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This is Nick, this is Jack, and this is Snax Daily. It is Tuesday, August 25th. Nick, I assume stocks hit a record high yesterday. Jack, you're right. Just double checking this thing. You're correct. If they hit record highs. OK, not sure why. Tough to tell why these days, but good news nonetheless. And yet we made this our best snacks daily at Tibo. Why, Jack, what do we got today for our first story?
Palant here is an intelligence company that profits on corporate and government secrets. Funny thing about Palantir, all their IPO paperwork just leaked. So we all became. That's right. We are all people familiar with the matter of Pelletier's IPO. Second story, Jack, what do we get? A company that shoots laser beams is run by a 25 year old CEO and is about to go public on the New York Stock Exchange. That was like a video game.
Illuminator is the kind of company that stands out in a summer of the electric car SPAC. Not to be confused with Illuminati. No.
Now for our third and final story. Remember last week when Uber and Lyft warned all their California users that they were shutting down? On Thursday, we had our calendars marked and then a judge stop that from happening last minute.
And this story reveals the policy power of a popular apps homepage.
But before we jump into all that good stuff snackers in the Bay Area, we feel I'm stuck in my eight hundred square feet with my wife and river with nowhere to go because it's so smoky outside.
Jack, one second. I've got to get off hold with Rhonda from Delta because I just had to reschedule my flight back from the East Coast to San Francisco.
We already had a pandemic, an economic crisis and a reckoning for social justice feels kind of cruel to add in a climate change fueled one point three million acres of forest burned in just the last 11 days.
Snackers. We're talking about the wildfires in northern California, where there is currently the second and third biggest wildfires in the history of California burning as we speak.
Now, Jack and I couldn't calculate the lifts on this thing, but we do have an early snap back for you regarding the size of those, one point three million acres of burned forest is already a greater size than the entire state of Rhode Island, Jack. And are looking at the map here. We got entire communities in flames from like Santa Cruz up to Napa. You know, those giant trees that you can park your car under that create a little tunnel thing.
There's like one in every Disney movie. They're incredible. They're like 2000 years old and they're casualties of these forest fires. Not only that, you can smell what's going on in the air through your ninety five mask. That's how thick the smoke is got.
The air quality is atrocious in northern California. It may not feel like by Tuesday today for all the Bay Area Bay Snackers, but Bay Area Bay Snackers, we're thinking of you and making this next the best one yet.
Let's hit our three stories you soon. In this next day, we spoke to the lawyers and we got to get some legal out of the way about the food is candy. They don't reflect the views of her family. It's still live formational. Just so you know, we're not recommending any securities. Nope. It's not a research report or investment advice, not an offer. A sale of security by next is digestible business news for you. Finance, LLC member Fagbug ABC.
For our first story, Palant here at the privatized CIA type tech company is going public, but think less James Bond and more Duane Bond, the way the picture kind of guy with like a master's in science data from Cal Berkeley.
Yeah, the guy's a balladeer of pocket protectors, let's put it that way.
So, Jack, can you tell me, like, what even is a Palantir? A Palantir is actually the fictional or that Pépin stole from Gandalf while Gandalf was sleeping, which let Sauron look into the whole fellowship's plans. I'm going to stop you right there. That is a great name for a company that spies on people. That's right. This is the name company. Now, the reason it's so ironic that Pelletier's documents leaked, it's in the business of keeping secrets snackers picture like a CIA headquarters, but with free kombucha on tap instead of nothing.
Now, Palantir is a private, basically consulting company that provides intelligence and they have two types of customers, corporate clients and government clients.
See, the first one is your corporate client, like your Morgan Stanley, a bank, and they need to track illegal money transfers that may come from a drug dealer. They call in the software from Palantine. They'll log into the software Palantir and discover a web of payments. It started with one cartel in this country move through like a skeleton shell company and ended up in an unmarked P.O. box in Poughkeepsie, New York. The drug money always does. Now, the second type of client is your classic throwback government client, not your corporate volunteers, has been working with the Department of Homeland Security for a while to make sure that they can execute like better border raid.
Case in point, Jack, I notice they got themselves a forty nine million dollar software contract to track illegal immigrants before they're deported. Well, let's just say Palantir isn't afraid to get their hands dirty. Let's just say when you work around here, you're not putting all of your updates on the LinkedIn profile. If you work at Palantir, you don't brag about working at out. No, you don't. Now, snackers Pelletier's EPOP. Work happened to awkwardly leak to TechCrunch just last week, so we got to jump in snacks.
