Dario (1:16)

Yep.

Jordy Hayes (1:17)

Should we watch? Have you seen Pacific Rim? Now we got to watch this Pump up speech. Let's do it because this gets me fired up. We're canceling the apocalypse. It's movie night again in class. So the storyline aliens. Giant alien Godzilla like creatures called Kaijus have descended upon Earth. No. And only robots that are as big as the Godzillas can fight back. But you need two people. It's much like us. You need two pilots. Because the mental load of driving the robot being in the drift is too intense for a single person. It will drive you crazy. So two pilots, two Jaeger pilots must pilot the ship together. Very cool. And share the load. And so they both punch. And then the robot punches. It's amazing. It's a great film. You'll love it. He's got a good speech. You're known for giving great speeches just like this. This is a Jordy Hayes original right here. Yes. Movie day again. Welcome to the stream, Ryan. Today at the edge of Our hope.

Tyler (2:19)

At the edge of our hope.

Jordy Hayes (2:22)

Things aren't looking. The end of our AI is upon us. We've chosen not only to believe in ourselves, but in each other. We must believe in the stocks of the SAS companies. There's not a man nor woman in here that shall stand alone.

Tyler (2:38)

No.

Jordy Hayes (2:39)

No public company shareholder will stand alone. We stand with you. We face the monsters that are at our door and bring the fight to them. We're bringing the fight to the Foundation Labs today. We are canceling the apocalypse. We're canceling the apocalypse. We're canceling the Sasspocalypse. W and then the greatest soundtrack ever. I love.

Tyler (3:04)

I only. I only really had to ever give one speech like that last year. But it hit.

Jordy Hayes (3:09)

It hit.

Tyler (3:09)

The team needed it in that we did.

Jordy Hayes (3:11)

And we got through.

Tyler (3:12)

Critical moment. We powered through.

Jordy Hayes (3:14)

We powered through. So anyway, we've lost a lot of good soldiers, a lot of good market cap out there during The Sass apocalypse. $2 trillion, something like that. Maybe it's been rough, but, and I mean truthfully, like the narrative does make sense. Like agentic AI systems co pilots, foundation models like these are disruptive innovations. Fundamentally they're counter positioned against traditional seat based SaaS process pricing. We know this. Legacy companies will be caught in a jam because pivoting the entire business model is difficult. You can't just flip a switch and start charging customers a completely different way. Your investors will freak out because your finances will be deeply unprofitable. All of a sudden company cultures and organizational structures are aligned around particular incentives. And so you have to rewire everything for a different business model. And that's really hard. And that's. People are sounding the. This is a disruptive innovation. This is not a sustaining innovation like mobile or Cloud. The SaaS apocalypse was always a little bit of an indiscriminate hammer. It felt like, I mean there was one article in the journal that was like anthropic launched a legal tool and that caused the sell off. And it's like, well, could be that or it also could be Claude code or it could be openclaw or Codex or Spark or like there's a million different things going on in the AI world. That one just kind of took hold. But I think we will soon be finding out what companies are truly unslappable, as you put it, and actually benefit in the AI future. And there's a bunch of early signals, so let's run through them first. Google's comeback. I mean this was the first victim of the apocalypse. This one happened like a year or two ago. Why would anyone search Google ever if an LLM could get you a better answer and fewer clicks? Of course, Google quickly caught up to the frontier. They launched AI overviews. They flexed DeepMind's research previews. They showed off the power of the TPU core businesses surviving and thriving to due in part to Gemini, helping understand intent so they can deliver ads on longer, more complex searches. So Google's been doing fine. They're sort of already building back from the SaaS apocalypse that they experience. Then you have Meta will mute. Will user minutes migrate over to LLMs? Will Sora destroy Instagram overnight? Will slop clog the feeds? Maybe, but not before Meta's transformer based gem model absolutely destroys ad targeting and just makes everything so much better and re accelerates revenue. And we've talked to a lot of folks about that. And so Meta is doing very well. Even though they haven't like figured out their AI strategy, rolled out any of the new crazy frontier models from msl. Like the business is great, certainly argue

Tyler (5:39)

they have an AI strategy totally to use AI ML to make really good ads.

Jordy Hayes (5:45)

And they've been doing it for a decade.

