Motley Fool Money - Amazon Wants More Power

Episode Date: June 27, 2025

Amazon’s latest data center will require the same amount of electricity as one million homes. (00:21) Jason Moser and Matt Argersinger join Ricky Mulvey to discuss: - The data center spending boom. - Hims & Hers messy breakup with Novo Nordisk. - Overrated and underrated business stories from the year so far. (19:11) Progyny CEO, Peter Anevski, joins Tim Beyers and Holly Anderson to discuss the growth path ahead for the health benefits company. (31:28) Jason and Matt discuss Disney’s box office struggle with “Elio” and offer up two radar stocks: Uber and Otis Worldwide. Companies discussed: AMZN, HIMS, NVO, TSLA, PGNY, DIS, UBER, OTIS Host: Ricky Mulvey Guests: Jason Moser, Matt Argersinger, Tim Beyers, Holly Anderson, Peter Anevski Engineer: Dan Boyd Advertisements are sponsored content and provided for informational purposes only. The Motley Fool and its affiliates (collectively, "TMF") do not endorse, recommend, or verify the accuracy or completeness of the statements made within advertisements. TMF is not involved in the offer, sale, or solicitation of any securities advertised herein and makes no representations regarding the suitability, or risks associated with any investment opportunity presented. Investors should conduct their own due diligence and consult with legal, tax, and financial advisors before making any investment decisions. TMF assumes no responsibility for any losses or damages arising from this advertisement. Learn more about your ad choices. Visit megaphone.fm/adchoices

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Amazon needs more power. You're listening to Motley Fool Money. That's why they call it money. The global headquarters. This is Motley Full Money Radio show. I'm Ricky Mulvey, joining me on the internet today. It's Matt Argusinger and Jason Moser. Motleyful analysts, Matt Argusinger and Jason Moser. Great to have you both here. Mr. Mulvey. Good to be here. There's a big tech, and I'm going to call it a macro story going on that I think we should dig into at the top of the show.

And it's about data centers, the amount of real estate and big tech spending going on here. And we have someone who looks at tech. We have someone who looks at real estate. So we're going to get both sides of that story. McKinsey estimates, and let's take that estimate with a grain of salt from our friends at the consulting firm, that global data center spend will require nearly $7 trillion in capital outlays.

And the New York Times recently reported on Amazon's project rainier. and just the massive investment going on here. It's Indiana facility, J-Mo, will require enough electricity to power one million homes. That's a lot of juice. J-Mo, what does Amazon want from Project Rainier? Rainier is it? Raneer, Rainer.

Rainer. Reiner. Yeah, let's just say Project Renier. Reindeer. Yeah, let's just say Project Reneer. That's what I'm going to go with. I don't know. But what is Project Reneer?

It is a massive, one-of-a-kind machine. It's a mountain, Jamo. It is a mountain. This is the project, though. This is the project. Yeah, it's this massive, one-of-a-kind machine, which is ultimately designed to bring in this next generation of AI. And it's spread across multiple data centers here in the U.S. And this cluster ultimately will connect hundreds of thousands of Amazon's Traneum to chips across the U.S. as well. Now, what is Traynium? Trinium is that family of machine learning chips designed by Amazon Web Services, specifically designed for AI training and inference. So, what this does you do, this really goes back, it takes me back to something Jensen Huang,

CEO of Vindia said a little bit back where he envisions a future where data centers are AI factories processing massive amounts of data to train and refine AI models. And this concept of the data center being the new unit of compute. And I think we're seeing that play out, right? I mean, they built, Amazon's built 70, built seven data centers in Indiana alone. They're going to be 23 more. And this is just a massive, massive presence. This is also for one customer, this one, just for Anthropic, which has the LLM Claude. And when you think about these AI factories that are being built at these data centers, it's impossible to imagine all of the use cases. But what do you think that Amazon is hoping that

Anthropic and Amazon can achieve with these massive centers? So I know Anthropic is going to use this cluster, right? This new AI compute cluster to ultimately build and deploy future versions of its AI model, Claude, as you noted. Now, the project is going to provide five times more computing power compared to Anthropics' current largest training cluster. So, I mean, that's obviously a big step up. And when you consider Anthropic, they're trying to build an AI system that essentially matches the human brain and then we'll go from there. I mean, And obviously, this is a big task. They have big ambitions.

