This is Nick, this is Jack, and this is Snax Daily, it is Thursday, the new Friday, January 14th. Breaking Thursday afternoon news. The president of the United States was impeached for a second time by the US House of Representatives. We know you're thinking why did stocks do not really a market story? Stocks didn't really they didn't really do anything. The second impeachment of Donald Trump affects history. Not as much of the future. Exactly. So, snackers, we're going to update you again if the Senate convicts and ends up barring Trump from being president again in the future.
Meantime, this is the best one yet. Thibeault Why?
Jack, first story. What do we got to be? Homes does one thing and does one thing really, really well. They build home. That's what they do.
And Jack and I noticed three lines in their earnings report that tell us everything you got to know about real estate in twenty, twenty one. Jack, what do I got to do to get you in this two story tooter? For our second story, VSA tried to acquire plan for five billion dollars, but that credit card deal just got declined. Yeah, funny thing. That might be the best thing that's ever happened to Platt ever. Bad news is good news for our third and final story.
GM tossed off their tie. They threw out some Obote's then nice move and did their very best impression of Tesla.
And then GM stock jumped to an all time high because it's actually a pretty good impression. It's really good. I was very good with snackers before he hit those three stories, the most stressful article we've ever read.
Oh, my God, Jack, I read this in The New York Times. Jack, I'm still sweating over here. A guy named Stephon Thomas, who's a German engineer, he is living in San Francisco right now.
I know Buddy of mine is named Tomas Steffon, also from Germany, inverse of the reverse.
Now, this guy, Steffon in San Francisco, he has a digital wallet that is filled with seven thousand and two bitcoins. That's what's in it based on Bitcoin. Thirty six thousand dollar prize. That wallet is worth two hundred million dollars. Congratulations, Stefan.
Gesundheit, Stefan. One big problem, Stefan lost the piece of paper that had his password written on it, which he needs to access that two hundred million. Yeah, funny situation here because Bitcoin doesn't have a customer service line. Tomas, have you tried one, two, three, password, exclamation point.
Give it a shot. So that's the problem. But here's the bigger problem. The digital wallet holding his bitcoin only lets you try ten passwords. After that, you're out forever. It's done. You're locked out. You could never access that two hundred million dollars of Bitcoin again.
Nick, the biggest, biggest problem, please. Jack. Stefan has already tried and failed with eight password attempts. Steffon has to password guesses left or he loses two hundred million dollars. This sounds like the plot of a Dan Brown novel, Jack. If the ninth password attempt is wrong, the Sistine Chapel explodes.
According to the Times of all the eighteen and a half million bitcoin that exist on Earth and some server somewhere, 20 percent are lost or stranded in.
While it's like, shut up. Here's what Jack and I are wondering. Ben, Ben, the bitcoin, he may be in there.
Ben, if you're in there, blink twice and we'll hit our three stories. You're tuned in the next day. He spoke to the lawyers and we got to get some legal out of the way next about to hear Ray Giudice. They don't reflect the views of her family is only 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 a security by Nexxus Digestible Business News Video Finance, LLC member Fagbug ABC.
For our first story, KB Homes is enjoying the ol three four one tailwind in the homebuilding business. This year is going to be a McMansion worth of profits for homebuilders.
All right, Snackers. This company, KB Homes, founded in Detroit, they got a tear in L.A. and that's where they're headquartered.
Now, KB Homes has been hammering nails into two by fours since nineteen fifty seven.
And now they're building these energy star homes and they're doing it in eight different states.
Not too shabby, modest single family units, two thousand square feet ish with a backyard and a front porch going around up a little bit. This is perfect. If you're like, you know, you're upgrading from the apartment to the first home. We're talking first lawn kind of a situation. K.B. Homes.
Holmes's stock jumped three percent yesterday because new orders for homes jumped forty two percent last quarter and that powered in one hundred and six million dollar profit from October to December. But, Jack, what's the real key here that we noticed in the numbers?
Sixty one percent of KB Homes is new. Home customers are buying their first homes ever. That's right. These are gateway homes, by the way, Jack. Sixty one percent. That means. Sixty one percent of their buyers have never changed a gasket. Sixty one percent of their buyers are about to buy their first six pack of wood for it.