Tyler (5:46)

But it's more on the product side, right? So is it the man? Is it net new products? Is it, is it Meta AI?

Jordy Hayes (5:52)

Yep. It gets more interesting when you go to the smaller companies, not super small. But Spotify doesn't really need to invest in generative AI. I heard a good analogy that was like, should Spotify have like released a guitar so that people can make more music? Like, no, because people will pick whatever tool is available and then they will release that music on Spotify. These artists, if they're using AI tools, or maybe they're just prompters, whatever you want to call them, they will bring AI music to the platform. It'll be filtered by algorithms. Slop will be in the trough, but only the most delicious slop will bubble to the top. Current data shows AI music currently underperforms dramatically on a percentage basis. Like, the number of AI songs is huge, but the number of like actual minutes watched is low. Even if that flips, Spotify still benefits. Let's switch over to Shopify. You can definitely vibe code an e commerce website now, but Shopify is not a major cost driver for most businesses that use it. You're, you're talking maybe like $1,000 a month for some companies and it's a lot of headache that they just don't have to even think about. And then there's a whole bunch of advantages that Shopify should benefit from in the AI era. It's very full featured so it's actually hard to replace. Setting up a new store is faster than waiting for a prompt to return. Like it's all pre built and then AI tools benefit from all the context and data that Shopify has across the entire platform. And then lastly, Agentic Commerce doesn't replace Shopify checkout. It's just a front end to the to the checkout. Much more or so payment. Exactly.

Tyler (7:21)

Post purchase.

Jordy Hayes (7:22)

So if it's driving activity, that's actually a net benefit and so there's a whole bunch more examples. Lastly, you got to consider Salesforce. Marc Benioff has been duking it out with Jim Cramer on CNBC over seat based pricing in an AI era and it's 100% true that there are some amazing AI native CRM startups that are aggressively trying to eat off Benioff's plate. But Anthropic is hiring a Salesforce admin. They're growing so fast and so big that they that they need someone just to be full time job manage their internal Salesforce. And so there's growth all over the SaaS ecosystem and things don't seem to be decelerating or slowing down. It's definitely go time though. And it's time to revisit sources of strength.

Tyler (7:59)

It's wartime.

Jordy Hayes (7:59)

It's time to become unslappable. It is wartime. It's founder mode time.

Tyler (8:03)

Yeah. So going back to the fax machine example, in 1999 was the first year that showed a significant drop in the sale of physical fax machines. They dropped by 10% in a single year.

Jordy Hayes (8:18)

When was that?

Tyler (8:18)

In 1999.

Jordy Hayes (8:19)

1999.

Tyler (8:20)

That is not a. Okay, growth just started slowing. It had been slowing up until that point, but it was slowing and then it like fell off a cliff.

Jordy Hayes (8:28)

Yeah. Should we read through this goodwill hunting meme? This sums up the SaaS apocalypse. Of course that's your contention. You're a first time SaaS bear. You just got finished listening to some podcasts. Dario on Dwarkesh. Probably now you think it's the end of white collar work and seat based pricing is screwed. You're going to be convinced of that till tomorrow when you get to something big is happening. Then you'll install claudebot on a Mac Mini Vibe coded dashboard on top of a Postgres database and say we're all just a couple Ralph Loops away from building a Salesforce competitor. That's going to last until next week when you Discover context graphs, and then you're going to be talking about how the systems of record will be disintermediated by an agentic layer and reposting OAI marketing graphics. Well, as a matter of fact, I won't, because ultimately, the application layer is just. The application layer is just business logic on top of a CRUD database. You got that from Satya's appearance on the BG2 pod, December 2024, right? Yeah, I saw that, too. Were you going to plagiarize the whole thing for us? Do you have any thoughts of your own on this matter, or is that your thing? You get into the replies of anyone posting a SaaS sticker, you watch some podcasts, then pawn it off as your own idea to impress some VCs and embarrass some, announce who's long SA see. See, the sad thing about a guy like you is in a couple of years, you're going to start doing some thinking on your own and you're going to come up with the fact that there are two certainties in life. One, don't do that. And two, you drop 30 grand on Mac Minis and LLM API calls to come up with the same conclusions you could have got for free by following a handful of VC accounts. That's great.