They plan to train and build AI systems with this complex. But then Amazon also notes that it should ultimately serve multiple needs. Like, if when training becomes significantly more efficient or if AI development hits a wall, I can imagine at some point we'll run into that situation. Then, I mean, this facility, this project could be used to deliver AI technologies to customers. So there's a big focus on efficiency here as well. When we think about Amazon as a whole as a company, from a buyer, from a retail perspective, most of your interactions with that company are buying things on the internet and having them come to your door within the next two days.

But if you own the stock, you really want to look at Amazon Web Services because that's where most of the operating profit comes from. You're looking at these big outlays of these massive data centers being built. Certainly Amazon's betting on that. But do you expect that to be true that Amazon's going to make most of its operating? profit from Amazon Web Services. That's the profit driver for this company in the next five to 10 years. I think that's more than likely the case. I mean, the company made close to $69 billion in operating income in 2024, and AWS was about $40 billion of that. So, you know, around 58% of total operating profit came from AWS. Now, it's worth noting in 2023, it was actually 67%. So that number

has pulled back a little bit. Now, obviously, they're making a lot of big investments. I would say, AWS is going to remain a very key driver. I think in time, as investments are realized, we can certainly see that number go back up. My suspicion is it will. But again, as an investor, and I'm a shareholder of Amazon, a long-time shareholder. The beauty of Amazon is it makes its money in a number of different ways. I mean, you just look at their ad business alone now, tracking on around $80 billion annual run rate, and that growth rate is also tracking with AWS.

Now, I don't think it necessarily has the same market opportunity that AWS has, but it just goes to show that Amazon has a lot of different ways it can win. So, lots to dig into in the New York Times story. It's titled, at Amazon's biggest data center, everything is supersized for AI. If you want to get upset about a political story, one you can is that Indiana gave Amazon a 50-50-year sales tax break for data center equipment. And that goes, I think, across the board for big tech companies. So just something to ruffle your feathers a little bit as we get to the real estate side of

this story. Matt Argusinger, we are not the first ones to notice the boom in spending and demand for artificial intelligence. There's a huge amount of interest among REIT investors, real estate investment trusts. You look at something like digital realty trust. It operates data centers, and it is now trading and in earnings multiple of 150 150 times. You see that for a growth stock sometimes, but not for a REIT, man. What's going on here? Well, so on the surface that, Ricky, that definitely appears like an incredible valuation for digital realty. But you have to remember with REITs, particularly one that's completing a lot of developments, making a lot of acquisitions, they generate

a lot of depreciation expense. So when you value a REIT, you want to strip that out as well as other non-recurring expenses. And you get at what the REIT industry calls funds from operations, or FFO. That's basically the ongoing cash flow to a REIT. And if you look at management's latest guidance, digital realty is on track to generate around $7. $0.10 in FFO per share this year. So that puts its earnings multiple around 25. Still lofty for a reed, but a lot more reasonable than 150. And maybe not so inappropriate for a reet that is really at the at or near the vanguard of this AI investment cycle we've been talking about. Okay. So 25 is a little bit better than 150, but I still see a lot of interest here.

And I remember what happened sort of, let's say peak COVID, when there was the real estate story of the great move to the Sunbelt, where people are going to work from home and they're going to need apartments in the Sunbelt. It happened to Mid-America apartments. And there's, you know, a lot of growth can get pulled forward. And then there's a leveling off sometimes for years at a time. Do you think there's, you know, could the REIT market specifically for these data centers be a little frothy right now? Any hesitation for investors looking at this space? I'd say it is a little frothy, Ricky. I mean, and I think the apartment comp you make is a good One, so many developers rushed into build apartment buildings in states like Texas, Florida,

Arizona, you know, right after COVID. And that led to a huge oversupply that has pressured rents on these buildings in those states. And it's hard to say whether data centers are in that same kind of bubble loop, but the sheer amount of spending to me is just extreme. And it's coming from so many different players, whether it's REITs like Digital Realty, which we talked about, you've got the hyperscalers like Amazon, Meta. And you've got private equity. I mean, in that New York Times report as well, you've got Blackstone, BlackRock, KKR, making huge investments.

