The Best One Yet - 🍿 “Work From Movie Theater” — AMC’s Zoom theater. Athletic Brewing’s non-alcohol. The Election’s cannabis bet

Episode Date: November 10, 2022

Our 3 business Takeaways from the election: Cannabis is down, Sports Betting is really down, and stocks love gridlock. Athletic Brewing just raised $50M from Dr. Pepper for a non-alcoholic beer party. And AMC and Zoom just partnered up for your new office space: Empty Movie Theaters.$AMC $ZM $KDP $ACB $DKNGFollow 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 Thursday, the new Friday, November 10th. And today's pod is just the best pod we've ever done. It is the best one yet. We served up a T-Boy. Yeah, but it's a sad day for 11,000 Metamates out there. That's right. Yesterday, Zuck announced he's laying off 11,000 people.

Yeties, if Zuck let you go yesterday, we're thinking of. Oh, and by the way, finance? That acquisition of FTX were announced yesterday? Yeah, I remember it. It's not happening after all. Yeah, they looked in the books. They didn't like what they saw. in the crypto company. Add it all up and stocks fell yesterday. But Jack and I whipped up a tea boy.

So Jack, what's the first story for the pot? The election is still being counted, but already we have two big business takeaways. Cannabis kind of lost. Sports betting really lost. For our second story, Zoom and AMC theaters are partnering for movie theater meetings. Get this, your year-end review now includes a box of popcorn and surrounds that. And our third and final story is the athletic brewing company. They just raised $50 million from Dr. Pepper. Because no one is parting as hard right now as non-alcoholic beer. But without the hangover.

But before we hit that wonderful mix, Yaddies, just a fantastic mix. We have a winner of the lottery. We have a winner of the biggest lottery in the history of lotteries. We have a winner of the Powerball $2 billion jackpot. And that actual winner, is not really one winner. Yeah, the real winner here is Uncle Thane. And one happy gas station owner.

Let us explain. Please, Jack. Yeties, if you win the lottery, you can do one of two things. Besties, here are your choices. You can get $2 billion spread out over 30 years, one check per year. Patience is a virtue. Or you can get a $998 million check right now. Yeah, less cash, but more ASAP.

Either way, that's a little. lot of double-digit lattes you could afford. Gwock is extra. Sure, no problem. I'll have more. But one second, Yetis, there's something you should know about. Don't whip out your wallet for the open bar just yet. Yeah, because if you take that $998 million check right now, must be nice. You got to pay Uncle Sam right now, too. You got to pay $369 million in federal taxes. Which leaves you with a measly $628 million jackpot. Wayjack, then you can. got to pay the state taxes. You're kidding me. That leaves you with under 500 million. On a jackpot that was two billion with a bee. You thought you were lucky for winning the lottery. And that's

not all. Yeah, a million dollars goes to the guy who sold you the ticket. The gas station owner, he gets a million bucks too. So congratulations to the California winner of the Powerball jackpot. But you are not the only winner. Yeah, we all won actually. In fact, the gas station guy, he kind of won most of anyone. Yeah, because he's rich, but not so rich that it ruins all his relationships. Yeah, it's not awkward. Let's randomly select our three stories. For 15 years before this song, two boys from the Northeast met in the dorm, they had an idea that cost of cultural a percent. 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, our three business observations from the midterm election results are these? Cannabis, sports betting, and gridlock. Okay, Yeti's, the day after election day. The votes are like not quite done being counted yet. Is that a Chad, Jack? Is that a Chad of some a hanging chat? No, but we're about to all get to know the counties of Georgia again because there's a runoff election in Georgia. But yeties, honestly, so far, the results, they've been surprising. They were surprising. Given that most Americans said that inflation was the number one concern, we figured Americans would punish Democrats, the party in power. Well, Republicans did win some seats in the House, but not nearly as many as the polls were suggested.