Tyler (9:55)

Roasted. Matthew McConaughey hit Variety this morning.

Jordy Hayes (9:59)

What do you say?

Tyler (10:00)

And commenting on AI, Brandon just shared it. He said it's coming. It's already here. Don't deny it. It's not going to be enough to sit on the sidelines and make the moral plea that, no, this is wrong. It's not going to last. There's too much money to be made, and it's too productive AI acceleration. So I say own yourself, voice likeness, et cetera. Trademark it, whatever you got to do. So when it comes, no one can steal you.

Jordy Hayes (10:22)

Yeah, yeah, it makes sense. The Matthew McConaughey voice, I mean, that's an iconic voice. I think there's definitely a huge deal to be done. And the AI voices, although we're in a boom right now, I remember being able to go on Waze and pick. I think Snoop Dogg had a deal, but there were a number of celebrities that had, you can imagine, like an Arnold Schwarzenegger get to the choppa. But then also, like, take a left and it's like, fun. And they would just prerecord all of the different lines, like, keep going straight, bare left, take a hard left, and you record like 20 different lines. And then the program just picks the audio file for the correct moment, because there's only like 20 different things you could possibly say in a navigation app. But those types of things, there's a. There's clearly a framework for that. And all the agencies and all the unions understand this. So I feel like we're. We're in this weird bizarro world where people think that, oh, like, IP does. Law doesn't exist and we aren't going to be able to deal with this. It's like, no. Like, there's like decades of lawyers who, like, are foaming at the mouth being like, I can't wait to sue bytedance. This is going to be awesome.

Tyler (11:28)

We're going to get a great. The only thing is that it's gonna require real cooperation from platforms.

Jordy Hayes (11:35)

The platforms are ready to cooperate.

Tyler (11:37)

I disagree. I don't think they're cooperating that hard. There's so much content of a bunch of individuals on YouTube, on Meta, that is using their name and likeness and putting them in situations that they would never, ever, ever agree to. And you can argue that it's not good for their brand, but it's incredibly entertaining. And so the platforms leave the content up. By the time you do a takedown request, it's got 200,000 likes.

Jordy Hayes (12:05)

Or you don't need to do a takedown request. You do just need to do pay, pay me, pay me. That's what people want. They want to be paid. The message that Matthew McConaughey post is not. Is not like, it's super critical that no one ever uses an image of me or my voice ever. It's that, look, if somebody's profiting off it. That's. That's my ip. That's my.

Tyler (12:25)

I mean, I read his comment. More around making movies are saying, don't use AI to make this scene that would normally take four weeks in some exotic location. A thousand people. Obviously AI is going to be used for that. I think there's a separate issue of people generating Matthew McConaughey doing and saying things that he would never agree to that are sort of compromising or again, putting him in situations or having him say things that he wouldn't ever agreed to even if he was getting paid. Michael Burry is going off on what happened Carp.

Jordy Hayes (13:01)

Okay.

Tyler (13:01)

Palantir CEO Alex Karp has his head in the cloud saying he's a frequent flyer and they get into some of his business and personal travel expenses. During the years ended December 31, 2025 and 2024, the company incurred expenses related to the use of the executive aircraft of 17.2 million and 7.7 million million, respectively. It's quite the feat to spend 17 million in a year on business and personal travel, particularly when the jet's not even the rental. Jeffries analyst Brent Thill, he's got a bone to pick. Runs the numbers. Assuming use of a midsize jet with an estimated operating cost of $7,000 per hour, this implies roughly 2400 flight hours, or about 28% of the year in the air. Even under a more conservative assumption of a high end jet such as the G650 at an estimated 15,000 per hour, the 17 million still equates to approximately 1,147 flight hours, or 13% of the year. Notably, this 17.2 figures more than Double Carp's executive aircraft expense in 2024 and appears elevated relative to peers with Meta CEO spending 1.8 million and Palo Alto Network CEO spending 2.4 million. Terrible comps. Why Karp is obviously constantly traveling all over the world. He's an international businessman. Yeah, I know podcasters that do that like 250 hours a year and oh yeah, like, like you're talking about going from like somebody who like travels like a good amount at like let's say like 200 hours a year. To me, yeah, I might catch some flack for, for defending private aviation, but it just doesn't seem that crazy. The entire reason that Palantir is growing the way it is is like they're doing deals in Japan, they're doing deals in, in the Middle east they're doing. It's just like this guy is a global deal maker and if you really wanted to do an analysis on this, you should look at all the international deals that they've done. Maybe ignore the US and see if CARP is actually delivering JIRA tickets. Says do you think he has monetization

Jordy Hayes (15:04)

on who's he talking about?