So I think taken all together, it feels a little frothy. And you have to remember to me, we're dealing with technology here. What if smaller, more powerful chips come out of the next decade that just don't require the same amount of space or the same amount of power? Could that render a lot of this build out we're seeing obsolete? It's not an unreasonable question. After the break, hymns and hers get knocked down more than 30% on a bad breakup. What happened there? Stay right here.

You're listening to Motley Full Money. In a world full of noise, long-term thinking stands out. On the Capital Ideas podcast, Capital Group leaders explore the decisions that matter most in investing, leadership, and life. It's a rare look inside a firm that's been helping people pursue their financial goals for more than 90 years. Listen to the Capital Ideas podcast from Capital Group, published by Capital Client Group. Welcome back to Motley Full Money. I'm Ricky Mulvey, joined by Matt Argusinger and Jason Moser. Listeners and Matt and Jason, before we get back into the show, I just want to note that next Friday will be my last time hosting Motley Full Money. More to come, but for now I just want to

express my gratitude to this organization, to you, the listener, for making us a part of your daily routine in some cases, and just say that I will dearly miss working with the good people at the fool every day and that I'm optimistic about the future. I'm excited about what's to come. No good way to get to the next story from that, but I will try. Let's get to this Hems and Hurs story. Earlier this week, online healthcare company Hems and Hurs dropped by more than 30% after Novo Nordisk accused the company of illegally selling knockoff versions of Wagovi. Hems and hers CEO, Andrew Dundum, biting back, responding on X, that, quote, Novo Nordisk's commercial team increasingly pressured us to control clinical standards and steer patients to Wagovi regardless of whether it was clinically best for patients, end quote.

This breakup comes shortly after the partnership was announced. Jamo, why was this partnership ship such a big deal for Hems and hers in the first place? So, you know, it gave them access to a leading GLP1 drug, which I think enhanced credibility, which I think could help the company achieve its long-term growth plan. and I think it was some validation of the model, right? Now, on the flip side, and Hymns is certainly not the only company that does this, but I mean, they have a focus as well on these compounded drugs, which serves a purpose for sure, particularly in shortages, but they're also not FDA-approved, so there are questions as to whether

they're actually serving the patient's best interests. And I think when you put all of this together, it just gives investors, least a little pause. I'm not saying it's something fatal for the company, but I think it gives investors a little bit of pause there. Dave Moore, the EVP of Novo's U.S. operations, said as much regarding the decision. He said, I quote, we expected that the efforts towards compounding personalization would diminish over time when we didn't see that. We had to make a choice on behalf of patience. So it's just very interesting to see sort of him's perspective there and Novo's perspective there when it comes to the best interest of the patients, I guess we will see

how this evolves. But it's worth noting. I mean, give Hems a lot of credit that shares have been on a tear recently, and it's easy to see why the company's grown revenue annualized 80% over the last five years. I mean, it's just been on fire. This is a company I've taken a look at. In the bull case that I've heard, there's a lot of excitement. The bull case for Hems and hers is that it could pool like a Netflix or Spotify for direct-to-consumer healthcare with personalized treatments. And you've also got an AI-driven platform. We're redefining healthcare. Are you buying the bullcase? Sort of on the fence with this one. I think it's certainly possible, but they need to be careful of how they go about it. This is something that comes with some reputational risk. And it becomes

this platform that just provides non-FDA-approved, compounded drugs, and utilizes questionable marketing tactics, I mean, that could absolutely scare people away, right? I mean, that sort of in the best look when it comes to health care. So, they'll just need to be very thoughtful, I think, about their next steps and how they ultimately communicate with not only their prospective customers, but also investors. because part of their growth strategy is explicitly stated in building partnerships and expanding globally. And if they're not able to achieve that, that's going to be a big problem for the growth picture going forward. Matt, any concerns when you hear X stock is the next Netflix, the next Spotify?

