Motley Fool Hidden Gems Investing - The Election, The Fed, and What’s Next

Episode Date: November 8, 2024

The market appreciates certainty – this week it got a clear read on the next political administration and the near-term interest rate outlook. We break it all down, and give you a little reset from all the big picture talk.  (00:40) Jason Moser and Bill Mann discuss: - The market’s reaction to the 2024 election and some of the sectors that might benefit from the policies of the Trump administration.  - At all-time highs after earnings, will the good times keep rolling for Axon and Palantir?  - Airbnb’s solid, but mature business, and why it is looking for other major segments to fuel the next chapters of growth. (19:04) We go back into the Fool vault for a palate cleanser – In a conversation from the original Motley Fool Radio Show in 2002 Tom and David Gardner interview Mr. Roger’s. They get everybody’s favorite neighbor to share his thoughts on how early experiences shape our relationship with money, the story behind his show, and the best gift any of us can give. (28:14) Jason and Matt talk through two stocks on their radar: The Trade Desk and Ferrari. Stocks discussed: AFRM, AXON, PLTR, ABNB, TTD, RACE Host: Dylan Lewis Guests: Bill Mann, Jason Moser, David Gardner, Tom Gardner, Fred Rogers Engineers: Rick Engdahl Learn more about your ad choices. Visit megaphone.fm/adchoices

We've got election results, Fed decisions, and updates from Uncle Warren to sort through. Motley Fool Money starts now. Everybody needs money. That's why they call it money. From Fool Global Headquarters, this is Motley Fool Money. It's the Motley Fool Money Radio Show. I'm Dylan Lewis. Joining me over the airwaves, Motley Fool Senior Analyst Jason Moser and Bill Mann.

Fools, great to have you both here. Hey. Nice to be with you on a quiet week. Yeah, yeah. It's been a bit noisy in the market. Busy. There has been a lot of headlines, a lot of stuff for us to sort through. I am very, very happy to have you both with me to do it.

We have some humongous earnings reactions. We have updates on interest rates, and we also have some election results that we have to process. I think we should probably kick off there. Bill, after a wild lead up, it turns out the betting markets had it right. Donald Trump will be our 47th president. We saw the market process this, and we saw it process it in a lot of different ways. Stocks, crypto, the US dollar marching on. What jumped out to you as you saw market digest the election results? Well, it's the first election result that we've had in 12 years in which the outcome really was not in doubt within the same day of the election. Both of the last two were contended for days and months, and in some ways, in very disturbing ways after

of the election, this time it was perfectly clear. And so what you've seen in the stock market is a recognition of a risk factor or an uncertainty factor being ripped away. We know for a fact that the Republicans are going to take power and that Donald Trump will be the next president of the United States. And whatever you think about that outcome, the fact is that the market moves on uncertainty, and this is an uncertainty factor that has now been decided. I think maybe adding to that certainty factor a little bit, President-elect Trump will be only the second president to ever serve two non-consecutive terms, the other being Grover Cleveland back in the late 1800s, and that is a fun piece of trivia, but I think I also

want to highlight it because, Jason, to some extent, there is a decent sense of the priorities for his administration, because we have seen this administration in some form before. Yeah, I mean, that's a really good point. There is at least a somewhat of a track record to go on there. With that said, there are still plenty of unknowns. I mean, I like what Bill said. I mean, to me, this really kind of all boils down to two words and certainty being one of them. We just we just know, I mean, the results are the results, and we're just moving forward. And the other one is policy. And I think we saw the initial reaction on Wall Street from this. The general consensus is there that President-elect Trump's policies will be good for the economy, good for growth, good for business. Now, it bears remembering, I mean, that is what we think, but we don't know until we actually know, right? I mean, a lot of this is just supposition and forecasting.

