Wile E. Coyote vs. The Road Runner: Can Anyone Catch Elon Musk’s FSD Hype?

During their recent episode, Taylor, Carlisle, Daniel, and Collins discussed Wile E. Coyote vs. The Road Runner: Can Anyone Catch Elon Musk’s FSD Hype?, here’s an excerpt from the episode:

Vincent: I have a question for you, guys. But first, this morning, just as a running joke, because Friday after the close, Elon pulled one of his great narrative shifts of FSD in a definitive time date. We were playing for about 10 minutes, 15 minutes and it became a bit addictive and intoxicating. Porter sent me a YouTube of the Wile E. Coyote and the Road Runner, and just saying, “Well, we know who the Roadrunner is Musk, and we’re the Wile E. Coyote.” And every time you think you got him, he just goes, beep, beep, and he just blows you out and like, you just can’t really catch him at all. It was a good 15 minutes laugh knowing that you were probably going to get squeezed today again because of this robotaxi narrative.

Recently, it’s not where we typically play, but some of the consumer discretionary names like Starbucks, Nike and the like have really come in. McDonald’s. McDonald’s, not discretionary, but have really come in hard. Have you guys started looking at them or thinking about them?

Tobias: There’s a few things in the screen. I see FIS, Lacroix and a few other things that I have seen. But I wonder if there’s a bigger– [crosstalk]

Jake: My guess is that’s China related. Both Nike and Starbucks, a big component of their future growth expansion plans are China related. And so, if you start to chop that terminal value out, you can bring the price in a fair amount.

Porter: They tell me Lululemon tight pants are out of style. I don’t know, I’ll take the over on that.

Tobias: Well, there’s half my– Was it finished?

[laughter]

Jake: I think, yeah, someone mentioned Hershey as well. A few things have come in. I think a lot of that is direct to consumer. Like, a lot of stuff that was had to go, he had to advertise and then you had to get it in. And Keurig Dr Pepper might be another one.

Porter: Look at Hershey. Stocks come in, but it’s still 20 times earnings. Jake was asking us about inflation. Cocoa prices, it looks better than Nvidia. So, their input prices have just quadrupled and the stocks still 20 times estimates. As we’ve talked about a lot, there’s a big gap between where ETFs growth people buy stocks and where real people buy stocks and cheap valuations.

Tobias: Where did you get to on Keurig Dr Pepper? Did you–?

Porter: I haven’t done the work yet, honestly. But I was intrigued.

Tobias: In those big shifts, when those guys make those big buys, is it enough to move the stock?

Vincent: No.

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