You always have to be careful with those, Ricky. I mean, it wasn't, I think, more than several years ago when investors were calling Nikola, the next Tesla. Remember, Nicola? It demonstrated its electric trucks by rolling them down. Hills. And there have been so many companies I've fallen for this over the years that have compared themselves or called themselves the next Berkshire Hathaway. I have a long list year. I won't get into it. But I've learned, and I think Jason has as well, when you say XYZ is the next ABC, you're almost always better off holding or buying ABC. I feel like you were getting ready

to say Big Laurie Holdings. I was. It's on the list. Boston Omaha is on there. Serious Holdings, by the way, when a Lamper was running it. Yeah. Hey, don't forget, Boston. at Omaha had a guy running it who was war was it war was it warren buffett's great nephew i think he's still running it i think oh he is who's now the only CEO but yeah that definitely not the next bircher hathaway i can promise you that's that's that's a real stretch i got to start publishing who my cousins are on the show all right i want to do this story and i'm stealing it from a podcast i really like matt bell and he's the town and at the midpoint of the year which we're at about at they looked at sort of the overrated and underrated business stories of the year so i thought it or for entertainment for them but

I thought it would be fun to do it more holistically for business stories. I'm going to stay on Matt with this. So, Matt, first up, what is your overrated story of the year so far? All right. I don't want to ruffle any political feathers here, but Doge. Remember Doge? I do. I mean, there was supposed to be, I don't know, $2 trillion in savings, and it became $1 trillion in savings, and they got rid of the guidance. But, I mean, I don't know. In most reports right now say that the Doge, by the way, the Department of Government Efficiency, previously run by Elon Musk. It's saved or it's cut somewhere under 100 billion in costs. And there's even some reports out there that suggest that actually it's actually cost taxpayers more, some of the efforts because of the inefficiencies and some of the replacement costs. So again, I don't want to get into politics at all. But I think clearly there was both

significant hype and significant concern about Doge. And it basically has turned into a nothing burger as far as I can tell. I went to a crypto convention earlier this year, and they had a McLaren that had the Doge logo on it, and then like a stand that was just like for the Department of Government Efficiency at this cryptocurrency convention. And Matt, that is when I first started to have my doubts about that project. Jason, what is your overrated story of the year so far? Well, I'm sure this is going to ruffle a few feathers, too, but I got to tell you, that Tesla Robotaxie thing just seemed like a dud, man. I mean, Musk has been promising this thing for years.

Granted, he's delivering it in some capacity. Obviously, he never really hits his timeline, but he's all the way he's been ripping on geofencing. They've got to use geofencing. He's been ripping on having human supervisors and cars. He had to have human supervisors and cars. And, I mean, the rollout was to a very limited invite-only audience. You have to assume that's a very biased audience in Tesla's favor. So they're going to say it was great no matter what.

But the videos that I've seen, the accounts of misfire, some of the things these cars did, I think just demonstrates that they still have a lot of work to do. So I'm not saying they won't get there eventually. I want to take my hat off to them for doing what they're doing. I think it's important technology. But, man, it's just going to be a while in that event, I thought, was just overhyped and underdelivered. I'm going to give you a quick one that's non-Musk. And that's the rise of investor interest in Evaddles, these personal air electric taxis.

there's companies bidding up these companies, there's investors bidding up these companies by the billions for companies that don't have revenue and a lot of big questions about the regulatory landscape for putting these electric air vehicles in cities. And this is one of those things. You hear about self-driving cars crash. What happens when that's an air taxi? Okay. That's a negative story. Let's get an underrated stories of the year so far. Matt, what's your underrated story of the year so far? All right. This would be strange based on what Jamos said. But my, My underrated story is actually Robotaxi. Yes.

I love it. Not because, I mean, I'm not reversing this here. I think, yeah, the Tesla rollout was pretty much a disaster. But I think the concept in general is going to be hugely life-changing. I mean, if in five years, most of the taxi rides you get in a major city are through an autonomous vehicle, I think that has major implications for life, for the economy, et cetera. So I actually think it's, even though it's all over the headlines, we've talked about it, It seems underrated still.