But I do think there's a good chance that this is likely a good thing for more highly regulated industries. I mean, thinking of things like banks, financials, even energy, the energy thing, I think, is interesting. You know, we'll absolutely, I think, see an effort to exploit a little bit more of our oil and natural gas assets here at home. And yet that cozy relationship that he's developed with Elon Musk seems to kind of run counter to that. But I mean, just for example, in regard to financials and banks, the KBW Bank Index, which is an index that tracks the performance of the leading publicly traded banks here domestically, that was up 11% on this news. And that's versus the S&Ps going up about 2.5%. And to be very clear, when the S&P goes up 2.5% in one day, that is really good. And that's a lot.

So, I mean, to see the enthusiasm there in the financial sector alone, I think, was very telling. We also saw some enthusiasm with companies that have crypto upside. Coinbase and Robinhood up immediately after the election. Bill Trump has positioned himself as a crypto-friendly candidate and one that I think would try to advance cryptocurrencies. Any thoughts there? Yeah. I mean, there have been some rumors that crypto might even become part of the federal balance sheet. I think that that's probably a very long putt, but it definitely portends for a federal acceptance or less of an adversarial relationship between the federal government and the regulation of Bitcoin and other cryptocurrencies. And any day we get a golf reference in Motley Fool money, that's a good day. Thanks, Bill.

Hey, now, investors also got a little bit more clarity this week after the Fed reduced interest rates by a quarter of a point. This was expected, but Jason, still something the market was cheering for. And I imagine a lot of consumers were probably happy to see. I think so. And I think that, you know, in regard to the election, you think, well, the inflation story was kind of it was very good timing for President-elect Trump. Now, I don't think we're out of the woods yet. I think that's going to be the big question there, because as the Fed continues to kind of pull this interest rate policy back down, it's going to take some time to see that kind of flow through the financials and see longer term rates reflect that. Right. We're not really seeing it materially yet. And in regard to inflation, you know, I mean, the simple definition of inflation is just too many dollars chasing too few goods and services. And so, you know, when you look at the root causes of inflation, big spending can can be a core root cause of it.

So so it really is something we're going to have to pay attention to in the coming year and beyond to see exactly how that shakes out. Because if inflation is not fully contained, then that, I think, is going to alter not only the Fed's policy, but certainly this administration's policy in the coming years. This rate cut was anticipated. It seems the market is pricing in another one for December. And Bill, as we look out beyond that, I imagine we kind of have to enter a little bit of a TBD territory, to Jason's point, because in addition to seeing how these rate cuts settle out in the lending environment, we also have to see how the policy and plans wind up taking shape for the administration as it comes in in January. We always think of interest rates and the Federal Reserve's tools as being precise, and they're not. I mean, these are giant sledgehammers. And economists have estimated that it takes about nine months for a change in Fed rate policy to really get into the market. So when we talk about

the next rate cut, the next rate cut, you have to understand that the Federal Reserve is not looking at the effect of this one. They are looking at the effect of this one plus what they think might happen with the next one. So one of the more interesting comments that I saw from the report was that they mentioned that inflation had made progress towards its 2% objective, but was somewhat elevated still, which meant that inflation is still too high in terms of what their policy target level is. But they are looking now at really trying to land the plane very calmly and smoothly. And that means moving back into a more accommodative position, even though inflation is elevated. We see rates heading down. We know that's generally good news for lenders and for

companies that are reliant on consumer spend. Certainly the case with Affirm. Bill, they reported earnings this week, gave a little bit of an update on the buy now, pay later space and consumer financing. What'd you see with the earnings results? It was a blowout report for them. Their revenue was up. It was just shy of $700 million for the quarter. That's up 41% year-over-year. They did have a net loss, but that's pretty typical for a company at this stage of the game. Their free cash flow was up. It was a really, really good quarter for them. Their CEO, Max Levchin, said that they galloped out of the gates, which is about as positive as you can get for any company, not Palantir, which we'll talk about. More on that later.

More on that later. Stay with us. But the really interesting thing about a company like a firm in this space is that they are very much reliant upon interest rates. And the fact that rates are coming down a little bit gives them some opportunity to provide lower rate products to their higher value customers. All right, Fools, coming up after the break, we've got updates from two of the best performing companies of 2024, including, yes, Palantir. Will the good times continue? Stay right here. This is Motley Fool Money. Welcome back to Motley Fool Money. I'm Dylan Lewis, here on air with Motley Fool analysts Bill Mann and Jason Moser. A stellar 2024 continues for Axon and Jason.

