The Best One Yet - Tesla, the #1 most valuable US car company (ever) — Goldman transparentizes — Impossible creates plant-based pork (and drops McD’s)

Episode Date: January 8, 2020

Impossible Foods is adding plant-based sausage — but rival Beyond Meat’s stock jumped 10%. Goldman Sachs’ stock has barely budged in the last 3 years, so it’s redecorating itself to focus on 1 word: Transparency. And Tesla shares just hit an all-time high as its Gigafactory opens in China, so we’re looking at whether that makes sense.Learn 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 Wednesday, January 8th, or eight? I am really excited about this meaty podcast. Jack, I have me massages back with some plant-based substances over there. This is also the best snacks daily we've ever done. Well, it's actually the January for me, so my meat is plant-based.

First story, Jack, I feel like this is a good transition moment. Impossible Foods just unveiled a brand-new plant-based meat. Pork. Plant-based pork. Say it three times faster your next parlor trick. So we're going to break down why its rival jumped. on news of this new product from impossible foods. Plant-based pork, plant-based pork, plant-based pork?

Second story, Tesla just became the most valuable American car company ever. Investors are whipping out the roses because this thing looks like the bachelor to us. Yeah, it's about future profits, not past profits. Henry Ford is rolling in his grave. Third and final story, Jack, what are we got? Goldman Sachs has a New Year's resolution. It's transparent. It's a fake word.

They actually didn't come up with that we came up with this thing. It's getting more transparent. Basically, that's what they're trying to do on this. Now, before we jump into those three wonderful stories, we got to talk about what we thought was the most interesting thing to come out of the Consumer Electronics Show. Well, every company's a tech company. So the airlines made the coolest announcement. So Delta got on stage, and they were kind of like, hey, one second, we're actually rock stars. Let us drop these new product ideas on everyone.

These ones are pretty awesome. Delta is adding a binge button. While you check in for your flight 24 hours in advance, you can start binging Delta. streamable content from the comfort of your own. People are going to stop subscribing to Netflix. They're just going to book flights on Delta and then just get the Delta stuff 24 hours in advance. Delta's movie library is fantastic. It's aggressive.

Wonderful movie viewing experiences. Sometimes they have one movie. They have the sequel, the prequel, and like three other things related. Very true. On the walk back from the bathroom, you'll see everyone is watching the Marvel Avengers like Infinity Award. Everyone on the left. Everyone on the left side of the plane. They're also unveiling the ability to connect with.

Bluetooth to the TV. Thank goodness. Your AirPods actually work on the planes these days. And you don't need to bring some wire adapter with two prongs to stick into the armrest. No more. Sir, sir, can I please get one of the tiny plastic AirPods things that falls apart five minutes later?

Exactly. It's $3. You're wasting it. It appreciates in one flight. This was the wildest one. Jack and I couldn't believe this. We had to sit down when we heard it. The CEO of Delta announced he thinks Wi-Fi should be free on all flights. Well, if he's the CEO, I think he can make that happen. It's like he's trying to run for president

of Earth. Wait, he said he thinks it should be free? It sounds like he could call a couple people on this one. Is it free or is it not free? That's what Delta was up to. Then we heard that JetBlue had a really big announcement too. They're unveiling canned wine served on board for $8 per can.

We're more impressed with the Delta thing. We're a lot more impressed with Delta. Oh, P.S. Never buy Delta's trip insurance. The one time I needed it, where's my 200? It was an awkward experience. I wanted that. Let's hit our first story. in the snacks daily. We spoke to the lawyers and we got to get something legal out the way.

The snacks about the hearing food is 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 SIPC. For our first story, Jack, Whip out the Bunsen burners over there. Impossible Foods has got some fresh news, and they've got some, like, kind of sticky news. Yes.

Impossible Foods is the Coke to Beyond Meets Pepsi. It's the Brad Pitt to Beyond Meets George Clooney. Yeah, they're pretty much rivals. But I'm an expert right now. This month, just speak on this subject. Jack is 180 pounds of walking plant-based meat over there. It's veganuary. I'm vegan the whole month, so I am a human being of plant-based meat.

You squeeze Jack too hard, you hug him in the morning? Beat juice pops out of the ears. There are three big differences between Impossible Foods and Beyond Meat that we want to talk about. So the first is that Impossible Foods has a soy-based plant-based meat. And Beyond Meat has a pea-based protein. P-E-A. P-E-A. Jack wanted to specify that.