And it's still to be determined on who's going to control the Senate. But here's what Jack and I found fascinating about the election. Americans didn't vote just about inflation. No, they didn't. We also voted on gambling and weed. The way we see it, the two juiciest business questions on state ballots, they were cannabis and sports. Betting. Because cannabis and sports betting, they're decided in America

on a state by state by state by state by state by state by state by state based. Right, right. And I think there's like a state by state by state by state in there too, Jack. Every month, every year we're updating like the list of states that have legalized this and decriminalize that. Why said yes? North Dakota said no. And here were the results yet. He's sports betting lost badly.

Like badly. In California, there were two different ballot proposals that tried to legalize sports betting, and both failed miserable. We were shocked. I was shocked. It wasn't even close. Like, I voted on this, and I didn't even know it was going to be like 83% of Californians voted not to legalize online sports betting. No sports betting in California, the biggest date. So facto draft Kingstock.

It dropped 7% yesterday. Yeah, that's bad news for the sports gambling industry. But check, that's sports betting. What's going on with our budget? but he's over in Cannabis. Cannabis didn't totally win yesterday either. Yeah, yet he's the right to inhale continues that state by state by state by state battles. All right, let's go to the list here. Arkansas and both of the Dakotas voted against legalizing recreational marijuana use. Jack, you got anything else on that list over there?

Maryland and Missouri voters voted for legalizing recreational marijuana use. And so just like sports betting stocks, cannabis stock sank to. Tilray and Aurora Cannabis, for example, Shailers both fell by 4%. But yet here's what Jack and I are wondering, what about the stock market overall? What's the stock market thinking? What did investors want to see overall in this election? And that feels like a takeaway moment.

So Jack, what's the takeaway for our buddies who are all investors? Stock markets love gridlock. Oh, besties. Investors hate uncertainty when it comes to big things in D.C. politics. But one thing is certain. Yeah. We are going to have a divided government. Yep.

with the Republicans controlling the House and the Democrat controlling the White House. Yeah, so for the next two years, we're almost certainly going to have some gridlock. Yeah, gridlock. Like, picture Lincoln Tunnel Friday afternoon. You're trying to get out of there. Gridlock. Adam, can we make like a horn sound? Do we have a car horn sound we can throw in here?

Bills aren't going nowhere the next two years. With the United Congress, like the last two years, we saw big policy moves. And that caused some uncertainty. for markets and business. But with the divided Congress, we're not expecting any big policy moves. We're talking gridlock. At least for markets,

that means policy certainty. No change. Yeah, no new taxes, no major regulations. It's almost certain. Investors love some certainty. Yes, they do. So stock markets, they love some gridlock. One more honk.

For our second story, AMC movie theaters is partnering with Zoom to host your next office meeting. Because AMC looked in the mirror and asked itself, what am I? It looks like you've practiced that one. It looks like you were rehearsing that one before the pod, Jack. It's a line from Zoolander. Thank you very much.

This pod is in three times this big. All right, Jack, most surprising celebrity couple. Who you got? I don't know. What do you got? How about Chair and Tom Cruise? They used to date, like in the 80s. Share and Tom Cruise.

Share and Tom Cruise used to date. But Jack, another surprising celebrity couple out there? AMC and Zoom, come on down. Yeah, one is a sassy meanstock. And the other is a sassy SaaS company. Yeah, software as a service. Both AMC and Zoom, though, they're both desperate for growth right now. Yeah, movie going is still down 30% from before the pandemic.

And Zoom just told us it's barely growing. So these two beaten down brands may have a solution. Yep. Each other. Here is the news. In 17 cities, Yeti's AMC is turning movie theaters into bookable conference rooms. Yep. So that workforces spread across different cities can all watch one PowerPoint presentation together at the same time.

No making out and no questioning that sticky stuff on the floor. Carol from accounting, by the way, she is crushing junior men watching that compliance video in the dark. you. Yep. So the solution to future of work, it's not remote work, hybrid work, some combination of the two. It's IMAX? It's IMAX, Jack? Yeties, here's how this is going to go down. First, your company's going to book a three-hour time slot for a movie theater with up to 150 seats. More likely, your company is actually going to book five different AMC theaters. Good point. In the five major cities where they have a lot of employees. And then basically they're going to roll in and it's going to be like, okay,

C-Team, you're on, present all hands. You have got a captive audience. And action. Boom, lights go down. Here comes the CEO. And next is the company's annual update. Yep. All five cities have the same presentation, the same company all hands. Zoom is providing the tech and the communication software. AMC provides the screens, the bathrooms, and a bunch of bags of Twizzlers. They actually will bring these to your seat, by the way.