As a shareholder, as someone who has the company as my largest holding, absolutely thrilled. Dylan, I'm not going to lie. I am a shareholder as well. I've recommended this a number of times through a number of our services. And unlike what Axon is selling, these results, they were not shocking to me. Very encouraging to see. But to me, I mean, this was just, it seems like every quarter, we're just saying it's the same old story, right? quarter in and quarter out. And I mean that in a very good way. And to me, the comparison here,

to me, Axon feels like the, this feels like the apple of public safety. I mean, they have this market leading hardware that they just continue to invest in and iterate upon. And then they've got this software ecosystem to support it all. It generates just a ton of money that they can just continue to plow back into this business and invest in new things to bring more products and services to their customers that are focused on these public safety needs. And the numbers just tell the tale, right? Revenue of $554 million. That was up 32% from a year ago.

It was their 11th consecutive quarter of revenue growth above 25%, adjusted earnings of $1.45. We saw the Axon Cloud and services segment of the business perform very strongly. That revenue was up 36% to $203 million. And then I think one of the more encouraging things here, and I think this is one of the reasons why this stock garners such a premium multiple, such a premium valuation, is because there is certainty. Going back to the top of the show, right? We love certainty. And this annual recurring revenue growth of 36% now, $885 million. And then to top it all off, they raised guidance across the board.

They see now the full-year revenue outlook around $2.07 billion. That would represent better than 32% growth from the previous year as well. So, listen, you see them continue to bring in more customers. We see that net revenue retention continue to be strong. I think 123% we saw that in the Axon evidence this quarter. Just a lot of things going well for this business. Yeah, I've always thought of Axon as this kind of wonderful combination of tech business in terms of financials with the certainty, with the high floor of government contracts. We have another company that has taken notice of that model.

That's Palantir. Earnings out from the big data company this week. Bill, the market absolutely loved what the company was selling. Shares up over 30%. What did you see? Well, I mean, you want to talk about a company that has made its hay in government contracts and is moving into the commercial. space. Palantir's results were astounding. And going into them, the stock was already up about 140% year over year. So there were huge expectations were built in. So their sales

increased 30% to $725 million, way, way above estimates. They reported net income of $144 million, also a record for the company. But Dylan, how's this for confidence? I don't think I'm ever going to miss a palantir conference call again because ceo alex carp came out and said given how strong our results are i almost feel like we should just go home wow that's a mic drop right there well he wasn't done he then said the winners in ai will be powered by palantir and the losers will read analyst notes that's a bold statement so palantir is a company that has huge expectations built into its its stock i mean it's 133 billion dollar company and on a run rate it's got about three billion dollars

in revenues that is the expectations are massive in that are that palantir has to meet but you know again, they're announcing partnership after partnership. The shares are up 30% of the week on the week. Meta announced a partnership, AWS, Accenture, the Navy, even Wendy's announced a partnership this week with Palantir. Well, when you book Big Red, you know that you are onto something. Jason kind of talked a little bit about the valuation side of things with Axon. You mentioned the market cap and where it's at in terms of earnings right now. I think about 280 times earnings for Palantir, about 120 times for Axon. Both have had stellar years, both at all-time highs, both have nosebleed valuations. Jason, are you concerned about

either of these businesses? I mean, it is concerning to an extent. I mean, I think valuation always does matter. It's just, it's difficult to discern sometimes, again, kind of going back to the reasons why I see Axon getting that premium valuation. I mean, there's very understandable reasons, right? Now, Palantir, to me, it's a little bit more out of my comfort zone because I think it's a little bit more of a difficult business to understand personally, whereas Axon, I think, is a little bit easier to understand. But there's just absolutely no question. You need to keep those valuation observations in mind whenever you're talking about investing in individual stocks. Bill, what about you?