And JMO, as we start to wrap up, you got an underrated story of the year so far. Sure, yeah. We talked about this a few weeks back, but I think we're starting to see the IPO market open up a little bit. And I think there's some potential for some above-average activity here in the back half of the year looking at technology, healthcare and fintech. We've got some drivers there, private equity looking to cash out. You get stabilizing interest rates. It looks like relatively strong market performance, which could help drive that demand.

So it just doesn't seem like something that's being talked about a whole lot. But I expect activity to pick up here in the back half of the year going into 2026. There's been some big IPO so far this year. Yeah. My quick one will be the return of speculative bubbles. I think there's a lot of speculative investing action going on in 2025. It seems a little like 2021. All right.

Up next, we are checking in on a company solving one of the most important health care problems. Stay right here. You're listening to Motley Full Money. These days I'm all about quality over quantity, especially in my closet. If it's not well made and versatile, it's just not worth it. That's honestly what I love Quince. The fabrics feel elevated, the cuts are thoughtful, and the pricing actually makes sense. Quince makes high-quality wardrobe staples using premium fabrics like 100% European linen,

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free shipping and 365-day returns. That's a full year to wear it and love it, and you will. Now available in Canada, too. Don't keep settling for clothes that don't laugh. Go to Q-I-N-C-E.com slash Motley for free shipping and 365-day returns. Wentz.com slash Motley. Welcome back to Motley Full Money. I'm Ricky Mulvey. Pete Anewski is the CEO of Progeny, a company solving a life-creating problem. Progeny specializes in fertility benefits, especially for self-insured companies. Anewskiy joined Motley Full Senior Analyst, Tim Byers, and Holly Anderson, who works on our benefits team,

to talk about progeny's growth path ahead and the company's unique partnership strategies. Pete, so great to see you. Thank you for being here. We really appreciate it. I mean, we gave you a quick intro for what progeny is, but we would love to hear before we get into the opportunity how you see progeny. How do you describe it? And again, thank you for being here. Yeah. So first of all, thank you as well. I was really looking forward to this for a couple reasons one. As you guys already mentioned, you're a partner and you'll offer progeny to your employees. We're really proud of that. But also, just for my own personal success, feel, or achievement, I discovered progeny personally, not progeny, sorry, Molly Fool, personally in the early

90s, used it a lot, loved it, loved it as a service. And so to come full circle and be invited to do an interview on the platform on the show is really, uh, fun fact for me personally. So thank you. So Progeny is a global leader in women's health and family building solutions. We focus on areas that are either overlooked or underfunded by managed care, and we address issues that fill those gaps. And so that's generally what we do across all of our products. We started first in the facility and family building solutions, product step, but then have expanded beyond that. So we're really excited to talk about what we did. Yeah, we're going to get into more of that because you're right. You know, there's, there's been

some expansion and what you do, but I want to just start. We're going to get a little bit more into your story in a minute. But before we do that, let's get into the progeny story. This is how I've heard you describe it, Pete, is that there are, the opportunity is there about 105 million covered lives that you could address. And you're currently addressing, I'm, these numbers may have changed fools, so don't hold them to me exactly, but roughly 6.7 million of those are about 6.5%, 6.4%. So how much do you need to invest to scale that? Because this does sound like if I'm an investor, this is a scale story. This is a benefit that we could scale to a lot more people. What do you need to do to scale that? What does that cost? Yeah, it's a great question.

So it's not necessarily a cost answer. It's a constant evangelizing and creating awareness around and understanding of why this benefit is the top five benefit that your employees want. Millennials, as an example, in the workforce are the largest portion of a population today in the U.S., right? Millennials are also the age group that will use a fertility benefit. The average age of a woman going through fertility treatments that's infertile is 36 years. old, right? So it's an important part of your workforce. It's usually your middle management. It's usually the blue that holds a lot of things together. And so it's a really important benefit. And it's one that, you know, based on benefit in solid surveys that employees look for

when they're looking for a job because it's that important to them. So it's a really important area. So it's constantly making sure, constantly competing with other decisions that companies are making relative to managing benefits overall, relative to. to addressing medical cost inflation relative to anything that's sort of out there that they're struggling with. And so it's a prioritization exercise for them. And so whether they do it today or do it down the road, more and more companies are adding the benefit and we'll keep doing that. And as more and more companies offer the benefit, those other companies who realize they should be offering the benefit but aren't sort of come on board. So it's constantly educating the market.