So, Jack, who is the customer here? Any company with a spread out workforce. And Jack, what is the pitch here? Bring your decentralized workforce together for a communal experience that's rated safe for work. Because nothing bonds a team like a shared bucket of buttery popcorn. And quarterly sales figures delivered and surrounds out. You will lose your hearing. So, Jack, what is the takeaway for our buddies over at AMC?

What are you really? Yet he's AMC is a movie theater chain. It has always dependent. on movies. But honestly, there's only so many Star Wars episodes and Avengers blockbuster spin-offs that can be made. Like Jack, Avengers Endgame might have been the end game. So without any more end games, AMC is asking itself, what am I really? Yeah. And the answer is, it's a theater company. AMC step back and realized its greatest asset is its real estate. It is the theaters. Not the movie theaters. Right. The theaters. Yeah, they're centrally located huge spaces, but they're

They are empty Monday through Friday, 10 a.m. to 3 p.m., that's its greatest asset. So AMC's asking itself, why are we only showing movies in these theaters? Yeah, we could be showing Zuck's corporate event. We could be showing live sports. Hey, YouTubers, come on down. Let's put you on the screen too. What industry are you really in? For AMC theaters, it's theaters. It's not movie theaters. Now, a word about our sponsor, Robin Hood. You know, honestly, your salad, it says so much.

about you. Nick, you like to blaze your own trail at the salad bar. Yeah, I'm ordering a salad. I go off menu, man, like a combo of kale and croutons that has never been made before. Me? I'm not reinventing the wheel. I like to go classic. Sweakerian thinks it's a good combo. Jack's not going to change that. Kind of like investing strategies. Someone to build a custom portfolio of stocks, crypto, and options. Others don't want to reinvent. Just give me the most standard ETF. Whether you're tweaking your one-of-a-kind portfolio every day or prefer a more hands-off approach, Robin and has the tools. If you're not investing on Robin Hood yet, to get started, go to robin hood.com slash T-B-Boy to choose your free stock. That's robinood.com slash T-B-O-I. Limitations apply.

Stocks offered by Robin Hood Financial LLC, member SIPC. Crypto offered through Robin Hood All investments involve risk. By the way, this podcast is not owned or part of Robin Hood, and we are not employees of Robin Hood. For our third and final, athletic brewing has become number one in craft non-alcoholic beer. And it just raised $50 million because they have to handle the first mover burden. All right, Jack, let's go back. Like, uh, back to college days. The dream of every econ major who has a foodie friend.

What is it, Jack? Start a craft brewery together. Start a craft brewery together. Oh, man, that'd be epic. I'll handle the books. You handle the brews. We can do this, man. Yeah, we'll move to a small town, hire a local artist for the can.

That'll be fantastic. Start selling quadruple IPA. We'll grow. Beard. We'll do an ironic name. Like, we'll name the beer, uh, sticky violin or magical sweatshirt. Forget the J.P. Morgan internship. Yeties, that dream was Bill Schaffault and John Walker. Yes, Bill noticed a business opportunity. And options for non-alcoholic beer were brutal. And John craved a brewing challenge. Brewing, good-tasting, non-alcoholic beer is hard.

So together they formed a company and they called it athletic brewing company. And they targeted people who like bragging about their resting pulse rate. Yeah, you know, people who like to work out but then celebrate their workout. But Jack, they don't want to be hung over for that 4 a.m. marathon the next day. Yeah, so they opened up America's first non-alcoholic brewery and tap room back in 2017. And so far, they've been the market leader. They've raised $175 million. Their cap table is jacked too.

It's ripped. It runs like a 4-2. Who they got, Jack? JJ Watt is an investor. So is Naomi Osaka and Carly Klaus. But here's what Jack and I found fascinating about athletic brewing. Their customers are sober curious, but their investors are also sober curious. The latest investor is not some Jacked celebrity.