Yeah. I mean, before Palantir's earnings, there were analyst quotes that called the valuation unsustainable. Another analyst said that unless there was a huge beaten raise, the valuation is unsustainable. This company became a bit of a Rorschach test. I mean, the stock has gone up a tremendous amount. Now, in some ways, especially for growth companies, a really high stock price gives them the opportunity to raise capital using a very highly priced stock. So there is some reflexivity to what they have. I have a really hard time getting excited about companies at these valuations. But let's just face facts. The bulls were right. A little bit less of a party going on over at Airbnb this week. The short-term

rentals company down about 8% after earnings. And it feels weird to say, Jason, but it almost looks like Airbnb is a bit of a mature business for its major market. Well, it is. And I mean, that's the thing about this company, right? It's already a massive business. I mean, much like Uber when Uber went public, it just, yeah, it's serving a big market opportunity, but it's already a really big company to begin with. I mean, the numbers were encouraging. I mean, revenue was up 10% from a year ago to $3.7 billion. They saw gross booking volume up 10% with those nights and experiences booked up 8%. And we've said it before, this business is a free cash flow machine, $1.1 billion just in the quarter and $4.1 billion on the trailing 12 months. Encouragingly,

they saw stronger performance in Latin America and Asia Pacific. Then I think even more encouraging than that, if you remember last quarter, we were talking about this narrative of headwinds in global lead times. They're starting to see that normalized. Maybe we're seeing a little bit more clarity, a little bit more demand through that platform, but big company already for sure. And I do hear your dogs in the background there, Jason. I get it. They want more Airbnbs to be pet friendly. Brian Chesky, CEO, will work on that. Bill, I want to get your take on something that Brian Chesky mentioned in the earnings call. He is a student of Amazon's playbook and growing by expanding into adjacent markets. He said, what I expect is every year from now

for the coming years, we will launch one to two businesses that will generate one billion or more in revenue incrementally per year, looking for some adjacent markets beyond travel to go into. What do you think of that? I'm going to take exception a little bit to the fact that you said that there was no party. There's a party going on at Airbnb, but it's 2.30 in the morning and someone's playing Pantera. Time to get out of the house. Yeah. So some of this has to do with the fact that what you're seeing with Airbnb, if you just look at the news headlines for Airbnb, It's Hungary is quadrupling tax. They're trying to figure out how to get New York City to scale back some of its restrictions. How neighbors are frustrated by hosts. Airbnb itself has statutory limitations on how much it can grow by virtue of these types of issues with people. So the fact is, they're trying to get into adjacent businesses. We'll see if they succeed, but he seems determined that the limits in their core business is not going to stop this company.

All right, Bill, Jason, we'll bring you guys back a little bit later in the show. Up next, enough with the election talk. We're going back to the full archive for one of my favorite interviews of all time. Stay right here. You're listening to Mountain Full Money. Welcome back to Motley Fool Money. I'm Dylan Lewis. After months and months of political messages on TV and runaway comment threads on social media, I think we could all use a palate cleanser. This week, I went back into the Fool Vault and pulled one of my favorite interviews from the past.

It's Tom and David Gardner with Mr. Rogers. Yes, Mr. Fred Rogers of the neighborhood. Tom and David had him on the original Motley Fool radio show back in 2002, and they had everyone's favorite neighbor sharing his thoughts on how early experiences shape our relationship with money, the story behind his show, and the best gift any of us can give. Fred Rogers, Mr. Rogers, welcome to the Motley Fool Radio Show. Thank you, Brothers Gardner. Let me ask Fred Rogers, when did you first come up with the idea for Mr. Rogers' Neighborhood? Well, it wasn't my idea. As a matter of fact, I went to Toronto to

do a program thinking that I was going to go and do puppets and music as I had always done here. And Dr. Frederick Rainsbury said to me, you know, I've seen you talk with children. I'd like to translate that to the screen. So let's just do that and call it Mr. Rogers. Well, that was quite a switch for me. I had never been on the screen before. Did you ever think of your work as a business. Was this a career for you, something that you loved to do that you didn't think of as a career, or both? Oh, I think it's always been a ministry for me. I've felt that what people really want is to be in touch with somebody who cares about them and wants to appreciate them. And so through the neighborhood, we've been able to do that a lot.