Tyler (15:06)

Khomeini. Khomeini's been putting up insane numbers on X. Quite the tense geopolitical situation. I hope that hope that we're not starting a new war in the Middle East. But if Khomeini does have monetization on it certainly is a going to be a real revenue line item on the I have to imagine does X sanction accounts.

Jordy Hayes (15:28)

I think creator payouts are probably geographically limited to certain countries where the payment rails work. If a country sanctioned like I actually get my creator payouts just straight up through stripe. Yeah, it just comes through stripe. In fact I think I had to set up a stripe account to Receive it.

Tyler (15:43)

I think I said prime intellect was like the prototypical Neolab. Okay, so he's really. Yeah.

Jordy Hayes (15:48)

Putting a funny camera angle. What's going on here? Okay, I like that. Different. Switching it up over the shoulder. I'm interviewing you. I'm getting to the bottom of it. You answer me. You answer me, Tyler. Well, okay. Okay. We get it. Production team got some new PTZ cameras. We get it.

Tyler (16:06)

Guys, we have news on the Warner Brothers. Netflix. Paramount front. Netflix is open to raising their bid for Warner brothers. There's a 35% chance that Netflix.

Jordy Hayes (16:19)

Like a stone. They were at like, 70%.

Tyler (16:20)

Yeah. Netflix apparently has ample room to increase their offer. Better position.

Jordy Hayes (16:27)

$325 billion company.

Tyler (16:29)

I think everyone believes that they're good for it.

Jordy Hayes (16:32)

Yeah. Netflix has ample cash and could bump up its offer for HBO Max owner Warner Brothers Discovery if competing bidder Paramount Skydance increases its own offer. The two media giants have been locked in a heated rivalry. Oh, you see what they did there? That's a new popular show. Heated rivalry. It's about hockey over Warner Brothers and its storied catalog, which includes iconic franchises like Harry Potter, Game of Thrones, DC Comics, and Superman. Though Warner Brothers is moving Forward with a March 20 shareholder vote on Netflix's offer, it has given Paramount a week to come up with a more compelling bid. Netflix has bid 2775 a share, or 82.7 billion, for Warner Brothers studio and streaming businesses, while Paramount has offered $30 a share, or 108 billion, for the whole company. The creator of Stranger Things is sitting on a lot of dry powder. That gives it some flexibility to up the ante, holding about 9 billion in cash and cash equivalents on its balance sheet as of Dec. 31. Warner Brothers rejected Paramount's latest hostile takeover bid on Tuesday, but gave the rival studio until the end of Monday to submit a best and final offer. We're going into the the final rounds now. Price will likely be the deciding factor. Warner Brothers concerns around funding and regulatory risk are real, but at a high enough number, they become secondary.

Tyler (17:49)

David Zaslav must just be over the moon right now.

Jordy Hayes (17:52)

The bidding war he's been working, the

Tyler (17:55)

bidding war of his dreams.

Jordy Hayes (17:56)

Yeah, it's great.

Tyler (17:57)

Every CEO that is flipping an asset dreams of. Of a bidding war like this.

Jordy Hayes (18:04)

It's great. Britzman expects Netflix will counter with an improve with any improved offer from Paramount. But the real twist is that these deals were never apples to apples, and it may ultimately come down to how much value the board and shareholders assign to the network. Business that Netflix would leave behind. So you need to do a sum of the parts. What's the value of just cnn, hgtv, the linear TV channels put that in because Netflix doesn't want that stuff. They just want the IP and hbo. Paramount said it would continue to push the tender offer it has launched for the studio opposing the inferior Netflix merger and still plans to nominate directors for the upcoming Warner Bros. Annual meeting. All eyes are now on whether the CBS parent improves its offer, which Netflix is allowed to match under the terms of the merger agreement.

Tyler (18:49)

I don't see how Netflix actually gets approved on this one.