One thing that stands out to me about progeny is the unique smart cycle approach to fertility benefits. So I'm curious, when you're looking at potential partnerships or acquisitions, what's your process for identifying opportunities that will enhance both progeny's services and financial strain? And then also, what ensures that these partnerships stay true to progeny's mission? I love the question. So we leverage partnerships in many different ways, right? we leverage them relative to go to market. So in terms of financial strength, we leverage them and go to market. And so we have partnerships with many of the constituents within health care. So for example, we've been adding a lot of payer partnerships. So we've taken what are competitors

and now they become partners. And the payers recognize that we have a solution that's sort of differentiated versus what they're offering. And it's a function of the fact that they're dealing with managing thousands of conditions, and we're focused on one, and so could do a much more comprehensive job. And as a result, the most recent announcement around that was our agreement with Cigna, right? And so that's one of the partnerships. We use partners, relative to advancing our ability to go to market with products to the extent that we can do that. And so whether they're partners or an acquisition opportunity, we'll look for those opportunities to the extent that they're on our roadmap and things that we're looking at, or if it makes sense

with the audience that we address today, we will add those as well. And so it's a, you know, on a product basis, it's a classic buy versus build or partner. And then in terms of go-to-market relative to the overall offering, it's leveraging, you know, the partners that are out there in the healthcare ecosystem. I think one of the tough things is progeny, seems to be one of those benefits. And Holly, maybe you could speak to this first. It's one of those benefits that doesn't come up until somebody has a question about, hey, does the Motley Fool offer this? And then we introduced them the progeny, and it's amazing. And they end up doing it. So there's like, you talked about this in terms of evangelizing. But Holly, what do we do on our end?

Like, how do we get more of our people sort of digging into the progeny benefits? We do a lot of training, education. We've sent out postcards. Actually, we didn't. Progeny sent it out on our behalf for Women's Month. That was awesome. We promote it to our prospective employees. And I say that because we've had people join the fool and start using progeny the very next day.

So we've had to be very quick on getting them enroll. old so that they can start. And now one person in particular, you know, she has a baby now because of it. So I love the benefit. And I think that it just really, it's a benefit forever in a sense that once they have a baby from the Motley Fool, support of progeny, that even 10, 20 years down the line, they'll look back at the Motley Fool and progeny and think, look what they gave me. We do. I think my passion and our passion as a company also helps because we're always sharing, like, it's a great benefit. It is. And I have to say, I mean, I have, I won't, I won't go into the details for privacy reasons, but I have, I have recently held a baby that came into the world with the

help of project even. It's, it's pretty amazing. Peter, want to come back to a bit of financial reality. And again, fools, you can ask questions about this. This is a rule breakers picking. It hasn't, it hasn't quite worked out yet. I want to talk a little bit about unit economics. You've I've already answered some of this. So I'm going to flip it a little bit. You've talked about, you know, kind of expanding the opportunity. Could you help us understand what's the situation that really is ideal for progeny? Like, what you want to see? Is it over time a progeny client tends to, like, add more services and spend more money? So in terms of a unit economic benefit, it, you know, like staying power, like aging is something that really works best for you. So if you

have a client that has been with you for five years, the margins on that client tends to get better. Or is it something else? Like, help me understand the unit economics. How do you grow, or maybe put it this way, expand the cash flow that you're already generating today? How do we get it to even higher cash flow margins and say over the next 10 years? What needs to happen for that to come to be? Yeah. So there's a couple of things that are really important. I'll also throw in the macro trend that are going on that's helping fuel the need for our services, right? The natural, the fertility rate overall nationally has been declining and continues to decline each and every