I mean, we have wonderful guests, and those people who come to offer their own talents seems to me to be a great thing to do. Let's talk about your new book, Mr. Rogers' Parenting Book. What one or two tips can you give to my brother, who I think overall is doing a very good job with his three kids, but we can all self-improvement. It's an ongoing process. Well, I think one of the best things that we can do as parents is to remember what it was like to be a child. You know, get to know who the children are. Ask them to help you.

Introduce them to people of excellence and tell them what you expect of them and expect their best, but not perfection. And so let me ask, what do you think parents should be teaching their kids about money? I feel that feelings about money, you know, saving and spending, holding back and letting go, start very early in our lives. You know, stingy people have often been forced to give when they were very young, when they weren't ready. And generous people have

often been really appreciated when they were very young. And, you know, I think it's so important to remember that everyone has something to give. Everyone has something to give. And everyone needs something to receive. There isn't anybody in the world who is completely self-sufficient. and there isn't anyone who doesn't have at least something to give. You were born in the western Pennsylvania town of La Trobe in 1928, that, of course, a year before the stock market crashed and the Great Depression began. There are a lot of people today who are looking at their financial situation after what's happened with the market and reevaluating their priorities.

What was your experience with money growing up during and just after the Great Depression? I think most of us who grew up in the Depression are quite conscious of being careful with money and other things. I mean, probably the roots of my recycling start in the Depression. I recycle everything I possibly can find. You know, I'll stop my car and pick up a plastic bottle on the street and take it home to recycle. But when the tenor of the whole country is such that everything is limited, that sticks with you.

You know, I was only two, three, four years old at that time. And yet you get those attitudes from the people that you live with, those who are closest to you. Mr. Rogers, since both Tom and I grew up watching your show, we're well aware of you as a persona. That's why I have to ask, is Fred Rogers Fred Rogers? My wife says it best. People say to her, is he really like that? And she said, what you see is what you get. And I don't know whether you sense that from our visit here today,

But I think the greatest gift that anybody can give anybody else, as a matter of fact, the only unique gift that anybody can give is his or her honest self. You know, nobody could give you, Dave, to anybody else. Nobody could give you, Tom, to anybody else. You're the only one who can give yourself to somebody else. It makes complete sense, and obviously you have lived what you've just described. And I think when I think about back watching your show, and as I hear you speak now, you project such a sense of calmness. You create a tremendous sense of calm in the people who listen to you.

Do you ever go a little bit crazy? Do you ever get angry? Oh, sure. In fact, I wrote a song, What do you do with the mad that you feel when you feel so mad you could bite? Well, a little child said that once, and I get angry when I think that justice isn't being served. And to me, justice is taking care of those

who aren't able to take care of themselves. so that's the kind of thing that can get up my ire well you ask right let's talk a little bit more about justice just briefly some of our listeners may not know that you're also an ordained presbyterian minister and as someone who's spent your life talking about values living those values what's your take on some of the scandals that have played out in corporate america over the last few years speaking about not taking care of the people that we work with in many cases. Exactly. Well, what do you think it is that drives people to want far more than they could ever use or need? I frankly think it's insecurity. How do we let the world know

that the trappings of this life are not the things that are ultimately important for being accepted that's what i've tried to do all through the years with the neighborhood you know it's you i like it's not the things you wear it's not the way you do your hair but it's you i like the way you are right now the way down deep inside you not the things that hide you not your fancy toys they're just beside you but it's you i like every part of you your skin your eyes your feelings whether old or new i hope that you'll remember even when you're feeling blue that it's you i like it's you yourself it's you it's a beautiful day in this neighborhood a beautiful day for a neighbor would you be mine could you be mine fools as we switch

from election season over to holiday season give your greatest gift your honest unique self and take care of the people around you we'll be back in a minute with a few more stories from the market this week and stocks on our radar stay right here you're listening to my full money As always, people on the program may have interest in the stocks they talk about, and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. In Fool's all-personal finance content follows Motley Fool editorial standards and is not approved by advertisers.