Jordy Hayes (18:54)

You think that. You think they're cooking?

Tyler (18:56)

I think. I think if. I think if Trump is souring on it, it's over.

Jordy Hayes (19:00)

I was so pilled on the whole. YouTube is the real competitor here. Watch Time matters more. Think about screen time. Roblox is a competitor in Netflix. TikTok's a competitor to Netflix. Fortnite's a competitor in Netflix. But yeah, I don't think.

Tyler (19:16)

But that's what they want.

Jordy Hayes (19:17)

Think like that. It's a very.

Tyler (19:18)

Yeah, you have to think about the entertainment industry, the core industry. People that make television shows and movies. Things. Things that you have, things that you have watched.

Jordy Hayes (19:28)

Movies that I have watched.

Tyler (19:29)

Meta has obtained a patent for an AI system that could simulate deceased users by analyzing their historical data, allowing the account to keep posting messaging and even making video calls in their behavioral style.

Jordy Hayes (19:43)

You thought I would stop posting after you killed me? Nice try.

Tyler (19:47)

Nice.

Jordy Hayes (19:47)

I will continue.

Tyler (19:49)

You just created a billion John Coogan.

Jordy Hayes (19:51)

You just created a billion John Coogan posts. Both satirical and. And 500 words.

Tyler (19:57)

Yeah. Family member sent me this this morning. Disturbed saying, is this real?

Jordy Hayes (20:03)

I'm surprised you can patent this. This is just like a thing.

Tyler (20:06)

Is this. Is this Meta thinking out you got population collapse?

Jordy Hayes (20:10)

No.

Tyler (20:10)

And obviously it's pretty hard to monetize a bot. But if you're driving in an AI

Jordy Hayes (20:16)

doom scenario where all humans are dead, you want to still keep your services up. You got to simulate all the dead people. Maybe, I don't know. Is this doom pilled?

Tyler (20:25)

What's the p. Do posters keep posting after death? There was a 4chan post apparently from a few years ago where somebody was like, I'm an engineer at Meta and they basically fully. I only saw a screenshot, may or may not have been real, but it appeared to be from a few years ago. And they were saying like, I'm working on this feature. It seems bad. Interesting timing. Obviously Mark has been in LA this week. He was Getting. He got grilled for.

Jordy Hayes (20:52)

Wait, that was in la? I thought that was in dc. Oh, yeah.

Tyler (20:55)

Kind of rude. Rude not to stop piping before he get deposed.

Jordy Hayes (21:01)

A little warm up on TVPN before you go in front of the big guy.

Tyler (21:06)

Yeah. So he spent six hours.

Jordy Hayes (21:08)

Okay.

Tyler (21:09)

Yesterday we call Mark Zuckerberg to the stand. Thus began Wednesday's nearly six hours of testimony from the Meta platform CEO in a trial of a lawsuit brought by a young woman against several.

Jordy Hayes (21:20)

And this was about benchmark hacking in llama 3. Is that what he's on trial for?

Tyler (21:24)

No, no, not as bad as that. Contending that social media potential weakness in the ad model.

Jordy Hayes (21:29)

Is that what it's about? Overspending on the Metaverse?

Tyler (21:31)

Concerns about distillation, I think.

Jordy Hayes (21:33)

Oh, distillation. Yeah, that's why he'd be on trial for that. Yeah, that makes sense.

Tyler (21:36)

Pretending that social media causes depression. It's a guy. Mark Lanier. Lanier, the plaintiff's attorney.

Jordy Hayes (21:43)

We gotta ask more.

Tyler (21:43)

In the landmark case, who spoke with a faint Texas twang, showed the courtroom dozens of internal emails and chats from Meta employees and executives over the years debating decisions like whether to ban the beauty filters Teen used teen's used on Instagram to mimic the results of plastic surgery. So anyways, there's a bunch. The features like that are kind of the focus of the case.

Jordy Hayes (22:02)

There's also. There's also a cover. A story on the COVID of the Wall Street Journal today. Social media bans for youth gain momentum worldwide. And it does feel like a parenting skill issue a little bit. Like, you know, it is possible to keep kids away from social media if you are, you know, an active parent. But at the same time, I don't know.

Tyler (22:24)

The only thing. The only thing I would say we don't have. We don't have.