So what that means is some reporter at TechCrunch got like text messages with screenshots of the S-1 document, which has not gone public. So Jack and I jump in here and there were two key numbers that shocked us and basically told the whole story with Palantine. The first highlight is average revenue per customer, like when Palantir snags a new client and signs a contract, the average client is paying five point six million dollars a year.
Yes, access to Pelletier's technology, that is a huge, huge number for average revenue per customer. Totally different business. But let's look at Facebook, which makes just twenty eight bucks per customer per year. Shockingly, bounders like the only company Zuckerberg would never Zuck. But that means that Pelletiere is making two hundred thousand times more money per each customer than Facebook is. All right.
That sounds really, really good. But on the flip side of things, you see that pound? Here's a 19 year old company that can trace the origins of, like, dirty money, but they can't find their own profits. No, apparently, Palantir lost half a billion dollars last year and they lost half a billion dollars the year before last year. This 19 year old company hasn't made an annual profit since it was two years old back in 2003.
Almost feels like they're not trying to find a profit. So, Jack, what's the takeaway for our buddies over at Palantir? If you know the customers, then you know the company snackers. Let's look closely at the revenue breakdown of pound here, because that reveals who this company really is.
Let's look more closely here, because five point six million dollars per customer sounds big. So hopefully they got a whole bunch of customers. This would be a great company.
No, Jack, they've only got one hundred and twenty five customers and three of their top customers make up a third of their revenue. Now, that's a big risk that Wall Street's not going to be pumped about because of those three dich then they lose thirty three percent of their revenue.
Jack, let's talk a little more about these customers. Are they building out some strong relationships with fast growing sectors? Absolutely not.
Most of their revenues come from the government. We're talking like DHS, CIA, NSA, the ATF, yada, yada, yada.
Throw a few acronyms in there. They're probably clients of Palant here. All right. But, Nick, does this company have a bullpen of wheeling and dealing salespeople who are always be closing in on you? Like everybody Timmy know it's the same old customer is. Ninety two percent of those government customers they have were already customers. They're just repeat customers. When you look at Planeteers customers, you see that it's actually a stagnating business, not that much growth and pretty much government contract.
And once you understand Pelletier's customers, then you really understand Palant here for our second story line. Our company Illuminator just picked the best ticker symbol we've ever seen for a new stock.
L a Z are laser's.
I just want some Frerking shirks with some breaking lasers attached to their heads. It's the self-driving car company just working on the ice. That's the only thing they focus on the eyeballs now. Snackers context for this story. This is the summer of specs. Yep. Hooking up with electric car companies last summer with Tiva sandals this summer. It's that financial stuff. And the hottest car companies going public via icepacks are the ones with no revenue or no product. They're Valerius, which are on us.
They're not selling anything. So they want you to buy them so they can sell something. So luminaires just announced yesterday it is going public. It's going to have a publicly traded stock and it's going to get there via a special purpose acquisition company, a.k.a. icepack. We've talked about them on this podcast before. That's when a company that exists only on paper has iPod and then buys aluminum for like three point four billion dollars. In this case, it's an unconventional way to go public, which is unsurprising because Luminaires has an unconventional CEO.
Twenty five year old Austin Russell is the guy behind this three point four billion dollars, just the eyeball self driving technology company. Funny story about Austin Russell.
He was a freshman at Stanford University until he dropped out because a billionaire investor named Peter Thiel said, you should become a fellow. I'll pay one hundred grand to stop going to Stanford and run this company instead.
And then also did exactly what Peter Thiel basically told them to do. And now he's going to probably be feature on the quarterly newsletter.
Austin Russell is all about light our sensors harder now to understand how light our works.
Imagine closing your eyes and reaching across to like your grandfather, feeling his face with your fingertips so that you can kind of see that father, even though your eyes are closed.
Are they going to be the grandfather video to the grandson? That's like a whole different story. It's also basically the plot of Matrix three, because that's what Neo does the entire movie. Now, Lider does the same thing, but instead of touching the city in the sidewalk, in the cars in front of you with its fingertips, it touches the car in front of you with lasers. It shoots out harmless laser beams from the car and ends up mapping out a.
Landscape that Morpheus would approve. Now, before we go on, it's important to understand the three things that are preventing self-driving cars from actually being on the streets and being a part of our society.
The first preventative issue we got here is the regulation situation. There is still no self-driving car act in the United States now. So we're dealing with this patchwork of state and city laws that can't seem to stop bumping into each other. But the greatest innovation in self-driving car history is coming out of Scottsdale, Arizona, where they've got a dry heat and the friendliest jurisdiction, according to Scott from Scottsdale, a great snacker. It's like the Jetsons down there.