Motley Fool only picks products that I'd personally recommend to friends like you. I'm Dylan Lewis, back with Motley Fool Money, and joined again by Bill Mann and Jason Moser. Gents, in our last segment, we heard from one of the all-time great sources of wisdom, Mr. Rogers. This week, the market got an update from its oracle, Warren Buffett, earnings out from his Berkshire Hathaway over the weekend. And in a lot of ways, Bill, it feels like a quarter where Berkshire has continued to do all of the things it's been doing over the past year. Yeah. The thing that people have focused on with Berkshire, and I don't want to call this

quiet or a secret, but the fact is that Berkshire has made a tremendous amount of money buying shares in Apple, and it has begun to sell them. It has now sold down about 60% of its Apple shareholdings. It still holds nearly $70 billion worth of Apple. And Berkshire now has a cash pile of more than $325 billion. If I could provide some scope around that, if you were the only shareholder of Berkshire Hathaway, you would have a cash pile of $325 billion. Roughly a third of the market cap of the company, Bill. Yeah. It's astounding that Berkshire has been able to return what it has over time, holding so much in cash. They have been buying some other things. They bought shares

of SiriusXM. Oddly enough, they didn't buy back any shares of Berkshire Hathaway over this last quarter, which they have been doing in the past. The A shares are a hair under $700,000 per share. I think Buffett is saying that they are at least fairly valued at the moment. Yeah. Putting two of those different points together there, all-time high cash position, not buying back its own shares. Jason, I think observers in the market would say maybe there is some judgment that Berkshire and Buffett are making about valuations, about wanting to have some extra cash and be opportunistic. Do you read anything into that? I mean, not much more than essentially what you said there. I think it's clear that maybe he just

doesn't see his own shares as representative of a terrific value today. Building up that cash on the balance sheet, I mean, we could read all into that and break that down in a number of different ways. The going logic there is, he's probably making a little bit of a macro call in saying that valuations right now just don't look all that attractive for what he wants. He's perhaps trying to put some money aside for a more meaningful acquisition, because as we know, with a company of this size, in order to meaningfully grow, I mean, you have to make meaningful acquisitions. And that requires a ton of capital, which thankfully they have. And there are probably some questions that are fair questions regarding the legacy.

I mean, he is not getting any younger. And I don't mean that in the bad way there, but he's probably thinking about that a little bit. But but yeah, I think one thing I wanted to point out to this a little bit of a non sequitur, but I still think it's just so interesting because Mary Long and I had a conversation about this earlier in the week. And, you know, one of the questions there is like, why does Berkshire Hathaway always announce earnings on, you know, like a Saturday or Friday night or a Saturday? Why don't why don't we find out about it during like the normal business hours of the week? And this actually goes back to I mean, this is something I think he's felt for a while. But you can go back, actually, to a shareholder letter in 2018 where he said it, and I quote, media reports sometimes highlight figures that unnecessarily frighten or encourage many readers or viewers. We will attempt to alleviate this problem by continuing our practice of publishing financial reports late on Friday, well after the markets close, or early on Saturday morning, end quote.

So there's your answer right there as to why they do what they do. And you know what? I like it. You know, it reminds me a little bit of the long, time-tested approach of never splitting those voting shares, right? I mean, it's one of those, we are going to live our principles here and make it very obvious how we feel about these things. Absolutely. All right, we're going to have a little bit of fun before we head over to stocks on our radar. With Halloween and the election in our rear view, we are right on to the holiday season. Get ready for Mariah Carey, people.