The vegetable. Not the human extract. Second difference is when you have these plant-based burgers, you probably notice they kind of bleed like hamburgers, like real beef. And that's what makes them taste like real animal meat. Well, the bloody-ish stuff for an Impossible Foods burger, that comes from the he, molecule. Right. We don't know what heem is. It sounds like biology 101. Apparently it's a molecule now. And for

Beyond, they actually use like beet juice, basically, to pack this plant together and make it juicy like a burger. Right. And then the third difference here is that one is a private company. Impossible Foods is still private. It's still a startup. You can't really buy the shares if you're a public. No, the stock is not available. But Beyond Meat stock is

available, as the Snackers know, because Nick and I are both shareholders of Beyond Meat. So Snackers, here was the fresh news that Impossible Foods just announced. yesterday. They actually teased this announcement on Instagram by posting a little screenshot of their calendar app on their iPhone. It was pretty funny. It was actually really clever. Jack and I are staring at this thing. We actually marked our calendars on it. Yeah, we did. It was the consumer electronic show, which started today in Las Vegas. Everyone's talking about it. And apparently

a meat company should go to this tech conference. Well, the reason they went is impossible foods decided to unveil their new product, plant-based pork. Pork, the other white meat. Because beef was a 2019 thing. Is anyone even eating plant-based meat anymore? And pork, it turns out, we discovered in our research, is the number one consumed meat on the planet. So the first thing Jack and I did is we jump in snack style. We couldn't get our hands in any of this pork to sink our teeth into. So we thought, what are the use cases of this product?

Well, one is dumplings. Definitely. One is Bon Ming. Yep, very true. Which is a Vietnamese sandwich, right? Very true. Third is pork and rice bowl. Sounds good.

What we noticed, those are all Southeast Asian foods. They're also the only foods highlighted in the video from Impossible Foods to show off. new plant-based pork. Nick was looking really hungry as he watched this promotional video. Like biting off the size of the MacBook over here. But the video was really stressing, like, going abroad and being culturally inclusive. And they said they were going like abroad, like it was like that small world after all right in Disney World. It's a small world. That's with all the little people. They're charming. They're great people. Now, it's a good time to have a plant-based pork because we got a swine disease problem

on this world right now. One out of every four pigs on planet Earth has been killed recently because of the swine disease. That is a tragic story, and it's particularly painful in China, which consumes a lot of pork. So we think that's the key reason why this video highlighting the new plant-based pork sausage from Impossible Foods is focused on Asian cuisine. That doesn't answer our question, though, why did Beyond Meat, Impossible Foods' rival, have a great stock day on this news? Jack, it sounds like we should talk about the takeaway. So what is the takeaway for our buddies over it Beyond Meat and Impossible Foods? Impossible Foods, Chauciful Foods, research over production.

If you're an executive and you're running a company like Impossible Foods, your resources are limited. You've got to decide on what you're actually going to invest in. Impossible Foods made two other announcements yesterday. The first is that it's doubling its research and development team. So that it can think about new products in the future like pork, which it just unveiled. But its second announcement was that it's going to drop its efforts to reach the holy grail of partnerships for food.

Remember Snackers, McDonald's does not have a plant-based burger in the United States yet. They're testing it with Beyond Me, but it's still up for grabs. Whoever's going to get that holy grail plant-based Big Mac burger. Impospo wanted it. Now they're dropping out, and their CEO even said it was quote-unquote stupid to try to do this partnership when they can't even produce enough meat for it. Right. He basically admitted Impossible does not have enough production to deliver from McDonald's, which is such a gigantic change. And that's because Impossible has focused on new products and research instead of production. And this clears the way for beyond as the favorite for the McDonald's deal.

For our second story, Goldman Sachs is trying to revive its stock by making the old structural switcheroo. What comes to mind when you think of Goldman? I'm thinking private ferry. The one that goes between Manhattan and New Jersey because they have offices in the Hudson River. I'm picturing velvet sofas. I'm picturing, well, wouldn't you have velvet sofas if you got a private seren?