And it's got the second thing, preventing self-driving cars from going mainstream right now is just straight up safety and to make self-driving cars safe and like, not bump into a bicyclists, not hit your dog when it's crossing the street.
Also key, you need a self-driving car with a good brain and a brain is made out of software. So that's why you got Alphabet's WAMMO, you got Tesla, you got Uber. All of them are focused on the brain.
Now, the third thing preventing self-driving cars from going mainstream is cost, and that is what luminaires focused on.
That's because each car is blinking out with hardware to make the car see Ala Jack touching his grandfather's face, now a set of Lydda sensors, which are effectively eyeballs on a self-driving car that's going to cost you tens of thousands of dollars. And Nick, nobody's going to buy a seventy thousand dollar for Honda excuse me, exhibit.
I'd like to upgrade my Civic by throwing Ladar on this thing.
Lubenow is working on the cost part, and they have one investor who has experience taking an expensive thing and figuring out a way to manufacture it on scale for a lower cost.
Bring in part time shark tank shark Nick Woodman, also CEO of GoPro, who has experience, bring down the costs of extreme things. OK, so that's helpful. They also have Volvo as an investor at Luminol, which is currently hyping up its own self driving feature for highways, which it says will come in twenty, twenty two.
So, Jack, what's the takeaway for our buddies over at Luminato? Who is going to get the profits in the self-driving industry? Is it the cars, the brains or the eyeballs snackers to get a product into your hands? There's an entire supply chain that has to get involved for iPhone. There's a whole bunch of companies involved. But we all know that Apple is taking most of the profit in the sale of an iPhone for Android. There are also a bunch of companies involved, but alphabet software is who's taken all the profit alphabet's taken the profits of an Android phone, not Samsung.
The company that's actually manufacturing so luminaires thinks they're laser power to car eyeballs are actually the secret sauce when it comes to self-driving cars. They have a trademark look at luminaires, which they hope becomes recognizable as like the best dang lydda in the industry.
And if they can leverage that quality, then they can demand an extra five thousand dollars, maybe from the car companies to use their light artec. And if they can do that, it won't be Honda making the profits off of its Civic self-driving car.
No, no, no. It'll be luminaires. Who's charging huge prices for the crucial Heida?
And everyone can touch their grandfather's eyeballs for our third and final story. Uber and Lyft were supposed to be canceled on Thursday in California, but then the canceling got canceled and they didn't get cancer.
And now Californians have to brace for unprecedented corporate lobbying is going to get freaky.
And that's why we wanted to close the loop and round out this story. Snackers, remember, rule AB five, the rule that you have to treat gag workers like you'd like to be treated.
Basically the golden rule. This is the kind of thing that was drafted by like kindergarteners one year after being signed into law in California, Uber, Lyft had exhausted their legal fees and they had to finally comply. So last Thursday, Uber and Lyft messaged all California users in their home state to say that they were shutting down for like three months until the election. They hated AB five so much they refused to comply and would rather shut down boom. Wednesday night, a judge stands up, probably hit something on a table and says, I object.
That's right. An appeals court granted the Ride Hellers request for intervention and delayed the implementation of AB five until after the election on November 3rd. So the teams over at Uber and Lyft had a late evening. They updated their blogs and said, We're back, baby. Like, never mind. Ritcher operations will not be suspended in California. So snackers, we update you that this could happen with all about AB five. But the thing that's key here is proposition twenty two, a.k.a. Prop twenty two, prop twenty two, Uber, Lyft, Dorda, Post, Bates' and Instict.
They are all fighting hard for their own little referendum in the election, which is called Prop twenty two. They want you to vote yes on Prop twenty two. And what Prop 22 does is it takes AB five which was meant to like regulate gay workers. Right.
And it carves out a special section. App based transportation and delivery drivers.
It's like a five is good, except if those AB five gig workers work for Dorda, Uber participates Insta Carter left and what this new prop.?
Twenty two from the teams over at all those gig apps is saying is don't treat our workers and drivers like employees, but don't treat them like independent contractors either.
It's a Goldilocks compromise, which will actually be a lot less costly for Uber and Lyft.
Yes, and probably keep prices of Uber and Lyft rides lower. So Uber and Lyft are saying these drivers won't get minimum wage or overtime or unemployment or worker's comp when it comes to Prop 22. But they're not going to get nothing either. They will get one hundred and twenty percent of minimum wage guaranteed as long as there is a passenger or groceries or pad Thai in the car.