and the holiday she's warming up the pipes the holiday ads are here i've certainly been seeing them on my tv including a trailer for red one fools i'm going to read you the two-sentence summary for this one and then i want your take when a villain kidnaps santa claus from the north pole an elf that's elf or extremely large and formidable operative joins forces with the world's most accomplished tracker to find him and save christmas this is the rock and chris evans teaming up to save santa bill i can see you barely holding it together as we tape this i i'm i'm gonna watch this 100 probability despite the fact that jonathan it conan a reviewer said it's a film so bereft of genuine emotion that i can't imagine even the most desperate christmas fans getting

anything out of it i don't think he understands what is happening with this movie it comes out november 15th jason will you be joining bill in watching this i yeah i feel like this has to be one that i i mean i've got to give it a shot that trailer is compelling and and i'll tell you i i so i after we we talked about this earlier i slapped all right i i texted my daughters this trailer right there there's sophomores and junior and or a sophomore freshman in college my older daughter older daughter texted me right back she said that is a fever dream of a trailer and so i to me yeah i feel like we got to watch it because this is if anything it's it's it's creative it's something different and maybe it's what i would call a santa claus for the next generation it

could be entertaining i you know listen i love getting out there and try something different I just want to know why Jonathan Aitkonen hates fever dreams. I was going to say, you know, bereft of emotion, sometimes part of the holiday tradition for some people, Bill, you know. Let's get over to stocks on our radar. Our man behind the glass, Rick Engdahl, is going to hit you with a question. Bill, last time you were on, you didn't get the win, but you were the people's champ. You brought us a radar stock that was more a cautionary tale with Supermicro. What are you bringing to us this week?

I want to talk about the most valuable car company in Europe. A lot of people might think it's Mercedes. They might think that it's BMW. No, it's Ferrari. Ferrari came out with a quarter, and their shipments were down. Basically, they came out and said, this still shows the power of the Ferrari brand. Sales down 29% in China. One of the things that Ferrari pointed out was that their results were driven by strong personalizations of the cars. Meanwhile, an article came out a few weeks ago that said that the highly customized Ferraris were seeing their prices collapse because they have, as they described it, markets of one. So people are seeing the cars and they're like, you know, it would really be great if the people

who had all this money had an ounce of taste. So I think it's going to be really interesting to see how the secondary market, the newly used market impacts Ferrari's car sales over the next year. You know, the long held quote, the customer is always right. It needs to be completed there in matters of taste. They are always happy to sell you whatever you think looks good. Rick, a question about Ferrari ticker R-A-C-E. Bill, have you ever driven or ridden in a Ferrari And is it like a $300,000 experience? I'm just kidding. It's incredible.

Yes. My neighbor across the street from me has a Ferrari and it is an automatic, not a stick shift. And so he has a pedal that is in the place of where the clutch engage would be. And that pedal, which is fake, cost $3,000 to install. Jason, what's on your radar this week, and what does your neighbor drive? I'm not going to get into what my neighbors drive, because frankly, I'm not even sure. I'd have to think about that one for a second. I barely leave the house at this point.

But no, I think in line with earnings week, here we've got the trade desk, a ticker is TTD. A little bit of a negative reaction today on the results, but still very encouraging results, right? Revenue of $628 million, growth of 27% there. Now, this is a business that brings in around $2.3 billion in annual revenue and growing. They quoted a $1 trillion total available market in the release. I mean, even if you give that a nice, healthy discount, which I think you should, I think that still shows the potential of this business. The connected TV segment of the business remains the fastest-growing part of the business.

They've got partners like Disney, NBC, Walmart, Roku, Netflix. You get my drift. This is something where I think the trade desk is going to continue to make inroads there. And, you know, Jeff Green on the conference call, he kind of went into a roadmap there, talking about the 10 landscape changes that are really driving their opportunity. I just was very encouraged by the quarter as a shareholder, as someone who's believed in this stock for a while. And finally, just don't sleep on the audio opportunity. They mentioned it 20 times in the call.

And this recently expanded relationship with Spotify, I think, will bear fruit over many years to come. Rick, I don't know if I have time for a question on the trade desk. I'm going to throw it to you. Fancy cars, connected TV. Which one are you going with this week? Vroom, vroom. Hey. Vroom, vroom.

Sound effects. Love it. Jason, Bill, appreciate you bringing your radar stocks. Rick, appreciate you weighing in with the onomatopoeia as well. That's going to do it for this week's Motley Fool Money radio show. The show is mixed by Rick Engdahl. I'm Dylan Lewis. Thanks for listening.

We'll see you next time. Thank you.