Expensing expensive meals while you're working until like 2 a.m. with crunching numbers. Expensing the person you hired to expense those meals? Or just like money in general? General, just picturing cash in this one. Well, the stock for Goldman Sachs has barely budged over the past three years, even though it's like the top investment. This is a rich company, but the stock is not that rich. Meanwhile, a couple of its rivals, Bank of America and J.P. Morgan Chase, ever heard of them? Their stocks are up 50% over the same period, so Goldman's not looking too sharp.

Now, at an offsite last year, like a corporate offsite, again, maybe some velvet seats in that said that ferry we were talking about. We're doing five stars. Now, at an offsite last year, the new CEO, David Sonson, Salman basically got some guys together and he said, you know what, this stock of ours, the Goldman Sach stock, it should be like double the price it is right now. I'm pretty sure every CEO says that. If you're not saying that, you should be fired as the CEO. You're going to tell your kid they don't look beautiful. Everyone's kid is adorable.

Well, Goldman has figured out part of the problem why the stock is not double what it is. It's the structure of the company, not the underlying business. By the way, we should point out that those executives like David Salman, they get compensated in stock. So, yeah, they want it to be double. So according to a recent, so according to a Wall Street Journal report, Goldman Sachs is reorganizing the bank into four business units. Until now, if you wanted to know how Goldman Sachs was doing as a company, you'd look at its four different units. Can I tell you the units? This is like Hogwarts over here.

Layam on me. Where's the sorting act going to take you today, Jack? Where we go? Where we go? You got the investment banking unit. Okay. Investing and lending, investment management, and institutional client services. They didn't even spend four.

five minutes trying to come out with creative names on these things. I need to take a vacation just reading those four divisions. Can we take an example here? Jack and I are going to jump on the totally normal sounding, investing and lending division. Sounds like a straightforward business. It should be very straightforward. Investing and lending. That's actually a huge bucket of loans that Goldman has issued to businesses.

A bunch of investments, venture investments in companies like Uber before an IPO. Exactly. Marcus, which is its consumer division, and the Apple credit card. So if you're just an investor trying to invest in Goldman Sachs stock, and you want to know how the Apple card did last quarter, good luck. You can't figure out just the Apple card. You can only look at that giant bucket we just described. You got to phone a friend, and your friend's going to have no idea.

It's basically life is like a box of chocolates. You never know what's in there. And in this case, it could be good. It could be bad. No one really can tell. So the stock perhaps has been down for Goldman Sachs because investors aren't sure what's happening with some of the key units. They only see these giant buckets. Now, that was the diagnosis, but the prognosis, I don't know, did I do that correctly just now? No.

Well, this is the prescription. The prescription Goldman's going with is to change those four units into a new four units based on customer type. So you're going to have corporations, a division called trading firms, money managers, and then individuals. Right. So you very clearly see how much money Goldman Sachs is making with each type of customer. So Jack, what's the takeaway for our buddies who are just hanging out over at Goldman Sachs? Investors reward transparency. One thing we're already looking to learn from this new structure of Goldman is how its new consumer-focused bank is doing. Marcus, this is totally outside Goldman Sachs comfort zone.

It's three years old. Goldman has spent billions of dollars investing in this, and they're targeting normal people like you and me, not just super wealthy billionaire. If and when this new structure comes out, it's going to reveal how close Goldman is to becoming a truly digital millennial-ish bank. Investors will be able to make a prognosis on Marcus. For our third and final story, this is wild. Tesla just became the most valuable American car company ever. There is one person at every company who can't stop talking about Tesla stock. It's either Todd or Rachel. Todd is all in on Tesla. You start talking to Rachel? She's like, yeah, I bought it at $15.

Where'd you buy you? You ever got Tesla stock? Yeah. Oh, I bought it on more at $30. Well, the stock is on a hell of a hot streak. Now, this all comes down to market capitalization or market cap, which is how much a company is really worth in the markets. It's the value of all of the stock out there.

Bundled together, thrown the backseat. Put it all in one gigantic wallet. Strap a seat belt of this thing. And that is a company's market cap. We casually refer to that as a company's worth. Now, back in 1999, four. Ford was the American car company that was at its peak. Yes, every family had a Ford Windstar minivan, and they were like camping out waiting for Y2K.

