Happy Saturday,

The New York Yankees just ended their 50-year “no beards allowed” rule. But there’s a catch—players must maintain a “well-groomed, clean look.” Translation: James Harden—yes. Keanu Reeves—no.

Turns out, facial hair is having a moment. Just ask Pringles which ran a Super Bowl spot celebrating epic facial hair—featuring Nick Offerman’s mustache, James Harden’s beard, and Andy Reid’s legendary stache.

Btw, this is a beard-friendly podcast. 🧔🧔🏻‍♂️

🏷️ How Wall Street Decides Price Tags

Celsius Energy is buying energy drink icon, Alani Nu for $1.8B—Alani is the Kim K of energy drinks. But we’re here to break down its acquisition price—bacause it’s also a lesson in Wall Street valuation.

To sprinkle on some context: In 2023, Celsius was the top-performing energy drink stock with a 4,000% surge over five years, but it cooled off, dropping 75% in two quarters in North America. Last Friday’s surge marked its best day in years, fueled by this bold acquisition.

The plot twist: Despite all the buzz around liquor, beer, sparkling water, spiked seltzer, and prebiotic sodas, one beverage category is beating them all: energy drinks. But here’s the interesting detail—2x as many men buy energy drinks as women. Why? Because the industry markets to men... until Alani Nu.

How Wall Street Calculates Valuations:

Wall Street values companies using Multiples—a simple formula:

Multiple x Revenue = Sale Price 

Recent food & beverage deals show how this plays out:

• 🥣 Simple Mills: 3.5× sales

• 👻 Ghost Energy: 3× sales

• 🥑 Siete Foods: 2.5× sales

• Average Multiple: 3× sales

Now, plug in Alani Nu:
With $600M in revenue and a 3× multiple, the math checks out—$1.8B was the deal price.

The Takeaway 💰

Money follows Multiples. Multiples help Wall Street predict billion-dollar deals based on past industry trends.

📈 Our Hedge Stock for Investors

Alibaba is making a comeback. Once known as China’s Amazon under Jack Ma, it nearly hit a $1T valuation before controversy sent its stock tumbling 80%. Now, with Ma back in President Xi’s good graces, the stock is up 70% this year. Here's why:

• AGI as the New Religion: Alibaba is pivoting to artificial general intelligence—a breakthrough predicted by Microsoft’s CEO to triple global GDP growth.

• Tech Glow Up: The company is aiming to transform from a dominant e-commerce platform into China’s version of OpenAI, even partnering with Apple to power iPhones across China.

• Rock-Solid Roots: With a massive, profitable core business, Alibaba remains a dominant force in Chinese e-commerce.

The Takeaway 🤔

For investors, Alibaba isn’t just China’s Amazon—it’s our hedge stock against America. In the global tech race, Alibaba stands out as our hedge stock against American tech dominance. If China wins the trade war and the AI race, Alibaba wins too.

Not investment advice—just a front-row seat to how trends are shifting global power.

Financial Trickshot 😎

A low-cost, high-return strategy for maximum impact with minimum effort.

Weekday Vacay: If you can, take a spontaneous weekday off—stay home or take a day trip. It’s that much more satisfying when it’s not for a big trip. Your PTO won’t use itself, and there’s just one month left in Q1.

👯‍♀️ Tell a Bestie:

These are the headlines from our “Headline Hammer” of potential stories for the show each morning that we couldn’t fit on the pod.

• 💰 Spend Elon’s fortune? There’s a website for that.

• 🛏️ M&M’s hosting a sleepover. No Skittles allowed in the store.

• ⚡ A whole chain of Harry Potter stores is coming to Chicago.

• 🐶 Paw Patrol’s biz is booming. Stand down Peppa Pig.

• 🎂 Happy Birthday, Oreo. You never looked a second over 5 minutes.

• 👗 Fashion’s toughest job? Being a “Creative Director.”

The Best Idea Yet 🚦

A bold experiment—In the 1960s, Joan Ganz Cooney and Lloyd Morrisett saw kids memorizing jingles but struggling with the alphabet. The result? Sesame Street.

Get the untold story on the latest episode our weekly show, The Best Idea Yet.

This weekend, listen to the untold origin stories of the products you’re obsessed with… New 45-minute episodes drop every Tuesday… it’s simply The Best Idea Yet.

And one more thing. Jack is on paternity leave this week, so we’re treating you to 3 bonus episodes! Enjoy some extra content while he’s away. Next week, we’ll drop 2 more episodes before returning to our regular programming schedule. Jack will update you on his return—including the new name and other fun details. Stay tuned and enjoy the bonus treats.

Jack & Alex welcomed their 3rd child early this week. The baby is doing fantastically and the whole fam enjoyed a week of nesting together. Here’s the text Jack sent to the TBOY team (and now to you) with his IBO (initial baby offering).

Celebrate the wins ✨

— Nick & Jack