It's sixty one percent of their buyers are going to say, what the hell were we thinking?
Now, in the first paragraph of Katie Holmes is earnings report, the CEO very nicely summed up why twenty twenty one could be house a palooza for the snackers. Here are the three keys about why twenty. One could be the house that first you got the market forces, they said that the housing market conditions will continue to be robust.
The CEO specifically said that during this pandemic, homes offer people financial health, safety and emotional benefits. Yes, they do. You're not going to get out of, like a car or an upgraded microwave kind of a thing. You're not getting it from your tiny New York City apartment either. No, you're not. But cyclical forces is the second key here. And those cyclical forces are the fundamental shift that has been long anticipated.
What the CEO is referring to there is the millennials, Nick and me, who didn't buy homes in our 20s like other previous American generations have. I mean, basically Jaconi to listen to our parents talk about splurging on a duplex at the age of twenty four after they got their first internship bonus. Our generation entered the job market during the financial crisis and we basically had to follow jobs to cities where real estate was completely unaffordable.
Well, fast forward a few years now. covid-19 is unleashing pent up demand because we've been saving those grandma five dollar checks for a whole bunch of years now.
The third reason the CEO is bullish about KB Homes is future is their pricing power. Yeah, apparently, Kuniholm said they widened their profit margin to twenty one percent because they were able to increase prices on the homes they were selling. There are millions of millennials wanting to build homes and there aren't enough builders to build those homes.
Homes knows you want to get settled in ASAP, so they flex that leverage by jacking up the prices on you when you were just trying to buy a home in the pandemic. Oh, you want a new home? That's going to be 20 percent more. So, Jack, what's the takeaway for our cozy buddies over KB Homes? The backlog that is the only part of the earnings report that actually looks forward into the future snackers. The appeal of owning a stock is really the chance that a company could become more profitable.
And here's the key in the future. And the only part of Katie Holmes is business that talks about the future is the backlog, which is wildly ironic, Jack. And I noticed, because the backlog is now the only part that doesn't look back and actually looks forward.
What is wrong with these accountants, like naming terms the wrong thing. It should be called the forward lock, the backlog of KB Homes. The backlog is basically like if a customer signed a contract for a two story modern farmhouse. But the construction on that modern farmhouse hasn't exactly started yet. Right. That's why the backlog represents future sales, future revenues, future profit. It's basically a waiting list for new homes to get built. Well, Jack, the backlog over KB Homes, what was it over the last year?
Last year was one point nine billion dollars worth of homes on the backlog.
This year, it's up sixty three percent to three billion dollars. They have three billion dollars worth of homes in their backlog. The backlog tells investors that the boom times for home building, there's a lot to go.
Still twenty, twenty one house palooza for our second story, Jack Carlip, Alicia Silverstone, General Motors totally pulling a clueless on US complete makeover.
GM is not a truck and SUV company now. It's an electric package delivery system as a service staggers.
Last week, honestly, Jack and I had a blast getting data on GM's brand new logo.
This thing was called the new logo looks vaguely more hip than its sixty five year old predecessor. We kind of got Tron vibes jacket look like the logo got lost in The Matrix.
If you touch this thing, your hair is going to like straight. So we said, hey, GM, we have a suggestion for you. Can you change your name instead? Just change from GM to M.G.. The motor general general is better as a noun than as a verb.
Well, GM didn't listen to us, but on Tuesday they said, you know, we're going to sing better. They announced a new slogan, electrifying an industry, electrifying the car industry. Right now, actually, no, not trying the car industry. GM just announced ambitions to electrify package delivery from factory to table. CEO Mary Barra took the virtual stage at the Consumer Electronics Show and announced new thing, Operation Bright. Drop right. Drop a whole new GM business, its commercial deliveries and logistics.
Yeah, basically, it's the entire chain of getting stuff to you. They want to make all of that one hundred percent electric. They don't want any gasoline to be harmed in the making of this film. So the first thing they unveiled pretty straightforward. They call it the EV six hundred. It's an electric van. Two hundred and fifty miles per charge. It looks like a futuristic electric fan. We were like, OK, interesting. But then we got really interested because they unveiled EP one, which is an electric power.