It's a huge corporation. Their newest investor is publicly traded $50 billion drink giant Currig Dr. Pepper. Because funny thing about the athletic, 80% of drinkers, of this non-alcoholic beer do drink alcohol. So to be clear, Yetis, they're not targeting someone who's pledged to like never drink alcohol again. No, the market of non-drinkers, that's a really small market. So the athletic targets people who do drink alcohol, which is a way bigger market. It's a way bigger market, but that presents a problem.

It does. And that problem is our takeaway. So, Jack, what's the takeaway for our buddies over at the athletic brewing company? The first mover advantage also has a first mover burden. Yet is to quote Ricky Bobby, if you ain't first, you're last. The first mover wins customers. The first mover is considered an advantage. You're the first one there. It's literally a competitive advantage to win customers.

But the way Jack and I see it, the first mover also carries a silent burden. They must educate the consumer. When people think of non-alcoholic beer, they probably think of a recovering alcoholic. Good point. or a bad tasting odules you used to see in the grocery store. But that is why Athletic is putting $50 million of that investment from Dr. Pepper into marketing. The athletic has to educate the sober curious on why they should try out these new non-alcoholic beers. And they got to fight new competition like from the big beer companies.

Because being a first mover is an advantage, but it also brings a first mover burden. Jack, can you whip up the takeaways for us for the new Friday? The election isn't quite over, but it looks like a divided government in D.C. And that means gridlock and stock markets love gridlock. For our second story, AMC theaters is partnering with Zoom for company all hand meetings in the movie theater. What are you really AMC? And when are you going to put our podcast in a theater? Why don't we do that?

Our third and final story is the athletic brewing company. They're the first mover in craft non-alcoholic beer. First mover advantage comes with the first mover burden. Now time for the best fact yet. This one sent in by legendary Yeti Kelsey Black down in Austin, Texas. Push and play. Here we go. Hey, besties.

This is Kelsey Black from Austin, Texas. And I have the best fact yet. Built in 1965, the Astrodome, the original home to the Astros, was the first fully air-conditioned domed stadium. After two years of not being able to grow playing field grass inside the stadium, the Astrodome became the first major sports venue to install artificial turf, which then became known as AstroTurf. Okay, so they invented the turf, but then why are they called the Astros in the first place,

Joe? They're called the Astros because NASA is headquartered there. Houston, we have a problem. Incredible invention for the Astros. Horrible invention for everyone's knees. Yeties, you look fantastic for the new Friday. You really do. You really do.

And if you want your voice on the pod, if you just want a shout out on the pot, like a birthday. We got two forms. There's links to both of them in the episode description. We got the links every day. In the meantime, Jack and I will see you tomorrow. And before we go, congratulations to Acey and Debussy on their one-year wedding anniversary. And happy 31st birthday to Nick Rothwell in Hanover, Massachusetts. And to all the poll and election workers who are working hard on Tuesday, what do we got to say, Jack? Thanks for keeping the wheels of our democracy turning.

And to anyone else celebrating something today, make it a T-boy. Celebrate the wins. This is Jack. Nick and I both own stock of Robin Hood. Now, a word about our sponsor, Robin Hood. Okay, so Jack and I both worked in finance for a while. And we know the six-monitor Bloomberg jockey, with charts, numbers, balances, and more charts. They got coffees in both hands while they're executing some complex trade on a soybean future. Well, we're not trying to impress with our mission control trading center.

Just give us an app, please. Robin Hood, with its own. mobile first and intuitive design and lets you trade with just a few quick taps on their app. And even if things still don't seem easy, Robin Hood has your back 24-7 with its live and robust customer support. If you're not investing on Robin Hood yet, to get started, go to Robinhood.com slash T-Boy and choose your free stock. That's Robinhood.com slash T-B-O-Y. Limitations apply. Robin Hood Financial LLC, member SIPC, all investments involved for us. By the way, this podcast is not owned by or part of Robin Hood, and we are not employees of

Robin Hood.