years since 2000. The age of a woman having a baby in the U.S., in the latest reported data, from the CDC, more babies were born in a woman over 30 than under for the first time. And in the average age of a woman, there's a decline in the number of babies being born in the U.S. over the last 10 years of roughly 1.7%. But the 35 and overpopulation has been growing at a compounded rate over the last 10 years of 2.5%. And again, the average age of a woman going through in fertility and needing fertility treatment is 36 years old, right? So that macro trend is fueling sort of the need overall, right? At the trend with our clients, since the beginning is a couple of things. One, we have a 99% retention rate and had that for years. That's sort of

unheard of in the healthcare space. There's a reason for that. We provide a great service and we help a lot of people out and we're very differentiated. But the second piece of that, and the Molly Fool is an example of it, is the product expansion. So every year, roughly 20 and last year, year was 30% of our clients add to the benefit somehow. They expand either smart cycles. They'll maybe add egg freezing and facility preservation that they didn't have it. They'll add adoption and servicely. They didn't have it. And in the latest year, on top of those things, they also added menopause and pregnancy and postpartum, right? And so it's all of the above, right? As time goes on, it's continuing to provide a differentiated value-based service that changes people's lives

and create more and more of those solutions so that you have a stickier overall client base, and on top of it, continue to create products that are useful and address a larger population, larger portion of the employer's population, so that more and more problems get solved, and we help more and more people. and then obviously the financials take care of themselves from that happen. As always, people on the program may have interests in the stocks they talk about and the Motley Fool may have formal recommendations for or against no buy yourself stocks based solely on what you hear.

A personal finance content follows Motleyful editorial standards and are not approved by advertisers, advertisements or sponsor content provided for informational purposes only and see our full advertising disclosure. Please check out our show notes. Up next, radar stocks. Stay right here. You're listening to Motley Full Money. The old adage goes, it isn't what you say.

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plug-in hybrid with an estimated range of 53 miles, there's an option for you. With seven terrain modes to choose from, terrain response two fine-tuned your vehicle for the roads ahead. The Rangerover event is on now. Explore enhance offers atrange.com. Welcome back to Motley Full Money. I'm Ricky Mulvey joined again. Matt Argusinger. Jason Moser. Fools, a good time to check in on the summer box office season well underway. And one surprise to me is this opening of Elio, which was the Pixar movie this summer. Usually that does really well. It's a family-friendly original film from Disney brought in $21 million at the domestic box office this past weekend.

Matt, it turns out audiences, they're not asking for original movies. They want IP. This is interesting to me because there's parts of Disney where they've done really well. They had Inside Out 2 last year, one of the biggest animated films of all time. But it's definitely had some stumbles lately. I'm a Disney shareholder. How should I take in this news, if at all? It's not great news, but Disney has such a vast and diversified portfolio now.

In the past, it really needed like that once a year or once every two year Pixar film to really hit. Now it can have a clunker like LEO as long as there is Inside Out 2, Bwana 2 or even the Thunderbolts movie earlier this year did a lot better than expected. So I think there's a lot more, though, writing on this fantastic 4 film coming out next month because if it's a hit, it will set the stage for kind of that next leg

of MCU films over the next several years, which are going to be a lot more vital to Disney. But I don't think Elio is going to be going to meet much in the long time. Which are no longer guarantees, by the way. So Thunderbolts, which was a good movie. Critics liked it, audiences liked it. I saw it. I had a good time at the Thunderbolts.

And you know, you would think, oh, with Guardians of the Galaxy, you can get people to see new superheroes. Not really. The film didn't perform that well. Right. So, yeah, we'll see. Yeah, and I think that's also a function of just, it's a different time, right? I mean, getting people out into the theaters is just a tougher proposition because we have

so many other things competing for our attention today. So, I mean, it's not just making a great movie doesn't seal the deal. You still got to get butts and seats. And that's just more difficult to do today than it was 10 years ago. And great original movies can still bring people in checkout centers. It is awesome. Question before we get to radar stocks, though. If you could buy stock in one movie coming out this year, even in this tough environment,

J-Mo, what stock are you buying? Okay, so is this a movie that has been released or has yet to be released? Because it feels like to me it begins and ends with the mission and pop. possible movie with Final Reckoning. Like, Tom Cruise is single-handedly saving the industry on his own. But I will say, if you're looking for one that is to be released, I'm going a little under the radar here. Spinal Tat 2, the end continues. I think it comes out in September. Turn it back up to 11, Ricky. Matt, I thought it was pretty clear we were doing movies yet to be released. All right. I just wanted to make sure. Less information about it. But Moser wanted to cheat a little bit.