Most palate's I've seen are wood, but this thing is a big chest on wheels that moves through an electric motor at three miles per hour. It's pretty wild. You kind of got to see it to believe it.
It moves basically any item from a warehouse to a van and then it can move that item from a van into your house.
So picture the van showing up at your house. Yeah, actually, that's the dance we're about to get. It's the dance. They call it the dance. It dances when the van pulls up in front of your house. Side of the van opens up like a treasure chest and reveals that there are four of these are too deep to like electric parts, and then these things get to work very confidently. They roll outside of the van and just go straight up to your door to drop off your stuff.
The delivery guy is just walking along this electric pallet and eventually he finally takes your package and puts it on your front stoop. So, Jack, the secret sauce of this thing all day. That is GM's trademark electric battery that runs the whole thing.
And now they're going to have a whole fleet of electric vehicles that could be tracked and managed all through a smart app using their Altium batteries. Oh, and one more thing. They had a Steve Jobs kicker at the end of this. No big deal on the side hustle GM's doing and they're working on an electric flying car. Best regards, GM piesse. We have a flying taxi.
We're working on the customers, Jack, who we got buying the stuff. Any company that delivers, including FedEx, which is the first customer, they already ordered five hundred vans and probably like a thousand electric powered. So, Jack, what's the takeaway for our buddies over at General Motors now?
GM has a story to tell investors snackers. Tesla has always had a story. It's always had actually a really great story. This is Tesla's slogan. And I've always admired accelerating the world's transition to sustainable energy. Tesla doesn't do just cars. They also do Tesla solar panels, Tesla home battery storage. They should do Tesla theme parks. And that story gets the people going. That is the fuel behind Tesla's insane stock rise.
Well, General Motors doesn't really have much of a like a rock. Bob Seger, we all saw the commercials from like the Suburban back in the nineties. Great songs, great guy, huge SUVs and huge trucks. That's been GM's story that they've been telling. It's more bedtime story, less Alpert's halftime speech. Kind of a motivating story.
But this new GM story is more compelling. They're going to make all the packages that we buy, like through Amazon and e commerce, all of them zero emissions by the time they get to our door. That's the kind of story that gets people going. Wall Street agrees GM stock just jumped to a record high yesterday because GM's finally got a story they can actually tell investors.
For our third and final story, Visa was going to have this epic five billion dollar acquisition of plaid and that deal just got canceled. And that could change the course of the future for the credit card industry. You know, Visa and used Visa because it's everywhere you want to be. You've used plaid, you don't know plaid because you didn't realize you were using and didn't realize you were using plaid plaid.
It's basically going to connect your old school bank account to your new school bank account. Right. It'll connect your Wells Fargo account to your new school, Venmo or Robinhood or Coinbase account. Also, full disclosure, this podcast next daily is part of Robin Hood. Robin Hood Snax is part of Robin Hood.
So typically when you want to, like, connect whatever app you're using for payments to your bank account, they're going to say, hey, go find your account number, find your routing number, input your full name, or you could just click here and login with that.
Please upload three PDF of recent Wells Fargo statements or just log in through Platt. Yeah, Platt is basically like it's like a financial bouncer who really enjoys networking.
They connect two hundred million financial accounts to eleven thousand banks and two point six thousand fintech apps because like we said, twenty five percent of Americans or like three quarters of snackers use plaid. You just didn't know it. Well, Jack and I checked out the counters and literally. Exactly. Couldn't be more precise. One year ago, Visa said, hey, we're going to acquire plan for five billion dollars. Visa said, we're going to keep our phones close and we're going to keep our enemies acquired.
And that's where this gets interesting because think of all the data that Plaid has got and knows Venmo. Check for that Cosmo twice yesterday. It knows you just got three bedrooms worth of side tables you slapped on your Saphire credit card.