I grew up in New York City. We didn't, like, have family cars. You would go to your friends in the suburbs to see this illustrious giant van with like a vacuum cleaner on the inside. Yeah, the vacuum was needed because there was like Dunkeroo crumbs. If you were lucky, you'd reach in the backseat, and there'd be three fruit roll-ups waiting for you. So in 1999, Ford Motor Company hit a peak valuation of 80.5. billion dollars, the most ever for an American car company. Until yesterday when Elon Musk did a little dancing thing on stage at a showroom in China,

because he's in a good mood. And Tesla's stock rose 4% yesterday, capping an insane 40% surge for Tesla stock in the past month. Tesla is now worth $81 billion, aka the most for any American car company ever. Let me raise you on that. Tesla is worth almost as much as the number two and number three, Ford and GM, combined. Let me raise your raise jack and jack it up to four-wheel drive on this thing. Even more shocking, Ford and GM have way larger profits than Tesla. Tesla has no profits.

In the last 12 months, it had a loss. Meanwhile, Ford and General Motors made almost $10 billion in combined profits. Oh, and by the way, Tesla made $367,000 cars last year. GM and Ford made 14 times less. Now that Tesla is the most valuable U.S. car company ever, we know what you're thinking, Snackers. How do you justify that? Sounds like a great takeaway. So, Jack, what's the takeaway for our buddies over at Tesla?

When thinking about stocks, investors care most about future profits. This is straight out of the bachelor. If you're thinking about settling down with a bachelor or a bachelorette, you're thinking about their future husband or future wife material. The person getting the rose isn't the one who made you the high school mixtape necessarily. No, you don't care how romantic they were in high school. Maybe you spent 12 hours on the mixtape. Maybe you put a lot of effort into it.

Doesn't matter. Mix tape doesn't matter. Investors and contestants on The Bachelor are future focused. And when it comes to car companies, Tesla's the one that's fully focused on electric. Tesla's cars are electric, and every country in the world except the United States has signed the Paris Agreement to fight climate change. Which is good for Tesla. That sounds good for Tesla. Meanwhile, Ford and General Motors cars, they're mostly huge trucks and SUVs that are not exactly electric. Investors want to be part of Tesla's future. Not as much Ford and General Motors. And that's who's getting the rose. By the way, this is Nick and

both Jack and I own shares of Tesla. Jack, can you whip up the takeaways for us over there? Impossible Foods just launched a new plant-based meat, pork. And since it's not doubling down on beef, it's abandoning the McDonald's plant-based Big Mac sweep steaks. Well said. Thank you. Second story.

Take a breath. Take a breath. Tap me out. Goldman Sachs has been hard to evaluate, so it's getting more transparent. And investors tend to reward transparency, aka transparentizing. Third and final story. Tesla's market capitalization is the largest of any of any of the United States. American car company ever.

Small asterisk here. We want to point this out. It's still the third largest globally behind Volkswagen and Toyota. True. And largest of any American car company ever. I don't think we're adjusting for inflation. That's true. For all your Econ.

Second asterisk there. Econ majors. Now, time for our snack fact of the day. This one sent in by Larry Oteza, and it got us excited but then got us sad. Okay, the Macarena. Yeah. Great song. A macachae, Macarena.

One hit wonder, but who cares? It was a wonder. Great song. So the lyrics are about dancing and having an awesome time with friends at events like weddings. Except they're not. No, they're not at all. The Macarena, if you listen to the lyrics and you translate them, it's about a girl who cheats on her boyfriend while he's away in war. He's getting drafted into the army.

She's having fun with his two friends. Let me what up you. Yeah, she's cheating on him with his two friends. I guess two upped me on that one. So the next time you're, like, having the time of your life with loved ones at weddings, just think this song is actually awful. Yeah, just put the lyrics in the background, enjoy the music, the rest of it actually sounds pretty good. Sorry, I wish we could have ignorance as bliss this one, but we just let it out of the bag.

Loved having you with us today. You look fantastic, by the way. Yes, and I can't wait to snack with you again tomorrow. Can't wait. The Robin Hood Snacks podcast you just heard reflects the opinions of only the host, who are associated persons of Robin Hood Financial LLC, and does not reflect the views of Robin Hood Marker, Inc. or any of its subsidiaries or affiliates. The podcast is for informational purposes only

and is not intended to serve as a recommendation to buy or sell any security and is not an offer or sale of a security. The podcast is also not a research report and is not intended to serve as the basis of any investment decision. Robin Hood Financial LLC, member FINRA SIPC.