Jordy Hayes (22:27)

You should ban it.

Tyler (22:28)

Children with phones yet.

Jordy Hayes (22:29)

Yeah, but that's deliberate.

Tyler (22:31)

Yeah, that's deliberate. But at a certain point, like what?

Jordy Hayes (22:33)

They would love phones.

Tyler (22:35)

Sure, sure.

Jordy Hayes (22:36)

They just will not be having them. Yeah, I mean, I know my plan. I will give my son a disassembled iPhone one. And when he can assemble it and. And piece it together and manufacture it himself here in America, then he can use it. And we already ran this on Tyler 20 years later. And then we. And then we did get Tyler a phone. This was a good benchmark. We got Tyler. Didn't we get you a real phone because of that? We did, right? Yeah, yeah, that was the reward.

Tyler (23:00)

Well, that was also because I installed the new iOS when it was still in and it totally destroyed my old phone.

Jordy Hayes (23:07)

We got to do another prank on Tyler soon. They're so good.

Tyler (23:10)

Yeah, chat if you have any good prank ideas, let us know.

Jordy Hayes (23:14)

Yeah. He's like, no, no, no, definitely not. Ebay is buying Depop second hand. Thanks, Andrew.

Tyler (23:21)

That was a good one. Andrew is the king of vc. Dad jokes.

Jordy Hayes (23:25)

He loves it.

Tyler (23:25)

He loves it.

Jordy Hayes (23:26)

It's fantastic. So ebay is buying Depop from Etsy for $1.2 billion. And this is in the Wall Street Journal. The addition of Depop to its portfolio would boost its footprint while also expanding its presence in the fashion market. We are confident that as a part of ebay, Depop will be even more well positioned for long term growth, benefiting from our scale, complementary offerings and operational capabilities. Ebay plans to cross list Depop products on its platform and expects the acquisition will expand its market share. Depop seller and buyer cohorts will gain access to ebay's financial services, shipping and cross border trade solutions, as well as its authenticity guarantee. Young consumers are a key demographic for ebay as Gen Z and millennial shoppers are driving secondhand commerce. Depop is also more popular as an app than a website, unlike ebay, which might bring in a new user base. So yeah, good luck.

Tyler (24:15)

Yeah, Ebay is still such a force, but it is certainly not cool. Depop is cool. Ebay has struggled. Jordy has spoken great business. Not. Not cool.

Jordy Hayes (24:27)

But do you know why they call it ebay? No. Because it was founded in East Bay.

Tyler (24:34)

Oh, by some East Bay rationalists.

Jordy Hayes (24:36)

Yeah, yeah, for sure. It was sort of a lesser wrong project.

Tyler (24:42)

Ara says we have a definitive answer now. I will affect the labor market starting with freelancers. First paper to use business level data to track AI versus labor. New paper from Ramp finds businesses are shifting spend from freelancers to AI. More than half of the businesses using freelancers in 2022 have stopped entirely. The companies that used to spend the most on freelancers shifted to AI. The first, fastest 97% savings for the businesses that spent the most on freelance. That is wild. Generally makes sense. I mean, the whole premise of freelance is like you probably get paid a lot better on an hourly basis. Maybe you can capture more value on a dollar basis by working, you know, spreading your talents across multiple companies. But obviously the flexibility comes with little to no lock in and so businesses can much more easily shift spend around. So not super surprising. The vibes have really shifted. Yes, terminally. Online engineer posted Daria's speech at the AI Impact Summit in India. Let's pull it up.

Jordy Hayes (25:50)

Yeah, let's watch this.

Dario (25:51)

Energy and ambition in this room and across India are incredible. I've been spending the last few days meeting with Indian builders and enterprises, and the energy to build together here is palpable unlike anywhere else. This is the fourth AI Summit we've held since the tradition was initiated at Bletchley park back in 2023, which I still remember. And in those 2.5 years, the advances in the technology have been absolutely staggering. Along with those, the advances in the commercial applications and the societal and ethical questions around the technology have only grown more urgent. My fundamental view is that AI has been on an exponential for the last 10 years and as part of a sort of Moore's Law for intelligence, and that we are now well advanced on that curve. And there are only a small number of years for AI models surpassing the cognitive capabilities of most humans.

