hopefully they're going to start serving RX bars and not just whatever that generic granola thing is. There's a lot of Dunkin' Donuts on Amtraks. But get ready for more Amtrak stops. Okay. Better stations.

I mean more stops in a good way, but I know what you mean, like places that'll be stopped. Right. And more trains and better service overall. Think like less Rat Maze Penn Station, more every other brighter, sunnier station in the country. The stations in Vermont are very bright and very sun. Now, about half of this funding is going to go toward the highly focused northeast corridor from D.C. to Boston. With Philly and New York and New Haven in between. But there's also strategic intercity lines that are going to come around on Amtrak there.

A lot of money is going to the Phoenix to Tucson route. Ah, the Sunbelt line. Or the Cleveland to Columbus to Dayton to Cincinnati loop. The Buckeye Special over there. Or the Los Angeles to Las Vegas, which makes a ton of sense for a round. It makes almost too much sense. It's actually concerning. They may want to do less in this situation. Now, Snackers, the rest of this over $1 trillion with the T dollars in funding, it felt like the climax of a live Oprah recording. You're getting a billion. You're getting a billion. You're getting a billion. But it's money for the old stuff that we just kind of really desperately need fixed.

Jack, we're getting $65 billion for broadband internet across rural America. If you're going to zoom into sixth grade, you need to be able to download the giver. Yeah, except for that guy on the cover. He's kind of freaky. $55 billion for water systems, $25 billion for airports, $73 billion for the power grant. Snackers, we've got $45,000 American bridges in poor condition. This is supposed to be their prescription. Now, most of the funding for this bill is just unused COVID relief funds, which sounds amazing. But with a price tag in the trillions, again, with the T, it's going to add some to the deficit. Yeah, $270 billion or so.

So Snackers, the overall stock market, it was up on word of this weekend bill because the economy economy, it's basically a playing field. Amazon, UPS, FedEx, if their trucks can't get across our bridges because they're broken, that's an economic problem. It's getting fixed with this bill. So, Jack, what's the takeaway for our buddies over in the entire American economy? This mega deal is part one, but there might not even be a part two. Snackers, this bill, it was mostly passed by Democrats, 94% and 72% of the yay votes.

This is the hard infrastructure bill. It's the old-fashioned nuts and bolts, putting the hammer to the nail. But some liberal Democrats aren't happy and want more ambitious, transformative, build back better laws. They want the soft infrastructure bill, the child care, parental leave, health care, and climate change initiatives. But that soft infrastructure, that might not ever get passed because the Democrats might not even have the votes for. That second bill might not happen. But this first bill is still the most major investment in public works since Eisenhower's interstate highway system. Snackers, let that sink in.

This hard infrastructure bill is the big. biggest investment in public works in over half a century. And the impact will ripple through the economy for decades in a good way. Jack, can you whip up the takeaways for us before we hit that T-Boy Tuesday trivia. Elon is selling 10% of his Tesla stock because Twitter voted to. Tesla stock fell because Tesla stock is stock of Elon. AMC Theaters is growing, but sales are still 40% off from the normal days. Popcorn profit puppy. Three words, Jack Mouth Waters. Third of final story, the $1.2 trillion infrastructure bill just passed, and it's about to be signed into law by the president. There might not be a part two, but part one is still historically huge.

Now, time for our snack fact of the day, which is the answer to our T-Boy Tuesday trivia question, what is the most expensive home on earth? And the answer... I don't know the answer yet. I don't know the answer yet. Jack doesn't know. I think, though, can I guess? I think it's Leonardo DiCaprio's Aspen Ski Schallet. First of all, great use of the word, shall I. Second of all, snacker Savannah Westwood from Orlando has informed us that the most valuable expensive home on earth is Buckingham Palace. Oh, of course it is.

It's owned by the British Royal Family, and it's made up of 775 rooms, 78 bathrooms, 92 offices, 19 state rooms, and get this, it's in the middle of London. Hold up. If we're playing by those rules, what about St. Peter's Basilica? Okay, I don't like what direction you're going. You're messing with the whole snack fact answer here, Jack. Can't just change things up here. Some kind of like popcorn order.

Snackers, that's today's pot. Thanks for listening. Nick and I are going to ask you to HY HYSD. Yeah, just go to your buddies and be like, hey, have you had your snacks daily? Nick and I'll see you tomorrow. That's how you grow the pot. And if you know, you know. Now, before we go, we want to wish happy birthday, a 29th birthday to Hallie Shaw in lovely San Francisco.

You are almost halfway done right now with your birthday scavenger hunt. But here's the thing. For your next clue, no podcast, you're going to have to talk to someone. Happy birthday to Tricia Paul in Boulder, Colorado. And Billiam Davis down in Blackwood, New Jersey. Happy birthday, Jacob and his golden retriever in California. And Little Snacker Carson David just was born in Pittsburgh. Happy birthday to two-month-old Camilla Camelini in the great city of Austin.

And Rosie McQua just turned one year old in Sandy, Utah. Happy second birthday to Callista Finn in Hoffman Estates, Illinois. We have a lot of toddler snackers today. Jack. And congratulations to Aaron Hendry, who just got into med school in Morristown, New Jersey. Happy eight years together to Grant and Nicole in Ohio. And Natalie and Nick Johnson just got married in San Francisco. Guys, let's see some picks. If you're celebrating something today, make sure it's a tea boy. Celebrate the wins. This is Jack. I own stock of Netflix and Amazon. Nick and I both own stock of Zillow. 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 Robin Hood Markets Inc., Robin Hood 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.

Dude, great work. That was a great mooh-ha-ha. It really made clear that was part of the quote, too. That was really good. That was really good. Thanks, man.