So if you're an Uber and Lyft driver or Doordarshan Post mates deliver, you're looking at this. And it's kind of just good news for you. Either way, once better news ones better. OK, better news. Oh, by the way, Prop 22 also says drivers get some subsidies to pay for their health care insurance. So, Jack, what's the takeaway for our buddies over at Uber, Lyft and everything? GACHE Prop 22 is a David versus Goliath situation.
And Goliath has a secret weapon called digital billboard snackers. Californians are preparing for an onslaught of vote yes on Prop 22 ads hitting everywhere ASAP.
That's because you were left. Audition's the car and Postma team up have put together one hundred and ten million dollars to win this campaign.
Power Rangers on the other side, you got the vote no on Prop 22, which doesn't have nearly as much support. Vote yes on Prop 22, has a ton of corporate money.
Vote no on Prop 22, has labor unions and a couple of political activists.
But what Jack and I find so fascinating about this story in the grand conclusion of the drama is the secret weapon that vote yes has.
If you've downloaded Uber, Lyft or any of those apps and you live in California, get ready for some push notifications that are like vote yes on Prop twenty two or else you better get a car because this won't be here anymore.
And when you open your lift app and get ready for some reminders that pop up that say this will go away unless you vote yes on Prop 20, David is showing up in a Hyundai Sonata in three minutes and vote yes on Prop 22.
And when you get an email back from door dash customer service, look at the bottom of said email and you may notice a reminder to vote yes on Prop 22.
Were you satisfied with this resolution? Vote yes on Prop 22. The key here, snackers, these apps are their own digital billboards, and that is a huge policy advantage. Jack, can you whip up the takeaways for us over there?
Palin tears the 19 year old intelligence company that hasn't figured out profits.
Its customers tell you everything about the company government secret not growing.
Second story, luminaires is a self-driving car company that's not making any cars.
They're just making the laser eyes, which they think will take profits out of the whole value chain for a third and final story. Uber and Lyft aren't getting canceled in California, but the drama isn't over. The apps are about to start reminding Californians to vote yes on Prop twenty two because they have the power of the app Billboard Vote yes on Prop twenty two.
Now time for our snack. Back to the day this one tweeted in by phenomenon from a lovely day Raddon India, which is a small town in the Indian Himalayas.
I thought Vermont had altitude and we've never had a snack that descended from this high above sea level. But the countries with the world's highest coffee consumption on Earth, Nick, are all in Scandinavia.
Yeah. And it turns out out of all the Scandinavian countries, Finland is leading with twenty six pounds per person consumed of coffee a year.
Now, interesting that Finland leads. That was a surprise. Aggressive, but twenty six pounds per person per year. What does that mean? We had to do the calculation. We couldn't do lifts. In this case it turns out to six cups per uman per day, six cups of coffee per day.
I mean, what is it like AP US history finals every day? Well, I think it's like daylight there. Twenty three hours of the day, like half the year. That's twice as much coffee as Brazil. That's triple as much coffee as America. The takeaway. No wonder why milk was invented in Sweden.
Now we understand you got all that coffee. You're gonna need some oatmeal and you got a lot of IKEA furniture to assemble.
So before we go, snackers, Andrew and Eileen, happy six year anniversary down in Miami, Florida. Swapna and Rob Happy getting engaged from Braintree, Mass. Gerry and Anna from Mountain View, California. Thanks for bringing Chloe Elizabeth into the world over the weekend. And Eric and Andy just got engaged on a yacht in the Hudson River. Incredible. They're both keepers, by the way. Happy birthday to Jonathan Choi in Los Angeles, California, and Yoshinari Yoshikawa Oura in Japan.
Use of Habour turning twenty one in Beit Shemesh, Israel and Mansi are in Mumbai, India, and Tyler Reynolds turning twenty two in Santa Cruz, California. Kevin Maia in Austin, Texas. A manual turning twenty six and. Linda, Ohio, Rome, on the left, Jake and Jay, both turning 30 down in South Carolina, Ethan Grabau in Zurich, Switzerland, and happy birthday to José and Berkland and Virage in Sacramento and Connor in Arlington, Virginia.
And Monica go through Recker in Mumbai, India. And finally, Robin Hoodie, Ian Porter in lovely Denver, Colorado. Snackers, that was a great time. If you have any buddies, not snack and you ask them why Twisties, you guys look fantastic. Have you had your snacks daily? That's the question. I already can't wait for tomorrow's t'bilisi by spoiler if you know. You know. The Robinhood Snacks podcast you just heard reflects the opinions of only the hosts who are associated persons of Robinhood Financial LLC and does not reflect the views of Robin Hood Markets Inc or any of its subsidiaries or affiliates.
The podcast is for informational purposes only 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.