Yeah, it was the connection with all those transactions. So Visa acquired planned to make sure that Visa can continue to dominate the credit card business because get this, this is a wild stat. Sixty percent of the debit and credit card market, it's controlled by Visa, 60 percent of the cards that we swipe or stick the little chip into. They got a little Visa logo on the bottom.
Right now, there is no technical like official number four. What's a monopoly? Yeah, 60 percent of deals like it would kind of be that. No, Jack, I would say that's a monopoly. And that's why a few months ago, the Trump Department of Justice sued to block Visa from acquiring Platt. And Jack, can you share with us what they said? They said if they got planned, Visa would be a monopoly on transactions. So, Jack, what's the takeaway for our buddies over at plaid plaid shows us that the real power is in the plumbing powers, in the plumbing snackers, because cancelling this deal, it actually wasn't about Visa's monopoly.
It's really all about plaids, future monopoly. In fact, this deal getting canceled this week could be the best thing that ever happened to. You may actually want to pop some Tattaglia because Plaid had been looking for an excuse to get out of this five billion dollar deal because it's actually worth more again, exactly one year ago when this deal was announced before the pandemic.
That's the key plan was slapped with a five billion dollar valuation. But here in the current economy, digital payment apps have been soaring and plaids not competing with those digital payment apps. It's powering almost all of them. That's because plaid is the plumbing behind your phone payments and the real power is in the pipes. Now, the plan has gotten itself out of this visa deal. It could IPO or get acquired by another company, likely for a lot more than five billion dollars, probably for a lot more, Jacki, to whip up the takeaways for us before the weekend.
So I'm getting ahead of myself. Thursday, K.B. Homes hooked up two thousand eight hundred and seventy six families with new homes last quarter. Yeah, the backlog, the backlog that shows you there's like a whole lot of two by fours to nail and twenty twenty one for a second story.
General Motors is new slogan, electrifying an industry, zero emissions delivery, a whole lot more compelling than like rock. I mean, SIECUS. Great. I'm a big secret fan. And the Silver Bullet band, for that matter, a great name for our third and final story because the government was trying to block it, plan and Visa cancelled their deal. Kind of a blessing for plan, we're thinking, because the power of fintech, it's in the plumbing.
Time for our snack fact of the day. This one, a second one, this one coming in from Mr. Conklin's Carlisle High School class. Jack, the snack fact, I believe Coca-Cola is the most recognized brand in the world, with ninety four percent of earthlings recognizing the Coca-Cola logo. But funny story that Mr. Conklin's high school class noticed when the Coca-Cola brand launched in China. The Chinese characters for it made the name of the company sound a little different.
In China, Coca-Cola was female horse covered in wax. Not exactly a thirst quencher. No, it wasn't. And what wasn't what they were going for. So they came up with new characters for a slightly different name that sounded mostly similar, but not terrible. Female horns covered in the result. Coca-Cola in China is known as Kiku Li, which means delicious happiness, which sounds a little more right, does not sound like female horse covered in wax.
And that's the take away snackers. You looked fantastic today. Have a fantastic one. We honestly can't wait to be with you tomorrow. As always, Idjwi, twice a day. Ask your buddies, have you had your snack daily? If they say no, show them snacks. Damn, Nick. And I'll see you tomorrow if you know, you know. And before we go, snackers big congrats to Ezekiel and Korina, who apparently had a fantastic first date down in Mexico City.
Couples that snack together do stay together. It's a proven fact. No pressure, but. And happy first mom birthday to readers think this is her first birthday since becoming a mother. Congratulations and Sentosa. And happy birthday to E.K. in Chantilly, Virginia, and Allena Lu in Boston, Mass. And Josh Chu in Los Angeles and DeVonté Horn in Mountain View, California. And Ray Ramos over in Atlanta. And Phil Raemer over in Atlanta. And Jose Strawbery down in Rancho Cucamonga, California.
And Paul in Polic, Louisiana. And happy birthday, Kenny Chung in Denver. And finally, happy birthday, ÇAKMAK. Raleigh, North Carolina. Happy birthday. The Robinhood Snacks podcast you just heard reflects the opinions of only the hosts who are associated persons of Robin Hood 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 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.
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