that's okay by picking a Tom Cruise movie that's already come out this year. Spinal tattoo is my final answer. Fair enough. Matt, what stock are you buying? I'm buying Superman. Ricky, next month, James Gunn. I mean, this is a pivotal movie to revive the DC Universe film franchise, which actually has never been that great. So I really hope it succeeds. I also have a vested interest as a big owner of Superman comic books. So I have a lot writing on this release next month. I'm pumped. I'm excited. For my pick, I'm taking one battle. after the other 100 million plus Paul Thomas Anderson movie, but I think that movie rules. I hope it does. I really do. Let's get to rate our stocks. You'll pitch a stock that you are interested in.

And then Dan Boyd, our man behind the glass will hit you with a question, concern, or a backhanded compliment. J-Mo, what you got this week? Yeah, I'm going to go with Uber, ticker UB-E-R. We were talking earlier about Tesla's Robotaxi event. And on Tuesday, Waymo Robo taxis became available to Uber users in Atlanta. under much less fanfare. And that's honestly kind of one of the things I like about Waymo is they're under that shelter of alphabet. So they don't really have to get out there and sell the sizzle. I mean, they just kind of get to work and do what they can. But it seemed like it was received well.

It covers approximately 65 square miles around the city. And it's something that is available to Uber passenger rides only, not Uber eats deliveries. But, I mean, when you look at Uber, we talk about how autonomy is going to disrupt them, perhaps. So, it's very clear that Dara Kashashari is completely in on the autonomous future. And, you know, I personally would not look at Uber and say, well, this is the company that's being disrupted. They're a company that's participating. And they're participating today by, you know, the partnership with Waymo, for example. And we'll see how that all goes.

But I don't think this is a winner-take-all market, right? I mean, I assume Tesla will succeed. I also assume Waymo succeed. And I think that Uber succeeds by virtue of however it approaches the space. And right now, it's via that partnership. But you see, the most recent quarter they had. They grew bookings, 18%. They grew trips, 18%.

Revenue was up 17%. I just think this company has so many different ways to win. And very forward-looking. So I think it's one worth keeping on the radar. Dan, question about Uber. Yeah, Jason, how's that total addressable market looking these days? Does it steal the entire population of planet Earth? I think that's a fair assessment.

They just bought this 85% stake in a Turkish food delivery platform called Trendy. I'll go for $700 million. Hey, they're going global, Dan. Matt, what you got this week? I hope it's not a Turkish food delivery platform. No. Otis Worldwide, ticker O-T-I-S. So this is, of course, the elevator escalator company.

So it was spun out of United Technologies in 2020. So it's actually only been a public independent company for about five years now. As you guess, it's the leading manufacturer. And this is key, though, leading maintainer of elevator and escalator systems around the world. 20% market share of new equipment sales. But here's what I like best, 2.4 million unit maintenance portfolio. So that means Otis has this very large, stable base of units that has to keep in working order. If you're a landlord or a major building manager, you've got to keep those elevators running.

And so you need Otis to come out there and service them. And with Otis in service and modernization, which is about 65% of revenue, 24% operating margins on that business. So it's a great business, great recurring revenue business. The dividend yield is only about 2%, but they're raising that dividend by quite a lot. They've grown it by 110% over the last five years, also buying back a lot of stock. Dan, quick question about Otis. Yeah, I think with respect to Uber, but I think that if Otis disappeared tomorrow, I think the impact would be a little bit bigger. than if Uber did. So I think I know what's going on your watch list this week,

but Dan Boyd, what stock is making your watch list? Sometimes we go up, sometimes we go down, but this week, gone with us. I love it. I hate it. I hate it. You can love it, but I hate it. Okay, that's the end of the show. I'm Ricky Mulvey. Thank you to Jason Moser. Thank you to Matt Argusinger.

And thank you to Dan Boyd for mixing the show.