Jordy Hayes (26:54)

For most things, the words that were said there sounded normal and fine and just normal. Dario, talking points. It's the reading from the phone that feels like you're a best man at a wedding who didn't really prepare. More good news if you're over 65. Congratulations. You own the economy. The Wall Street Journal is just blackmailing the elderly.

Tyler (27:19)

Perfect day to have a Sagar on.

Jordy Hayes (27:20)

Physically, financially healthier than ever. So why do their needs keep taking priority over younger generations? People over 70 are 12% of the population, but they got 32% of the dollars. They've been stacking paper for seven decades, and it's paying off. Demographics, rising profits, and soaring asset values have together wrought a quiet transformation in the American economy. The greatest wealth transfer in history is about to happen.

Tyler (27:46)

The Silver Tsunami.

Jordy Hayes (27:47)

Oh, is that what they call it?

Tyler (27:49)

Well, that's. That's in the small business acquisition community. They talk about like a bunch of. Most of the small businesses in America are owned by people that are near retirement age. They need it. They're going to have to turn over. Pass. Pass the torch at some point.

Jordy Hayes (28:03)

Yeah. America is really, really getting older. In 1981, 11.4% of America was over 65. 65 or over. Today that number is 18%.

Tyler (28:13)

Do you think some of these people have been Dming Zuck and saying, hey, look, I'm getting older. I still want to be posting money spreads on Instagram.

Jordy Hayes (28:23)

Yes, for sure.

Tyler (28:24)

That, you know, from. From the afterlife.

Jordy Hayes (28:26)

I'm not giving it away. I'm not passing it down. I want you to allocate it to. It is an interesting predicament that we are in as the elderly share of population and wealth grows. Their priorities and preferences shape the economy as well. They represent a growing share of consumer spending. Health care accounted for all of the net job growth in the last 12 months, reflecting the needs of an aging society. The problem is that while retiree wealth can finance a lot of consumption, workers have to produce what retirees consume. And relative to retirees workers numbers are dwindling. One solution would be for everyone to work longer. In 1983, Congress modified Social Security to gradually raise the full retirement age from 65 to 67. The share of people 65 or over participating in the labor force did creep higher until 2020. With the outbreak of COVID that year, labor force participation plunged for every group.

Tyler (29:19)

Eli says hey Little Caesars, I think this is maybe too many emails to send someone for ordering a single pizza. See John, look at this point proven 1.6 million views. Similar to bland 68,000 views.

Jordy Hayes (29:34)

And I'm one of them.

Tyler (29:35)

So what do they actually do? So they do they give you the receipt and then they say we're on it.

Jordy Hayes (29:40)

Yeah.

Tyler (29:40)

So after you got the receipt, you can't trust that they're on it. Yeah, you gotta wait until they send you another email.

Jordy Hayes (29:46)

We have received your order.

Tyler (29:48)

Almost ready. Your pizza is almost ready. Cause you would assume they're making pizzas pretty quick.

Jordy Hayes (29:52)

Go ahead and head over now because your pizza is almost ready.

Tyler (29:55)

Order loaded into pizza portal with a trademark.

Jordy Hayes (30:00)

Dear Eli, look for your name on the pizza portal in our lobby trademark

Tyler (30:02)

and use this code on the trademarked pizza portal. Pizza's ready. I bet you can't wait to enjoy your little Caesar's pizza. We understand. And it's waiting for you now.

Jordy Hayes (30:13)

That's amazing.

Tyler (30:14)

Are you on your way?

Jordy Hayes (30:15)

No.

Tyler (30:16)

Dear Eli, your pizza's been waiting in the trademarked pizza portal for a few minutes now. Space in our pizza portals are limited. Cold pizza. I hope you. Dear Eli, I hope you like cold pizza because it's been over 10 minutes since your pizza has been placed in the pizza portal. In the trademarked pizza portal. Order picked up. Hey, can you imagine?

Jordy Hayes (30:38)

Are you there?

Tyler (30:39)

Can you imagine the jump scare on the cold pizza on the subject line that's got to have the highest open rate.

Jordy Hayes (30:46)

Wow. Anyway, leave us five stars on Apple podcasts and Spotify and we'll see you tomorrow.

Tyler (30:50)

Have a best evening.